Lion EA

I wait until after biz returns, usually end of March, to email them if they want me to e-file extensions.

Your client DOES have a profit motive for working. He accepted the checks. It's not a hobby. You said eight hours per day. And, he is in the business of HVAC services. (The business of being an employee would not be QBI.) Didn't he deposit his checks, so he can confirm his annual amount on his bank statements? Lay it all out for him, including whether you are willing to prepare his return under which conditions. Let him decide. He might be ready to blow it all up. Although, I'd recommend he find another job first and THEN file his returns. He can always extend and pay something with his extension. In my software, I have to chose "Qualified" or "Specified Service" or the income is not counted as QBI.

It might not be what was supposed to happen, but it is what happened. We report the past and help our clients plan for the future. It is the client's decision to accept what's reported or not. And, you can decide to keep him as a client, or not. By the way, would an IRA help him -- paying himself for his own retirement to pay the government less?

Trust Judy! Report on a 1041 at the 1041 rates.

Check that out in the IRCode. Don't trust just any old article. An Irrevocable trust is a separate entity, so I don't think it gets to use the tax rate of the grantor, who is separate from the trust. (Whose rate would you use if a bunch of siblings put an asset into a trust to separate themselves from liability?) That would be true in a Revocable trust that is NOT separate from the grantor and reports on the grantor's income tax return so, of course, uses the grantor's tax rate. But, don't trust me either, because I do very few trusts anymore!

If the apartment house was titled into the trust, the trust reports income, expenses, depreciation, etc. Make changes with the mortgage company, insurance company, etc.

The broker is not verifying that the charities are qualified per the IRS. "Taxable amount not determined" is correct. The tax preparer with the client determine and report as your software allows for QCD to print. (In my software, I have a tab where I put the amount of the Qualified charitable distribution.) On 2018's 1040, line 4a was $100,000; b was QCD; 4b was $95,000, for example. I keep the acknowledgements from my church and charities with my tax return; plus Morgan Stanley did provide a detailed list. I've been doing this and talking to my clients about doing it.

I think you have a choice for 2018 and 2019 of parents' rate OR trust rate. If low income, trust rate might be the same. If you have to deal with a contentious divorce or other than the parents (auntie hired you), you might need trust rate. I have a grandfather doing the investing and hiring me to do his grandkids' returns; luckily, the father in TN is great about emailing me select numbers off his joint return for me to use for his kids' kiddie tax schedule. (And, that's two 2018 amendments I'll prepare after tax season, because the 2018 kiddie tax did jump up over 2017 for grandson and granddaughter.)

Unless it was an incomplete gift, a life estate. Please research, but I think when dad died, mom got 1/2 step-up. Mom is still alive, so her basis is unchanged. Mom sells house? Or, daughter sells house? Or, did daughter inherit dad's 1/2? It's late, so I'm not following the timeline!

Hopefully, his S-corporation is giving him a K-1 that will detail his distributions, as well as income and expenses. Who issued him a 1099-MISC? Does he do business as an individual as well as an employee/shareholder of his S-corp? Tell him to start payroll NOW.

He probably filled out the PY return/schedule the year he moved, which was correct for that year; then, he continued that method every year since. I've seen taxpayers go to a pro when something changes, and then keep copying what the pro did on their own until the next time something changes!

State Taxation of Pension Income Act of January 10, 1996, P.L. 104-95, 109 Stat. 979 (H.R. 394) Be it enacted  *** SECTION 1. Limitation on State Income Taxation of Certain Pension Income. (a) In General.—Chapter 4 of title 4, United States Code, is amended by adding at the end the following: “ Sec. 114. Limitation on State income taxation of certain pension income “(a) No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State (as determined under the laws of such State).

The feds solved the issue some years back by legislating that pensions are taxed where the taxpayer resides only. Someone will know the ruling off the top of their head and will cite it for you to convince your client.

If he's in construction, does he have enough assets that the unadjusted basis will get him a little QBID? Then he can learn his lesson about payroll for 2020.

Ohio has all kinds of local taxes.

Inventory, maybe.

I agree with you.

Mary is better at some topics than others! I like David better of the two, but I do like their banter when they present together. We've had some health scares from other speakers, as well as transportation issues (think flights during snowstorms), so we've been booking more duos as insurance. We hope that not both get sick or not both are flying from the same airport due to their different speaking schedules.

The TaxProJournal article? Maybe have to be a subscriber. Let me see if I can post the full article.

Here's their website link: http://ataxprof.com/ Click on Tax Pro Newsletters to get a long list of recent e-newsletters. And, try this email address: [email protected] Put SUBSCRIBE in the subject. They're a small outfit, so I don't know how often they'll add to their list during tax season. But, they do answer questions promptly. They bill monthly, but not during tax season. If you ask a question now, you'll probably receive an invoice 1 May. They take checks only. Both Mary & David Mellem are great people, tax preparers, and speakers. The NY/CT-ATP frequently uses them for our all-day October Seminar.

The Mellems? I know they have different email addresses, so let me check and get back here.

Public defined-contribution pension, like a 401(b), for federal purposes. As Michael said, states treat it differently. NJ adds it back to income, also.

The IRS accepts e-files for 2017, 2018, and 2019. You state(s) may vary.

Hang in there, Bonnie. Come talk to us anytime, about anything.

I have had eFaxes go through/arrive immediately and had them take a long time, both. Most of my faxes to the IRS are from my HP all-in-one on a hardwired AT&T/Frontier line, and they all take a long time. So, I don't think eFax makes a difference. You can save by paying annually. I don't remember for sure, but think I pay no more than $169 annually.