All Activity

Thanks, I will forward this to her. However she told me that she called IRS (don't know what number) and was told that they could not verify her to tell her the EIN. Did she print out the webpage? Receive a confirmation letter? I've asked. Her problem. Record keeping is not her strength.

See attached link from the IRS https://www.irs.gov/businesses/small-businesses-self-employed/lost-or-misplaced-your-ein Your client will have to call

In 2021 client, a SMLLC, obtained an EIN online and emailed the number to me. I used it to submit 1099 forms in 2021, 2022, 2023. Client is now working to obtain a state license for this expanded business and the state cannot verify the number. Nor can IRS via a phone call. Client did not print out or save the confirmation information on screen so it is possible that the numbers are not correct. I've tried a few different options online to find this but, due to privacy concerns, have failed. If IRS cannot confirm, suggestions?

I made this post "tongue in cheek" However, I do think that in a few more years, many preparers will be using generative ai to answer their tax questions. That will be sad because the participation on this board may drop significantly

I found my own answer. IRC 671 and Reg §1.121-1(c)(3). Incidentally, I asked an attorney in my building if ‘Land Trust’ was a legal term or just a common phrase. He said it was just a common phrase.

Perhaps Perplexity.ai can answer your question

The benefit of the QBI is elusive indeed. At first glance, it sounds really great - a 20% reduction of profits available in addition to standard/itemized deductions. However, it has hoops to jump through. First of all, if there is EVER a loss, the loss must be applied IN FULL to the current benefit. However, if a positive result is ever squelched for any reason, the amount lost is NOT carried forward. Next, the 20% is applied to the taxable profit, or taxable income, WHICHEVER IS LESS. If any benefit is lost thereupon, it is lost forever. The 20% is a great thing for taxpayers with regular profits, and regular taxable incomes.

The loss on the 2022 F8995 line 16 gets carried forward to Line 3 on the 2023 F8995. The loss on line 16 of the 2023 F8995 gets carried forward to the 2024 F8995.

I have strained the muscles in the back of my neck. Of course, the loss was simply subtracted from other income on the 1040. This shortened tax season of eleven weeks as opposed to the former thirteen has been a strain and will oblige me to again reduce my client list again next season.

The loss on 8995 is NOT a deduction for FIT. It is strictly used to calculate QBI deduction. Any profit this year would need to be reduced by the 8995 loss before calculating any 199A deduction.

No, generally it is carried over on the NOL worksheet from the prior year. At the moment, I can't tell you exactly where it ends up on the Sch C.

A new client came in who has a small side business he operates. On his Form 8995 on line 16 he shows a small loss which can be carried forward according to the wording on the line. All of the clients I have with small side businesses rarely if ever post a loss. This client will post a profit for last year and in looking on Schedule C I find no line entry to post a retained loss from Form 8995. I assume I can simply place it among other expenses ?

Client got married in 2023 and filed joint return with new spouse. Fed refunded shorted by $25---processing fee?? Spouse made quarterly payments electronically under her SSN. All payments cleared the bank for the amount submitted. IRS transcript matched the return as filed showing refund $969 but only $944 was directly deposited in their bank. No correspondence from IRS. No outstanding balances on prior years accounts. What gives?? Spouses CO estimated payments also sent electronically under her SSN was refunded to her by check with cover letter stating "the direct deposit refund was converted to the enclosed paper check per our fraud prevention measurers". However, the refund requested per the return was $2295 and the refund check was only $407, the amount of the estimated tax payments. Assume the balance of the refund will eventually get direct deposited?? Have not seen the issues before. Any other ideas?

I dropped back to 1040 to do my 1065, 1120S and 1040, plus my fiancee's 1040. Still cheaper than paying someone to do all of those or messing with some other software. But then I added 8 or 9 simple paid returns that more than pay for the software.

Where is that $79 program for us tax practitioners ??? That is what I paid for it in 1991.

Interesting. I guess my client doesn't really have a land trust. He's putting his personal residence in this. I'll have to get his document before I can answer his tax question.

"Land trusts are not “trusts” in the legal sense. Some, in fact, refer to themselves by other names such as conservancies, foundations, or associations. Land trusts accept donations of properties, buy land, or help landowners establish legal restrictions that limit harmful use and development." You may need to ask more questions?

Is a land trust any different than another trust, just a trust holding land? Client is holding personal residence in a 'land trust'. He is asking questions about gain on sale when and if it happens. I'm thinking that if it's a revocable (grantor) trust, then it is treated as if he owns it and will get the gain exlusion.

Sorry to hear about everyone's personal things going on during our busiest time. I guess I'm fairly fortunate. I went thru some things about 10 years ago but I'm an old bachelor and don't have a lot going on. I just hear from my siblings and the things they are going thru with children, grandchildren and all that. As someone said, life happens. But yes, the tax season is the tax season. I'm planning for three more years. Rent increases, othe costs increase. Whew. I'm afraid to start dipping into savings too soon so I'll keep at it for a few more years. I don't do too much after April 15 though. Fridays off, shorter hours the other days. Just the extensions gradually.

A revocable living trust usually goes on the grantor's 1040. The exception is when the trust has an EIN and it is used on bank or brokerages accounts. The trust gets the 1099s and must file a 1041. You can elect Treas. Reg. § 1.671-4(a), which leaves the 1041 blank and provides a statement of income and expenses to be shown on the grantor's individual return. It essentially tells the IRS that these amounts are being reported by the grantor.

Makes me think. Our first official order was in 1984, $35. Currently, for the most similar program, the price is $79. In 1984, we calculated and filled in preprinted paychecks. Paper "reports" were printed to get figures to enter into tax forms. W2 fill in was possible, if you or we knew the proper "printer control codes" for the brand and model of printer being used. Inflation charts tell me I should be charging about $105. But nope, and we have exponentially more functions/features than 1984. -- The reality is, there is usually one code base these days, with the ability to hide/disable things if you want a lite or different "versions". The cost is actually MORE, to produce the lesser versions (time adding/testing the code to hide/disable things). The savings of a lite version are often from reduced support costs via restrictions on support in some manner (the cost of one long support issue can take a couple of years for the customer's license fee to recoup). -- Written as I chuckle to myself pondering pricing. I just filled up our EV for under $10 (~250 miles) and tomorrow, I get to fill up our ICE, about 30 gallons at $5.80 per, good for about 600 miles. The last time I got gas, it was at least a dollar less per gallon. We would have no ICE car, except it is the one SWMBO allows the pups in, and it can be flat towed behind our motorhome. We have no room for a car trailer or I would get a second EV to drag around on trips. I am allowed to keep our Wrangler, carbureted, 4WD, top and doors off, and I get to use the third pedal!

So I had an issue with a client that I needed to talk with IRS about. Called the PPL expecting a 20-30 minute wait. I was shocked at how quick it was. The agent was on the line before I had my paperwork out of the file. Issue resolved in 10 minutes. I need to get a lottery ticket tonight. Tom Longview, TX

After our retired racers started to pass, we were able to get our hands on two ~75/25% Greyhound/Whippets which were saved from the meat trade in a certain country. Some elders in that area still eat dog, and they have big markets where dogs are sold by the pound. Don't look this up online unless you are ready for what you will see. One of our greyhounds was a "Macau" dog, rescued at about 30lbs, with a good weight of 75. She lasted just under 2 years with us, likely because of being emaciated for two to five years while being "stored" in a back kennel at the Macau track. We call them our "littles" since they weigh 40-45 lbs. Much easier to pick up, especially when I think about picking them up 10 years from now. (Racing greyhounds are 60-100lbs in "retirement".) Most thankfully, our first racing Greyhound was an alpha female. She was able to train the littles into good house dogs in her final months, as a perfect purpose when her two prior house mates passed. There is something to be said about having an older dog break in the noobs. The littles spend most of my work days near me on fluffy dog ball/beds. There is something special about watching (and feeling) a free animal (such as a Greyhound) with the flexible spine, running (double suspension gait) at full song.

I haven't had anything from Drake yet. Tax Book's offer came in the mail today.

I have been with ATX since they bought out Saber (?). In a word from the beginning. I have watched each year their constant increases while we are continually challenged by Free file and of all things offers from neighborhood banks to file taxes. Their charges for efiles increase your cost not insignificantly while other providers provide it without cost. My practice is a small home based business so i will likely seek another provider. You would think they could produce a lite version but no they won't. I am going to check out the above mentioned Drake PPR to see if it might be a viable solution.