and Tuesday of this week I attended the annual National Association of Tax
Professionals 1040 Update seminar (Monday) and a seminar on “Business Tax
Reporting on the 1040” (Tuesday).at Bally’s in Atlantic City. Click here for more details on these offerings.
have been attending the annual update seminar for as long as I have been a
member of NATP (over 30 years). However,
it no longer has the value for me that it did in earlier years. The actual update portion is truly redundant. It is a year behind from my point of
view. While NATP is teaching the 2019
Form 1040-related numbers I am reviewing and compiling the 2020 numbers.
was the first seminar I was attending as a designated NATP volunteer, helping
with the signing in, handing out of workbooks and signing out.
new feature of the event was a pleasant surprise. For the first time the continental breakfast
provided included a hot option – bacon, egg and cheese or sausage, egg and
cheese on a bagel. As a diabetic I would
have also preferred cereal and fruit as another option, and for the afternoon dessert
break sugar-free cookies.
began with New Tax Law and New Developments.
The only new tax-related law passed in 2019 was the “Taxpayer First
Act”, dealing with taxpayer protections and identity theft prevention. Congress is, and will be, incapable of enacting
any substantive legislation on any issue until 2021.
were few new developments, a major one being the issuance of IRS regulations
dealing with the new, truly complicated, and in my opinion unnecessary Section
199a QBI deduction. Speaking of the QBI
deduction, new for 2019 are Form 8995 and Form 8995-A to calculate the QBI
deduction, replacing worksheets that were used for 2018. The applicable form is included in the 2019
Form 1040 filing.
reviewed the draft of the new 2019 Form 1040 and 1040-SR, which I have
discussed here in previous posts, and the 2019 supplemental schedules. What was new to me was the reduction of the previous
6 supplemental schedules to 3 – Schedule 2 and 4 are combined in the 2019
Schedule 2, Schedule 3 and 5 are combined in Schedule 3 for 2019, and the
information previously reported on Schedule 6 is now on the 1040. Reporting Schedule D income or loss has been
moved from Schedule 1 to a line on the 2019 Form 1040.
also took a look at the proposed new 2020 Form W-4. Click here
for a copy of the draft. There are no
more exemptions to claim – you no longer indicate “Single-0” or “Married-3”. When filling it out you must follow the
instructions and enter the requested information. I would recommend you do not enter any amount
for “deductions”, but do enter any other income, such as interest and
dividends, and do not claim any or your dependents, or at least claim
only half the number of exemptions to which you are entitled.
thing discussed was new to me - I was not aware that the $10,000 “SALT”
limitation on Schedule A could have an effect on the home office deduction on
Form 8829 and the rental income and expenses on a two-family home reported on
Schedule E. This is something I need to
review further and perhaps devote a future post to it.
Under the GOP Tax Act only casualty losses resulting from Presidentially-declared disasters are deductible on Schedule A. The workbook provided a list of these areas so far for 2019, and I wanted to share it here, but for some reason I cannot access the workbook online. When this is fixed and I am able to I will post the list.
The text also identified this IRS webpage as a source of continuing information on disaster relief.
BTW – a Presidentially-declared disaster is different from a Presidentially-caused disaster. Taxpayers cannot deduct losses from national disasters caused by Trump. Trump himself IS a national disaster.
As a point of information - my entire perspective in attending continuing professional education sessions is different now.
While, as a tax blogger I have a general journalist’s interest in new
tax law and new tax developments, as a tax preparer who no longer seeks or
accepts new clients, and is winding down my practice, I have no interest in
taking time to learn anything new that does not directly affect my existing
1040 clients, or anything that involves too much complexity or study that
perhaps might affect a few clients. It
is easier for me to tell the clients that the new law or development might
affect, “Homey don’t play that”.
tell my clients, while I do believe you can teach an old dog new tricks, and I
have to learn some new tricks every year, there are some new tricks this old dog
doesn’t want to learn.
was truly pleased that for the second year the update seminar did not include 2
hours of redundant ethics preaching. I
had always complained in the past that I paid for 8 hours of actual tax
education but only got 6.
may perhaps be the last year I attend the update seminar. Next year I may choose the NATP Forum, also
held each year in Atlantic City but at Harrah’s on the marina, instead to learn
of new developments.
business reporting seminar was basically a review, albeit a good review, and I
really did not learn anything new.
more item worth sharing before I go. The
instructor explained that she was told why the new treatment of alimony in the
GOP Tax Act did not take effect until 2019, instead of beginning in 2018 like
other items. As per the Act, alimony is
not deductible by the payer or included in income of the recipient for divorce
or separation decrees or agreements executed after December 31, 2018. For decrees or agreements executed
before January 1, 2019 the old law still applies. At the time the bill was being written 3
Congressmen, presumably Republicans, were going through divorce proceedings
which would not be finalized until 2018.
And as we know, most Congresspersons, apparently as we’ve learned
recently certainly Republican ones, put their personal interests ahead of the