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I think most preparers are aware that for 2021, similar to 2020, that nonitemizers will be able to deduct $300 in cash contributions. In addition MFJ will be able to deduct $600 in 2021. However, I would suspect that most preparers like me were not aware that the deduction has been moved from above the line reducing AGI to below the line thus reducing Taxable Income but not reducing AGI. Who knew?

Wow. And for how many years have we been hearing that IRS is looking for sole shareholders to take reasonable compensation, telling our clients that, and yet never seeing any evidence that they are auditing for that? I guess they weren't really - just trying to scare more honest/frightened people into paying up voluntarily while those willing to take their chances continued to get by.

For the amount that goes to the seller, set it up as an other liability since it's not income to the broker, ever. He's just holding the money. The commission portion should be reported as income.

Excerpt from the TIGTA Report: "For its report, TIGTA analyzed all the S corporation returns received by the IRS between 2016 and 2018, looking for returns where the profits exceeded $100,000, there was a single shareholder, and no officer’s compensation was claimed. It found the IRS didn’t select 266,095 of such returns for a field examination. The analysis found that single-shareholder owners made profits of $108 billion and took $69 billion in the form of a distribution, without reporting they received officer’s compensation for which they would have needed to pay Social Security and Medicare taxes. TIGTA estimated 266,095 tax returns may not have reported nearly $25 billion in compensation, allowing business owners to avoid paying approximately $3.3 billion in FICA taxes." Well I guess Audit Roulette still works

I love their periodicals. Tax Pro Monthly covers recent events like tax law changes, court cases, etc. and picks some topic and shows how to do it, e.g., foreign earned income exclusion, forms and all. The quarterly journal is full of interesting and helpful articles. I find their education overpriced and many of the seminars were a bit too basic for me but probably just right for others depending on what types of return you do. I find membership well worth the price.

Our prayers are with you that you all come through Ida with no major problems!