Dan

Question:  I have a statement that reads:  I elect under section 172(b(3) of the Internal Revenue Code to waive the carry-back period for the net operating loss sustained in year 2013, as indicated below.

             ---All net operating losses sustained during the year.

Question:  What does "All net operating losses sustained during the year mean?  Do I need to do anything with the losses for 2014? 

It cost around $499 which includes $300 for returns and $199 license fee.

The return is now approved!

Thanks for your responses.

I e-filed a very simple tax return for a 17 yr. old client with only one w-2 in order for the client to get the refund.

When I go to the web site and enter the information in - "Where is my refund,"  I get the return has been received, but as yet, it has not said its been approved.  Why is it taking so long to get approved?

The tax return was e-filed on Feb. 4.

What do you do in this situation?

Thanks Danrvan for the information.  I really appreciate it.  

I was able to get all tax returns (2008, 2009, 2010, 2011, 2012, 2013).  The tax returns from 2008 through 2010 used 40% business use.

1.  2008 at 40% business use was $1605

2.  2009 at 40% business use was $3210

3.  2010 at 40% business use was $3210

4.  2011 at 100% business use was $8025

5.  2012 at 100% business use was $8025

6.  2013 at 100% business use was $4013

Question:  Does this mean that no more depreciation can be taken on this pickup?  My thought is no more depreciation can be taken.  The 5 years of depreciation are gone.  What would you do?

Thanks to everyone that responded to this post.

The PU was bought new and placed in service the same day according to the tax return.  (2-12-2008)

When I put the information in the ATX program Asset Information worksheet under fixed assets I do not get any amount in current depreciation.  How can you enter the business % used in the asset information worksheet program and keep depreciating it?  The tax return used the 100% use when it figured the 2013 deduction of $4,013

If I would go back, starting with year 2010 through 2013 I would have these numbers

($8025 for 2010)

($8025 for 2011)

($8025 for 2012)

($4013 for 2013)   The total of this is $28088 which is the amount of depreciation claimed on the 2013 tax return.

Of course the above leaves out years 2008 and 2009

It has a 5 year recovery period on the 2013 tax return.

Sorry, I forgot one thing:  The tax return has the PU at 100% business use.

I am looking at a tax return that another tax professional has done.  Here is what I see.

1.  2008 F350 PU bought new cost $40,126 

2.  The PU was placed in service 02/12/2008 the same day bought.  No problem yet.

3.  The class and life of the asset was Macrs 5  (recovery period of 5 years)

4.  The method and convention was S/L and HY

5.  In 2012 the prior depreciation was $24,075

6.  In 2013 the depreciation was $4,013

7.  Adding 5 and 6 together you get the total depreciation to be $28,088

What do you do about the other depreciation of this asset--  $40,126 -- 28,088 = $12,038

Looking for your reply.  Thanks!

I have read on this board that you must file Form 8965 with the return.

If you look at Form 8965 near the top, it says:  "Complete this form if you have a Marketplace-granted coverage exemption or you are claiming a coverage exemption on your return."  

Adjusted gross income of $23,091

I have gone through the Marketplace coverage Affordability and Affordability worksheets and find that the client's cost for insurance was below the affordability threshold thus the client will have to pay the "Shared Responsibility Payment" on Form 1040, page 2, line 61 of $129.

But Form 8965 will not have to be filed because as I have stated above, client is not claiming any of the exemptions on that form.

If I am wrong, let me know in the instructions where this is wrong?  Also in watching the great video of the person who had no insurance for all 12 months of 2014,  it did not show the person marking one of the boxes in part II (7a & 7b) of form 8965 but just going over to the Shared Responsibility payment worksheet.  

Thanks!

There are ACA flow charts also in publication 4012.

easytax

If you are not claiming one of the exemptions on form 8965 you don't file that form do you?  

It says on the front page of the instructions for form 8965 in the second column under caution,  "Report any payment amount on your tax return but do not submit the Shared Responsibility Payment Worksheet to the IRS."

A flow chart in publication in publication 4012 (ACA-2) these steps starting with second step:  Did the taxpayer receive an exemption from the Marketplace?  If no than it moves you to the next step:  Did the taxpayer qualify for another type of coverage exemption-if not you go to another step:  Calculate taxpayer's Shared Responsibility Payment using Instructions for Form 8965 and indicate as directed on the tax return.  Complete the rest of the tax return following the normal procedures.  This information seams to suggest to me that the 8965 form is not to be filed either if there are no coverage exemptions.  Is this correct?

I read in the 8965 instructions that even if your household did not have minimum essential coverage for one or more months you are not to submit the "Shared Responsibility Worksheet" to the IRS.  If you don't claim any exemptions on form 8965 part II my thought is that no form 8965 form would be filed.  Am I correct?

MyATX Solution center has some flowcharts.  They are under ACA resources and flowcharts for determing 8965 and 8962 needs.  The KB article is 15114

My question in reading the ACA Flowchart No Insurance all year--If the individual does not qualify for a coverage exemption the arrow takes you over to a box that says:indicate coverage as none on 1040 ACA worksheet to calculate shared responsibility payment due.  Where is this 1040 ACA Wkt where you enter none.

Question:  How do you enter interest that you earned from $1 up to $9 on Form 1040 when you don't receive a 1099 statement?

Where in the ATX program are you able to do this?

Thanks for your reply!

Let me know!

RitaB

Was the single lady a dependent and lived with her parents for all of 2014?

Do dependents need to file form 8965 if they do not check line 61?  The dependent is counted on the parent's return.

The dependent is only filing a return to get money back.  Income is below the filing threshold.

I found the answer.  On the fixed asset worksheet there is an Icon to check if you want to accept the prior years accumulated and 179 depreciation.

Why doesn't this years depreciation expense flow over to line 14 on schedule F?  

Thanks Danrvan

I checked with the appraisers office and they told me they only go back 5 years concerning records kept concerning when the property was transferred.

The appraisers office did break down how taxes are figured for the Ag land; the land the house sits on; the value of the Ag buildings and the value of the house.

Ag land comprised 149.5 acres-taxes were figured on this

Home comprised 1/2 acre-taxes were figured on this

They figured taxes on the Ag buildings

They figured taxes on the house

Thanks Lion and KC

There were around 160 acres on this quarter of ground in question.  The amount of acres that has not sold is around 120 acres which is in CRP.

What sold in the quarter mentioned above was 40 acres which included the house, machinery shed, wheat bin, small barn and native grass land.  Each of these items were sold as one unit.

The items above were not sold to a related party.

The son said his dad paid around $2500 for the wheat bin.  He thought his parents had paid around $7500 for the whole property since the quarter of land was given to his mom.  

Thanks KC

I guess I forget to tell you that the farmer's wife is still living.  

The father planted wheat in 2013 for 2014 year.  The wheat did not make so he instead collected crop insurance on it.  His other land is in CRP and he has been collecting payments on it for a number of years.  

So in answer to your question, the father was still farming 160 acres until his death.

The wife is still living.  She has sold the farm property mentioned earlier and is living in town. 

Lion, thanks for responding.  Yes, the machinery shed, grain bin, and small barn were part of the farming operation.  The husband has past away now but for a number of years before his death, he raised donkeys and they grazed on the buffalo grass (native grass).  The donkeys were his therapy and I don't know if he ever sold them but rather gave them away.  Before he put most of his ground in CRP (a government program) he would plant wheat and store some of the wheat in the grain bin and he would use his machinery shed to store his tractors and trucks and use it as his shop to work on farm equipment.  I believe he had milk cows and a few cows.  He had also around 5 to 7 horses that grazed on the native grass.  The horses were also family pets.

According to the son, his grain bin cost was around $2500.

The son said the house, land, machinery shed was purchased for around $7,500 or that is what he paid his father in law because most of the quarter of land was given to him.

Question:  If you sale a farm home, a machinery shed, a grain bin, a small barn and 40 acres of adjacent land, can you exclude all if under $500,000 gain for a married couple who have lived in the home many years?

The 40 acres of land is native grass. 

Thanks for your early reply.

Yes, I also received an email about downloading the new 2014 ATX software but when you go to the download center the program is not there.  I also received the codes.