Talking with TaxSpeaker: Video 78
1. I remember you said we could classify employees in partnership. If S corp owner classify themselves to be manager and only provide health insurance to himself, is his insurance premium added to W2 subject to FICA taxes? Can we add the insurance premium to his W2 and not subject to FICA and deduct it at 1040 level?
2. Where can we find the SSARS paragraph reference stating the representation letter must contain management’s assertion that the business will continue for a reasonable period for engagements starting after June 2019?
3. Wife dies at age 60 before drawing any ssa. Husband is now 63 and has not signed up to draw ssa yet. Can husband draw now from his deceased wife’s account (married for 30+ years)? And then change over to his own ssa at age 70? Would the wife’s ssa drawn by surviving spouse be subject to earnings limitation for drawing before FRA and have to pay back 1/2 if earned income exceeds $17,xxx?
4. Taxpayer is turning 65 in March and she has a HSA. One of the question she has is: can she close the HSA to start on Medicare and should she sign up only for Part A? Will she penalized for having an H S A account? The way I understood it is that she can no longer contribute to the H S A account but she can keep it open. Am I wrong?
5. Filed an amended return with OTC right at the deadline for filing it. It was a 2013 return. Filed the returns with the IRS and OTC same day. IRS accepted it and paid off. Having to go to appeals with OTC. This “new” attorney for them is saying I need to show him specifically where in the IRC what section actually allows for the filing of amended returns and that is not just at the IRS’ discretion. And also the IRS’ timeline for them accepting these discretionary amended returns. When I do a search, I find all kinds of things pertaining to amended returns, but not finding anything pointing to a Code Section specifically allowing them. Do you know if such a thing exists?
6. We viewed your Security webinar yesterday and we would like to know what company do you use or recommend for cyber security insurance?
7. If Bitlocker is part of Win 10 Pro, does a user need to do anything to activate it? I installed PGP/Symantec on hard drives at your suggestion several years ago. As I’ve upgraded to Win 10 Pro, I’m not sure if I need to do something to activate Bitlocker other than enter the password at the Win opening screen.
8. In years past when you suggested features a computer possess for a tax office, I recall you did not emphasis processor speed. Recently I recall Ryan suggesting a processor speed of i5…is that now the minimum speed for the typical tax office computer?
9. Triple net lease – Would Bob explain how these are set up, and how they may have changed w/TCJA. I have a client how has had one for many years, where the previous practitioner oversaw its creation. The client, sole S Corp shareholder rents her office space to her S corp; the s corp pays rent to the shareholder and the shareholder took rental expenses on Sch E, but depreciation was taken as a 2106 deduction which is now gone. Depreciation is substantial on the building. Does the lease need to be changed to enable depreciation on Sch E? Am I missing something re the deducting the depreciation?
10. If you live in a home as a primary residence, that was prior investment property for 2 years. Do you need to recapture the prior depreciation when sold?
11. Does the original 1031 assets keep deprecating at the same life, or do you lump everything together and start a new 27.5 life residential rental?
12. I have a client inquiring about Opportunity Zones. He sold his business 12/31/2011 and is receiving principal and interest payments over a 10 year period. In 2017 and 2018, he has invested monies received for those years into commercial properties(and renovated them) in Front Royal, VA and now is inquiring if this investment meet the criteria for Opportunity Zones. He has contacted the State of Virginia and claims that this area is a qualified Opportunity Zone! My question is: Can a taxpayer form a separate entity Partnership or Corporation (which he has already done) and invest the proceeds through that entity or do you have to invest only in Qualified Opportunity Funds?
13. I have a client whose father has passed and his mother has severe dementia my client does not have power of attorney. What can he do, the IRS was of no help