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  2. I've done this in a case where a couple chose MFS because they thought it would give her child more college financial aid. It didn't and it cost them a lot in taxes. H was listed first on their previous returns so I amended his only. I've also done this for the same scenario giogis has. Do the same thing, amending one return. The only problem I had was the explanation. "Forgot they were married" had to do.
  3. SaraEA

    Sec 199A / QBI Heads Up

    The regs issued last Friday finally make clear that taxable income for purposes of calculating QBI is taxable income from Form 1040 less capital gains AND qualified dividends. In several courses I was told that cap gains are deducted because they already get preferential tax treatment. Well so do divs, but I saw no place for them on any worksheets. From the Regs: Consequently, capital gains and qualified dividends treated as investment income are net capital gain for purposes of determining the section 199A deduction. There is no place on the 1040 that shows taxable income before the QBID. Guess they had to cut lines to make it fit on a postcard. It's all done on a worksheet, which shows the subtraction for cap gains but doesn't indicate that qualified divs are considered cap gains for this purpose. No wonder we're all confused.
  4. cbslee

    Rental property owned by two SMLLCs

    Your scenario is still a bit vague. How exactly is the ownership of the property titled ?
  5. Today
  6. cbslee

    Drake Accounting on a network: speed

    As I have added some larger clients, certain functions like saving, backing up, loading print files etc. have become painfully slow. Called Drake Accounting support, several times. They had me exclude all Drake Accounting files from the scrutiny of my security programs. No improvement. I checked my task manager and the Drake Accounting Program is using huge amounts of RAM during these functions. Really disappointing, I was tentatively planning to move some of my write up/payroll processing clients over to Drake Accounting during 2019. Drake Accounting support had no solutions for my problems. Never thought I would say that.
  7. David

    Rental property owned by two SMLLCs

    The property is owned equally between each of their SMLLCs. The father owns a real estate business and he and his wife also have a rental property - Sch E. This is the father's first fix and flip. The son is just beginning to purchase property so this is his first fix and flip. Since the father owns a real estate company does this mean the fix and flip and the rental property previously reported on Sch E should all be reported on Sch C as business activities? It appears that the son can report the fix and flip as capital gain, correct? Thanks for your help.
  8. DBAN1957

    1040 Software Sec 199Wkst

    I am looking at the QBI Deduction - Service tab of the "Sec 199A Wkst" Under the dropdown box "Select Activity to Display Below" the only option to choose is blank. My Schedule C is not a choice under the drop down box. Under the Activities Tab the Schedule C is listed under activity name. I checked the blue box labeled "Service Business: I am under the thresh hold limit for taxable income. I get no QBI deduction. I have positive taxable income, no net capital gains, no K-1s, no rentals, no other business loss that would offset the number. No Numbers show up on the QBI Deduction - Service tab. Even if I put number in the blue coded box labeled "Income/Loss" on the "Activities Tab" I do not get a deduction. Has anyone run into a similar situation with the Sec 199A Wkst? Any comments would be appreciated. Thanks
  9. NECPA in NEBRASKA

    Horrible Customer Service

    No kidding! I had a Windows 7 update mess up all of the versions of my QuickBooks. It cost me hours of everyone blaming each other and I finally had to update eveyone to QB 2019. I am sitting on an update right now, because I saw some on the other ATX board say that ATX was blaming an update for problems and I'm scared to update, because mine is working fine.
  10. Yesterday
  11. Catherine

    Horrible Customer Service

    That's why I am still using Windows 7 (64bit pro) and wait several days to install updates. Too many times there have been updates where suddenly computers won't boot, or all the printers drivers seize up, or other untenable result.
  12. It is actually correct From the Form 8863 instructions: "Tax-free educational assistance. For tax-free educational assistance received in 2018, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. See Academic period, earlier. Tax-free educational assistance includes: 1. The tax-free part of any scholarship or fellowship grant (including Pell grants); 2. The tax-free part of any employer-provided educational assistance; 3. Veterans' educational assistance; and 4. Any other educational assistance that is excludable from gross income (tax free), other than as a gift, bequest, devise, or inheritance. TIP: You may be able to increase the combined value of an education credit if the student includes some or all of a scholarship or fellowship grant in income in the year it is received. [emphasis added] Generally, any scholarship or fellowship grant is treated as tax-free educational assistance. However, a scholarship or fellowship grant isn't treated as tax-free educational assistance to the extent the student includes it in gross income (the student may or may not be required to file a tax return) for the year the scholarship or fellowship grant is received and either: • The scholarship or fellowship grant (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses, or • The scholarship or fellowship grant (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses. [emphasis added]"
  13. Gail in Virginia

    Sec 199A / QBI Heads Up

    It is an either or situation. The deduction is the smaller of 20% of QBI or 20% of taxable income as adjusted (in the simplest! form - assuming under the phaseout range.) That's why I am not telling anyone they will get 20% of their business income as a deduction. Like everything else in tax law, IT DEPENDS!
  14. I created a test return to try it out. On my K-1, the ordinary income on Line 1, the SE income on Line 13, and the QBI on Line 20 (Code Z) are all the same. I don't get the warning gfizer is talking about. Even if I decrease ordinary income below the entered QBI, I don't get a warning about it.
  15. Nope, but I am very interested in what you find out. I have one coming next week that I will have to go through this on and I will be looking back at this thread to see what you figured out. Tom Modesto, CA
  16. Eric

    Horrible Customer Service

    Lately, part of the normal Windows update process is a chance that your OS will no longer be in a bootable state upon completion (or half-completion) of the installation, with potential for data loss. Keeping your system updated is important, but it's hard to blame the average person for being leery of updates given Microsoft's recent track record.
  17. Yes, I'm sure that's true. And both sides either far right and far left irritate me. I've got both in my family and friends and I'm ready to look for a big rock to get under.
  18. I am working on a return for a general partnership with 2 partners. The business is a qualified business per the definition so no issue there. When I complete the input for the partner K-1s and fill in each partner's share of the non-service Section 199A income on line 20z of the input form and then check the return I get the following warning "Sch K-1 Warning Section 199A Income for Non-Service allocated to to partners does not equal the amount from Schedule K. Please review." I have looked at Schedule K til I am blue in the face and I can't figure out what it's talking about. I am showing exactly 1/2 of the ordinary business income shown on line 1 of Schedule on each K-1. Anyone else have a clue what I'm doing wrong here?
  19. Got it, thank you for the advice and guidance.
  20. There was a Tax Adviser article on this subject last year, and in the examples they used, the scholarship income was included in the student's income, not the parents'. That can be an even better answer.
  21. BulldogTom

    DO I NEED TO CHARGE FED. AND STATE TAXES?

    Hey DTA, You need to hire a tax professional to help you. Just by the nature of your question, you are in way over your head. And the fact that you are asking on a web board looking for free advice is even more concerning. What you get for free on the internet is worth exactly what you pay for it. In a few minutes, the moderator is going to read back to you the terms of this site, which you agreed to when signed up and tell you that this site does not give advice to non-professionals. We only work with professionals in the tax industry. Then she is going to lock this post. Get a tax advisor, someone who is reputable, and pay them to answer your questions. Tom Modesto, CA
  22. Hey community, I'm new here and I've been struggling to understand taxes as a small e-commerce owner. My business is based out of Texas but I operate out of California. Am I suppose to just charge taxes from those two states? Secondly, as a business owner, do I need to charge federal tax along with state tax on my products? I never knew a business needed to charge Federal Tax on their products. Can someone please help a newbie out on this whole tax thing, because it's SUPER confusing and frightening. Thanks.
  23. Possi

    Sec 199A / QBI Heads Up

    It's clear as mud to me. So, single, self employed S-Corp with wages, no other earned income, and with investment income as well, (many of us, I imagine) would have to deduct the standard deduction to come to the conclusion? I never even thought about that.
  24. Possi

    Virginia Efile

    I just called Richmond. The verdict on Sch A (when not itemizing on the federal) is still out. She said you can e-file, BUT they are not processing any tax returns until legislation has been rendered on the outstanding issues.
  25. Something new this year that I am seeing as a blue informational message when running error check is in the 1040 EdExp Tab. Client received a 1098-T with $1,500 in Box 5 Scholarships or grants. This reduces the otherwise amount i Box 1: Payments received. The blue message indicates "It may be more beneficial to choose to include tax-free scholarships or grants as income rather than allocate some to be tax-free." When I include the Scholarships amount on the 1040 under "Other Income" instead of on the 1040 EdExpTab, the client's tax obviously goes up but the refund goes up because the Lifetime Learning Credit increases due to not the scholarship income not reducing the amounts paid on the 1098-T. For some reason this does not seem correct, or am I interpreting this message wrong?
  26. EricF

    SECTION 199A - IN DEPTH ANALYSIS

    In the Form 1120S, right? You can enter the Section 199A income, wages, unadjusted basis, etc. on the tab for Ln 17d, Sch K - Oth Items. There is an equivalent form for QBI entry in the Form 1065 for Line 20.
  27. Bart

    E-file already accepted

    If you spend some time setting up the print sets it makes printing quicker.
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