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100% Tired of Taxes

It's March 1 now. Feb seemed to take long.

"We’re nearing the halfway point of this year’s tax season, which ends on April 18. 2.6% - The slight boost in number of returns filed at this point in the season, compared to last year 9.9% - The increase in number of returns already processed at this point in the season, compared to last year 98% - Portion of tax returns filed electronically this year so far"

Yes, but only to the extent there was a tax benefit. See Worksheet 2 and the discussion of "Itemized Deduction Recoveries" in Pub 525.

There are so many different annuity variations and riders that it can be difficult to figure out how to handle each one. You have to refer to the issuer, the original contract and any subsequent modifications.

I don't know what to say. Is a 3115 an option at all? Tom Longview, TX

As long as total expenses exceeded the reimbursement, the only amount taxable should be the 2021 tax benefit which was reimbursed in 2022. Also you mentioned the taxpayer was deceased, so sounds like IRD possibly reported by his estate on form 1041.

Frist you need to go back to 2021 and compute total itemized deductions less standard deduction. The 2021 tax benefit would not be greater than that amount.

From the 2022 S Corporation Instructions for Schedules K-2 and K-3 (Form 1120-S): 2. Shareholder notification. With respect to an S corporation that satisfies criterion 1, shareholders receive a notification from the S corporation at the latest when the S corporation furnishes the Schedule K-1 to the shareholder. The notice can be provided as an attachment to the Schedule K-1. The notification must state that shareholders will not receive Schedule K-3 from the S corporation unless the shareholders request the schedule.

A current client of mine and his friend each own 50% of a large apartment building. All income and expenses are split 50-50 on each persons individual returns and have been since 2003 when they purchased the building. I prepared the return for the other partner in 2012 and he has prepared his own return since 2012 using a software program which we who use Intuit's ProSeries refer to as TurdoTax. Because my client and he are thinking of selling the building, he asked me to again prepare his taxes for 2022 to get an idea of his tax liability on a sale in 2023 or 2024. I asked him for his 2021 return in TurdoTax just to see if the depreciation and loss carryforwards on his returns were the same or very close to the depreciation and 8582 carryforwards from my client. Both he and my client had MAGI's of over $150000 for just about all the years. I was shocked when I looked at his 2021 return and found no 8582 at all while my client had an 8582 unallowed loss carryforward of about $170000! So I asked the partner to send me the file copies of all of his tax returns from 2013 through 2021. ProSeries lets you instantly transfer any year of TurdoTax to the same year in ProSeries, thus saving a lot of work when you have to do amendments of a poor soul who was caught in the TurdoTax web. However, even though 2013 ,2014, and 2016 transferred flawlessly, 2019-21 all came up with errors that ProSeries could not figure out and would not transfer over. I was able to go into the client's TurdoTax folder, and it showed all of the 2013 through 2021 tax files, pdf files, and everything else for each year EXCEPT FOR 2015. When I clicked on 2015, the message came up that the client must not have used TurdoTax for 2015 because no file exists. TurdoTax technical support cou9ld not get their screen sharing program nor theoir BACKUP screen sharing program to work, but they assured me that 2015 was NOT done with TurdoTax!!! Later the agent said that Intuit only stores 10 years of files, so that 2015 would no longer exist anyhow??? When I reminded her that 2015 was less than 10 years ago, she put me on a brief hold to confer with an associate. When she came back, she said that she had erred and that Intuit only kept 7 years rather than 10. Doing the math for her again, I show3ed her that 2015 should still be there. She could not screen share with me--if she had been able to she would have seen ALL of the actual tax files dating back to 2013 neatly arranged in my client's file!!! The fact that I was being lied to by TurdoTax really got to me and I said "Look, what we have here is a $150000 error on the part of your program, which will represent approximately $50000 of Federal and State tax reductions for my client. Under the 7 Year 100% TurdoTax Guarantee, they are going to have to write him a sizeable check, since even after I amend all of the years from 2016 through 2021, three of those years are now closed for refunds. Since the year n question, 2015, "lost" that large loss carryforward, the IRS may not even allow us to recapture that loss at all!!! She then disconnected the call after an hour on the phone as a conference call with me, her, and my client. We had to call back and go through all of the same material again. Finally, I got an agent to escalate the call to the managing supervisor of TurdoTax, "James." James was able to get the screen sharing to work, finally, and I showed h8m the files in my clients TurdoTax folder. James also noted that for 2015, no files existed and so he must not have filed with Turdo in 2015. Fortunately, my client had saved a 2015 pdf of his return which I opened on my screen for James. There was about a minute of silence. The 2015 pdf had as its first page the 2015 1040 with a big red TurdoTax emblem on the page. Page 44 of the pdf stated "intuit has efiled you return on April 6, 2016 at 8:06 PDT with the IRS. Farther down the page was the statement that "the Intuit server has received notification from the Internal Revenue Service that your Federal 1040 has been accepted." Then I showed him the 8582's from 2014, 2015, and 2016. A loss of $142196 was shown as unallowed on the 2014 return. The loss carried to the 8582 for 2015 on the pdf was EXACTLY - $142196. The 2015 current rental loss was -$12834. The total loss available was thus -$155030. Based on his MAGI, the allowable loss on the 2015 return was -$10730 (remember this number!). His unallowed loss to be carried forward to 2016 was therefore -$144300. I then showed him the TurdoTax 8582 for 2016. It shoed a prior year unallowed loss of -$10730!!!!!!!!!!!!!! Over $133570 of rental loss carryforward had been WIPED OUT BY TURDOTAX!!!! Another long moment of silence by James, who finally said "I am surprised you have been so calm with us. I would be out of my mind!" He understood the program, he understood accounting, he understood rental losses, and he understood that he was not high enough on the chain to do anything about it. I also mentioned to him if the 2015 program had glitched for other rental entrepreneurs and perhaps there was a whole niche of TurdoTax users who had not noticed their accumulated rental losses evaporating because it was not their job to know tax. Maybe my client's removal of $133000 of useable loss was just one of perhaps hundreds or thousands of Turdo users. We set up a conference call to the number he had given us, now having been on the phone for over 4 hours straight having gone through 3 battery recharges on my cordless phones. Nevertheless, I set up a call to Intuit Corporate. The phone was answered by a machine telling us that we should probable be talking to TurdoTax, or Quickbooks, or Mint, or other thins, but to leave us alone. It then put us on a hold, we got to hear 7 minutes and 4 seconds of music, after which we were cut off. I called the number again today, was told again to bother TurdoTax or one of the other Intuit entities, and then told to press 0 for an operator to continue the call the Corporate. After 15 rings, the phone was answered by A SECURITY OFFICER. He said I had the correct number, but no one from corporate was in (!!!!!) and there was no way he could transfer the call. I then wrote an email to an address which is supposedly someone in corporate per the Intuit website, so I will see what happens next. Thanks for letting me vent and letting my blood pressure get below stroke stage. Any suggestions? As always, I value your combined wisdom and experience. I myself have been doing tax returns since 1971 and began using ProSeries when it was called "Chipsoft" before Intuit got their greedy hands on it. Ringers