any accountants out there that i can ask a question?

[davidd75]

You can PM me.

done
Thanks

[Sam Finkelstein]

Not an accounting question per se, but I'm sure someone here can answer.

A relative who used to do my and my family's returns retired. I am an accountant myself and recently passed the CPA exams but don't do taxes (though I did work a brief stint as a preparer in someone else's firm). Would it be very difficult for me to do these returns myself?

[Cat18]

Not an accounting question per se, but I'm sure someone here can answer.

A relative who used to do my and my family's returns retired. I am an accountant myself and recently passed the CPA exams but don't do taxes (though I did work a brief stint as a preparer in someone else's firm). Would it be very difficult for me to do these returns myself?

Can’t speak for myself but plenty of ppl do their own taxes, especially if they’re the simple variety.
Check out turbo tax and other software etc...

[besttime]

I've heard a bit about the new enhanced dependent care credits for 2021 and was wondering if anyone could provide some insight on my situation.

So I know that if for example somebody uses their work FSA to pay for preschool that money is not eligible to be included for the dependent care credit.

My situation is that my wife is starting a new job in a preschool in September, and the school has given her the option of having tuition for our son (who goes to the school) taken out of her paycheck pre-tax - they said they do this using a "qualified tuition deduction". Would this be the same as the FSA issue above and therefore not eligible for the 50% dependent care credit? Or is this different somehow since it is not an FSA account and I would be able to double dip?

We live in Florida, so saving tax on the preschool would save us about 15-20% in taxes on the tuition. The new dependent care credit would be a 50% rebate basically.

[reed]

Hi - I’ve been renting a home since 2016, was under contract to buy it since 2017, finally closed in 2020 and want to sell it in a couple of Months. It will be less than 2 years of ownership when I sell it but I’ve lived there for over 5 years. Anyway To get the personal residence exception to avoid paying capital gains tax?

[Fish Tank]

Tax loss harvesting-
From what I understand, if I lose money in stocks etc, I can apply up to $3,000 of the principal loss against my personal income (as opposed to other investments, in which case it would be unlimited), and I can carry over the rest to future years.

If I lost $10,000 in 2020, but didn't claim the $3000 against my income on my 2020 return, can I start claiming it on my 2021 return? ($3000 on my 2021 return, $3000 on 2022, and $1000 in 2023)
Or the carryover only works if you started claiming in the year of the event?

Thank you !

[S209]

Hi - I’ve been renting a home since 2016, was under contract to buy it since 2017, finally closed in 2020 and want to sell it in a couple of Months. It will be less than 2 years of ownership when I sell it but I’ve lived there for over 5 years. Anyway To get the personal residence exception to avoid paying capital gains tax?

You can move out, rent the house out for another year, and then sell it. The 2 years of ownership and use do not need to be simultaneous.

Also, it’s sometimes possible to get a partial exclusion even if you don’t qualify for the full exception.

https://www.thetaxadviser.com/issues/2008/aug/planningopportunitieswiththesec121partialexclusion.html

[Smartypantz]

Can anyone help me figure out if I should form my business as LLC or S Corp? I am a freelance bookkeeper

[iwlw2]

Would love to hear an accountant weigh in on this, TIA!
I am sure this is not an unusual situation curious what is the best way to handle. Due to my large family BH and parsonage, I am in the lowest tax bracket. My oldest who is currently still living at home, is now working and making a quite reasonable salary (~25k). I am not sure, but adding her salary to family income might bump up my bracket, on the other hand if she files her own tax return she will certainly need to fork over a nice chunk of change in taxes. What do people usually do in such a scenario? Thanks.

[JunkYardUnz]

Would love to hear an accountant weigh in on this, TIA!
I am sure this is not an unusual situation curious what is the best way to handle. Due to my large family BH and parsonage, I am in the lowest tax bracket. My oldest who is currently still living at home, is now working and making a quite reasonable salary (~25k). I am not sure, but adding her salary to family income might bump up my bracket, on the other hand if she files her own tax return she will certainly need to fork over a nice chunk of change in taxes. What do people usually do in such a scenario? Thanks.

She can’t be included in your return unless your married to her.

What you are probably confusing it with if you should claim her as dependent vs she claiming herself on her return (she needs to file regardless). There are so many moving parts the only way to that is have your accountant run it both ways. That all without considering the stimulus aspect…

[lubaby]

And don't forget, if she's potentially filing on her own. How would your tax bracket look if there was one less household member?

[Dawie]

if she is over 18 and not a full time student she's isn't your dependent
regardless of where she sleeps at night

[Jack out of the box]

if she is over 18 and not a full time student she's isn't your dependent
regardless of where she sleeps at night

That's inaccurate.
See IRS Publication 501 (page 11) https://www.irs.gov/pub/irs-pdf/p501.pdf

[Dawie]

That's inaccurate.
See IRS Publication 501 (page 11) https://www.irs.gov/pub/irs-pdf/p501.pdf

what is inaccurate
?Age Test
To meet this test, a child must be:
• Under age 19 at the end of the year and
younger than you (or your spouse if filing
jointly),
• A student under age 24 at the end of the
year and younger than you (or your spouse
if filing jointly), or
• Permanently and totally disabled at any
time during the year, regardless of age.

[mgarfin]

Got A letter from the IRS pertaining to a 941 from Q4 2020

I'm getting a fine for late payments. This is a mistake and it seems they have payments allocated wrong.

I'm trying to call them for a few weeks already. Keep on getting we are too busy to take your call back later message.

Does anyone know how to get someone on the phone or a different way of handling this?

[bubkiz]

Someone told me that his accountant (Lakewood firm) advised to file married filing separately and they therefore got increased stimulus payments (as each return got the remaining balance of what was owed to them).
Does this make any sense?

[Dawie]

Someone told me that his accountant (Lakewood firm) advised to file married filing separately and they therefore got increased stimulus payments (as each return got the remaining balance of what was owed to them).
Does this make any sense?

like everything else in tax law... it depends
and yes that it the law
if high earning spouse is MFS and low earning spouse take all the kids, said family can come out way ahead even with the MFS "penalty"

[CountValentine]

What do I put in Box 20 on the K-1?

 

[bubkiz]

like everything else in tax law... it depends
and yes that it the law
if high earning spouse is MFS and low earning spouse take all the kids, said family can come out way ahead even with the MFS "penalty"

What is considered "high earning" and is there any resource you can point me regarding this.

[Dawie]

What is considered "high earning" and is there any resource you can point me regarding this.

over 150k
 GIYF