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Here they are along with brief reviews/comments by me in parentheses. There are a multitude of small enhancements to many of the forms based on customer feedback. Larger items that are "planned" for the 2018 tax season are as follows: -1099-K worksheet has been added and flows through the return much like the 1099-MISC worksheet (meh) - State K1 Input worksheets have been linked to many of the state business forms (meh) - Redesign of the statements that print for the federal K-1 input worksheets to combine the information for each K-1 record (Yay! I suggested this. You're welcome.) -Additional calculations added to the NOL worksheet for Adjustments such as taxable SS income (Nice) -Sec 179 recapture is now allocated to partners and shareholders for federal Sch K-1 (1065) and Sch K-1 (1120S) (what evs) -AMT calcualtions added to the MFJ vs MFS comparison (Nice!) -Zip Code lookup functionality added to many more forms (Good) -Masking of pass-through owners SSNs on state K-1s (Cool) -Enhanced state depreciation and disposition calculations for state returns (Sweet!) -1099-Q calculations for ATX Advantage customers (Nice for Advantage folks.)

I would terminate the s election. Here's a how-to: http://info.legalzoom.com/terminate-scorp-election-revert-llc-23367.html.

Yes @Abby Normal, could you perhaps provide the list of enhancements you are reading about? Others that use this forum and that aren't current ATX users can't access the official forum, and someone may find that information helpful when considering ATX for the next upcoming season. I tried to find a list of the enhancements on CCH's ATX products page or blog and couldn't find anything about new features.

I've already seen a list of some enhancements that are slated for next year over on the main board. But I do agree that ATX is trying to get us to buy the Advantage version (which I've considered) and to cut loose some of the low margin/high PITA clients. But that's just good business.

Another reason not to have elected the S status. I wish he would have asked me first. Ha.

I agree. His basis is $37,000 after he pays the tax on the grant money. Agricultural fences are normally depreciated over seven years in farm businesses. And he does not have a farm business until he has a farm business. If you find out he already does have a business, the $37,000 belongs on the appropriate schedule or form: Schedule E, Schedule F, Form 4835, etc.

No Biz or Farm activity? No rental to others to graze their cattle? (Is he lying about that income?) Why build fences on property that has no animals on it? Then you get reimbursed by the DofA for building these fences Cool. The government does not reimburse me when I put up fences, so why does it reimburse him? The quick answer is he filed the application and made statements to the DofA that got him approved for the money. Get a copy of the grant application. Then your client lied to you about receiving the money. "He Forgot" that is why it is on the Transcript, and I presume you are dealing with a CP-2000 issue. I like Edsel's answer above. When he starts a farm, Biz or Rental, then he can depreciate his basis. Until then, he has to pay tax on the grant. He can't use it to reduce his basis in the property, because he isn't using the property for Farm, Biz or Rental, and it wasn't an easement, he didn't give anything up. He got something. Rich

Line 21. The Department of Agriculture (we) gave him $37,000 in "other income". Just like winning a prize at the county fair only more like winning 37,000 prizes. Also like having $37,000 in credit card debt cancelled.

This client has a basis in the fence of $37,000 (if this was the amount he was reimbursed). It is depreciable as a land improvement, probably over 15 years. But he has to have an operation to accommodate the depreciation. In order to deduct he must operate the farm on Sch F, or rent on Form 4835, or otherwise have a for-profit operation involving the property. I have a few clients who spend a buncha $$ on their place and want to create deductions because they tell me they are "going to" have cattle or something soon. Some of these guys never begin an operation, and I believe they had no intention when the money was spent. They were just trying to get Uncle Sam to subsidize their expenditure. Unless I see the evidence, I tell them I will begin depreciating when they begin utilizing the land.

I had a client in a very similar situation several years ago receive a state grant to reimburse him for brush control. He also received a 1099, which I reported as misc income.