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Have you tried duplicating the return, deleting the 1040 in the second copy, and adding the 1120S?

If you get an error that some component needs to be updated, go to Support, Customer Service Utilities, Refresh App Configurations. I never knew/needed this, but it just showed up in a topic on the official forum.

You have to use the interest tracing rules. If you refinance for a higher amount, you will need to know how to treat the additional borrowing. The refinanced amount up to the amount of the old loan that was refinanced continues to be treated in accordance with what the old loan was used for.

Or, if the Schedule C is an LLC making the S election...

Input of the numbers is simple, but deriving the numbers is the devil in the details. Section 199A income - You have to adjust the ordinary income from the business by items on Sch K, such as charitable contributions made by the business and the Sec. 179 deduction. Section 199A W-2 wages - There are numerous methods for coming up with the number, but I think the easiest one producing the largest number is Box 5 of Form W-3. Section 199A unadjusted basis - You can't use assets older than 10 years old unless they are still being depreciated. You have to include only depreciable assets. If any assets are in the business through like-kind exchanges there are special rules, and if a partnership has increased basis through a Sec. 754 election you can't use that.

To free up disk space in Backups ATX backups Companies and Payers thousands of times during the year. This can easily use 7GB of drive space. You really only need the last few backups. You can find your backup folder by running Admin Console for that year's program. It should be in your menu or you can search for Sfs.ServerHost.AdminConsole.exe in Program File (x86). The Files Settings tab shows both your File Server location and your Backup Server location. Go into the ATX 20yy Backup folder, and delete all but the last few (I leave 10 but really 3-5 is probably enough) and delete the thousands of unneeded backups. If you do this several times during the year, ATX will start naming the files at (1) again, so the latest backup may not be the highest number. You can view the properties of the files to see which ones have the latest date. I just did this for 4 years and freed up about 30GB of drive space.

It has worked in the past to just add the 1120-S and the software will inform you that only one signature form is allowed and would you like to replace the 1040 with the 1120-S. It then makes the switch for you and your assets have been effectively moved. I've done this a few times in the past and hopefully it still works.

But I do think that Pacun makes a good point. My older clients tend to value the relationship. Younger clients tend to value convenience. Younger clients are getting used to everything being self-service - order on-line, or ring up and bag your own groceries, pump your own gas, etc. As the apps and programs available get more user friendly and more cost effective, I think we will probably see our younger customers go that route. And our older customers eventually don't have to file for whatever reason. Those who are in business for themselves and need bookkeeping in addition to tax preparation will probably stay but our business model is going to change. But I also don't usually see a lot of young people at tax conferences I attend, so maybe we are a dying breed too. Or the younger crown gets all their education on line and doesn't see a benefit to the networking at conferences that I enjoy so much.

Find the "other items" worksheet on a tab related to Sch K, Line 20c for partnerships, or Sch K, Line 17d for S corporations.

ETax...I agree wholeheartedly with your post. I've built my practice with this philosophy. With that said, there will always be a segment of my client-base who react to price. I'm not naïve to that. There comes a point where clients, when offered a much more economical or free option, will choose to make a change regardless of how good a service we provide. I'm experiencing that currently. For the longest time, my prices were no where near what they should have been. After last season, I made all my clients aware that my prices would increase 25% to 50%. I received notification from some clients who have been with me for 20 years, they will be going with someone "closer to home." I'm okay with that...I expected it. Those individuals who truly value the relationship and all that we offer will stay, for the most part. We do need to continue to be aware of the free file and other low cost options. Some base their decisions totally on that, whether its in their best interest or not.

And, I have a couple of businesses in hand (luckily, still missing some info, so I have an excuse to stall) that I am dreading. The extra reporting on the K-1s... I guess I should dive in, but I'm worried and procrastinating. Less worried when I also prepare the personal returns. But, I dread sending the K-1s to some preparer I don't know who'll tell my biz client what a bad job I did !!

I have ruled them out for 2018. If they live with him all of 2019 and the couple remains unmarried I don't see how he would qualify for any tax advantage such as the CTC, EIC, and the like but time will tell. I am hoping she will just take a powder before then. With my luck she will still be hanging around. He has a real penchant for these winners.

Go to Pub 17 - it will walk you through the qualifications - He should only claim himself.. not related, not all year, etc. 2017 - page 27

Too bad I cannot find the phone number for the Jerry Spring or Maury Povich Show to give to your client.

Go right down the dependency test. I think you will find that they are not related to him and did not live the entire year with him. Game over.

Is there a way to transfer a Schedule C's assets to a 1120S return in ATX? The customer service I talked to had no idea why I would want to do that because "someone who has a schedule C can't make the S-election"... as he put it.

The extra reporting on the K-1 has found to be a lot simpler than I had originally imagined. There is a box for W-2 wages and a box for the unadjusted basis and boom!

$10,000 was compensation for the IC's services. The IC has $10,000 income and a stock basis of $9,500. Off the top of my head.

Move fixed assets to another return If you need to keep the existing return, duplicate it and add the new main form (1120S, 1065, etc.) to the duplicate file and replace the old main form. If you don't need to keep the existing return, just add the new main form.

People value the relationship. If a client calls outside of tax season, I am there to answer. Software can not compete with that.

Has everyone forgotten that despite your wizardry in computer technology- there needs to be a Section 351 incorporation process with the IRS in order for it to be officially correct?

LLC who made the S-election. He has a lot of assets!

A third in depth step by step analysis with a flowchart and worksheet examples from The CPA Journal: https://www.cpajournal.com/2019/01/28/proposed-regulations-clarify-the-irc-section-199a-deduction/

I had the same issue - sounds like ATX is working on solution that will be ready later today

One good thing, there is no more advertising for a $29 1040EZ return. Tom Modesto, CA

I have been looking over the rules Possi. They are not married so are not stepchildren. I have yet to see anyway he can claim them. Of course, if he wants to produce the old golden ring for 2019.

I am going to say that it depends. If it is straight forward, absolutely a business, no phase-out or W-2 or un-adjusted basis calculation, then probably somewhere around $25 to $50. If I am trying to help them determine if their rental is a business, or playing with a lot of calculations, or REITS, it is going to be a lot more than that.

well I was going to say b and c - depends on time and $$ I did one and it was not that bad but I only have 2 clients above the $315,000

I am going to recommend this webinar on 199a: https://on-demand.compasstaxeducators.com/courses/sec-199a-with-final-regulations Here is what it covers and I believe you get access to Q&A recording from the live webinar. • Calculate the Sec:on 199A deduc:on for taxpayers below the taxable income thresholds. • Calculate the Sec:on 199A deduc:on for taxpayers above the taxable income thresholds. • Understand the key rules and defini:ons as outlined in the final regula:ons and how they differ from the proposed regula:ons, if applicable. • Apply the Sec:on 199A rules to a variety of taxpayer situa:ons to arrive at the correct deduc:on amount. • Understand the tax planning implica:ons of Sec:on 199A and its final regula:ons.

I have no idea. Im still trying to understand the rules.

Haven't really thought about it, but has to be well in excess of $ 100. I really wonder how many Turbo Tax returns will be filed with off the wall QBI deductions.

That's why I don't sell tax returns... I sell ME!

I changed the title of the pinned post for QBI and I'm putting a link to this topic for future ease of finding. Hope this works for everyone, or if not, let me know.

Anyone else think ATX should hire Jack as a customer service rep? He is much more timely with his responses and much more helpful.

When logging into the ATX Board, if the stop sign pictures pop up, don't click on the sign posts.

Enter Zero for Business Use % Enter 0.001 to make the business use % zero.

Creating Links Between Fields source: http://files.cchsfs.com/doc/atx/2014/Help/14.3/Content/Both-SSource/Creating Links Between Fields.htm Use the Start Link and Finish Link feature to create a link between two fields on any form (including schedules and worksheets). This function, represented by the Start Link/Finish Link toggle button on the toolbar above an open return, links text or numeric values from one field (source field) to another field (destination field). After a link has been established, changes made in the Start Link field are reflected in the destination field. When checking a return for errors (Check Return), the Finish Link field (destination) will be marked as an overridden field. Start/Finish links automatically roll over from prior year or prior period returns. To create custom links: Select the source field. Do one of the following: On the toolbar, click the Start Link button. From the Edit menu, select Start Link. Navigate to the destination field on any form, schedule, or worksheet. Do one of the following: On the toolbar, click the Finish Link button. From the Edit menu, select Finish Link. If it takes longer than 40 seconds to finish the link, the request will be canceled. Destination fields have a green background. Creating links between fields: example of source/destination fields Canceling Relationship between Two Linked Fields To undo the link between two fields: Place the cursor in the destination (green) field. Do one of the following: On the toolbar, click the Restore button. From the Edit menu, select Restore Field. Press Ctrl+R. When the green background disappears from the destination field, you know the link has been removed. Exceptions: When Fields Cannot Accept a Link The following fields cannot be linked: Input or Detail Sheets Itemized Lists Circular references or mathematical loops Whenever a field cannot be linked, you'll receive a message that will alert you to this exception.

Have you been able to get help - I was on hold yday for 7 hrs and on phone for 2 more and 2 hr 55 min and counting now?