BulldogTom

Your situation was the first thing - ok second thing after "WTF" - that I thought about after I read the post. Tom Newark, CA

Maybe Obamacare will send out checks to the preparers who have to amend the tax returns. But then we would have to sign up on the website and wait 3 months for approval of our credentials, which would have to involve a new back end process for the programmers, at which point the IRS would issue new regulations saying that you don't have to amend until we can get the system up and running, and that regulation would come after 250K of the people who have already amended their returns, which would lead to a congressional hearing at which time the programmers will take the 5th to avoid the inquiry of congress, which will lead congress to further cut the IRS budget. Or something like that. Totally political disgust in this post, so Judy or KC can delete it if they think it is inappropriate for this forum. Tom Newark, CA

First year in business sounds like a great reason to take a modest salary until you see how the business is progressing. Given the facts you just presented, I would leave it alone for the first year wages and make the adjustments going forward. I think I could win on audit with that argument, especially if I can show that the amount was increased for the following year. This may not make you comfortable, so do what you think is best. I would let it ride as is. Tom Newark, CA

What were his wages in the prior year? What was the income in the prior year? Is that reasonable? Get all the facts together and see if what he was taking in prior years was similar to what is on the W2. If not, make a change, if yes, changing salary going forward to reflect the new prosperity of the business sounds reasonable to me. Not enough info to make a call right now, but you should be able to get everything together and make a best judgement call on what to do. I would only go into the 4th quarter if there was a change needed. JMHO. Tom Newark, CA

Deb, I have not done enough to get you an accurate opinion. I will watch for it and see if my results mirror yours. Tom Newark, CA

What did you do? Inquiring minds want to know (just in case I end up with this situation later this year). Thanks, Tom Newark, CA

I feel bad for you all back east, but I am actually not happy that it is in the upper 70's this weekend. I had to cancel my trip to go skiing with my boys on Presidents day. So we are going to Santa Cruz on Monday and check out the beach weather. Hope I don't get sunburned riding the Giant Dipper. Tom Newark, CA

TP purchased a solar gate opener for the front of his house. I don't think it is qualified solar property for the Solar Credit. Am I correct. What I read is that it has to create electricity for the home, and I don't think the gate on the front of the property qualifies. Any way to shoehorn this credit onto the tax return (legally)? Thanks Tom Newark, CA

I ran into a similar problem with 100S schedule B where in the past I could override and enter the correct amounts, but this year I could not. I had to get them to open up overrides on the form because they did not have another way to populate the form. May be the same situation for you that they locked down the overrides they used to allow. Not a comfort I am sure, but it is the best I have for you. Tom Newark, CA

What Lion said. When there is a same day transaction, the gain is put on the W2. You end up with a loss equal to the broker fees. Tom Newark, CA

Not Quite. She loved him, they enjoyed life together. The kids were close to mom, but did not like the boyfriend. They are doing their best to uphold her wishes. But they don't like him and never could see what mom saw in him. Tom Newark, CA

Thanks KC. Tom Newark,CA

Frikkin' Unbelievable Nonsense FUN Tom Newark, CA

I think you should refer them to their exchange. I am serious, not making a smart @$$ remark. I believe it is the responsibility of the taxpayer to inform the exchange of a change in their eligibility. Tom Newark, CA

I think you did it correctly. Tom Newark, CA

Sometimes, I would like to secretly record something like that and send it to the 6 O'clock news and see if they would air it. Tom Newark, CA

The boyfriend is supposed to pay the costs of utilities and upkeep on the home. The taxes and mortgage are not addressed in the trust or the will. The home appraised at 125K DOD and is subject to a 30K mortgage at DOD. Loan from trustee to trust is documented and will be paid back upon sale of the home with the remainder to be split 3 ways by the sibling beneficiaries. I think I am asking 2 questions: 1. Is the Mortgage interest really investment interest to the trust, as there is no income and never will be on the home? (I think it is) 2. If the answer to #1 is yes, where does the carryover of unallowed interest reside, in the trust or with the beneficiaries? Thanks for your input. Tom Newark, CA

Trustee is given broad discretion to classify all costs as Income or Principal at his sole discretion. Trustee, who is also a beneficiary, is loaning the money to the trust to make the payments. (protecting the asset from creditors until the boyfriend moves or dies) Tom Newark, CA

Situation: Mom is living with boyfriend. Mom draws up a will and a trust. Says if she dies, boyfriend can live in the house for as long as he wants or until he dies. At that point, the home can be sold by the 3 children who are beneficiaries of the trust. Home has a mortgage on it. Mom dies. Boyfriend refuses to move or die. His choice, no moral judgments here. Trust now is paying the mortgage and the property taxes on the home. My take - the beneficiaries cannot take a deduction for the taxes and interest on the loan. All of it is investment expense or investment interest, and can only be carried forward until there is income to absorb the loss. Am I on the right track? Tom Newark, CA

I am having issues with fee collect, of all things. The software no longer thinks I am enrolled, but the bank and my ATX account both say I am. Need to get this resolved, because 15-20% of my clients use this product. But except for being a little slow, this year is working fairly well (if you don't count the Schedule B on the CA 100S issue that I am looking for an answer on). Tom Newark, CA

anyone? CA preparers run into this yet with your S corps? Tom Newark, CA

Naveen, This is off topic, but I have been thinking about you. Hope you are hanging in there strong. Let me know if there is anything that I can do for you. Tom Newark, CA

I am glad this helped you. I know what it feels like to be ready to throw up all over your computer when it is just not making sense. Tom Newark, CA

ATX does not populate the CA 100S schedule B when the depreciation flows from Net Rental Activities on a Form 8825. In the past, the only way to get the depreciation info onto the Sch B was to enter the assets by hand using the override. This year, the program is not allowing the override into those fields. Anyone have a solution for this. I need to get this return out to a client who is leaving the country on vacation. Thanks Tom Newark, CA

B. Jani, I will try to explain what I did, and try to interpret the rules as best I can, but as you can see from my expletive in the post name, I don't know it all. The difference between the two methods as I understand it is very minor. The alternative method is the same as the iterative method, but you just stop after the first calculation. In order to get the right answer, the entire front page of the return less the SE HI deduction and the 8962 must be complete. You can play with the schedule A after the fact, but nothing that affects AGI. Next, take the amount of out of pocket expense that the taxpayer paid out of pocket (Premium minus advanced credit from the 1095A), plus the amount of the max payback ($1250 or $2500 depending on filing status). Enter this on the front of the 1040 as the SE HI deduction. Then go to the 8962. The software will have the MAGI calculated for you unless there is a family member whose income you are adding to get to family AGI. In my case, this was a single TP, so it did not apply. Once you have MAGI calculated, enter the information from the 1095A into the 8962. At the bottom of the form, it will give you the amount the TP is required to repay. If the amount is $1250 or $2500, you are done. If the amount is less than those amounts, go back and add the out of pocket cost plus the amount just calculated on the 8962 to the SE HI Deduction on the front of the 1040. This will change your MAGI on the 8962 (it will make the repayment amount higher, because the SE HI is less, bringing down MAGI). ***STOP HERE if you are using the Alternative Calculation*** If you are using the iterative method, continue on. Go back and keep changing the SE HI deduction amount (which will be a little larger every time because of the increased repayment amount) until the amount of the repayment does not change more than $1 on the 8962. I hope this is helpful to you. Let me know if you have any questions. Tom Newark, CA