This is Pqjsandiego's Typepad Profile.
Join Typepad and start following Pqjsandiego's activity
Join Now!
Already a member? Sign In
Pqjsandiego
Recent Activity
I always welcome the opportunity to explore new sources of information on tax topics, especially those which target the younger population. However, note the 2nd sentence of the following which was copied from Weliver's article "It’s important to note that support from your parents or guardians while they can still claim you as a dependent does not constitute a gift. Your parents can give you all the money in the world while they’re claiming you on their taxes and it will never be taxed as a gift." The statement in that 2nd sentence is so **obviously and completely wrong**, I struggled to find words to adequately describe how preposterous that statement is. FWIW I just Googled "preposterous" and the following synonyms were listed "absurd, ridiculous, foolish, stupid, ludicrous, farcical, laughable", confirming to me that preposterous is an appropriate choice IMO.
1 reply
Just giving you the heads up to a major breaking story: Wolters Kluwer, publisher of CCH tax publications and ProSystem tax software, has apparently shut down customer access to its cloud services **worldwide** as a result of the discovery of malware. Scary stuff
1 reply
Under reason 1, you very likely intended to write "You sure DON'T want to do them twice".
1 reply
There appear to be two mistakes in the March 15 entry of your key filing dates list: (1) Form 1120 is due the 15th day of the 4th month NOT March 15 and (2) as far as I can tell, Form 1120A no longer exists. See the right column on page 3 of the official 2018 IRS instructions for Form 1120 for confirmation on the due date. And BTW: Form 1120S returns ARE due on March 15. You do not need to post this publicly. Just giving you the heads up.
1 reply
Your broad statement "... we do know that unless there's a breakthrough by Congress and the White House this weekend, more than 420,000 federal employees will go to work next week knowing that they're doing their jobs without any pay. " What really happens per the Washington Post "Employees deemed essential, otherwise known as 'excepted workers,' who must work during the shutdown, WILL get paid for that time after the shutdown, according to guidance released by the Office of Personnel Management. For furloughed employees, however, it’s up to Congress whether they get paid for the shutdown period; after EVERY previous shutdown, Congress has passed legislation mandating that furloughed workers be paid." (emphasis added)
1 reply
Regarding the IRS extension for issuers of 1095 series tax forms for 2017: that extension has nothing to do with whether the issuer is "corporate" or not. Under IRS's Information Release 2017-209, corporate employers who are not "large employers" (as defined in the law/regs) do NOT get the extension unless they self-insured the benefits provided to their employees. Insurers and other coverage providers DO get the extension even if they are LLC's rather than corporations.
1 reply
OK I assume that this comment will NOT be posted because this might be more of a quibble than a straight-up disagreement. You wrote "Note, though, that prepaying any or all of your 2018 property taxes may trigger the Alternative Minimum Tax (AMT)." But just because a property tax prepayment might "trigger" AMT is not necessarily a reason to skip doing it (as your statement could be read to imply). First of all, literally the last dollar of a certain deduction (such as property taxes) could cause a taxpayer to cross over into AMT. BUT, if someone made a $5,000 property tax prepayment and if the last dollar (or the last hundred dollars) of that prepayment triggered AMT, that would almost certainly mean that the first $4,999 [or first $4,900] of the prepayment generated **significant** federal income tax benefit. Clearly the $5K prepayment under those fact patterns would be worth doing regardless of the fact that AMT was triggered. IMO, the real issue is not whether AMT is triggered or not. The real issues are (A) how much federal income tax benefit is the acceleration of a given deduction likely to create and (B) what happens if the deduction is NOT accelerated into 2017. There are probably tens if not hundreds of thousands of taxpayers who will absolutely have more than $10K of itemized tax deductions in 2018 no matter what they do. And let's recognize that the context of this discussion is that people are making 2017 year-end tax planning computations which are guesswork to some degree. So, if a taxpayer KNOWS she will have more than $10K of itemized tax deductions in 2018 no matter whether she prepays a certain property tax installment or not, and if there's a chance that prepaying her property taxes in 2017 MIGHT create some federal income tax benefit this year, why not make the prepayment? But there's more: because there's another whole dimension of the property tax prepayment question which I have not heard anyone talk about: *state* income tax benefit. Take the earlier example of the taxpayer who knows she will have more than $10K of itemized tax deductions in 2018 no matter what she does today at the end of 2017. What if she lives in NY and is in a high marginal state income tax bracket? Even if she is so far into federal AMT that the 2017 property tax prepayment would probably generate no 2017 federal tax benefit, isn't it obvious that a state income tax savings from a 2017 property tax prepayment is better than zero income tax benefit if the payment is made when scheduled in 2018? (Note that the preceding assumes that states like NY which piggyback on federal income and deduction rules will not change their 2018 state income tax laws to allow deductions no longer permitted under federal law.) Needless to say, as the cliche goes, "it's complicated"...
1 reply
With regard to the interest on HELOCs, you wrote "The new tax law eliminates this deduction." But your statement is overly broad and thus plainly wrong if read literally. That's because a HELOC can qualify as "acquisition indebtedness" to the extent that the loan proceeds were used to substantially improve a qualified residence, for example. Interest on *those* HELOCs clearly CONTINUES to be tax deductible under the new rules. And while I won't take the time to get deeper into the tax weeds just now, there are actually a number of other ways that interest on HELOCs could continue to be tax deductible under the new law.
1 reply
Comments on your observation "And as for those other state and local taxes, while you can't prepay income taxes, you can still buy a car..." I see from the context of your comment that you were referring to prepayments of 2018 state income tax. But your statement as written was overly broad and missed a couple of very important points: (1) Taxpayers who make quarterly estimated income tax payments to their states CAN INDEED prepay the quarterly installments of **2017** state income taxes otherwise due on January 15, 2018 and bring those deductions into 2017 ahead of the coming limits on itemized tax deductions. And (2) those who know or estimate that they will owe additional 2017 state income taxes when they file their 2017 state income tax returns next April CAN INDEED prepay those 2017 state income taxes now as well. Of course, as you noted, adding to 2017 itemized tax deductions can cause a taxpayer to cross over into AMT, a definite caveat with regard to the two legitimate state tax prepayment options noted above.
1 reply
Pqjsandiego is now following The Typepad Team
Dec 31, 2017