kathyc2

14 hours ago, mcb39 said:

If she is a half time student, the rule as I understand it is that the tuition follows the exemption, no matter who paid it.  I would tend to give it to the parents.  Many times, we figure it both ways and let them decide who to give the credit to, and who benefits the most.

Half time student determines if AOC is available.  To be a qualifying child she would need to be full time for 5 months. Parents can not claim her.

Since property is in KY, it is taxable there.  Since it was only one month after they moved, I'd look to see if they were WI resident at the time of sale.  When did they change such things as drivers license, car plates, etc. 

I'm at a loss why someone would want to track this manually rather than on a spreadsheet, but some options:

In Amazon search for trading log book for numerous options.

If you use comb binding for tax returns, make your own.

Google custom book binding for any number of companies that offer that service.

The loss on 8995 is NOT a deduction for FIT.  It is strictly used to calculate QBI deduction.  Any profit this year would need to be reduced by the 8995 loss before calculating any 199A deduction.

22 minutes ago, Catherine said:

The forms may also insidiously end up being issued years afterwards, when the taxpayer is no longer insolvent. Then it can become taxable income.

Solvency is calculated immediately before discharge. Only if the date of identifiable event is incorrect on form would solvency after the fact be considered. 

Instructions for 1099C:  https://www.irs.gov/instructions/i1099ac#en_US_202201_publink1000284973

If insolvent it's not taxable, but if form received it needs to be accounted for on return.

Page 8 is where you enter MT source income.  You entered 130K as MT income.  Column B is for spouse MT income, not the total of MT income.  Put the 5648 in Column A.

Did you fill out tax schedule page 8 of form 2 to indicate MT source income?

Amazingly 20 minutes after e-mail she shows up all apologetic.  Didn't give her the return, only the original documents. 

I'm fortunate enough to be at a point in my life where I don't need to be bringing in money from preparing returns. For the most part, I still enjoy it and the vast majority of my clients I look forward to seeing each year. 

Email sent and now I'm going to go dig in some dirt and plant some veggie seeds! 

I'm essentially done other than one that is a total PITA.  They dropped off info late March.  I sent email of a couple basic items missing.  Various emails over the last 2 weeks to get the info.  Sent email that they were done Tues, and she replied she will pick up today.  Did not answer my return email as to what time today.  I sent another this morning saying they need to be picked up by 1 pm.  At 1:05 I'll be sending another email with password protected file of their original documents telling them they need to go somewhere else.  They have 1 dependent that graduated HS in 2023 and another in college.  Guessing at least one of them filed their own returns without indicating they were being claimed by someone else.  Same crap happened last year and needed to prepare a revised return for them on 4/18 because kid claimed herself.  

I can be very nice until I feel taken advantage of.  When I reach that point, look out!

Seems like your transaction would be a debit to partner draws and a credit to loan payable. 

A loud fan likely means dust has accumulated inside unit.  Shut it down, remove the cover and vac or blow out dust.

It can also mean something is hogging CPU or memory.  Ctrl/alt/del to bring up task manager than then look at processes to see if something is using up resources. 

Thanks!  That's exactly what I was looking for.

Does anyone have a link to list of states that require a separate extension request rather than just filing federal 4868?

Are you talking about donating the house to the charity, or keeping title and letting charity use it tax free?  If the former see Pub 926. If the latter see this: https://www.law.cornell.edu/cfr/text/26/1.170A-7

Pub 526.  Particularly page 12 Giving property that has increased in value

15 minutes ago, Randall said:

Don't they pay the attorneys directly now and the amounts on the 1099-SSA net of those fees?

It doesn't reduce the Box 5 benefits.  It does show in the box that explains the difference between Box 5 benefits and the amount paid, same as Medicare or tax withheld. 

They were deductible in past as part of 2% items on Sch A. 

3 hours ago, Corduroy Frog said:

My real question is whether a participant can avoid W-2G income by leaving money in the account.

5K is taxable and shows on W2G.  He took 4,300 from account by gambling.  He took 450 cash out.  The 250 left he can take out.  

He can claim 4,300 loss on Sch A.

Just received an email from "Karen"  that says "I have uploaded my 2023 tax documents in the workdrive below secure link, please look through it, and let me know if you need any additional  information. Also will it cost the same as the last."

I'm small enough that I know all my clients and didn't fall for it.  Those that deal in volume returns or have staff beware!
 

40 minutes ago, BulldogTom said:

I think QBO as the payment processor should issue the 1099K, which would relieve the payor of the responsibility to produce a 1099NEC for the recipient. 

QB payments does issue 1099K if the threshold is met.  If amounts client paid is less than threshold, they should issue the appropriate 1099 in most cases.  

2 hours ago, Corduroy Frog said:

Anything slowing down real estate hurts those in much lower tax brackets, slows down construction jobs, slows down the economy.

I'm old enough to remember a major recession caused in large part to people buying McMansions they couldn't afford. 

1 hour ago, Corduroy Frog said:

The current rates for LTCG are 15%, plus another 5% for the big income people, plus 3.8% NIIT.  Total 23.8%.

Well, cry me a river.  To be at the 20% LTCG rate, their marginal rate is at a minimum 35%.  So, they get a discount of 15%.  Those at 12% marginal rate have 0 for LTCG rates or a 12% discount.  Middle income people at 22% marginal rate and 15% get a 7% discount.  

It's always been my policy that in situation where the code doesn't provide a clear answer, it's up to the client if they want to be more aggressive or more cautious.