Tax Talk

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My understanding is that the energy credit for leased solar panels goes to the leasing company and the customer is not eligible for the tax credit on their 1040.  I have a tax client that is leasing a new furnace.  Does the HVAC company also get the energy credit for furnace lease.  The lease is a lease to own after 25 years of leasing.

Hi,I have a client living in Wilmington Delaware (entire year) and works FT at Northrop in Maryland.  His W2 has the following state and local items:DE state withholding = $15MD state withholding =$4500Wilmington DE local $1100.00I think, he files a MD 505 and 505 NR.  A DE PIT-RESAnd ignore the local withholding as, I think it is collected and paid directly to Wilmington via the employer.Note, there is a MD 515  Any help will be greatly apprecaited.  

Pennies are gone, but BOI remains.  Treasury has interesting priorities.  I'm just interested in the accounting issues.  If I sell something for $5.82 including tax, but I don't have three cents to make change, what do I do?   If I round down to $5.80, do I just reduce the selling price before tax?  But what if that reduced the tax (after rounding) by a cent?   If I round up to $5.85, I think I have to turn the excess over to the state. Or can I credit it against the 3 cents I lose on the next sale that came out to $5.82 and I rounded down? In my younger days I traveled to countries where instead of change for smaller amounts, they gave you a piece of wrapped hard candy.   Dentists would love that.  By the way, I looked it up so you don't have to. It costs 14 cents to mint a nickel.    

Can non-resident alien (who files 1040-NR) deduct property taxes on schedule A? (itemized deduction)The taxpayer is a non-resident alien but he has a property in U.S and pays a property taxes for it.If you see Schedule A (Itemized deduction) for 1040-NR users, there is State and Local incomes taxes line but I cannot find a property taxes for it.I'm not sure if I can claim the property taxes or not.

Hi, client has one rental property and created an LLC with address of the property, but the property itself is under his personal name. LLC is in CA  and will need to file form 568. Am I correct, that unless the LLC owns the property than rental income/expenses shouldn't go on the LLC return? Do I file it with just $0?

Has anyone run across this problem? I filed a NR CA return - I was able to e-file it. However, I am unable to print due to the forms not being final (that is the error code I received when attempting to print). I was only able to print Form 8879. How is that possible that I can file without forms being finalized? 

Trying to find out if a person can deduct medical expenses paid directly to provider by a trust on the person's behalf.The trust is an irrevocable trust set up when husband died.  (His living trust became an irrevocable trust.)  The wife is the sole beneficiary.  She receives all trust income annually plus funds "required to maintain the lifestyle to which she is accustomed."She now entered an assisted living/continuous care facility and has been certified as chronically ill/cannot conduct at least two ADLs.  Trust is paying about $5k/month for housing/meals/care.I found reference to court case Lang v. Commissioner:  Lang v. Commissioner, No. 27276-08 | Casetext Search + Citator  This ruling seems to run so contrary to the guidance that you are not allowed to deduct medical expenses paid by someone else?Seems payments by the trust to the third party provider may be deductible by the wife on her return if the trust is not required to pay/payments are c

Hi,I have a client living in Wilmington Delaware (entire year) and works FT at Northrop in Maryland.  His W2 has the following state and local items:DE state withholding = $15MD state withholding =$4500Wilmington DE local $1100.00I think, he files a MD 505 and 505 NR.  A DE PIT-RESAnd ignore the local withholding as, I think it is collected and paid directly to Wilmington via the employer.Note, there is a MD 515  Any help will be greatly appreciated.  

Hello all, I have a number of client's who did "back door" Roth contributions as their income was beyond the IRS threshold not allowing them to make such contributions in the prior year. Is 100% of this type of contribution "taxable" even though the taxpayer made the contribution with non-qualified money. I have read the fiduciary guidelines and I am still a bit confused on the taxability of this type of transaction. Can anyone give me some insight as how to determine how much if any of the back door Roth contribution is taxable. Thanks for your assistance.  

Well well here we go again. I have just prepared my own tax return and I guess it is a good thing that WE do not have to pay estimated tax payments untill April 15th because the forms have not been approved yet.

A son wants to Transfer Commercial  Real Estate  to his father . The property is in a Single Member  LLC.  The property has an Appraised value of $ 1.3 million. It has a mortgage on it for $ 1.6 million.  The property has a cost of $ 1,650,864 and 286,232 of Depreciation has been taken on it so its basis is $ 1,364,632. The bank is amenable to the father picking up the $ 1.6 million.  Wouldn't the son have a deemed sale and a gain of $ 1,600,000 - $ 1,364,632= $ 235,368? Wouldn't the father have a basis of $ 1,600,000 in the property? Thanks

Although client qualifies for the credit, it does not flow.  Wondering if the form is final.

I realize an S-Corp needs to file their tax return "by the 15th day of the third month following the close of their tax year".  If an S-Corp revokes their S-election on 1/31/2025, then their final short-year S-Corp tax return would be due on 4/15/2025.  What if the S-Corp revokes their S-election on a day that is not on the last day of a month.  For example, if the revocation date is 2/17/2025 or 2/21/2025, what is the due date of the short year S-Corp tax return?  Is the third month May, regardless of the February closing date (with the return due on 5/15/2025)?  Or is the third month based on the actual end of business date (for example, if the closing date is 2/17/25, then is the return due 15 days after 5/17/25)?

The program is not allowing Section 179 (partnership with profit) for software why?

Anyone having a problem with the Federal not printing?  It just started happening on my software. 

Where do you enter "total capital gain distribution" from Form 1099-Div on Form 990PF?I put it under Part 1 (Analysis of Revenue & Expenses) line 11 "Other Income" is that correct?However,it created error on Form 990PF "Page 12"  

Do we enter the 1099-G for the Parental Choice Tax Credit from OTC on screen 14.2?  I entered it there but it is being treated as if it were a state income tax refund.

Client provided a venmo account for direct deposit.  A venmo account is not considered a checking or savings account.  Proconnect want me to choose checking or savings or it will not efile the return.  Any suggestions?

SCorp Shareholders have a set salary with a portion withheld for 401(k) elective deferrals that reduce Box 1 wages but added in to Box 5.  They also have SCorp medical insurance as a provided benefit included in their box 1 wages but not in Box 5.   I am trying to book Shareholder payroll to match W-2 Box 1 wages, not Box 5 wages on the 1120S. I was told that you can not book the higher wages reflected in Box 5 as the corporate salary expense on the P&L because the Shareholders can not "double dip" by having the Net income distribution on the K-1 reduced by the deferrals and also have their Fed/state taxable wages Box 1 on the W-2 reduced by the deferral.   If you can not include the Gross wages (salary plus deferral) as Shareholder Salaries where do you record this?  It is a Corp disbursement.  There is no employer matching at this point. Any help would be so appreciated!

From a Tax Court decision today – taxpayer is from Georgia. Since 1995 petitioner has been working as a freelance writer, writing movie reviews. In 2019 petitioner received $8,250 from freelance movie review writing. Additionally, since at least 2019 petitioner has bought and sold movie-related memorabilia. Petitioner sold the memorabilia on eBay, and his sale proceeds were paid to him through a PayPal account solely in his name. In 2019 petitioner received $41,972 from selling movie-related memorabilia, and PayPal sent the IRS and petitioner a Form 1099–K, Payment Card and Third Party Network Transactions, reporting the $41,972 as the gross amount of payment card/third party transactions for 2019, with no amount of federal income tax withheld. Petitioner prepared his 2019 federal income tax return with assistance from a representative at an H&R Block location. Petitioner did not report any of the income he received from freelance movie review writing or selling movie-related memor

Billionaire tech mogul Elon Musk posted Monday on his social media site that he had “deleted” 18F, a government agency that worked on technology projects such as the IRS’ Direct File program. This led to some confusion about whether Direct File is still available to taxpayers, but the free filing program is still available, at least for the coming tax season. While Musk’s tweet may have intimated that the group of workers had been eliminated, an individual with knowledge of the IRS workforce said the Direct File program was still accepting tax returns. The individual spoke anonymously with The Associated Press because they were not authorized to talk to the press.

I'm getting a strange error trying to file a 2023 return with interest and penalties. I have selected Electronic Funds withdrawal but it won't let me include the entire amount in the electronic payment. It errors saying that I cannot include more than double the tax due for the payment (tax plus late payment penalty), leaving the additional interest and penalties to be paid by 1040-V check. I want to pay ALL of it by EFW.In the review it says: You have selected both an Electronic Funds Withdrawal and payment by check for this client. If you want to have the entire balance due deducte using EFW, you need to return to the Federal Information Worksheet and make the correction in the EFW section. The hyperlinks take me back to the 3 amounts, the amount due, the debit amount (tax due and late payent penalty) and the Partial amount (penalties & Interest that it won't allow me to include in the debit amount). It also will not let me override this to include the int/penalties in the d

I have a client - couple filed MFJ in 2023.  Husband was listed as taxpayer.  For 2024 the wife decides to file a MFS return through Turbo Tax. She has already received her refund.  (She just wanted to get her refund early.  No other reason for filing separately) Husband gives me his W-2 (All they have are 2 W-2s and standard deduction).  His income is over $250K.  Hers is under $16K.  By filing his return as MFS, he owes over $23K.  If we file MFJ, he owes under $7K, saving them $16K.  So - how do I do this?  I thought maybe I could file a superseded return as MFJ, but the software says I cannot efile a superseded return when the original return was not successfully efiled.  I don't want to file MFS for the husband and have him pay in all that tax, just to amend and get it back.  They live in Florida, so there is no State tax to worry about.  Can I file an amended return for her showing all zeros and have her pay back he

I am quite pissed about the new way Intuit has found to further enrich itself from customers from the new $100 advanced users fee. The cost of each return was high enough, and increasing each year enough to cover their costs. The supposed additional services that are given are not things that I ever needed or used in my small service. This should only have been for firms with multiple users who really benefit. If I have only a few returns, mostly less than five then this is a bad move. They need to re-consider the plan.