Catherine

I *think* you have her sign, e-file as usual, and put a copy of her POA with the 8879 in your files in case there is a question.

Client took money out of 529 plan in summer for fall tuition, then again in December but paid spring tuition in January. So 1099-Q shows $18,000 but 1098-T shows $9,000. How do I present this so the additional $9K does *not* show up as a taxable distribution?

IRS Dragon small business card dragon (mine has blue crystal eyes)

OK; that is insufficient. You should not be losing ANY money on keeping this service going for us. I will be donating more, once I get my main computer going again (yes, my main computer seized up today, I think it knew I was thinking of retiring it after the end of April and it decided to throw a fit; I have gotten ZERO tax work done today and don't know if I'll get any done tomorrow either).

The desk at my home office looks like one of those post-tornado pictures from the midwest. AT the office, though, I have my dragons, my tax interview sheet folders, a pen, and a penknife that needs to be cleaned after using it yesterday to slice cheese for a snack. All the mess is in the drawers, since MA made it illegal to leave *anything* out at *any* time unless it is actively being worked on. But the drawers have cross-leaved stacks and I have to be very careful closing one of them since it's all up so high....

Here you go.

Will keep that in mind although I usually manage to bludgeon my way through them eventually.

Trust has LOTS of income - but none is distributed to the beneficiary. Trust files federal and state of MA returns and pays taxes to both. So - no issue when the beneficiary also lived in MA. However, she moved to NC and NC taxes trusts when there is a beneficiary in NC. I'm thinking I do need the NC return, but was hoping to get confirmation one way or 'tother. Heaven knows the NC tax dept. was clueless.

Balance sheets and Sch M-1 adj's are the bane of my existence for every client who does their own books (if I keep the books, no problem). I salute you!

Me, too.

The whole basis issue is more complicated than "the donee never rented it." IF the donee got the gift before the donor died, then donee's basis is donor's basis plus money donee put in to property. Donor's basis is adjusted by accumulated depreciation over the years of rental. If donee got the property upon donor's death, then donee gets basis step-up as of DOD FMV, plus money put in to property. I can't answer any of those issues for you as the devil is in the details and you have more of those than I do. All I wanted to confirm was how to get rid of the property on the depreciation schedule, in Drake, while not making a further muck of things.

Client is beneficiary of a Massachusetts trust. Moved (retired) to NC. NC requires tax return for NC beneficiary of a trust BUT -- what if the beneficiary gets ZERO income from the trust? What then? Tried calling NC Tax Dept. Trust section sent me to individual section sent me back to trust section where I got sick of waiting on hold (plus expecting drop-off client to show up). So I never got an answer from them. Anyone here know?

That is exactly how to handle this in Drake. Had a similar situation last year. No loss, no gain, for the 4797. Handle depreciation recapture for rental on sale of home screen.

as it were...

I have the MacNelly 1976 tax form cartoon up in my office. Everyone who bothers to look at it gets a real kick out of it.

Thank you SO much! I have passed all the info along. You're a pal.

@Lion EA - any advice?

From a colleague (EA) here who is not part of any tax forums online (silly wabbit). For a CT resident who is a retired teacher, on Schedule 1 of CT-1040, who is qualified to use line 45 to take 10% of income from CT teacher's retirement system? Who issues the 1099-R? My friend is a retired teacher from Ellis Tech in Killington, CT. His 1099-r is issued by the State of CT. My other question is with regards to property tax credit table for limitation. Why was only the Single file status threshold reduced to 47500? This looks like a penalization for high earners who are single.

And of course the letters arrive and everyone calls me in a panic during one of the busiest weeks of the tax season.

I have THREE clients all getting letters now demanding money instantly. ALL submitted installment agreements that were accepted but were never put in place. While we are working with the IRS to figure out why not, they get levy notices?!?! One I get - falls through cracks. Two is obnoxious and annoying. THREE is utter incompetence? Enemy action? Time to call legis-vermin?

ANY time, my friend!

Sympathy on the difficult clients!

Yes, I have Aetna-covered clients. The subscriber number generally DOES have a suffix for each person. 01, 02, 03 - include the whole number with suffix on the HC. I have guessed on occasion when (for example) the client's insurance changed in January, they chucked the old card, and the ex (or whoever) either didn't get or won't hand over the 1099-HC. Never a question.

Aetna: 06-6033492

No I don't think that's the Aetna TIN -- I have that at my office and will PM you with it (or just post it here) so look for that in about an hour or so. The number you want from the card is the subscriber number.