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Sounds like the problem is you are trying to push the payment date out beyond the day submitted. From what I am seeing because it is past the original due date it will have to be paid at the same time they receive the return.

I learned some interesting wrinkles from an NAEA webinar on the new Sect 199A QBI deduction. If the taxpayer is in a specified service trade or business, or if not in a SSTB is above the ceiling ($207k or so, $415 MFJ), QBI is limited by the lower of two tests--50% of wages paid or 25% of wages plus 2.5% unadjusted basis of qualifying property. (Yes, non SSTB businesses may still get something if above the ceiling, not so for SSBT). However, if W2s are filed late with SSA, wages are considered to be ZERO for the QBI deduction calculations. If W2s are timely filed but corrected after 60 (???) days, the lower amount is used in the calcs. So if the original SSA report was lower, but it was wrong, that number still counts. This won't affect your client for 2017, but for this year forward it might just make some of these low-paid S corp shareholders decide to pay themselves better or lose that 20% deduction they are drooling over. And just maybe it will put an end to the laggards who bring their payroll info in when it suits them. Pretty clever.

Can I answer E? There should be some depreciation.....

Please note that to keep this topic on point, i moved posts by SaraEA and JohnH to a new topic of its own that deals with the new sec 199A QBI deduction and W-2 income.

That's creative and something I'd suggest not to do; he isn't self-employed. You should report what actually took place, not what he'd like it to be or some fabrication to keep him out of trouble. I would look closely at those distributions to see if they are the same amounts as his net paychecks were in prior years. In other words, was he paying the paychecks and not recording them properly in the books and not filing and paying the payroll taxes? Or did he do this himself instead of having a bookkeeper or hiring you to do it properly, or have a new bookkeeper that didn't know the difference between paycheck vs distribution? Or...is he starting to use his S corp as his personal checkbook?! You need to inform the client of the consequences of the S corp not paying him a reasonable salary, and discuss what has transpired thus far in 2018 before the year is closed.

So, If a Donor says this $5,000 can only be used to buy food for the hungry... The donor doesn't get a deduction? I do not think that is how it works. There are ALL sorts of donor restrictions placed on contributions. I have had major donors ask for their money back when the organization decided NOT to pursue what the donation was for... We want to do project X, we need $100k to do it, but we only raise $35k, so they do not pursue the project, so they have to return the money. Donor restrictions do not preclude a donation deduction. "Some" donor restrictions CAN limit deductibility. That is not the case here. The client donated a car to a charity that needed some repair work. They paid for the repair work. I like Pacun's suggestion to have written a check to the NPOrg for the amount of the repairs. The NPOrg, if using the vehicle for its charitable purposes, (whatever they are), then a 1098-C is not required to be issued. The 1098-C is issued by the NPOrg when they receive a vehicle and then sell it and use the proceeds to fund what they are doing. So, the client could have donated a delivery Van to a NPOrg that delivers food to the hungry. Rich

I, too, think this is the problem. I was getting a similar error check message from Drake's program on an individual return where I'd entered a payment withdrawal date a few days after the filing date so there was no actual reject, but the issue sounds the same and the program would not allow the e-flie creation. The only date acceptable was the same date as e-file submission.

This guy is from Tibet. Fortunately he reads English reasonably well, but he has trouble when you explain something verbally. He's a great guy, but when we converse it's like we're speaking different dialects. Than God he has a good sense of humor!

Here is a much more comprehensive web site. https://www.watsoncpagroup.com/section-199a-deduction/

Pub 17 is available in Spanish. There are some forms W-4, W-7 and a few others also available. There are no other languages provided. There is also a Glossary of English to Spanish tax words and phrases -Pub 850. As a side note - I have a friend who had a tax prep service and had 60 clergy as clients. He said they were the biggest tax cheats.

A lot of IRS Pubs and Forms come in multiple languages. Perhaps you can download the relevant ones in his language. If a Pub, just give him the paragraphs that you need him to understand.

This guy has some interesting math shortcuts for maximizing the benefit of the QBI deduction. Haven't actually run his number yet, but he seems to know his stuff and he's interesting to read. He also had mentioned the late w2 issue when he wrote this back on Dec 28, 2017 https://www.forbes.com/sites/peterjreilly/2017/12/28/how-much-owner-salary-should-s-corp-pay-to-maximize-qualified-income-deduction/#5a1f8d6372ef

The phrase in the original article of those that will receive this offer was poorly worded, and I think Abby is correct on this, that it won't be offered to most small businesses. This was within one of the linked articles:

I think they mean that people like us will not even have the option to pay for continued updates. You'll either have to move to 8 or 10.

With a quick search of the web I found what might be some useful info for you, especially in the second link, a PLR that has relevant code sections, that would be a place for you to start for further research: some general information from SEC on how long the states hold securities, in general: https://www.sec.gov/fast-answers/answersescheathtm.html and this 2009 PLR where the IRS ruled that the taxpayer was allowed to defer gain or income recognition by purchasing replacement securities using the escheat funds (proceeds) received from the state. https://www.irs.gov/pub/irs-wd/0946006.pdf Hope this helps you some.

Low and behold, she called me today. Amazing how useful this board is. I know her ears were burning from us talking about her. Says she had a death in her family the day before our meeting. Just getting back to work. I want a job where I can take 5 weeks bereavement. Tom Modesto, CA

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