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I am 84 years young, but I tell most people 78.

Anyone looking for a couple of CPE hours in late April, I'm presenting online. https://www.bigmarker.com/tax-practice-pro-inc1/When-1040s-Go-Wrong-Navigating-a-Tax-Train-Wreck @Lion EA saw the first presentation of this, live, last September.

It is common for an HOA to take out a loan in the name of the HOA for a capital project and pay the loan with the special assessments from the homeowners (normally the special assessment is pledged to the lender and restricted to be used only for the loan servicing). The payment should be treated in the same manner as any other HOA fee unless there is a direct correlation to capital improvements to the homeowner's unit. Tom Longview, TX

No. It is different for a corporation and not at all the same as how a partner handles UPE. Corporation would need to set up an accountable plan and reimburse the shareholder. An example of where this is used is personal auto used for business purpose, shareholder keeps mileage log and submits a report to the corp for reimbursement. Corp reimburses at the allowed federal rate. There are other accountable plans that have more specific tax law rules such as medical reimbursement plans or when to reimburse shareholder paid disability insurance premiums. If there is carelessness or intentional comingling of expenses paid from the corp accounts, you may want to have a discussion with your client about not using the corp's checkbook as his/her own.

Like BrewOne, I stopped using MAX when I spun off my business clients which then reduced my individual base. I frequently do have to use the PPR for additional states or the odd other return (gift tax this year and next year) but charge for that. I bill by time and add on additional time to cover the cost. As BrewOne points out, your add on costs can be significant depending on your practice. With only a couple more years to go, maybe, I will stick with what I have and gulp down the annoyance of the push for renewal before April 15. Give us a break already! Wait a week!

That is against the unwritten rules. No one may ask for tax advice before doing something. The more idiotic the step, the more strictly this is enforced.

Double and triple check that you have the EIN listed correctly. If it still demands a 1041, I'd say paper-file the thing and be done with it. Even include the e-file rejection 'reason' if you wish.

In general, for any filer whose SSN is used on the return and has an IP PIN, that IP PIN must be entered on the return or the return will be rejected. Even a paper-filed return will require the entry, or without it the IRS will need to verify the identity through other methods and will slow down its processing. Is it possible that the spouse opted to retrieve the IP PIN electronically and a paper notice wasn't mailed? This sounds like a case where a call to the IRS # for special situations is needed to answer the question.

I got my renewal letter--I have until May 31st to accept, which is the usual date. I moved away from Max awhile back as I curtailed my business and just buy the ATX 1040 package--renewal is for $1,033.60--which I wouldn't recommend if you are doing more than about 125 returns--the per charge cost adds up quickly, especially with partnerships, trusts, and if you need more than 3 different state returns (although at least you don't have to pay until you download the return).

I don't know why they can't wait until after April 15.

This plot is worthy of an "Outer Limits" script

I've gotten e-mails and a renewal letter in the mail. Yes, the increase is substantial and I wonder at what point you say "too much" and walk away. This, just after reading an article about the shortage of Accountants in the United States. We are so burdened right now. A stab from ATX is not necessarily appreciated.

Agree with Tom. The capital improvements are owned by the association and the association will depreciate them. But there should be a basis increase. The amount will likely be different than the assessment, though. https://www.nolo.com/legal-encyclopedia/tax-issues-when-selling-condo-townhouse-other-property-homeowners-association.html

Yes, when that happens it is frustrating. I have several business clients that make it up as they go along, don't ask questions and then I have to play detective figure out what they are doing.

Too bad that they don't have any equity or money in the LLC. It would be nice if people would ask for advice before they do something.

Because omitting the depreciation for more than one is consider to be the adoption of an incorrect method which is handled by filing a 3115.

It seems like ATX has a strategy to bug us during the last 2 weeks of the tax season. Tom Longview, TX

Kinda like ironing shirts ahead of time, I try to keep positive that I will hit the lottery and never need ATX nor ironed shirts again.

The clergy worksheets are very good to use and reliable, at least they have been for me. However, I do not see how to use the link described by gfizer when no Schedule C exists. I have had clergy with and without Sch C income. When no Sch C exists, I don't understand how it would be appropriate to list expenses there. I have used the listing on SE as discussed. Always ready to learn more!

I got the sales agreement tonight around midnight. Of course, it's not written the way the LLC handled the sale. The remaining partners purchased the partnership interest from the termination partner. Yet, the loan to buy them out was made to the LLC and it is making the payments on the loan. I don't know how to handle this on the balance sheet or in the future. The really crappy thing is this all between relatives. I don't know if the attorney knows how the sale was really handled or if my clients explained it incorrectly. There was no loan papers from the LLC to the remaining partners. I hate to extend this, because the old partner really wants his K1s, but I don't know how to fix it. I did tell him to contact the attorney to see if he sees any way to remedy this. If nothing else, maybe he can write up a loan from the LLC to the partners. I am so glad that I am done after this year. The whole year has been full of weird messes. Thanks to anyone that has any ideas on anything that I am missing to report this stuff.

Yes, we held Catherine's previews at the NY/CT-ATP September Super Session last year!

i have a client who is 83 years old who is a business owner and is still very sharp and with it.

Client has a condo that levied a "special assessment" against all owners to deal with capital improvements. But the paperwork says it's to pay the loan. My take is that the improvements are additional basis in the unit, and since the loan is not in the taxpayer's name it is therefore not deductible mortgage interest. Thoughts? As an aside, this client is already greatly limited by mortgage interest deduction limits in what can be deducted.

Somewhere in the stack-o-stuff there is a breakdown of the per-condo improvement amounts, that I will dig out after 4/15. Thanks, guys!

Form 3115 is the correct way to do it.....but I would just add the capital improvements in 2023, sell the rental and be done with it. I know that is not how it "should" be done, but the gain remains the same. What changes is the amount of depreciation recaptured, but since it was not deducted against ordinary income there is no harm, so no foul. If audited, the IRS should recognize immediately that there is no tax to be harvested. But if you want a higher fee, do it via the 3115. Tom Longview, TX

I think you can with a 3115.

Thank you. There are differences between S Corps and Partnerships, and I guess this is one of them. Even with a partnership, all the elements mentioned in your post should be observed. Thank you for your knowledge and expertise.

I will need to check this out as I have not used this feature. Many thanks.

My client is sharp too, just the ultimate procrastinator. His type of treatments won't cause any brain fog, but just one more thing in his day that's taking up time. I know about the cancer issues with my husband having had 3 types, 4 if we count minor skin cancer too. Throat, prostate, and TCC aggressive bladder cancer.

Are you using the clergy worksheets provided in ATX? I believe it's worksheet 3 that calculates the SE subject amount (salary, Sch C profit and housing allowance less expenses). I usually right click on the business expense line and create an itemized list there. Then everything from that worksheet flows directly to the Sch SE.

You shouldn't need to paper file either if you get on it. I just efiled one where the taxpayer died in December.

You don't need form 1310. You can definitely request an extension by e-file. You should also be able to scan and attach the short certificate to the return itself and e-file that too. See below. For purposes of form 1310, executor is considered the "personal representative," so this return doesn't need the 1310. See below. Be sure to enter the name of the executor in the "c/o" name box in your input and change the address to that of the executor. This is what will be on the 1040. If you look at the instructions for "Who Must File" you don't need the form 1310 because son IS the personal representative of the estate, and for purpose of this form, the executor is considered the "personal representative". You should be able to scan the short certificate and attach that as a pdf for the return and e-file it. Please see the example as shown in the instructions to the 1310 below:

The purpose of the worksheet is to help you determine the net amount on line 2, it is not part of the tax return. The IRS is not watching for an itemized list. As far as that goes, you can just over ride line 2 of schedule SE.

Since it is just a "worksheet" you don't need to itemize anything. Just put in the total expense and move on.

I have a Schedule C Clergy who needs a lot of lines, but let's not go there tonight. He has been my biggest thorn for 25 years, but how do you fire a Priest who calls you "his angel"?

Certain conditions can give rise to a deduction for Partners' Unreimbursed Expenses which do not appear on a K-1P. What about the same counterpart for unreimbursed expenses for a shareholder in an S Corp? in other words, "SUE" ? Is this allowed?