Randall

Sara, I'm using ATX. Going to the worksheet for Line 10 (2014 program), there is a line to manually input the amount of the limit if tax benefit was limited due to prior year AMT. Without entering an amount there, the program automatically shows the full refund taxable. UltraTax is one of the high end programs but ATX is not calculating the taxable amount, just showing the full refund as taxable unless I manually enter a limit on the Line 10 worksheet. 1040 instructions have a similar worksheet as ATX but says if prior AMT limited tax benefit, go to Pub 525. Pub 525 is a little wordy in the section discussing the prior year AMT limitation. I went to my 2013 ATX program and duplicated the 2013 return so I could play around with the Sch A tax deduction to see the tax and AMT outcomes. With my original post, I was thinking the taxable limit of the refund would be the $5k tax increase but I don't think that's correct. I went back to my 2013 duplicated return and entered different amount for the Sch A tax deduction to see when the total tax (Reg plus AMT) would change. It appears the first $28k of the Sch A deduction causes no change in the tax. But above that amount, there is a tax benefit. In my case, the refund is $61k and the total tax paid to MD was $68k. So now I'm wondering if $28k of the refund should not be taxable and the limit entered into my Line 10 worksheet should be $33k (61 minus 28). It appears that the additional $33k Sch A deduction has resulted in the tax benefit ($5k). Pub 525 says to go back to 2013 and recompute the tax. If no change in tax, do not include recovery (refund) in 2014 income. If recomputed tax increases, include the recovery (refund) up to the amount of the deduction that reduced your tax in the earlier year. That's why I'm thinking $33k of the refund should be included in 2014 income.SA

Client (OH resident) sold property in MD in 2013. MD required a large withholding on gross proceeds ($60k). 2013 Sch A included the $60k as a state tax deduction. But this caused a large AMT also. For 2014 return, reading instructions and Pub 525 seems wordy and confusing. To recompute 2013 tax without the Sch A state tax deduction, I went to 2013 ATX, duplicated the return and backed out the $60k deduction. This showed regular tax $17k more and AMT $12k less. Total tax shows $5k more. Am I correct that the amount to show on 2014 1040 line 10 would be limited to the $5k, the actual tax savings of the 2013 Sch A deduction for the state tax?

Her attorney should work with his attorney on getting a corrected 1099 issued. You may still have to expense it out to get the 2014 return completed by 10/15. But longer term, the corrected 1099 will be best.

Yes. But you have to do one asset at a time. Can be time consuming if you have a lot of assets. In Fixed Assets, highlight an asset. Click on Print Page. You get a drop down menu. You can check the sheets you want to print. Before doing, change printer to your pdf printer so you don't get a lot of paper printed.

This is what the software companies are doing. I had Peachtree (Sage) for years. I didn't renew this past year. Now I can't use the previous year version which I paid for and have installed on my computer. I can only read what I previously have entered. I can't make changes or start a new company. It's called software as a service (saas) whether it's in the cloud or on your machine.

I agree with David and Sara. When property is disposed, suspended passive losses are freed.

What if one of the IRA accounts is an Annuity Contract IRA (traditional) and the other is a brokerage IRA account?

Jack, could you elaborate on that? I thought (at least by computer), they may compare 5498s, 1099Rs matched to one's ssn and age.

Thanks for responses. My case, all regular IRAs. I was mostly interested in any IRS correspondence if one chose to withdraw from only one account.

My understanding is with multiple IRA accounts, the minimum distribution must be calculated on each account. But the actual distribution (total of minimum amount on all accounts) may be distributed out of only one of the accounts. Has anyone experienced a problem when this is done this way? That is, IRS letters assessing penalties for no distributions on the other accounts. I would assume the IRS would trace the ssn from all accounts and realize the distribution from the one account covers all the accounts. But I'm wondering if that is so and would there be a need for follow-up letters and explanations, copies of statements, etc. to clear things up.

I remember that discussion. Something about a late 2014 DOL ruling. IRS extended the previous conditions to 6/30/2015. Has anyone heard anything about IRS ruling on that beyond 6/30? As I recall, we were uncertain how to treat 2% S Corp shareholders. My understanding now is that the S Corp shareholder will have to include premiums paid in his W2 not only for income tax purposes but also social security and medicare tax purposes. I would also advise shareholder to pay his premiums with a personal check and not a business check. Then shareholder also take SE health insurance deduction on 1040 p.1. For other employees, if employer wants to help employees with their health insurance, the additional pay must be included in W2 and have no restrictions on how employee spends the money.

I've gotten more info. Some stays may only be 2-3 days but one was 6 weeks. No cleaning service except in between rentals. Yes furnishings are there but you can rent furnished apartments, etc. I suppose you can go either way. I've decided to go with it as a rental.

Thanks DANRVAN for comments. I keep going back and forth. I'm leaning toward rental now. There's no meals or dialing cleaning services.

A side question. If the original return has not been filed yet, is the refund deadline two years from when the tax was paid?. Say 12/31/xxyear for W2 withholding.

Working on a past year return. Client's farm hit by tornado in 2012. Want to claim the casualty loss in 2013. I think any 2012 refund is lost. Is there some input selection for 4684 to carry this over from 2012 to 2013? Or do I just enter it in 2013? If I enter it in 2013, how do I show the fixed asset depreciation ending in mid 2012. That carries over to 4684 in 2012.

I have the same version.

I opened a return and it was there. I opened a new return and added the voucher.

Has the renewal time period started yet? I haven't received any official notification from IRS.

Thanks for the references. Seems to support what I thought. Non-rental. Client materially participates. No losses. Profit so SE tax will apply.

Client rents a house thru the HOMEAWAY service. It's short term rental like motel accommodations. They pay the local lodging taxes. Just want to verify that this is not considered a rental business but a regular business (Sch C not Sch E). In my case 1065 but no Form 8825. Also, depreciation would be 39 year non-residential.

mcb39, I've done that in the past with no problem on the efiling. Do you really think that would be the cause of the efiling rejection?

Thanks. Spouse was deceased in mid 2014. Filing as surviving spouse. I moved the deceased spouse (husband) to the spouse line and used surviving wife as taxpayer. Efiled the extension in the spring and no problem with the efiling.

I received a rejection error code IND-510, spouse ssn cannot be same as ssn used as primary on another return. Does this mean possible fraud use of the ssn? I remember the topic was discussed previously but I can't remember the procedures. Do I need to paper file the return? Is there a special reporting form also regarding this? Also, is there a publication of all the rejection error codes? I know there used to be in the past but I can't find it.

If using COGS, I use other and list it as contract labor for 1099 subs.

Good to know on the rollover instead of duplicating. Thanks.