Lion EA

Were your clients relieved of any mortgage or other debt? Did they sell their share of a rental home? Or did they sell their partnership interests? What do their Form K-1 look like? You're preparing their joint 1040, right? Or, the 1065? Or, both? Yeah, gifting...

That is NOT correct. Please work with your tax preparer. You can find Enrolled Agents here: https://taxexperts.naea.org/

We know you're special...

I've gotten some clients over the years because of NY and "days out" issues. They come to me to amend their home state, and usually stay. NY is hard to deal with, a bulldog on NY-sourced income issues, and never answer their phones. I'm used to the NY returns, living so close to NY with lots of commuter clients, but I still don't like them and charge accordingly. Also, dislike NJ and PA with their localities and CA; this year "decoupling" adds more complexity. I really need to raise my prices!

See if your software lets you include a return note or return list so you can label it Paternity Leave. I use ProSystem fx, and I can open a list that would have only one item in this case - Paternity Leave and the # - which would populate the Other line with the # but also get transmitted with the return.

...employEE's convenience does NOT count as "outside" NY...

...work outside of New York for the convenience of the employER. Working from home for the taxpayER's convenience does NOT count as "outside" NY. And, NONworking days are NOT working days outside NY. NONworking days end up on other lines, such as weekends, Holidays, Sick leave, Vacation, and Other nonworking days. Go through IT-203-B line by line. I just haven't had a paternity leave to account for on the form yet. I guess Other, unless it's part of the employer's Sick & family leave policy; really won't change your ratio, no matter which line. And, yes, NY starts with Federal wages. Your issue, if your client is working from NJ for a NY employER's convenience, will be getting your client's calendar of work days vs. NONworking days, especially during his paternity leave.

Haven't had one on paternity leave! Let us all know what you find out, please.

Does he work from home for his own convenience or for the convenience of the employer? Is it a requirement of his job/in his offer letter or contract that he work from home? NY is a bulldog on this issue and has won court cases.

Oops, "former employer" = "bank." Yes have your client do what John says or give you permission to talk with the bank. (Charge your client)

Wow! Client will need to ask his former employer where the money went, what agency in Texas. Follow the money!

From the forms in the 2018 return, MAGI does start the calculation for the PTC. I hope that's what she needs to report to the Marketplace, but I gave her Total Income, also, so she can guesstimate her 2019 income. (She's a nurse doing consulting projects.) In this client's case, she doesn't want to risk dipping below the 100%/ending up on Medicaid. (2018 was 133% as is, but I need to proofread.) And, she does have an insurance guy, so I wanted to give her the 2018 numbers he'd need to advise her for 2019. The IRA contribution is a good reminder. And, an HSA if a HDHP. Do the MEC choices on the Marketplace include HDHPs? This return has both the iterations for SEHI and QBID calculations for her SE. I no longer have any easy returns to ease me into tax season! Thank you, Deb.

What "income" number is the Marketplace looking for? Total Income? AGI? Taxable Income? I have a client with a Schedule C where we have some options re depreciation and itemized deductions/standard and IRA contributions and.... Her insurance broker told her to aim for a certain "income," but cannot specify which. She's about my only client with Marketplace insurance.

Ask your client. Look at his paystubs. Have client talk to his payroll department.

Did it sell at a profit? Look into the exact dates to see if it was a primary residence for two out of the five years prior to the sale date. It took over two years to sell, so the listing price might not have been the FMV on the listing date. If you're looking at a lot of money, then your client might want a qualified appraisal.

I don't use ATX, but my software does take care of most multi-state issues with needing the other state return or just federal. For some years back, it would print out a cover sheet to PA for me to fax the other state in, but that's now handled within the e-filing now. Call tech support.

https://bpd.cdn.sos.ca.gov/llc/forms/llc-1.pdf

https://www.sos.ca.gov/business-programs/business-entities/filing-tips/filing-tips-llc/

Gotta love a volunteer guinea pig! Keep us posted.

Lisa Ihm's BrassTax.com has free practice aids, such as COD worksheets: https://brasstax.com/practice-aids She used to offer a $20 textbook on Forms 1099-A/foreclosures and Forms 1099-C/COD income and exclusion. Don't see it today on her website.

There is some controversy about IRAs, but anything SE-related that already gets deducted above the line (1/2 SE tax, for instance) applies to all at all income levels. Look at other threads to see discussions re IRAs and QBI.

Rental as T/B is not the law. The burden of proof is on the taxpayer. The IRS did give a safe harbor, though, for those who qualify.

You deal with the sale of the rental in the year it was sold. You deal with Form 1099-C in the year on the form. How long mortgage holders have to write off their losses/issue 1099-Cs is state by state. So, warn your clients, probably in writing/email, that they may have income from forgiven debt in a future year.

No. the SE-related items come into play in calculating QBI at the beginning. Once taxpayers' AGI is in the phase-out range, then wages or wages/assets enter the calculation to re-calculate QBI.

Dead clients cannot vote (except in Chicago where I grew up).