joanmcq

I can't select the first home's interest and then switch to the new home's after it was sold?

This is a first for me! Client sold a home that cost $1,250,000 but was bought before 12/16/17, so the limitation on the mortgage was $1,000,000.  Debt was only $881,000 so no limitation.  Client sold home on 8/30/23.

Client bought another home on April 28, 2023.  Cost was $2,810,000.  Mortgage on 12/31 was $2,248,000.  So how much debt is deductible?  Is none of the second home deductible until Sept 1?  And then only $750k worth?  But all of the 1st home's mortgage is deductible until it's sold.  Or is it based on when they moved...

They paid points when buying second home too.  Are they deductible? Are the points affected by the lack of 2nd home's deductibility?

There's a vacation home too, but I know the answer to that one; none is deductible.

I dummied up a 1099-INT.

I went onto the World Bank site and it does say that he doesn't pay tax on the income.  Does he have other income that may create a reason to file?

I am trying to figure out how to enter a1099-Int that has both accrued interest paid and accrued market discount on US government bonds.  Right now I have an adjustment to box 3b (interest on Treasury obligations) for the accrued interest which subtracts it from the interest total on Sch B.  But I also have a bond which was sold (also US gov) with accrued market discount.

Should I just make another interest input for the accrued market discount (which I believe should be added to the interest income) or is there some other way to present this?

I looked for any kind of exemption, but couldn't find anything close.  I was looking.  I just deleted the 3508P and warned the client.

I don't know what I did, but it works now.  Hubby fiddled around with windows updates, but they were all up to date.  But then it all updated and the efiles filed.

Yes, the CA tax rate, line 36 of the NR, shows as .0208.  I wasn't sure whether to just delete the 3805P or file for a credit to NM for taxes paid to another state. Ended up deleting the 3508P

They should issue it for $5000 gross winnings plus all the small winnings he has had over the year.  And issue a statement showing his losses.

Client withdrew all of her CA pension (state teacher's retirement) early, code 1.  The pension withheld CA tax.  I think, she will get it all back.  Plunk the figures in and she owes $35.  What?  It's the 2.5% CA tax on early distributions.

Does CA get to tax a CA pension early withdrawal for a non-resident?

yeah, that didn't do a damned thing.  I'm on hold with a tech right now.    She seems to think its because my Windows isn't up to date.  I have EfileRules.xml 18.15.  Apparently that gave the tech a pretty good laugh.  This woman seems to know her stuff.

I wish.  All of mine are rejecting now.  I have tried everything.  My case was supposed to be moved up to the next level of techs but I did not get a call back today.  If I don't get one tomorrow I will scream.

Frog, I don't know him but I live about an hour outside of Reno.  Carson is beautiful, right up against the Sierra.  And I'm about an hour's drive from Tahoe.

I've been getting a ton of these.  They're easy to tell they are a scam.  Then there are the ones that are kinda vague but could be from potential clients.  Those I will respond saying I'm not taking new clients.

Then there is the one in a hundred that says:

(a paragraph on how they found me)  "We registered as domestic partners in January 2023 in Massachusetts, moved to AZ for June and July, and California from August on. My partner just has MA income to report (quit job to go to law school), I have the same job/w-2 but taxed in all 3 states. TurboTax full service couldn’t cover RDP / community property rules in CA and we are pretty lost on our own! "  Closing paragraph.

I pick them up as clients.  I'm a sucker for a sob story.

I worked with someone that had a 15 yr 14.5% CD.  He was so sad when it matured.  I think it was 1993.  The bank it was with was offering every incentive to cash it out early, but he wouldn't.  Would you?

When I bought my house in 2000, a good interest rate was 6%.  The rentals were 6.75%.  Why the fed couldn't raise interest rates slower, I don't know.  I do remember the 80's interest rates!  I got over 8% on a CD.

I sent 3 returns that rejected with the code 38 many times.  Did different things on each one with increasing amounts of customer service utilities/Refresh Application Configuration. Like the first one I had the return closed and did the Refresh App in the return manager.  The second I opened the return and did Refresh App. 

Two returns have an error message R0000-004-01; ReturnTypeCd and the return version of the Return must match the return type and the version supported by the Modernized e-file system. A later return I tried filing has error message 38, but that one says EfiledRules version is 23.18 and the minimum version is 23.25.

I then deleted all of the returns that I rolled over but hadn't started yet.  Rolled one over anew and filed the extension. It rejected.  The error message on the extension I filed states that my E-fileRules is version 18.15 and the current minimum version is 23.14. 

It seems like my program isn't updating?

Frog, how can you say that the real estate market is 'slowed' down???  I am a very lucky person and I tend to buy real estate right before it goes boom.  Sacramento; bought in 2000, 2001, 2003.  Real estate market went gangbusters, collapsed in 2008-2012.  I bought a house for $75000 in 2008!  Decided to sell my main house (bought for 215,000 in 2000-worth $125,000 in 2008) for $750,000 in 2016.  Bought current house in Reno (and what a glorious house it is!) for $330,000.  Worth $600,000? or so now.  In Reno you can't get a house now for under $400,000.  Where I live double-wides on an acre go for $350-400,000.

Like I said, I'm lucky.  But first time buyers aren't where I was, able to buy a starter home for $75,000 in Sacramento in the 1990s.  People can't find a place to rent for under $1500/month. 

Frog, how does someone who works but doesn't earn enough be affected by the NIIT?

I have a case with ATX and so far, what the tech has had me do doesn't work,  And then tonight, to top it off, I have 3 more returns that rejected due to not being the latest program version/form version.  But I can't remember how the tech showed me how to update all of the forms in the return.  Which didn't work for the 1116 error, but maybe it'll work with this one? 

So does CA.

I cannot read on a tablet.  I had covid two years ago and got stuck at my sister's house for 11 extra days until I could fly home.  I ran out of books so I downloaded a few onto my laptop.  I didn't finish that book and it sat and sat & sat.  I even ordered the second book in the series to try to motivate me to finish the first one.  I finally bought the first one as a book and finished both quite quickly.

The amounts are showing and I entered the C/F properly.  There's only a c/f from last year.  I spoke with support today and they were sure what I did (downloaded all of the forms in the return again) would work.  But it was after closing time so he wanted to stop working and couldn't wait for the ack to come back anyways.  So I efiled the return.  It rejected.   

I took pains to put in the carryover credits too!

Because my return still won't efile.  I tried without deleting & re-installing (rejected).  So then I deleted the 1116 & reinstalled.  Still rejected. My form update report shows I have Version 115 which is supposed to correct the functionality so the return wouldn't reject for error code 004-003 but that is what is causing it to reject!