BulldogTom

Got a bulk email this morning in several languages saying my website has been hacked and they are going to release information from my databases if I don't pay up in bitcoin. It also said that if I pay up, I don't have to worry about any of my clients finding out because bitcoin is anonymous. My website has nothing on it except my name and contact info plus info about my business. There are no databases containing anything related to any clients. I hope the fraudsters distribute it far and wide. I need some new clients. Tom Longview, TX

I have to amend a client's 2020 return. I plan to efile, but I am not seeing a new 8879 in the return. The numbers populating the 8879 are from the original return. How do I populate a new 8879 for an amended return to get the client signatures? Thanks Tom Longview, TX

I don't know why anyone would make the election for rental properties that throw a loss. You have to take into account losses from the time you make the election and use them up before you get the benefit of the deduction. Plus what Sara just said above. There are situations that make sense to make this election, but for most small rental property landlords, there is more risk than benefit in my opinion. Tom Longview, TX

Just seeing if any of you have had any updates on these proposed regs. Have these regs become final? Or still proposed? My clients don't like this requirement. We do have to follow the proposed regs, right? The old law was 5 years and the regs said take it out any way you want so long as it is gone by the end of 5 years. The new law only changed the number of years, so IRS is making the required distribution rules up themselves (not unusual, no judgements being made). Tom Longview, TX

They can still deduct the travel, they just have to do the mileage log and keep all the receipts and take the percentages. No shortcuts for bikers. Tom Longview, TX

Nope. Automobiles only. Tom Longview, TX

I don't think the support part is an issue. The rules state that the dependent cannot provide more than half of their own support. SSI is not considered provided by the dependent. Welfare (ie medicaid) is not support provided by the dependent. Both are provided by the government. So I think the TP is OK there as they pay all of the cost of keeping up the principal home that the child would be temporarily away from for medical care. The problem is - what is a temporary absence for medical care? I looked up a couple of cases and the IRS standard is "is it reasonable that the person will return to the parent's home after treatment"? The court seems to agree with the IRS standard, but gives wide latitude to the taxpayer and is careful not to make the IRS or the tax court the decider of the facts and circumstances that would determine when or if the dependent will return. The court seems to say that if there is a chance that the treatments at the facility could lead to the child returning to the parent's home, then the absence is temporary. My aggressive take - if the facility were to close down, the child would return to the parent's home (having no where else to go), therefore that is the child's principal place of abode. Therefore dependent. My conservative take - the child will never recover from the medical conditions and will always need care that the parents can no longer provide in their home. Therefore not a dependent. My practical take - we are only talking about a small amount of credit for the parents every year. As long as the parents are alive and together, filing status is not an issue. But what if one of them passes, the other might benefit greatly from HOH status. Thanks for letting me barf out my thought process. Feel free to criticize if it is warranted. Tom Longview, TX

Taxpayers adult child is severely disabled and requires round the clock supervision. Taxpayers are retired and will be unable to continue to care for child in their home. Will be moving the child to care facility. SSI and Medicare will be footing the bill for the facility. Is the child still a dependent of the taxpayers? Thinking that moving into a care facility is a temporary medical absence...but I am second guessing myself. Thanks Tom Longview, TX

@Terry D EA You are trying to change the circumstances to enable the client to continue behaviors that they should not be continuing. It is the behavior of the client that needs to change, and their unwillingness to do so results in penalties and interest. It is the behavior that is causing the issue, not the circumstances. Good choice to leave it alone. It would have made a more complicated situation that you would be blamed for when their behavior continued to cause penalties and interest. Some clients are just the way they are and our best efforts to help save them from themselves are futile. Tom Longview, TX

I almost always feel like a roof is an improvement if you did the whole thing. Replacing a few shingles is a repair, but what you describe is a brand new roof that needs to be capitalized. Tom Longview, TX

Your client is not the spouse's lawyer, your client is the corporation that you prepare the tax return for. If the lawyer is alleging that his client is not an officer of the corporation, then she is not entitled to provide authorization for you to talk to a lawyer outside of the corp, nor divulge anything about the corp to him. Thank him for informing you that his client has committed tax fraud by knowingly signing a tax return that has a material misstatement made by her, and that you will be informing the IRS of his communication to you...(maybe that is going a little too far to call the IRS on her - your call). Tell him to get a subpoena if he wants to depose you. Tom Longview, TX

I still use QB 2003 desktop on my Win10 computer. I have the install key so every time I change computers I can re-install without QB knowing about it. I turn off the internet when I install, turn off automatic updates within QB, and then turn the internet back on. Never checks for updates, never changes anything about how it works. I don't use it for payroll, just my own bookkeeping. No hiccups. Never an issue. Intuit can bite me, I am not paying for a new version every year that does nothing more for me. Tom Longview, TX

Start up cost it is. IRS allows you to expense 5K of start up cost in the first year (rest is capitalized over 180 months), so it goes on the ID rental Schedule E. Works for me. Tom Longview, TX

How about this - the TP is already "in the business" of renting property to a tenant, and he continues to be "in the business" of renting property to a tenant. The only thing that has changed is the location of the business property rented. It is just a continuation of the same activity. Flimsy, very flimsy. Tom Longview, TX

TP exchanged Rental in CA for Rental in ID. While the CA rental was under contract but before it closed, he went to ID to look at property with a realtor, identified the property he wanted, and completed the exchange 1 month later. I think the travel to ID should be allowed as a deduction (it was critical to him completing the exchange), but I am not sure where to put it. I don't think the CA rental is correct, but the ID rental was not in his possession at the time of the travel. Is it part of the exchange costs for calculating deferred gain? Thanks Tom Longview, TX

I had the opportunity to work with Moss Adams when I was a Corporate Controller early in my career. I was not impressed. Overpriced and un-responsive are the first two words that come to my mind when I think about them. After I left, the Moss Adams CPA assigned to our account took over my position. He called me a week after I left and asked how to pay the corporate PR taxes online. The company was sued for wage and hour violations 5 years after I left. Big verdict. Your article does not surprise me. Tom Longview, TX

NATP. Speaker Jaye Tritz. Rita is correct. From the 1099 instructions. Form 1099-K. Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for Form 1099-K. Tom Longview, TX

I am having a hard time with this one. Speaker at the seminar says that if you pay a contractor or vendor with a credit card or other electronic payment system, you don't have to provide a 1099NEC or 1099MISC since they will be getting a 1099K from the payment processor. My issue is, can you really transfer your liability to report the transaction to the payment processor? It seems too good to be true. What happens if the IRS audits? Tom Longview, TX

That is hilarious.... Tom Longview, TX

I am not doing PR returns anymore because of situations like this. CA company wants to hire a former employee. The former employee moved to AZ a couple years ago when she married a military member. They have permanent residency in AZ, but are now stationed in GA. The employee would be remote and work from GA, or whatever state they are in while the spouse is in the military. I think I remember a special rule for military spouses in this situation... Also, does having a remote employee in GA or AZ create an income tax filing requirement for the CA employer? Tom Longview, CA

Hope this is resolved by ATX. I am going to have to file K2/3 next year and I am not looking forward to it. Tom Longview, TX

@kathyc2 I am confused by this. Do you have the time to educate me on it? I put in the client information and it comes back with a $795 estimated PTC based on household size, age and family income. Then it shows me all the plans. I filtered on the silver plans. Do I have to go through each of the 27 offerings and figure out which one is the second lowest cost? Thanks Tom Longview, TX

OK. Thanks. I don't deal with these projections much, just the aftermath when they hit my desk in Feb/Mar. Did not realize that the SLCSP price was not established (hence the PTC they can get is also not known) until after the taxpayer has used the insurance for 10 months. Tom Longview TX

Trying to do an estimate. Client wants to know how much APTC they may have to pay back. I can't find any info online for the 2022 amounts. Everything is for 2021. Am I searching incorrectly? Is there a place to find it? Thanks Tom Longview TX

Not sure about NYS, but here are the instructions from IRS.gov for Federal. Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date. Tom Longview, TX