Lion EA

I had a gal who had done their own taxes for many years and had made IRA contributions then, some non-deductible. I never knew; neither made any IRA contributions while I had them nor had any Forms 8606 in prior returns. When she started taking distributions and showed me her elaborate calculations for the non-taxable part, I was totally surprised. But, she'd traced her contributions over the years that they were made, just never filed Forms 8606. So, I force-fed a Form 8606 into their return that year to account for the percentages in past balances and took the current distribution with the percentage applied. So far no IRS letter, and that was 2-3 years ago.

Happy Easter!

And, then when you told him your fee, he said it was too expensive and he couldn't afford it, right?!

A very :bday:

Does a Form 1034 or something like that need to be filed? Was it? Have you read the trust document? Does it qualify to be a not-for-profit?

A very :bday:

Thanx :read:

CCH does not own H&R Block. I think Block signed a multi-year contract a few years ago to provide on-line courses for Block employees. And, Block used to purchase ATX for preparing entity returns before it bought TaxWorks software. Block buys existing firms to expand into more sparsely populated areas that would mean excessive driving for its current district management system. I have no idea how they gather information, though.

Whether the vehicle is owned by an individual or by a business entity, the ultimate deduction will be based on business usage. The ownership decision is often made on non-tax issues like the ease of obtaining insurance or financing.

A trust for which I successfully e-filed an extension last year was (fake name, of course) The John A. and Jane B. Smith Irrevocable Trust FBO Johnny Jones. It's "control" was SMIT in case that helps you.

Hey, it's April and the situation is not going to repeat. I like the idea about reporting it as it happened (independent contractor) instead of redoing it to how it should've been (household employee) and gifting her some money to thank her for her loving care of your dad (and to help cover taxes). But, if it were me, I don't know what I'd do.

I spent 11 years at Block where we had a blank in the middle of the DCN number that we would hand write in after the return was transmitted and the number showed up on the Rapid Refund monitor. The client never had the full DCN number on the copy they signed nor on their copy of their return. And, Block never sent 9325s to clients. Could a big outfit like that get away with doing it wrong all those years. I do remember an "audit" where they had to separate disclosure forms or something from the 8879s, but not a word about the handwritten numbers on every form.

I have this new little clock that has four other functions such as temperature. Late at night, my computer hard drive whirrs and the light blinks and then the clock lights up and beeps and changes to another function. They talk back and forth like that for awhile until they realize that I'm still in here watching them. Then, they're both quiet, no more unexplained lights. I change the clock back to time. They also talk to each other when I leave the room; the clock will be on timer or some other function when I return. I remember an old science fiction book and movie where the Russian and US computers talked. It didn't bode well for the people around them. Maybe I should dunk my clock in a jar of Chi Chi's mild salsa.

If the employer put his payment to the moving company on the W-2, then your client deducts it. If your employer did NOT put that particular payment on the W-2 (and there's no reason to put it on the W-2 since it's a tax deduction), then your client does not deduct it because he's already gotten a tax-free benefit. Did the employer put both taxable and non-taxable items on the W-2 or did he separate them out on the report you have and only gross up and include the taxable items on the W-2?

And, if the employer paid the deductible items directly to the moving company, for instance, and did NOT include them in the W-2, then the employee might have nothing left to deduct on his return.

The employer can pay anything to an employee, but most things will be taxable compensation to him. If the employer pays as compensation something that is deductible to the employee, the employee then deducts. For moving expenses, it's pretty much limited to moving his stuff and moving his family. That's why the employer pays taxes on the non-deductible items, grosses them up. Looks like a huge W-2, but the employee did not actually pay in all those withholding taxes, his employer did on his behalf, well within the circular formula used to calculate them.

10/1 for m/d (not 10/01 for mm/dd) we tried that a few posts up

10/1 and 12/31 or do you not have to put the 12/31 if the taxpayer did not leave the state?

A very :bday:

It's been awhile, but I think if it's not the spouse, that Form 1310 IS needed for a refund.

My clients seem frantic for me to finish their returns before 15 April and I stop working. I don't stop working. There's extensions and fiscal year clients and people who forgot/couldn't get it together and new clients and estimated tax payments to recompute as situations change and bookkeeping and courses to take and that issue I promised to research further after tax season and....

She has to own it for two years and use it as her personal residence to use 121. But, she gets a step-up in value on DOD (or alternate if used by estate) and houses certainly haven't been increasing in value rapidly where I live. She could discuss FMV with a local realtor. She might not have a profit or just a small profit and would get cash out of the house by selling sooner than two years.

A very :bday:

My partnerships are pretty profitable lately, so I haven't had that situation for a long time. But, why can't a partner loan the partnership some money to get through a rough patch, to pay payroll taxes, or pay down high interest credit card debt, or whatever, and expect to be repaid as they become more profitable? Why can't you have a Loan From Partner on the Balance Sheet?

Going to bump this up in hopes one of you has a partnership that added benefits this year and can give me a head start on the research. Insurance companies must be pushing HSAs this year. I seem to have several LLCs that have paperwork in their stuff, but only one that actually made a contribution, and she's a Schedule C. Now, this partnership is asking how it works, what's the max for their SIMPLE and their HSA and...