Lion EA

But the parents already took the education credits for their dependent and have possession of the Form 1098-T. (I don't prepare the parents' return.) So, the parents would subtract the private scholarship from tuition before calculating the LLC or AOC; and the student does NOT report the scholarship on his return?

Anyway to prove this is a gift and no need to report? The closest I find is Prizes & Awards on Schedule 1 for winning with his essay. But, is there anyway to subtract tuition from that? Is there any other place to report this private "scholarship" where I can subtract tuition? The dad seems to think the scholarship offsets tuition for both fall semester 2023 and spring semester 2024, and worked with the college DD Tech to send them a cashier's check to apply to fall tuition and another cashier's check for spring tuition. But, I feel the student had constructive receipt before his HS graduation in 2023 when he was handed a check written in his name.

https://www.fincen.gov/boi https://www.fincen.gov/boi-faqs https://www.fincen.gov/boi/Reference-materials https://www.fincen.gov/boi/small-business-resources https://www.fincen.gov/sites/default/files/shared/BOI-Informational-Brochure-April-2024.pdf

Dividing up marital assets in a divorce is NOT buying an asset at FMV from your soon-to-be ex.

Dad got back to me; situation is different from what I understood from grandfather. BB Yacht Club scholarship (even though check was written by BB Church). Family is NOT members of the Yacht Club. Offered annually to all graduating seniors in the DEHS Band. Essay contest with 3 prizes in the form of a check. My client won 1st place of $5,000. Check was made out to him personally with the memo " A BB Yacht Club Member's Name Scholarship." (Member wanted to support HS music.) No other paperwork. No mention, verbal or written, on a restriction on the use of funds. Knowing this family, though, it was no surprise that they worked the DD Tech to split the funds between 1st and 2nd semesters, applied to student's account via cashier's check. Dad did keep photos documenting all the process, if I need them. I think dad is saying the funds were used for tuition.

It was called a scholarship but was paid to the student for whatever he wanted. The student has no relationship to the specific scholarship/person whose name in on the scholarship. However, the student attends the church that has the scholarship fund; only church members received scholarships. Grandfather hires me to prepare his grandkids tax returns; he's an investment banker and has invested monies for them since they were born. I talk to the dad once/year to get his return info for Kiddie Tax on his kids' returns. I'll check with dad/church member, but grandfather thinks there was no application nor essay or anything. Grandfather thinks what ever committee at that church just picks a few recipients out of their HS graduates. I'm trying to confirm or get details from dad. Prizes & Awards and taxable? Gift and not taxable?

Wow! Quick work, Eric. We appreciate your knowledge and hard work to make this move and to continue to monitor it for us. Thank you!!

College student received a $5,000 check written to him from XXX Church Trust with YYY Scholarship in the memo. Taxable? Other Income? Kiddie Tax?

Follow the link Catherine posted.

They don't come to us before. Before the divorce. Before dividing assets. Before dividing children. Even my own son left all his tax return copies that I uploaded to my portal for him to give his lawyer, so his lawyer saw nothing about their partnership, nothing about the tax returns before his ex quit working, nothing about all the monies they took out of his Roth to run the partnership and to live off while the ex's TIRA kept growing, nothing. Sorry, tired and cranky today!

AI Overview Here's how to find the version of Windows you have: Click the Windows Start menu Select Settings (the cog icon) Select System Select About You'll see the edition and what version of Windows you have Generative AI is experimental.

https://brasstax.com/products/form-3115-line-by-line-correcting-depreciation/

I should've put that phrase in quotes! I meant to say that if he insists upon filing that form, it has to be filed and paid on pay.gov anyway, so he may as well do it himself, because none of us see a reason for him to file it. It would be nice if he tells you which criteria he meets for filing. Or, if he gives you a cite from his "tax-savvy" advisors.

Under the age of 24. When the son no longer qualifies as a Qualifying Child, then look to the requirements to be a Qualifying Relative. The IRS has a lot of material regarding dependents and even an Interactive Tax Assistant (ITA) dependency wizard: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent https://apps.irs.gov/app/vita/content/globalmedia/4491_dependency_exemptions.pdf

Because he has to complete the form and pay on pay.gov anyway, tell him to do that himself now. Give him the instructions.

https://www.irs.gov/charities-non-profits/form-8940-for-miscellaneous-determination-requests Are they dissolving the PF; or do they need an advance approval for a new activity, such as voter registration? Why does your client think they need to file Form 8940? I agree with you that that form says nothing about "activation." Maybe their "advisor" said de-activation, and your client heard activation.

Or, your client's Congressperson.

Thank you, ladies. And, duh, when all else fails, read the instructions! I did tell mom and daughter that I want to see her LTC contract to know what's covered (she talked as if it's NOT the per diem coverage, but need to read her contract).

I need a crash course in LTC distributions &/or links to info. I googled and am overwhelmed with the pages of links to insurance companies; I did read the info on IRS.gov which seemed very general. Client w/terminal cancer wants her grown daughter to call me ASAP with a bunch of questions. Daughter is also calling mom's financial advisor. Most topics on daughter's list I can discuss, such as IRA distributions vs capital gain sales from her taxable account. I have clients making contributions to their LTC insurance, but haven't had anyone take distributions, yet. Taxable? Only earnings taxable? If used for medical expenses, still taxable or not? Form 1099-LTC will be received? Where do I report on tax return? Aren't there 2 kinds, such as per diem vs medical expense reimbursement? Different taxation? Like I say, a crash course/links to get me through this call where LTC distributions is just one of her list of questions. (And, some are for her FA only, such as rebalancing her portfolio.) Then when I hear all her concerns, I'll do more research. Thank you!

https://verifyle.com/Verifyle_8878-8879_compliance.pdf

After reading all that, for one of my biz clients similar to my example, from what I've seen of them in action, I'd say the H&W are but the kids are not. In another one of my biz clients, I'd say all four are. In both cases, I think the one with the ownership interest would disagree with me (for different reasons in each case). So, I really don't want to be involved in these filings. Less and less the more I read. I'm sticking to tax!

What is substantial control? For example, husband owns 80%, wife 20%, adult son 0% but VP of marketing, and high school daughter 0% but VP of finance. Both H & W are the producers of the local TV shows as well as being the on-air talent. Does only husband report? Or, some combination of 2, 3, or all 4? Would it matter if the responsibilities stayed the same, but the "kids" didn't have VP titles? Is there a difference between the kid that's over 18 and the kid that under 18? I guess I have to go read the details at the website! Thanx, Lynn, for your post. That's what I'll send my clients, with the website in large font, bolded, and highlighted.

How do your clients verify their identity before going to the signature lines in Verifyle? I use CCH eSign for signatures. I use FileShare that already included as a part of my CCH SiteBuilder website. See if your tax software or website or phone provider or other vendor you already pay for has what you need included or as a bundled (i.e. low cost) option.

I'm hoping to find something (hoping to not write something myself) that says Congress passed a Corporate Transparency law that requires certain businesses to report their Business Ownership Information on the FinCEN site. Read more about it here to see if it applies to your business... Something short and sweet that tells them to do it themselves, maybe talk to your lawyer, but this is all I know about that, so do NOT ask me any questions. I've heard about preparers creating how-to flyers with steps, screen shots, whatever. I do NOT want to do that. The gist of the law is WHO are owners, not how to report on FinCEN. And, the WHO is exactly what I do NOT want to be involved in deciding. Knowing which grown kid or minor kid has a hand in your biz isn't any thing I know or have the time to know. It's up to the biz owners to self identify. I'm decades past retirement age and have no desire to add more work, especially non-tax work.

My E&O (NAEA group policy via Calsurance) said they are NOT covering preparers for this -- at this time. They did say that IF reporting BOI becomes a core service for tax preparers in the course of their biz, that they would consider covering in the future. From Megan Killian/NAEA: "As of right now, Calsurance will not cover this under their E&O policy, and the consensus has been that most other providers will not be either. However, I suspect that this will change over time once it is more established and it is also demonstrated that this will be a core service offered by many tax and accounting professionals." I do NOT want to report BOI for my clients. My biggest worry is that clients will forget to notify me of changes in ownership until next tax season, missing the short deadline for reporting changes. And, create new businesses without telling me until next tax season. I don't think I could charge enough for this. Wresting true ownership info from clients will take time. Penalties are high. I can make money by preparing taxes all year long. Why break my stride to jump out of my tax software over to FinCEN and also spend the year making sure no client has made any ownership changes?! I will make sure all my biz clients know about it this summer. I hope to steal a 1-pager from someone who creates a thorough how-to flyer.