Leaderboard

If assets are titled to the trust, the trust will get the tax docs in its EIN. Then a 1041 must be filed, but you can elect to report nothing but a statement that everything will be reported on the grantor's return and another statement listing the income and expenses the grantor must report. There is a code section for this that I don't have in front of me but it should be in the software elections. When the beneficiary receives a distribution, then K-1s will be issued. If the assets are still titled in the grantor's SS number, no trust return is required.

Thanks so much Max. This information is great news for this lady as her husband has come down with rapid onset Alzheimers disease. She can use that $6,000 as well as that 20% state credit. I rarely have reason to compute one of these credits and basically scanned the credit until I had more time to look it over. I have printed out the needed material and will be able to help her out. I've got to send my annual donation to the website owner as this just illustrates how valuable a resource this site is.

Tom: do NOT charge too little or accept the wrong clients. You are NOT a newbie that needs any tire-kicker that happens to call. You are an intelligent and experienced preparer and have this water cooler surrounded by colleagues. Take ONLY the clients you want and CHARGE THEM WHAT YOU'RE WORTH. PS That goes for ALL of you, whether it's your first year or your last.

As a grantor trust, you generate a 1041 and deliver to the client the grantor letter which shows all of the income. They then report that information on their personal tax return. When you produce the GRANTOR 1041, it will appear to be blank except for the Grantor Letter iirc. The Grantor Letter sort of acts like a K-1 but it's not the same thing at all.

The 2020 tax credit for solar panels is 26%. If the client paid $23,077 for solar panels, the credit would be $6000. The generator could also have some deductions (not credits) if it is used to power medical devices. http://alternate-power-solutions.com/3-ways-installing-a-whole-home-generator-is-tax-deductible/ There is also a deduction if the generator was used as the primary power source during a federally declared disaster. VA also has a deduction for 20% of the sales tax paid for purchasing solar panels. As for the savings? A lot of purchasers of solar panels increase the use of their electricity and that wipes out any of the savings that might have occurred.

Yes, ma'am!

M-1 adjustment on the balance sheet.

If you Rollover a client you also need to click on items in other Data: (Preparers, Payers..etc) I always click on other data and all preparers, companies and Payers get rolled over.

I'm going to have to explain the options to Sch C clients (and take up even more time explaining lots of new tax laws) for them to decide. If I don't tell Sch C clients and Congress decides to forgive the deferred SS (my crystal ball predicts a D Congress might), clients will be mad at me that they didn't defer, kinda like PPP. I'm more angry about having so much to explain to Every. Single. Client this year than I am about a few bad tax preparers.

Here's an article that provides a review of the 2020 program and some of the enhancements. https://www.cpapracticeadvisor.com/reviews/review/21140114/2020-review-of-atx-tax

I am having to learn as I go. Mom and Aunt did nothing when grandmother passed, now mom passed earlier this year. I even had to sign something as an heir for my grandfather, who passed in '71, because the real property title was not changed. The rub is neither made any plans, gave any indication of their wishes, so intestate it is. I have two sibs waiting for their cut with open palms. Catherine has agreed to help.

This is going to make for one fun tax season, not!

As we begin the new year, remember that without the rain, there would be no rainbow. God works all things for the good, for those who follow Him, and I trust that God has gone before me and prepared the way... no matter what. This year might well be the most challenging for us tax pros. I'm thankful that we have each other. So, be kind, drink wine, and keep smiling! Cheers!

And, for the mail to arrive for those receiving paper checks. (We just received a Christmas card postmarked 8 December.)