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I'm gonna start debiting it from your account, too. Nice feature!

I have had a few of these - the program actually works well and they avoid trying to make the itemized deduction level. It's a great idea.

Yes Lion, that's the way I understand it. 1099R will show full distribution so as to become part of client's RMD. Then on the return, back it out of taxable with the QCD code. Keep receipts from charity. Client should also have monthly statement from broker showing distribution directly to charity. Distributions must be sent directly to charity, not passing thru the hands of client.

Have you donated to this forum lately? It is never too late for a token of appreciation for the upkeep of this site.

Weren't there any distributions to the beneficiaries? Whose bank account was this all being run through? The trust needs its own bank account, in addition to changing the mortgage, and the title to the trust's name. But if this was all run through the individuals bank account, then all the income has been distributed to the individual. Follow the money!

personally I would amend son return now and paper file parent now with claiming the son. I have done that in the past with no problem. Amended returns turns take so much time to process. I would not file without son then amend with son. I won't file a return I know is wrong.

My understanding from reading the IRS instructions is that as long as the check is payable to the charity, it can be sent to the client for delivery to the charity. But I agree with what has been said.

The broker is not verifying that the charities are qualified per the IRS. "Taxable amount not determined" is correct. The tax preparer with the client determine and report as your software allows for QCD to print. (In my software, I have a tab where I put the amount of the Qualified charitable distribution.) On 2018's 1040, line 4a was $100,000; b was QCD; 4b was $95,000, for example. I keep the acknowledgements from my church and charities with my tax return; plus Morgan Stanley did provide a detailed list. I've been doing this and talking to my clients about doing it.

The distributions will not pass out the loss. The loss will create an NOL inside the trust. Not sure off the top of my head about passive loss rules inside a trust.

Trust Judy! Report on a 1041 at the 1041 rates.

If the apartment house was titled into the trust, the trust reports income, expenses, depreciation, etc. Make changes with the mortgage company, insurance company, etc.

Useful Function Keys F2 Highlight entry toggle F3 Form Instructions F4 Mark/unmark as Estimate F6 Jump to F7 Crossreference F8 Calculator F9 Recalculate Shift+Ctrl+F12 Deprec Calcs

Right click on the field and choose Restore. Or click on the field and press F4 function key. I just tried it and the menu method does not work, but the F4 does. Hooray for keyboard shortcuts!

There is a worksheet on page 5 of the instructions to Form 8615 that calculates the tax based on the parents income. It isn't part of the form itself any more, which is good when you supply a copy of the child's return to them and don't want them to see the parents income.

My donation is automatically debited from my account each year. A nice feature that makes it easy.

Yes! I appreciate y'all SO MUCH!

I'm pretty sure that the information causing the reject is contained on the "EF Info" form. Delete that form, save, close, reopen, re-add that form, recreate the e-file and try again.

or on form 1116 you can check that box also on top of form to use without the 1116 if under 300/600

In Elections, Form 1040, click on the one (near the top) that says "elects to not file form 1116'. After doing that then the foreign tax should flow to sch 3 part 1 line 1

Edsel, I'll cut to the chase. In at least 2 posts you've indicated a potential action of "creating a payroll in December," and in your latest post you made the decision by "weighing upsides and downsides." If by "creating" you mean to backdate a check to December to make that payroll, that would be illegal and unethical. Don't do it. I would view this action as fraudulent and unethical; a sham no different than manipulations to maximize the earned income credit. We can correct errors in classifying existing transactions that actually occurred during the year, but we shouldn't be creating transactions after the fact to arrive at a more favorable result. If by "weighing" you mean to consider an action based on the benefit to the client over the legality or ethical practices as a preparer. First and foremost, your decision should be based on law and ethics, and only when what you are considering falls within that scope should the benefit to the client be considered.