[mention://98381179 [mention://98381179 @maclittle95]] You should discuss the dependent rules with your parents. You said you moved out after 6 months, the dependent child rule requires you live at their home more than half the year which would be 7/3/17, did you move out before day 183? Were you a full time student for at least 5 months of the year? Even if a day in May, you would qualify for the 5 month rule. The next question at hand is did you provide over half your own support costs http://www.irs.gov/pub/irs-pdf/p501.pdf ? It is not calculated by the number of months but total cost for the year, so you may still qualify to claim yourself. The real question is who should be claiming him in this "transition" year to adulthood. Bottom line is: you two have to agree on who is going to claim his exemption. Using actual costs as determined by the IRS of whom paid over half the support of the individual.
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was this all undergraduate? Just a question if at any point they were in grad school, I know we had an issue. Student Info Wksht Part II number 1 on ours was filled out as NO because teh 1098T said grad school although we paid undergrad in 2018 also.... once I fixed that to yes, the interview worked. Also see Part VIII line 3 if that's not your issue.
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Have you updated the program? After you do, go to view forms and review the student info wk. and form 8863, what is on 8863 part II line 10 and 16? then look at page 2. Then other applicable form Education summary.
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I will assume you put an amount to be used for education credits in excess of your actual expenses... the default is $10k, change that number to $7000... it is at the end of the education interview. Then run maximize.
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They are getting transaction reports and will know where you used the funds. If you bought a home, it's personal use. The IRS is going to particularly be looking for those with large number of transactions of large amounts especially for those who never filed previously. Keep great records.
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Cryptocurrency is considered property by the IRS and every move (spending,
exchanging, selling, income if paid to you for services, etc), within
the tax year is a recordable transaction. Cryptocurrency held for
investment has a gain/loss. Cryptocurrency for personal property is only gains,
no losses (so for purchases of goods and services, there is only gains, no
losses as they are personal). If paid to you for personal services, it is
considered reportable income at the spot rate on date of receipt. It can be considered business, hobby, investment, or
personal income property depending on your intent to make a profit to consider
it a business. If received as payment for services it is subject to self
employment income taxes and you must report the income as if you received a
gains/losses allowed (NOT FOR MINERS,
miners report as self-employed on schedule C using Turbotax Self Employed https://ttlc.intuit.com/replies/4944762 or as hobby income(hobby is as if you are not
in the business of making money, and doing it on the side, normally area if you
do not plan on being profitable for at least 3/5 years) https://ttlc.intuit.com/replies/5675605 and the cryptoccy for
them is they have income immediately at the spot rate upon mining of the
currency, they have expenses of producing for schedule C or as itemized
deductions, every move even to a similar coin is taxable event (they are not
subject to 1031 exchange due to numerous IRS rules that they fail to meet
including 1031 must be US property, see notes below) then they sell that
inventory unless they held for investment purposes, they can use same
investment sales as below to report too, to decide if a hobby or self employed
use IRS guidelines https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses, Miners can also sell
the inventory using the same sales of investments sales section, since it’s
short term sales.) Miners and non-miners can report sales this way: 1. Select the Federal tab 2. Select Wages and Income 3. Select Investment Income 4. You'll list each trade/sale in the Stocks,
Mutual funds, Bonds, Other interview 5. When asked Did you get a 1099-B or a
brokerage statement for these sales? select No 6. When asked to Choose the type of
investment you sold select Everything else for held for
investment, if held for personal goods choose Personal Items. 7. Translate proceeds of each sale into US
dollars at the time of the sale or movement. 8. Repeat for each transaction or report
summarily. Record each transaction with the date you moved the coins, for
how much, when you acquired them, and for what. You can't take a loss on personal items (if you used cryptoccy to
purchase goods and services) which you report those under personal items.
Cryptocurrency for investment purposes is recorded as Everything Else. Make
sure only personal use cryptocurrency is recorded in the personal Items
section. You can
report transactions in summary for the year as investments LT vs ST and
Personal LT vs. ST for 4 categories of reporting. You can use various for the
date of purchase and 12/31/17 as date of sale. https://www.irs.gov/pub/irs-pdf/p544.pdf and https://www.irs.gov/pub/irs-pdf/i8949.pdf are the IRS
rules for property and reporting. Personal property net losses are not
deductible but investment property is.... follow the IRS guidelines for
property. IRS guidance
on cryptocurrency as property: https://www.irs.gov/newsroom/irs-virtual-currency-guidance https://www.irs.gov/pub/irs-drop/n-14-21.pdf If you have a large number of transactions, there are a few tax
reporting softwares to help you out to get proper bottom line such as
bitcoin.tax and TT does not support any of their accuracy. Do note that I
understand that these softwares are treating it all as investment grade so they
may not be completely accurate as personal use does not allow losses. I hope this
why not 1031 (these are not organized but, purely notes): Does not qualify for like kind exchange, they don't use a
QUALIFIED INTERMEDIARY nor do they make a written election at time of exchange.
Plus no form 8824 filed.
IRS RULES: To qualify as a Section 1031
exchange, a deferred exchange must be distinguished from the case of a taxpayer
simply selling one property and using the proceeds to purchase another property
(which is a taxable transaction). Rather, in a deferred exchange,
the disposition of the relinquished property and acquisition of the replacement
property must be mutually dependent parts of an integrated transaction
constituting an exchange of property. Taxpayers engaging in deferred
exchanges generally use exchange facilitators under exchange agreements
pursuant to rules provided in the Income Tax Regulations. .
The identification must be in writing, signed by
you and delivered to a person involved in the exchange like the seller of the
replacement property or the qualified intermediary. However, notice
to your attorney, real estate agent, accountant or similar persons acting as
your agent is not sufficient.
Replacement properties must be clearly described
in the written identification. In the case of real estate, this
means a legal description, street address or distinguishable name. Follow the
IRS guidelines for the maximum number and value of properties that can be
How do you report Section 1031 Like-Kind
Exchanges to the IRS?
You must report an exchange to the IRS
on Form 8824, Like-Kind Exchanges and file it with your
tax return for the year in which the exchange occurred.
Form 8824 asks for:
Descriptions of the properties exchanged
Dates that properties were identified and
Any relationship between the parties to the
Value of the like-kind and other property
Gain or loss on sale of other (non-like-kind) property
Cash received or paid; liabilities relieved or
Adjusted basis of like-kind property given up;
If you do not specifically follow the rules for
like-kind exchanges, you may be held liable for taxes, penalties, and interest
on your transactions.
Add this to the fact the currency is not US real property in
the United States and property outside the United States are not like-kind
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