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#1 QUESTION: During tax year 2019, one of our firm’s business clients had a very successful year. The business is a general partnership and it provides consulting services. Pass-through income, and thus taxable income, was high enough that the qualified business incom... Alison Flores, JD

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#1 QUESTION: My client has a family coverage high deductible health plan (HDHP) through her employer. In 2019, the plan covered her two dependent children: her daughter who was age 14 and her son who was age 22 and a college student. Starting in January 20... Jackie Perlman, CPA

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1. Question: My clients, husband and wife, called to say that in 2019 they contracted with a local cooperative to facilitate the sale of grain from their farming operation. The business is operated as an LLC and taxed as a partnership with the clients as the sole partners. For tax...

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1. Question: My client is a J-1 visa holder from France attending medical school in the United States to be a pediatrician. She first came to the U.S. in 2017 and began working as a medical researcher in the graduate medical program. In July 2019, my client began her medical residen... Brittany J. Benson, JD

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1. QUESTION: My client is employed and has a side business that requires him to go to multiple locations. He regularly drives directly from delivering products to one of his business clients to his place of employment or from his employer to a meeting relating to his business. Ho... Marie Condley, EA

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1. QUESTION: Our client of several years called to tell us she has lived in Washington, DC, for nearly all of 2019. She took a staff position with a Representative from her home state. Does she have to file a DC tax return, or file only in her home state, or does she file a retur... Jackie Perlman, CPA

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1. QUESTION: My client sustained considerable damage to his home in Dayton, Ohio, following the storms, flooding, etc., in his area this past June. It may take him some time to get appraisals, resolve his insurance claim, etc. At this point, he does not know the size of the loss ... Jackie Perlman

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1. Enrolling in Medicare and Retroactive Impact on Health Savings Accounts I have a client, age 68, who retired and enrolled in regular Medicare in October. She was covered under her employer’s high deductible health plan (HDHP) from January through September, and continued to co... Gil Charney, CPA/PFS, CFP, CGMA, CMA, MBA

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1. When Can You Deduct the Interest on a Home Equity Loan? My clients called to say they are considering buying a small lake home that they will use for long weekends, vacations, etc., and possibly for retirement in the future. To buy it, they are thinking of taking out a home equity loan on their primary residence. They did not give any particular reason other than to say “that will just be easier for us than getting a mortgage on ... Jackie Perlman, CPA

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1. Qualified Business Income and the Statutory Employee Question: I have a few clients whose Form W-2, box 13 shows them as statutory employees. Assuming they are properly classified, would they qualify for the qualified business income (QBI) deduction in §199A? An... Gil Charney, CPA

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Question: Several of our clients are Canadian or Mexican citizens who live and work in the U.S. and file U.S. resident alien tax returns. Their families live in Canada or Mexico. In the past, they were able to claim exemptions for their dependents. What tax benefits will these clients qualify for, now tha... Jackie Perlman, CPA

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Your Questions Answered

1. Reporting IRA Recharacterizations Question: We know that under the Tax Cuts and Jobs Act (TCJA), IRA recharacterizations of Roth conversions are no longer permitted for any conversion that was done after December 31, 2017. However, how would we know from a Form 1099-R ... Gil Charney, CPA/PFS, CFP, CGMA, CMA, MBA