BulldogTom

I urge all of you to check your AMT form on the 1116.   That is where I had my issue.   You have to enter the AMT carryover manually on that form.   

That may or may not be your issue, but it was for me.

Tom
Longview, TX

Reminds me of an article I read many years ago about a pregnant woman who was ticketed for driving in the car pool lane and went to court.   The judge dismissed the ticket because he did not want to rule on when a child in the womb reached the status of a person under the law.

Pregnant women should be able to drive in carpool lanes now in Georgia.

Tom
Longview, TX

Thank you all.   Appreciate you.  My clients think I am a hero...

We are paper filing with the 14039 attached.   Proof of dependency is also being attached to paper return (Birth Certs, Passports, College enrollment docs).

It required a phone call to AXT support to find out which SS# was compromised.   

Taxpayers are taking steps to freeze credit, call banks, etc.   

Tom
Longview, TX

OMG, I am laughing so hard and I don't know why.   Thank you @Catherine

Tom
Longview, TX

Long time client of mine, 2 daughters in college, I remember when they were first going to grammar school.   I e-filed the return and got a reject for one of the SS# used on another return.   I call the client thinking one of the kids filed for themselves for a part time job.   Nope.  Neither one filed a tax return this year.   

Crap.   ID theft....

Can someone walk me through how to walk my client through the process?   I seem to remember there is an ID theft checklist from the IRS and a couple forms to fill out and send in with the paper filed return.  

I have not had to do this before, only heard about it in update classes.   This is a really good client and I need to help them get through this.

Tom
Longview, TX

35 minutes ago, jklcpa said:

We have it. Click on the smiley face in the formatting bar of the reply box and a popup box with all of the emojis will appear.  You can search for "clapping" from there.

Why are we exactly?  The CTA still applies for now.

I think it is the first domino to fall.   The politicians are going to go to their districts to campaign and they are going to hear about this "overreach" of government, and now a federal judge has given them some cover to back up a bit and take a look at another approach.   Just my opinion, but I know a lot of business owners are pretty ticked about the BOI, at least in my neck of the woods.

I am hoping that we will see something more targeted and less intrusive for mom and pop companies.   One can hope.

Tom
Longview, TX

We need a clapping hands emoji.

Tom
Longview, TX

Sounds like acquisition costs to me.   Amortized.   If you are saying it is not "fully deductible as an expense in year 1" then I agree with you.   

In QB, debit loan fees (LT asset) and credit Loan Payable (if part of the loan) or cash if paid upfront.

Tom
Longview, TX 

5498 - then you ask if they want to make an IRA contribution and they ask if they can put in more than they already have...arghh!

Tom
Longview, TX

1 hour ago, Marie said:

i have read.  farmer has a 181000 nol, in 2023 his farm had a profit of 150000

now amt pops up and he owes 7000 in amt.  

does that sound correct?

I think you need to look at what the AMT NOLs have been over the years to see if they are available to be used against current year income.   I would need to do some refreshing of my own since it has been a while since I have never done a farm NOL and I am speaking from my faulty memory.   Don't take this as gospel, just a thought.

Tom
Longview, TX

7 minutes ago, Catherine said:

Depends on the character of the property. If it was a bank savings account, I'd agree. But wages are still wages, and includable as income if not claimed in the year earned (which might have been done). Stock proceeds sounds capital, with basis lost to the mists of time. Dividends is income. 

But if you don't know what it is, why would you assume it is of that character at the detriment of your client?   Not saying you are wrong, but the state gave the estate cash, correct?   Cash if inherited is tax free.   Unless the IRS knows or has reason to know that there is some prior transaction where those funds escaped taxation, I think a distribution of lost cash is the base case unless your investigation turns up something to the contrary.

Tom
Longview, TX

1 minute ago, Catherine said:

Probably Texas, too, with the fires.

I had the same thought.   But right now, I just hope they get it under control and the people up in the panhandle can get back to their property and start rebuilding.

Tom
Longview, TX

3 minutes ago, Catherine said:

What questions should I ask the executor 

@Catherine

Q1 - Do you have my retainer check?

Q2 - can you give me a call when you have my retainer check?

Seriously, I don't know where to start.   Any paperwork at all?   

My first thought is not income, because if I lost something and someone returns it to me, I don't have a taxable event unless I took a deduction at some point for the loss.   The state is saying "Hey, this belongs to you, we found it and are giving it to you".   Not a gift, property that the state says you already own.

Tom
Longview, TX

1 minute ago, schirallicpa said:

.....Is tax season actually over on April 15 this year?!?!?!?!???

Unless you have clients in San Diego....another emergency extension until June 17th.

Tom
Longview, TX

1 hour ago, kathyc2 said:

It is rather strange that someone at this income level is not covered by a retirement plan at work.

He is retired.   Gets to contribute as a spousal IRA from his wife's sch C earnings.   They will not be able to contribute in 2024 because she closed her real estate business in 2023 and will only have retirement income and no wages or SE income to qualify.  

Tom
Longview, CA

28 minutes ago, kathyc2 said:

When you say they does it mean MFJ?  Would spouse maxing traditional make AGI low enough to keep Roth?

Yes, MFJ.  I took a look at that, but when I put in a hypothetical 7,500 traditional contribution, MAGI does not change on the Roth worksheet.  

Tom
Longview, TX

Taxpayer is over the limit by about 9K this year (first time over the limit).   Put 7K in a Roth.   Only 820 is allowed.   I have heard about this situation, but I have not dealt with it with a client before.  

If he withdraws before the due date (including earnings) can we avoid the penalty?   Can he recharacterize?   They have room to make it traditional and deductible.

Help please.

Tom
Longview, TX

Capital Planning Advisors is the firm.   Larry Hansen is who she will want to ask for.  Office Phone: (916) 286-7650.

Tom
Longview, TX

Low Cost or Cadillac?   If you need a Cadillac I know a guy in Sacramento CA who is the smartest financial guy I have ever met.   But not cheap.  Not even close to cheap.

Tom
Longview, CA

I just sent a trust return with a 1116 and it rejected.   Figured out that I had not made the entries on the AMT section of the form.   There is a carryover for AMT purposes and I did not enter the amount.   Just got the ack from IRS.

Tom
Longview, TX

24 minutes ago, DANRVAN said:

There are some exceptions.

Do they meet the holding period requirement?

I am not saying it is wrong, I am just saying that I normally see about 50-75% qualified dividends in a normal portfolio of mostly domestic stock funds.   

Tom
Longview, TX

3 hours ago, Corduroy Frog said:

Tom, it might be the biggest one out there -- Schwab.

I just finished entering a Schwab consolidated form.   There are very few Qualified Dividends (800 non- qualified, 27 qualified).   Looking at the supplemental schedule the funds are mostly US based and it just looks a little funky.   

The return is going to be on hold for a little bit while the client gets some more documents.   

HMMMMM.....

Tom
Longview, TX

41 minutes ago, Corduroy Frog said:

I thought so Brew.  The issuer is a major stockbrokerage company.

Which one?   I want to watch out for them.

Thanks

Tom
Longview, TX

Did you select the correct category of income?  (Passive).   I got that error this year, changed the 1116 to type Passive and it went away.   

I think I had to actually attach a pdf copy of the Sch B last year to make the error go away, which was about the stupidest thing I think a software ever made me do (print the form from our software to pdf and attach it to the return you are efiling from our software).

Tom
Longview, TX

10 hours ago, JohnH said:

I’m beginning to wonder whether the client knows more than they are telling you, but they’re already aware that the whole story is going to cost them money and they’re hoping to somehow slide by. 

is it possible this is rental property (or some other business asset) held in a self directed IRA and they titled it back to themselves because it couldn’t self-fund maintenance or repairs? 

John, you are good.   I did not think about that.  

I lost a client (owned a maintenance business) a few years ago whose new bride insisted they could use their IRAs to buy her home to have as a rental owned by the IRA and the IRA could pay him to do the property management.   They acted like the words "Prohibited" and "Transaction" never appeared in the dictionaries they owned.

Tom
Longview, TX