New York/Connecticut Association of Tax Professionals | Linda Bates CPA | Activity https://www.nyctatp.org/members/lindabates/activity/ Activity feed for Linda Bates CPA. Mon, 04 May 2026 02:41:07 -0400 https://buddypress.org/?v= en-US 30 hourly 2 f9be2214c3725beee47ef7d9bad1477a Linda Bates CPA replied to the topic Self-Directed IRA Investing in Real Estate in the forum Tax Discussion https://www.nyctatp.org/forums/topic/self-directed-ira-investing-in-real-estate/#post-15335 Sun, 24 Jan 2021 18:36:52 -0500 Don’t do it! Especially if it is a rental property. There are so many rules that the IRA owner can run afoul of that will crash the IRA. The IRA owner can’t perform any maintenance or other services to the property such as repairs or lawn mowing and there must be sufficient liquid assets in the IRA to pay for taxes, repairs, etc.
Most of the…Read more

]]> 6b49952d8a28a62721eaed69671b1c4f Linda Bates CPA replied to the topic Does anyone has experience with Primerica in the forum Tax Discussion https://www.nyctatp.org/forums/topic/does-anyone-has-experience-with-primerica/#post-14970 Sat, 14 Nov 2020 17:06:56 -0500 Primerica is a legitimate company offering term life insurance policies, but most people can find a better policy elsewhere. They have an A+ rating from A.M. Best. Primerica uses a marketing strategy to recruit new agents who aren’t always experts. Their rates are usually higher than the competition.

I found the above after a Google search to…Read more

]]> a25056935af13f7073c38d2556b2cfaa Linda Bates CPA replied to the topic Self-directed IRA - Disqualified person in the forum Tax Discussion https://www.nyctatp.org/forums/topic/self-directed-ira-disqualified-person/#post-14934 Sun, 08 Nov 2020 16:34:55 -0500 FYI – rental real estate in an IRA is not a good idea. IRA owner cannot provide ANY services to property – not even cutting the grass! There must be sufficient cash in it to cover all RE taxes, maintenance, etc. – such as a new roof. I have been down this path with a client. Read the rules! They are very restrictive and full of traps.

]]> d5cc35d87109afacb5aa61c635369674 Linda Bates CPA replied to the topic Care Act 401K Withdrawals in the forum Tax Discussion https://www.nyctatp.org/forums/topic/care-act-401k-withdrawals/#post-14153 Fri, 10 Apr 2020 19:44:22 -0400 I found this in a Motley Fool artice published yesterday:

2. You have three years to put your distributions back without owing taxes
Under the new law, you can avoid paying taxes on your COVID-19-related 401(k) or IRA distributions if you put the money back in your account within three years from the date you withdrew it. If you make several…Read more

]]> 351bd25322ec1ad420974cb584430556 Linda Bates CPA replied to the topic House Sale w/Side Deal in the forum Tax Discussion https://www.nyctatp.org/forums/topic/please-help/#post-14123 Thu, 02 Apr 2020 18:05:33 -0400 Thank you Rita – for the first time in nearly 40 years I have told a client I can’t prepare their return due to lack of knowledge. I suggested they go to Cummings and Lockwood who specialize in estates and trusts. I think there is a big problem with this and my now ex-client is going to be very unhappy with the outcome. To top it off the father…Read more

]]> f9cc8022662495e25998707e0231ea48 Linda Bates CPA replied to the topic Loss on Trade-In of Car where Standard Mileage Rate was Used in the forum Tax Discussion https://www.nyctatp.org/forums/topic/loss-on-trade-in-of-car-where-standard-mileage-rate-was-used/#post-14117 Thu, 02 Apr 2020 15:50:42 -0400 Hi Tom,

Saw that no one answered this. I found an article and here is the link. you can take a loss on the business part. There is a good example towards the bottom of the article. there are also all the tax code cites. https://bradfordtaxinstitute.com/Free_Resources/IRS-Mileage-Rates.xml.aspx

No one has answered any of my posts so far this tax…Read more

]]> b4d078cb4713ab2e4a583caab3d44273 Linda Bates CPA started the topic section 179 CT addback completed contract constr. in the forum Tax Discussion https://www.nyctatp.org/forums/topic/section-179-ct-addback-completed-contract-constr/ Thu, 02 Apr 2020 15:26:48 -0400 My completed contract method construction client bought a truck (over 6,000lbs). We allocate his vehicle expense between cogs and ending inventory. We took 100% section 179 on the purchase. We allocated 53% to ending inventory and 47% to cogs. CT is adding back 100% to 2019 income. We only took 47%. What is the correct way to account for this?…Read more

]]> 508a64c393f9d2d8ffd8e0640e7798ad Linda Bates CPA replied to the topic Partnership Losses in excess of basis in the forum Tax Discussion https://www.nyctatp.org/forums/topic/partnership-losses-in-excess-of-basis/#post-14102 Tue, 31 Mar 2020 20:23:42 -0400 This is just stream of conscientiousness but here are a couple of things that might change your basis calc –
Is the K-1 prepared on the tax basis?
Are there liabilities on the K-1 that might give the partner basis that have been overlooked?

]]> 4118feda829f61541166445f7cb48286 Linda Bates CPA started the topic House Sale w/Side Deal in the forum Tax Discussion https://www.nyctatp.org/forums/topic/house-sale-w-side-deal/ Mon, 23 Mar 2020 19:25:28 -0400 I have a situation where a mom and dad gave their home to their two daughters G and V) and retained life estates in 2000 for their two-family residence in Howard Beach NY. The deed was changed to reflect this. The deed was in both parent’s name at the time.

One daughter (V) lives in half the house upstairs and has forever.

The daughters…Read more

]]> 7b24d257b256ccb0dd60ab45149edc1b Linda Bates CPA replied to the topic Legal Fees Taxable Settlement in the forum Tax Discussion https://www.nyctatp.org/forums/topic/legal-fees-taxable-settlement/#post-14017 Thu, 27 Feb 2020 19:33:54 -0500 https://www.forbes.com/sites/robertwood/2018/03/12/new-tax-on-lawsuit-settlements-legal-fees-cant-be-deducted/#7341d4270d71

great article

]]> f5d6b49d9fc463b798ffdeb8f6601fc1 Linda Bates CPA replied to the topic 1099R E file problem in the forum Tax Discussion https://www.nyctatp.org/forums/topic/1099r-e-file-problem/#post-13993 Thu, 13 Feb 2020 19:14:58 -0500 I Google the payer company and use the phone number on the website. I find most of the 1099’s have the “800” number right on them somewhere.

]]> 9d96694510806b8a4482f19ce41979d5 Linda Bates CPA started the topic Self employed health insurance and the PTC in the forum Tax Discussion https://www.nyctatp.org/forums/topic/self-employed-health-insurance-and-the-ptc/ Tue, 11 Feb 2020 22:33:24 -0500 I’m confused and mad because I should now this by now! I am preparing a 2015 return and will need to do the rest too. My client got a 2015 1095-A. During the 2015 he paid 3,800 in premiums and got a PTC for 9,200. I input the return and the 8962 makes him eligible for the whole amount and gives him a tax credit for the 3,800. My program is…Read more

]]> f01ca85e5a3478de8e73efe5be5bdcf3 Linda Bates CPA started the topic Dorothy Day House in the forum Tax Discussion https://www.nyctatp.org/forums/topic/dorothy-day-house/ Thu, 05 Dec 2019 17:23:38 -0500 Happy Holidays everyone,
I have a suggestion. I run a charity in Newtown and we provide breakfast and lunch to the helpers on the day of an event we hold before Xmas every year. Members of the community adopt a needy family and provide food and gifts. The day of the event the adopters drop off their “baskets” and other members show up to deliver…Read more

]]> b3e5ecdde62b7065f18ca1eccb973615 Linda Bates CPA started the topic Is a tuition payment a gift? in the forum Tax Discussion https://www.nyctatp.org/forums/topic/is-a-tuition-payment-a-gift/ Fri, 22 Nov 2019 16:13:26 -0500 I just took a Surgent self study course on gift tax and here is what was in the course material:
3. Transfers not subject to the gift tax
In addition to gifts that are not more than the annual exclusion, there are three other types of transfers
that are not subject to the gift tax. These are:
• Transfers to political organizations;
• Payments tha…Read more

]]> a82e97bb8bb559c1e95586f6aced4f4f Linda Bates CPA replied to the topic Worksheet for Determining Support in the forum Tax Discussion https://www.nyctatp.org/forums/topic/worksheet-for-determining-support/#post-13344 Tue, 22 Oct 2019 14:00:11 -0400 I would like one too please. So tired of arguing with divorced clients! lbatescp@aol.com Thanks.

]]> 3ac280149ad252d1e57aa9d3ec848644 Linda Bates CPA replied to the topic K-1 1120S - Line 12S Excess business interest expense in the forum Tax Discussion https://www.nyctatp.org/forums/topic/k-1-1120s-line-12s-excess-business-interest-expense/#post-13082 Fri, 04 Oct 2019 15:36:56 -0400 Here is what I found. hope it helps.

Dissecting the New Business Interest Expense Limitation

not sure if this went through – sorry if it is in here twice!

]]> 97e923e0edaf880ff3f84a4fdee29253 Linda Bates CPA replied to the topic Actual Expense method Deducted on LLC in the forum Tax Discussion https://www.nyctatp.org/forums/topic/actual-expense-method-deducted-on-llc/#post-12921 Wed, 18 Sep 2019 13:36:34 -0400 Thanks. For C corps and sub S’s we have the corp own the vehicle, all auto expense paid by the company, and we bonus out the personal use portion on the W-2 at year end based on the IRS LTV chart and add 5.5/gal cents for gas personal portion. We also have an expense report that has the mileage and other expenses that are actually reimbursed like…Read more

]]> 684fc512756b53781f743c75a2271695 Linda Bates CPA started the topic Actual Expense method Deducted on LLC in the forum Tax Discussion https://www.nyctatp.org/forums/topic/actual-expense-method-deducted-on-llc/ Tue, 17 Sep 2019 16:54:55 -0400 Hi,

This should be a “no-brainer” and I probably should know it already. I have done some research and can’t find anything definitive. I have found a bunch of mis-information though on deducting vehicle expenses! Anyway….

Her is my question:

If you have a SMLLC can your LLC deduct actual expenses on the vehicle if the vehicle is in your name…Read more

]]> f308ca4e45ff31e1c3799ffb2836c2ef Linda Bates CPA replied to the topic Multi-state 1065 K-1 in the forum Tax Discussion https://www.nyctatp.org/forums/topic/multi-state-1065-k-1/#post-12658 Tue, 27 Aug 2019 17:45:38 -0400 Thanks – I think i figured it out!

]]> 76dcc3e4a6e449a900aa7a1caedcc4d2 Linda Bates CPA replied to the topic RMD deadline in the forum Tax Discussion https://www.nyctatp.org/forums/topic/rmd-deadline/#post-12657 Tue, 27 Aug 2019 17:43:52 -0400 Taken right from the IRS website:
Can the penalty for not taking the full RMD be waived?
Yes, the penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 and…Read more

]]> fd793000f82fc4831372f1f5343d7a6e Linda Bates CPA started the topic Multi-state 1065 K-1 in the forum Tax Discussion https://www.nyctatp.org/forums/topic/multi-state-1065-k-1/ Wed, 21 Aug 2019 21:46:53 -0400 My client received a K-1 that has 7 states’ K-1’s attached. He lives in CT. It is from a holding company with an address in VA. My problem is with the state additions section on CT, VA, NC, and MD. These state have decoupled from the federal for bonus depreciation. Federal ordinary income is 22,726.
CT is showing no CT source income but a Bonus…Read more

]]> 983c62cd2f4f39bbed88185b8a1a12d5 Linda Bates CPA replied to the topic All professional tax preparers must create a written data security plan in the forum Tax Discussion https://www.nyctatp.org/forums/topic/all-professional-tax-preparers-must-create-a-written-data-security-plan/#post-12612 Wed, 21 Aug 2019 16:02:23 -0400 Thanks!

]]> d7aa77fa699d7631183f04845dad9865 Linda Bates CPA started the topic All professional tax preparers must create a written data security plan in the forum Tax Discussion https://www.nyctatp.org/forums/topic/all-professional-tax-preparers-must-create-a-written-data-security-plan/ Wed, 14 Aug 2019 16:41:47 -0400 Did everyone see this? I was browsing….

IRS, Security Summit partners remind practitioners that all “professional tax preparers” must create a written data security plan to protect clients
IR-2019-131, July 23, 2019

WASHINGTON — The IRS, state tax agencies and the nation’s tax industry today reminded all “professional tax preparers” that fe…Read more

]]> 43749c68048e89a5d010814c44888019 Linda Bates CPA replied to the topic Bonus Clawback in the forum Tax Discussion https://www.nyctatp.org/forums/topic/bonus-clawback/#post-12403 Mon, 29 Jul 2019 21:12:50 -0400 I looked around the internet and found this and many other articles that mentioned Payroll Clawbacks. This specifically mentioned CT. Some of the other articles said the original employment contract should tell you how the compensation is to be paid back. Hope this helps.

“Your question indicates that you are located in Connecticut. Under…Read more

]]> 3d8098375cea3ea8fdab707df4f4766e Linda Bates CPA replied to the topic Form 2553, Election by a Small Business Corporation respones from IRS in the forum Tax Discussion https://www.nyctatp.org/forums/topic/form-2553-election-by-a-small-business-corporation-respones-from-irs/#post-12037 Tue, 04 Jun 2019 19:34:08 -0400 Get a POA and call the IRS Practitioner’s Hotline 1-866-860-4259.
I have had very good luck with them answering these types of questions.

]]> c747f424a7a95bde72e45d5bc02f6d17 Linda Bates CPA replied to the topic Trust termination in the forum Tax Discussion https://www.nyctatp.org/forums/topic/trust-termination/#post-5707 Fri, 05 Apr 2019 01:02:48 -0400 Definition of a Simple Trust
There are three basic characteristics that define a simple trust:

The trust must annually distribute to the beneficiaries any income it earns on trust assets.
The trust cannot distribute the principal of the trust.
The trust cannot make distributions to charitable organizations.
When this type of trust is used, the…Read more

]]> 78fea33a235544ba0db5a99089c79afd Linda Bates CPA replied to the topic Trust termination in the forum Tax Discussion https://www.nyctatp.org/forums/topic/trust-termination/#post-5704 Fri, 05 Apr 2019 00:38:00 -0400 thanks for following up. I guess I am stressing about nothing!

]]> cc3cef1df88f28c97f911acdf9a1905a Linda Bates CPA replied to the topic Trust termination in the forum Tax Discussion https://www.nyctatp.org/forums/topic/trust-termination/#post-5691 Thu, 04 Apr 2019 21:26:41 -0400 Thanks Emmet – I got the income piece but my question is how do I value the corpus distribution? At FMV of the securities or cost basis to the trust? The Bene will pay any gain when the securities are sold. I’m talking about Schedule B line 10 – other amounts paid,credited, or otherwise required to be distributed. Which do I put there? I have a…Read more

]]> 185122aae41b17ea8aad79f93fffe1a9 Linda Bates CPA replied to the topic Trust termination in the forum Tax Discussion https://www.nyctatp.org/forums/topic/trust-termination/#post-5682 Thu, 04 Apr 2019 19:30:44 -0400 Also where do i put the distributions on the 1041?

]]> e8c9497de6301d78bb7ab962aff71b55 Linda Bates CPA started the topic Trust termination in the forum Tax Discussion https://www.nyctatp.org/forums/topic/trust-termination/ Thu, 04 Apr 2019 18:59:36 -0400 probably a dumb question…I have never filed a final trust return. I have one that was terminated by the trustee. It was an irrevocable trust set up for the kid. He is building a home and needed the funds.
The trust distributed cash and marketable securities. Do I show the securities at cost or FMV on the final 1041?

I hate trust tax preparation!

]]> daa6ec68b116eb5942204a7fcfa0f2aa Linda Bates CPA replied to the topic Brookfield tornado disaster relief? in the forum Tax Discussion https://www.nyctatp.org/forums/topic/brookfield-tornado-disaster-relief/#post-5608 Sun, 31 Mar 2019 20:09:40 -0400 What he said!

]]> 0a1eec67f9a21fdaabfbee9ebf772129 Linda Bates CPA replied to the topic New York City Resident in the forum Tax Discussion https://www.nyctatp.org/forums/topic/new-york-city-resident/#post-5558 Fri, 29 Mar 2019 12:13:16 -0400 Thank you!

]]> cae7ccc697470fe0b358626d27fa9143 Linda Bates CPA started the topic New York City Resident in the forum Tax Discussion https://www.nyctatp.org/forums/topic/new-york-city-resident/ Thu, 28 Mar 2019 20:17:49 -0400 Hello all,

Hope my NY colleagues have a minute to answer this. I have a married couple and one lives in CT all year. He goes to school full-time in NYC. The spouse lives and works full-time and goes to school for an advanced degree in NYC all year with weekend visits to CT.

I filed MFJ for Federal and CT resident MFS for taxpayer and NY Resident…Read more

]]> 6a4dedfc88d216981d11e46106af795c Linda Bates CPA replied to the topic Home Office Form 8829 Line 11 Worksheet in the forum Tax Discussion https://www.nyctatp.org/forums/topic/home-office-form-8829-line-11-worksheet/#post-5495 Mon, 25 Mar 2019 23:02:05 -0400 We had the same problem in my office. The instructions are sketchy at best. I am filling out the worksheet and putting it in the file. Not quite sure what the logic behind it is though.

]]> e2d1b824095f3d58d625cb62c5553397 Linda Bates CPA replied to the topic Married Filing Separately Standard deduction vs. itemized in the forum Tax Discussion https://www.nyctatp.org/forums/topic/married-filing-separately-standard-deduction-vs-itemized/#post-5466 Sun, 24 Mar 2019 22:28:09 -0400 From the IRS website:

Question
My spouse and I are filing separate returns. How do we split our itemized deductions?
Answer
If you and your spouse file separate returns and one of you itemizes deductions, the other spouse must also itemize, because in this case, the standard deduction amount is zero for the non-itemizing spouse.

You may be able…Read more

]]> c376a511448149acba95c86506219030 Linda Bates CPA replied to the topic Form 8867 in the forum Tax Discussion https://www.nyctatp.org/forums/topic/form-8867/#post-4369 Thu, 31 Jan 2019 16:23:27 -0500 thanks Rita and Marge

]]> d2a74052d23c8e06f5d9f2810144da1c Linda Bates CPA started the topic Form 8867 in the forum Tax Discussion https://www.nyctatp.org/forums/topic/form-8867/ Thu, 17 Jan 2019 17:22:51 -0500 Does anyone know where I can get a questionnare for my clients to fill out for the due diligence requirements for all of the credits now on form 8867?

]]> 468a1ccb61a5f2df6059fb5db79a1e31 Linda Bates CPA replied to the topic Rental QBI (what else?) in the forum Tax Discussion https://www.nyctatp.org/forums/topic/rental-qbi-what-else/#post-3244 Thu, 10 Jan 2019 23:53:52 -0500 I found this article in my travels:

Rentals & Section 199A Qualified Business Income Deduction – Unanswered Questions?
Posted by Lee Reams Sr. on January 10, 2018

Neither the statute nor the committee reports directly addresses whether a rental is trade or business in the context of Section 199A.

Whether or not rental real estate constitutes a…Read more

]]> 8f6daa7e6d33c76f9008bd780296f5f3 Linda Bates CPA changed their profile picture https://www.nyctatp.org/activity/p/446/ Wed, 02 Jan 2019 16:35:33 -0500 0 d38c5b87332e0e522669600db3a9dee1 Linda Bates CPA's profile was updated https://www.nyctatp.org/activity/p/393/ Wed, 05 Dec 2018 21:23:32 -0500 0