kcjenkins

Joel, the thread has everyone agreeing that rebooting deals with it, and acknowledges that ATX is working on fixing it, so what's the point of just going on and on about it? No one has made any comment that is inappropriate or abusive, but it seems like it's some of you just want to keep on beating the drum about how the problem should not exist, which is not helpful. That just stirs up people to no purpose. I am not trying to be a dictator, Joel. I'm just ASKING that we move on, and not make it personal, please.

Astound-ISH ! [you have to watch it to understand this]

Thanks for the head's up, Atticus,

OK, you are all saying the same thing, so please, let it stand. I'm not on any 'side', just think that this is escalating for no purpose.

Yes to the adder for tax advice, because that is always open to interpretation by a judge and that judge may ave zero tax knowledge.

DITTO

Washington, D.C. (February 26, 2014) By Roger Russell House Ways and Means Committee chairman Dave Camp, R-Mich., has released his long-awaited draft legislation on tax reform, to mixed reviews. Based on analysis by the independent, nonpartisan Joint Committee on Taxation, without increasing the budget deficit, the Tax Reform Act of 2014 would create up to 1.8 million new private sector jobs, allow roughly 95 percent of filers to get the lowest possible tax rate by simply claiming the standard deduction (no more need to itemize and track receipts), strengthen the economy and increase gross domestic product by up to $3.4 trillion, the equivalent of 20 percent of today’s economy. Based on calculations using data provided by JCT, the average middle-class family of four could have an extra $1,300 per year in its pocket from the combination of lower tax rates in the plan and higher wages due to a stronger economy. During Camp’s three years as Chairman of the Ways and Means Committee more than 30 separate congressional hearings were held dedicated to tax reform. Eleven separate bipartisan tax reform working groups were created in conjunction with ranking member Sander Levin, D-Mich., three discussion drafts were issued and more than 14,000 public comments were received at TaxReform.Gov. “This legislation does not reflect ideas solely advanced by Democrats or ideas solely advanced by Republicans, nor is it limited to the halls of Congress,” said Camp. “Instead, this is a comprehensive plan that reflects input and ideas championed by Congress, the Administration and, most importantly, the American people.” “It does, in fact, broaden the base and lower the rates,” observed Don Williamson, CPA, executive director of the Kogod Tax Center at American University. “It is intended to strengthen the economy by lowering the rates. The premise is that there would be more money in peoples’ pockets to buy things. However, I don’t consider it real simplification. There will still be a lot of business for tax preparers and accounting firms.” “Everyone assumes the bill is DOA [dead on arrival],” Williamson added. “However, the details are likely to serve as a template for future proposals.” Among the highlights of the Tax Reform Act of 2014 are the following: • New Individual and Corporate Rate Structure: Flattens the code by reducing rates and collapsing today’s brackets into two brackets of 10 and 25 percent for virtually all taxable income, so over 99 percent of all taxpayers would face maximum rates of 25 percent or less. The plan also would reduce the corporate tax rate to 25 percent. • Larger Standard Deduction: Makes the code simpler by providing a significantly more generous, inflation-adjusted standard deduction of $11,000 for individuals and $22,000 for married couples. • Larger Child Tax Credit: Increases the child tax credit to $1,500 per child, adjusts it for inflation going forward and expands the number of families that can claim the credit. • Simpler, Improved Taxation of Investment Income: Taxes long-term capital gains and dividends as ordinary income, but exempts 40 percent of such income from tax, resulting in a 3 percentage point decrease from the maximum rates individuals pay today on such income while also achieving the lowest level of double taxation on investment income in modern history. • No AMT: In addition to lowering tax rates for families and all job creators, the plan repeals the Alternative Minimum Tax for individuals, pass-through businesses and corporations. • Easier Education Benefits: Adopts recommendations stemming from the bipartisan working groups to consolidate education tax benefits so, along with the additional money from stronger economic growth, families could more easily afford the costs of a college education. • Modernized International System: Modernizes the international tax code for the first time in more than 50 years while protecting jobs, wages and profits from being shipped overseas. • Permanent R&D Incentive: Invests in innovation by making permanent an improved Research & Development Tax Credit. • More Affordable Health Care: While the plan generally leaves ObamaCare policies untouched and for a later debate on health care, there are two main exceptions given strong bipartisan support for: (1) repeal of the medical device tax and (2) repeal of the medicine cabinet tax, which prohibits use of funds from tax-free accounts to purchase over-the-counter medication without first obtaining a prescription. • Infrastructure Investment: Dedicates $126.5 billion to the Highway Trust Fund to fully fund highway and infrastructure investment through the HTF for eight years. • Simplification for Seniors: Reflecting a proposal supported by AARP and Americans for Tax Reform, the plan requires the IRS to develop a simple tax return to be known as Form 1040SR for individuals over the age of 65 who receive common kinds of retirement income like annuity and Social Security payments, interest, dividends and capital gains. • Charitable Giving: Expands opportunities to make tax-deductible contributions past the end of the tax year, makes permanent conservation easement incentives, simplifies exempt organization taxes and sets a floor instead of a cap to the amount of donations that can be deducted. The economic growth in this plan will increase charitable giving by $2.2 billion annually. • Shrinks and Simplifies the Income Tax Code: In addition to easing complexity and compliance burdens by adopting a larger standard deduction, an enhanced child tax credit and lower rates, the plan repeals over 220 sections of the Tax Code, cutting the size of the income tax code by 25 percent. The proposal to tax capital gains as ordinary income while exempting a percentage of the income from tax is a throwback to the way capital gains were taxed years ago, noted Williamson. Other reactions were mixed. Ways and Means Committee ranking member Sander Levin D-Mich., stated, “Chairman Camp’s tax reform proposal opens up a discussion that Democrats have wanted to engage in on a bipartisan basis. As Democrats, we believe it is vital that tax reform encourage economic growth, support working families, broaden the middle class, and address income inequality. It must produce a fairer and more adequate tax code for all Americans, ensuring that wealthy individuals and corporations pay their fair share while preserving our long-term economic security in a fiscally responsible way that promotes jobs in the United States. It is through the lens of those priorities that we will review Chairman Camp’s proposal in detail as the Committee undertakes a thorough examination of his proposal.” “Congressman Camp is to be congratulated for following through on his commitment to comprehensive tax reform,” said Hank Gutman, director of KPMG’s Federal Tax Legislative and Regulatory Services group in the firm’s Washington National Tax practice and a former chief of staff for the Joint Committee on Taxation. “Even if comprehensive tax reform does not advance this year, these proposals will create a context for debate and could serve as a template for subsequent reform efforts. Business leaders would be wise to take the time to understand these proposals, so that they can begin to assess their potential implications.” The National Retail Federation said that the Camp tax reform proposal would boost the economy. “This plan would give our nation the simpler, fairer tax system that we desperately need, but it’s about far more than just tax reform,” said NRF president Matthew Shay. “This is the foundation for job creation, increased take-home pay and business growth that would restore the prosperity that has slipped away for far too many American families.” On the negative side, George Goehl, executive director of National People’s Action, said, “At a time when Americans are frustrated with growing economic inequality, Representative Camp’s proposal to lower rates, while failing to generate additional revenue, takes us in exactly the wrong direction. The proposal would further erode the share of revenue corporations and the wealthy contribute, despite the fact that we’re already collecting less and less from those who can most afford it.” “Instead of doubling down on the failed policies of past decades, lawmakers must require big corporations and the wealthy to contribute a greater share of the funds needed to bolster our government’s fiscal health,” Goehl added. “Only then will we be able to adequately fund programs that benefit all Americans and build the framework that will move our nation forward in the years ahead.”

LARRY MAY BECOME MY NEW FAVORITE!!!! A new teacher was trying to make use of her psychology courses. She started her class by saying, 'Everyone who thinks they're stupid, stand up!' After a few seconds, Little Larry stood up. The teacher said, 'Do you think you're stupid, Larry?' 'No, ma'am, but I hate to see you standing there all by yourself!' The math teacher saw that Larry wasn't paying attention in class. She called on him and said, 'Larry! What are 2 and 4 and 28 and 44?' Larry quickly replied, 'NBC, FOX, ESPN and the Cartoon Network!' Larry watched, fascinated, as his mother smoothed cold cream on her face. 'Why do you do that, mommy?' he asked. 'To make myself beautiful,' said his mother, who then began removing the cream with a tissue. 'What's the matter, asked Larry 'Giving up?' Larry's kindergarten class was on a field trip to their local police station where they saw pictures tacked to a bulletin board of the 10 most wanted criminals. One of the youngsters pointed to a picture and asked if it really was the photo of a wanted person. 'Yes,' said the policeman. 'The detectives want very badly to capture him.' Larry asked, "Why didn't you keep him when you took his picture?" Little Larry attended a horse auction with his father. He watched as his father moved from horse to horse, running his hands up and down the horse's legs and rump, and chest. After a few minutes, Larry asked, 'Dad, why are you doing that?' His father replied, 'Because when I'm buying horses, I have to make sure that they are healthy and in good shape before I buy. Larry, looking worried, said, 'Dad, I think the UPS guy wants to buy Mom ....'

I think it's going to require a paper return.

Property owners donating "qualified" conservation or preservation easements to a "qualified" easement-holding organization, under the regulations set forth in 170(h) of the Internal Revenue Code, may be eligible for a federal income tax deduction. While I am not knowledgeable in this area, here are a few links that might help. http://www.irs.gov/Charities-&-Non-Profits/Conservation-Easements http://www.preservationnation.org/preservationbooks/#.Uw-L5vldWi0 http://www.thc.state.tx.us/public/upload/Tax-Credits.pdf It looks like you can not deduct the cost of getting the designation, but there are tax credits for costs of maintaining the buildings on the Register.

But I love puns, so no warning, just a 'thank you'.

First thing is for THE CLIENT to find out the spouse's current status. As mentioned, in 9 years, she might have gotten a divorce without telling him. There are simple ways to search for legal records online, plus clearly if he's sending her child support, he knows where she is, What he CAN NOT DO is just start filing as single, much as he wants too, unless he is divorced.

Yes, the preference choice applies to the payer list too.

Here are a couple of good articles on the subject, that are worth at least skimming and bookmarking, for when a client is asking questions. http://www.journalofaccountancy.com/Issues/2004/Aug/CostSegregationApplied.h http://www.journalofaccountancy.com/Issues/2012/Apr/20114805.htm

Here is what the IRS says: "The preparation of cost segregation studies requires knowledge of both the construction process and the tax law involving property classifications for depreciation purposes; a preparer's credentials and level of expertise may have a bearing on the overall accuracy and quality of a study. In general, a study by a construction engineer is more reliable than one conducted by someone with no engineering or construction background. However, the possession of specific construction knowledge is not the only criterion. Experience in cost estimating and allocation, as well as knowledge of the applicable law, are other important criteria. A quality study identifies the preparer and always references his/her credentials, experience and expertise in the cost segregation area." (IRS Cost Segregation Audit Techniques Guide chapter 4) http://www.irs.gov/Businesses/Cost-Segregation-Audit-Technique-Guide---Chapter-4---Principal-Elements-of-a-Quality-Cost-Segregation-Study-and-Report Accountants may have specific knowledge of the appropriate tax law, but they are typically absent of the required construction expertise. Most accounting firms don't have construction engineers on staff to physically inspect the property, examine architectural/engineering drawings and analyze cost data. Accountants may be able to find some of the deductions, but without construction expertise they may overlook substantial assets that can be reclassified.

I believe you can select that in Preferences

Pension payments are usually taxable, but not 'earned' income.

No, I was not talking about two different jobs, but rather segregating the assignments into 'local' and 'out of area' groups, and taking travel only on the second group,

My sympathy to you. Would not look forward to that appointment!

Some TurboTax customers are mad at Intuit, maker of the popular tax-prep software, because they've finished their returns but are unable to file. Their anger is misplaced. They should blame the Internal Revenue Service, along with the 111th Congress and President Obama for enacting and signing the tax increase with which TurboTax can't yet comply. (They could also blame George W. Bush if they're in a jocose frame of mind.) At issue is ObamaCare's new 3.8% "net investment income tax." It took effect Jan. 1, 2013, so that taxpayers are encountering it just now as they prepare their returns for last year. In effect, it applies the Medicare payroll tax to interest, dividends and capital gains. But it doesn't apply to all such income. If your modified adjusted gross income is under $200,000 (or $250,000 for a married couple), you don't pay the tax at all. Further, if your modified AGI is above the threshold but your noninvestment income is below it, the tax is applied on the difference between your total income and the threshold. If that's hard to follow, here's an example: Suppose you're an unmarried taxpayer with a modified AGI of $210,000 and investment income of $20,000. Your net investment income is $10,000, the portion of your investment income above the total income threshold of $200,000. Your net investment income tax is 3.8% of this sum, or $380. If you owe net investment income, you have to complete a single-page Form 8960 to calculate your modified AGI and the tax. But the form's brevity belies the new tax's complexity, as tax expert Tony Nitti wrote in a Forbes.com piece last month: When we saw that this new, complex area of the law would ultimately be computed on a one-page form, we anticipated that the meat of the computation would be done off-form in worksheets provided by the instructions. And that's exactly what happened. But that shifts the onus back to us as tax advisors to make sure our inputs are correct, which means we must understand the nuances of the final regulations. Nitti wrote that Jan. 7, the day after the IRS released its instructions for Form 8960. But those instructions are not final; they include a cover sheet that warns: "DRAFT--NOT FOR FILING." Taxpayers, tax advisers and tax-prep software developers are still awaiting the final instructions. Hence the TurboTax users' frustration. "Form 8960 was released by the IRS on 1/24/14 but Turbo Tax keeps delaying it's release every week, for another week!" a user complained last week on Intuit's TurboTax AnswerXchange online forum. "I'm calling BS on this as they have had access to the draft form for months! When is TT actually going to make this form available and stop extending the dates? And why should we keep waiting for this form when other providers already have it available?" Actually, Intuit has incorporated the form into its software. But for the moment, it won't allow users to complete a return that includes an 8960. An AnswerXchange moderator answers the query by explaining that in response to complaints from users--some of whom have switched to other tax-prep software to get the job done--"we will enable the filing of Form 8960 late on Feb. 26 (or possibly early the next morning) based on draft instructions." But the moderator warns: "If you make the decision to file now, you may need to amend your return if the final instructions produce a tax liability different than the liability computed using draft instructions. You assume responsibility for checking for product updates to determine if the final instructions require an amended return and for paying any additional tax and interest." It's a no-win for Intuit and for impatient TurboTax users. By preventing the filing of returns that include an 8960 until the IRS releases the final instructions, the company was protecting its customers from the risk of misfiling--and itself from the backlash that would surely ensue if many filers end up having to amend their returns as a result. The company still ended up with a backlash, its response to which could yield another backlash if the final instructions turn out to be different enough from the draft that a large number of users have to amend their returns. With the filing deadline not until April 15, why would a taxpayer be eager to file in February? Presumably because he is due a refund and wants his money back as soon as possible. By contrast, if you owe money to the government, it is in your interest to wait until the deadline--the latest date on which you can file without paying interest or penalties on taxes underwithheld. As we noted last year, taxpayers experience a refund as a windfall, but that's an illusion. In reality overwithholding of taxes is an additional tax in the form of an interest-free loan to the government. By delaying its final instructions and thereby creating a bottleneck that prevents some taxpayers from filing early, the IRS has effectively imposed a new tax. There's no reason to think that's the intent behind the delay, for which bureaucratic inefficiency seems to us a sufficient explanation. But given that the new tax was enacted years in advance--ObamaCare became law March 23, 2010--the IRS's sluggishness seems especially noteworthy, and unnecessary. It also raises a worrying question about the changes in tax law that took effect at the beginning of this year, the effects of which taxpayers will see when they file their 2014 returns early next year. The IRS is charged with administering the insurance "mandate" tax and the income-based ObamaCare premium subsidies. The latter is a considerably more complicated provision than the net investment income tax. The former may be as well, especially given the exceptions and waivers the administration has decreed to compensate for the botched rollout of the ObamaCare exchanges (and the possibility of more to come). The reach of the mandate tax and the premium subsidies is considerably broader than that of the investment tax, which affects only the relatively small subset of taxpayers with income north of $200,000. To be sure, the IRS is one of the more efficient federal agencies, since collecting money is something government is undoubtedly good at. But the agency's slowness in issuing final rules for the 2013 tax changes does not augur well for next year. By JAMES TARANTO

That is really the only possible way to take some of the travel, depending on the specific circumstances. For example, if all the jobs are about the same distance, no luck. But, if half of them are, say, 50 miles away, and the other half are 175-200 miles away, you can take that 50 mile radius as his 'tax home', and then the others are 'away from home' temp jobs. You have to have a logical basis for determining the boundaries for the 'tax home, but it is a viable option in some circumstances. And yes, I have gotten it accepted in several audits, over the years.

If you want to think about the 'good' side of this, I've had a number of these and each time it was easy to satisfy the IRS, but made the client appreciate being able to turn it over to me.