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  1. Today
  2. As long your use is moderate and doesn't require any intense use of computer resources, you should be OK. Your CPU is lower end speed wise etc, which is why you only paid $ 430.
  3. I decided to get a laptop so I can access QB Desktop when I'm out of the office. Here's what my computer guy sold me: DEL Latitude E5520, Intel Core i3 - 2330M CPU @2.20 Ghz 4GB Ram, 223 GB SSD Win 10, Microsoft Office 365, and ESET Security Price was $430 How did I do, and what did I miss (if anything) ?
  4. Yesterday
  5. The iRS is full of people with accounting degrees. You would think that some of them actually earned the degrees and have a somewhat inquisitive mind....and would ask this question as well? And maybe the number is big enough that they just don't fix the system? It is not a conspiracy theory if they really are after you... Tom Modesto, CA
  6. The land doesn't receive the stepped up basis but the corp stock does for his widow. To sell the farm land and flow through the stepped up basis, the company needs to be shut down in the same calendar year (the company reports a gain via the K-1 and then the widow reports an essentially equal loss on liquidation of shares). The attorney's know this but are supposedly moving the farmland out of the corp before selling it which I believe is a problem.
  7. There might be a step up in basis for the S-corp, but the land was held in a corporation which did not die, so there is no step up in basis on the land itself as I understand it.
  8. Last week
  9. Yes, Revocable by the donor. Not only can't I do the numbers, now letters are eluding my grasp! Thank you, Bart.
  10. I admit I have a headache due to the return I'm struggling with, so take this with a grain of salt. Business miles are business miles. If he had qualified business mileage (you mean the standard mileage rate, right?) then that's what he had for 2016 and 2017. If he took Section 179 depreciation on his truck in those years and then in 2018 his biz mileage % dropped below 50%, such as becoming a personal use truck, then you would recapture the excess already deducted over straight-line depreciation. I'd start with IRS Pub. 946 to research your client's situation.
  11. Donor of the trust did NOT die, so that trust is still REVOCABLE by the donor.
  12. Client (salesman) claimed 2106 mileage for years 2016 & 2017. Of course no deduction for 2018. Traded in the truck in 2018. So for recapture calculation should only biz mileage for 2016 & 2017 be used to calculate total business use? Ignore 2018 since it has become personal mileage?
  13. I simply cannot let this opportunity go by without adding my two cents. A longtime client who is forever a couple of years behind in her filings called me last year after three years of not hearing a word from her. We got her 2014 and 2015 filed last year 2016 early this year and needed to file 2017 and 2018 this year as well. She and hubby have one of those wonderful hobby farms and have always gotten refunded and as a result no fines or penalties until NOW. She called me earlier this year concerned about a notice she got. She brought it in and on examination I burst into laughter as it was for some man in Colorado. We basically dismissed it. Unknown to me she had received notices concerning her 2017 return which was unfilled. She finally stirred herself to action and brought me her 2017 info along with a threatening notice from the Service. It was addressed to her husband. On checking the info and computations I noted no info for the wife. The Service computed the tax due on a single man over age 65. The couple has been married for 58 years. To my astonishment they computed tax and penalties due in excess of $8,000. I prepared their return and immediately efiled it (2017) showing tax due of $566.00. They will be penalized of course but were happy to find they did not owe over $8,000 !! I contacted the Service at the number provided and advised the agent the couple had efiled their return a day prior to the deadline outlined in the notice further advising that the return was on file at the Andover Service Center for their inspection. I frankly expect another crappy notice from the Service to arrive and the client will simply have to call them this time around if it does. It really makes you wonder how many poor souls panic and pay these notices off even though they surely are riddled with factual inaccuracies.
  14. There is no requirement for active involvement except in for the rental safe harbor rules.
  15. Thank you. I guess that I am overthinking this. Maybe I am thinking too much about the safe harbor rule. They absolutely do nothing for any of these investments except invest. There are very few hours involved and they only own very minor percentages. All of the K1s say ask your tax preparer. I will keep reading until I can feel better about it. The penalties are huge if I screw it up. I have taken a lot of classes, but I still don't feel like I have great retention. I can hardly wait to see what awesome changes await us after the next election.
  16. Nothing new! It has happened before with 1310's. Also with 2848's. One was sent back with the usual cover sheet, a series of check boxes indicating the deficiency, missing page 2, which of course came back with the rejection package. My suspicion is that it is deliberate, that the rejections are on a quota system , just like cop having to hand out a quota of so many traffic tickets.
  17. We've all likely experienced this and there is no resolution. A green circle is as good as a green dot.
  18. ...her husband who gifted S-corp shares TO MY CLIENT personally, not into the trust, while alive, has passed away...
  19. Bart, that's what I'm thinking. But, the lawyer and broker gave the statement to the trustee and not to the donor. Donor of trust did NOT die, so that trust is still irrevocable, right? Her husband, who gifted S-corp shares while alive, has passed away so looking for K-1 answers from others. And, unlike Roberts' case, depreciated commercial building was sold within the S-corp and reported on final K-1. The trust was funded with cash from the donor/my client's mother.
  20. if the second llc only member is the s-corp would it be a disregarded entity and all reported on the s corp? jeff
  21. Wouldn't it be irrevocable upon death?
  22. I have a final year 1120S with essentially 1 major asset in it and only one owner who died. The estate attorney has transferred the asset (non-depreciable land) from the 1120S to an irrevocable trust. I'm guessing the cost basis is his date of death and this isn't a taxable distribution? The trust will sell it next year with this new cost basis. Edit: I'd report the distribution but have an equal cost basis I'm guessing?
  23. If the trust is a revocable trust, even if it has a federal ID number, it is reported on the donor's tax return.
  24. Your post implies that your client's S Corp isn't an operating business, but instead is just a pass thru for these various investments ? I have attended seminars and done way more reading and thinking about this issue than any other tax issue, since I passed the EA Exam back in 1992 ! The real question is " Does the ownership of these investments by a passive S Corp deny your client the use of QBI deductions on their 1040 when if your client owned these investments directly the QBI deductions would be clearly allowable ? I don't have a cite for you, but I think the intent of the law and the subsequent rules and regulations would allow you to combine all of the QBI numbers from the various investments onto the S Corps K-1 s and let them flow to your client's 1040. It's what I would do if this was my client.
  25. I have e-filed hundreds of returns in ATX and some of the e-file status still have a green circle with a white center, indicating it hasn't been e-filed/received by the IRS. When I click on the return, it says it has been accepted with messages. I also have a handful of returns that have the yellow circle with 3 white dots indicating accepted with messages. I'd prefer all successfully e-filed returns have the green check, so I can quickly scroll through ATX and see what is still open and what is good. Has anyone else experienced this? What is the resolution? Thank you.
  26. This will be the last windows computer I own.
  27. Thank you all. I think Spouse via MIL can get me 2012 info that seems to be year of gifted stock shares. They were DIYers in between, and biz people (as well as show people, a musician and an actress) so hopefully have their 2012-2013 returns; I began 2014. I know I'm being thick about this, but I had two grandchildren in two different states in June and one very sick DIL, so I'm sleep-deprived and distracted. So, the K-1 info is on the return as usual, the 1250 and 1231 gains are really his share of the profits from the sale of the building, OK? His "sale" of stock will be a LT Sch D transaction, right? Zero sales price and what I can determine as his basis. That will offset the $300,000 in gains with only $3,000/year, right? But, he did get a distribution, so that lowers his basis. Because the firm dissolved, I'm thinking that distribution would zero out his basis, no? Sorry to muddy the waters with the trust. That's a whole different topic, I think. (CPA gave them the brokerage statement as if it's reported on their joint return.) They didn't tell me about it. Discovered the brokerage statement in their paperwork. I now have the trust document, and it uses language like Donor and Revocable. But, MIL's/donor's lawyer obtained an EIN for the trust. So, I'm not sure if it's a standalone on a 1041 by my client or if it needs to be reported by MIL/donor. But I told client that as it was a surprise to me, it's not on my schedule for right now. I will return to that after managing to complete their personal returns and preparing returns for a couple other clients. Love you guys. Trying to get this off my desk before we leave next Wednesday for a week for hubby's family reunion in MA. I hope I can get some R&R then, but won't if this complex mess is still on my mind !!
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