BulldogTom

That is good news....oh...except they have a new requirement for 1095's to file the tax returns. I think it will be a late start and 2 appointments for some of our clients. I will try to educate them, but I fear it will be "Call your __________(employer, health ins provider, exchange) about why you don't have the form I need to complete your tax return." Tom Newark, CA

So, do I continue using (2) 8829's to keep the carry over associated with the office that generated it or just transfer the carry over to the new home office 8829? Thanks so much for your help. Tom Newark, CA

The regulation is very strict. You must have a contemporaneous written acknowledgement from the charity at the time the original return was filed. So, if you HAD a contemporaneous written acknowledgment at the time you filed, but forgot to include the deduction on the return even though you could have, I would say you could amend the return. If they did not provide a written acknowledgement by the time the return was filed, then it should not be amended because they did not fulfill the recordkeeping requirement. Tom Newark, CA

Taxpayer has an office in his home. Moved at the end of last year (Dec 2014). Moved the office into the new home but had very little home office expense in the new home. I put in (2) form 8829's last year. The old home office that is no longer occupied had a carryover of unallowed expenses due to the income limitation. Can those unallowed expenses be carried forward to the new home office this year? Old home office was in home he rented, so none of it was depreciation or other Sch. A type deductions. The new home office is in a home he bought, but last year had not made any mortgage payments yet. The taxpayer has a growing business and even though the carryover will probably not help him this year, it looks like next year it will so I am trying to preserve the deduction if I can. Thanks in advance Tom Newark, CA

Me too. Tom Newark, CA

<<A separate provision that allows 50 percent of the cost of improvements to be written off under “bonus deprecation” would be extended for five years, and would be expanded to cover stores and restaurants that are owned rather than just those that are leased. >> I am a little confused on this statement...mostly because of where it is in the article. Does this mean that 50% bonus depreciation is back for all assets for 5 years...or is it just for the restaurant industry under the 15 year provisions? Thanks Tom Newark, CA

Glad you caught that one. Just having fun. Merry Christmas and a very happy new year to you and your family KC. Tom Newark, CA

I would rather pay for the stamps. I don't do enough 1099s to bother with efiling. And I have to print the copies for the clients anyways, so what is another 2 forms in the printer and a stamp on the envelope. Tom Newark, CA

I like to curl up next to the fire and read a good book. Master tax guide is a good book. Tom

On the W2 entry screen, did you select the proper states and amounts on the bottom of the entry screen? That is how the amounts should be pulled into the returns. Tom Newark, CA

Whip those "newbies" into shape KC. Don't let them not have the proper speaking language for this bored. Make um type it gooder. Tom Newark, CA

The part that gets me is the IRS will take as gospel the reporting of a third party. Those same third parties will get a deficiency notice if a different third party erroneously reports income about them. So the IRS will take the same company's reporting as gospel in one case and totally disregard their reporting on their tax return and books at the same time. Just Crazy. Tom Newark, CA

I have a question on this....they are not done with the corp. How can they do the distributions of capital? Wouldn't that be a dividend? Double taxation? Tom Newark, CA

This is for me personally. I have an employee/spouse in my business. I don't pay my spouse a lot, and so I don't have a great deal of PR taxes to pay. I have been filing the 944 PR return since it came out and the IRS switched me onto it. I know it is for businesses that have less than $1,000.00 in Liability for the year. I got soft and gave my employee a raise and now I am over the threshold of $1,000.00 in PR Liabilities. Do I have to start filing 941's now that I have breached that level? Who decides? I read the instructions and it only talks about the IRS putting you on the form. It does not talk about when you grow bigger than the minimum threshold. Anyone out there have a resource I can look at? Tom Newark, CA

I am with Gail on this. I don't see any of it being deductible this year. It is all capital transactions so far, and when the property is ready to be used to generate income, the cost will begin depreciating. Are you overthinking this one Catherine, or are Gail and I missing some important point? Tom Newark, CA

I am going to be in Cleveland next week for software training. I will be in the hotel most of the time. If I choose to venture out for dinner or something, what should I plan on wearing. I have heard something about "lake effect snow" back there. Is that really a possibility? FYI - it was 87 degrees in Fremont today when I got off work. Tom Newark, CA

Are any of you 409A accounting experts? I have a situation where I am not sure how to post a transaction in the books. I inherited these books. Client has a 409A plan for key employees. They can contribute and the company can make discretionary contributions. The discretionary payments are vested over time. The plan invests in a series of IUL insurance policies. Several employees left the company (were pushed out) and the company cashed out some of the insurance policies to pay the employees their contributed and vested portions of their balances in the plan. Some of the discretionary contributions and earnings were forfeited by the employees. However, the policies cashed in were worth more than the amount paid, and the corp received a 50K check that is now sitting in an expense account as a credit. The chart of accounts only has the Liability to the employees (vested portion) and the cash surrender value of the plan in the assets. I think I should also see an account for the administrative expenses of the plan, but there is not one. Plan expenses may be buried somewhere else in the books, but I haven't found it yet. According to the plan administrator, the balances I show in the TB for the Asset and the Liability at 12/31/14 are not the amounts they show from their year end reports to the client. I think the 50K should be posted to the cash surrender value of the plan asset account. Am I right? Thanks Tom Newark, CA

NOD. It is the more restrictive. 90 days and you are done. Tom Newark, CA

OK, so that is why I have not been getting the letters. I learned something new. Thanks Lynn.

Sure. Don't share with the rest of us. (sarcasm) I would like to know as well. (not sarcasm) Tom Newark, CA

Never noticed that box. I will have to look for it. Tom Newark, CA

On the same topic, but a little different, are any of you finding that the IRS is not sending you the client correspondence? I have like 3 POA's out where I am working with clients at the IRS and I am not getting Rep letters from the IRS. This is one of them. No letters coming to me, just to the client. Tom Newark, CA

Update: I prepared the tax court petition and sent it to the client to mail to the Court last week. Client calls yesterday and says there is no need because he got a letter from the IRS saying there is nothing due. It has been obvious to me that the IRS is really behind on their correspondence replies. My concern is that they have already issued a NOD. I think that trumps a letter? Should I have the client still send the petition? Thanks Tom Newark, CA

I still think you should go to NATP in Las Vegas next week. Tom Newark, CA

Nope. He would get less but not eliminated. Tom Newark, CA