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Hokey Pokey You put your right BOI in you take your right BOI out, your put your right BOI in, and you shake it all about!

So THAT’s really what it’s all about!

I have one of these too! I figured out where the gain was coming from; the program calculated gain on the reduction of qualified nonrecourse financing. I was going to post here once I got the new K1 to figure out if the program was correct or not. I don't know if it was a glitch or not; this taxpayer is dealing with huge amounts of investment in his partnerships. This client has 5 partnerships that I did check 'calculate shareholder basis' and 'calculate at-risk'

Did you calculate partner basis? Did you check to box on the K1 input to calculate basis?

How are you coming up with the average rental being less than 7 days? 49 weeks divided by 38 rentals averages to 1.29 weeks or 9 days per rental. I realize that simple calculation may not correspond to reality, but the second comment indicates it was rented all 49 weeks, clearly states several were more than a week, and hints none were for less than a week (most were 1 week).

If the carryover doesn't match anything you expected, I would go back to the 2023 program and look at what return it is now generating for this client that may be affecting the rollover of data. Compare that return being generated to the return actually filed. Perhaps there is an entry in the 2023 system that doesn't belong?

Does Social Security even issue paper checks anymore ? All of our older clients have it direct deposited anyway. And with the state of the USPS, it seems a good move. We have had so much stuff lost or damaged by the postal service.

Ha! This stupid law wasn't going to do a damn thing to help catch a single money launderer.

I've moved a lot of my clients to direct debit this year--I think it helped when I told them that is how I pay. But Tallahassee has had an epidemic of stolen checks, those who've experienced dealing with that are willing to try something different.

I have a not so old couple (in their 40's), very high earners, who pay by check. I don't know if this means anything, but one of them works for Google and the other as IT for another tech company.

You are misreading the passive activity rules per Reg. Section 1.469-1T(e): (e) Definition of “passive activity”— (3) Rental activity— (ii) Exceptions. For purposes of this paragraph (e)(3), an activity involving the use of tangible property is not a rental activity for a taxable year if for such taxable year— (A)The average period of customer use for such property is seven days or less; ****************** The exception refers to the definition of a rental activity for the purposes of a passive activity only! Note how it refers back to (e)(3). This means that a 7 day or less rental is not a passive activity and the $25,000 allowance for loss does not apply. Instead the material participation rules of Reg. Section 1.469-5T(a) must be met to deduct a loss. You only use Schedule C when the services are provided and subject to SE tax per Reg. Section 1.1402(a)-4(c). If services are not provided, it is a non-passive rental activity.

Yes SSA still issues checks. Even though it's less 1 % of the monthly SS benefits paid, the SSA still issued and mailed 455,000 checks this month. I am more concerned about elderly clients who believe the only way to make their estimated payments is via check.

I can already hear it from some of my elderly clients: "I don't want to give my bank information to the government." Then they mail the check, which has the bank information. Another reason this is looking more and more like my last year.

They can be deposited into a Savings Account. However, I know that I will have several irate clients who simply do not trust the electronic process. I am just so happy when I can talk someone into doing electronic estimates, but they are rare. Isn't retirement looking better all the time; although that is not my desire.

Soooo many things I could say about this.....

I received a text from the Bitcoin client early this morning "I'm a little terrified about how this will work out." Unprofessional, tired me replied "you should be." It's done but I'm letting him sweat until tomorrow.

"The federal government will stop issuing paper checks for disbursements, effective Sept. 30, and will stop accepting them for payments “as soon as practicable. At that time, the federal government will switch to electronic payments, as mandated by an executive order signed Tuesday (March 25) by President Donald Trump." Another stress point for our elderly clients

It doesn't help when you have to make entries on two K-1's--maybe I was working on the wrong K-1.

Bingo, when the first year of the 7203 basis worksheet came out, I had a devil of a time finding that box. I would look at your debt basis entries and see if any "mysteriously" changed to $0. Tom Longview, TX

I figured it out. I was just too tired to think. Yes, the beneficiaries are the payees and they are entered on page 2. The FTB should be able to match the EIN of the original withholding agent to our 592 submission, because they put the trust on their page 2 of their 592. Everything should work out as soon as the trustee signs and sends in the 592. I know why the FTB does that, they want the non-resident beneficiaries to have to file a return to get their portion of the refund. At first I was ticked because I know that is a capital, ie corpus, transaction and it goes to the trust. But I forgot about the rule for distribution of the assets generating the withholding. My bad. Seems like I need more and more brain space for all the different rules and different taxing authorities. My brain is like a hard drive from the 90's, it is too small for the world we live in today. Thanks for replying Max, appreciate you. Tom Longview, TX

Actual number of days rented divided by the number of times it was rented will give you the actual average rental period. The number of weeks available or days available do not equate to days used.

What I recommend doing is have a free checking account for all electronic payments, keeping the bare minimum that the bank requires in that account. Then just transfer money to that account to cover payments, and when a deposit is received, transfer it out to your normal account.

They can pay at a 7 Eleven after registering on line. A bar code will be sent by email, or directly to a smart phone. Payment can be made by credit/debit card, cash, or click to pay.

Exactly. This is another example of the powers that be are so out-of-touch with the real world. No firm guilty of these crimes is going to comply to begin with. And especially after the application which has hiccuped in fits and starts.

SO what do people who do not have checking accounts do?

You do not report on C because your client is not providing services per the regs. You report on Schedule E as a rental activity even though is is not a passive rental activity per the regs. In other words, in this case it is reported as a rental on Schedule E; but for purposes of the passive activity rules it is not considered a rental per the regs. Therefore you do not apply the passive activity rules and the $25,000 allowable loss. The loss is not allowed unless the material participation rules are met per Reg. Section 1.469-5T(a).

It is not a rental activity for the passive activity rules per Reg. Section 1.469-1T(e)(3)(ii)(A). You would only report it on Schedule C if services are provided and and subject to SE tax per Reg. Section 1.1402(a)-4(c)

If the taxpayer has access to their marketplace account online, they should be able to print the 1095A for 2019. I think that it goes back forever.

Schedule E and selected Vacation/Short Term Rental which seems to exactly describe the unit. No personal use, though. After wife passes, I don't know where it goes from her trust but am certain I will no longer be involved. It may be split between surviving daughters who are in tax brackets I could only dream about and they have 'their people.' The ailing, aging wife has had a special affinity for me for 25 years since I managed the business book for her software company. She is very special to me. I will miss her greatly.

This is why I never got involved. I sent an email to my clients in early December telling about it and giving them the FinCen website. They're on their own.

When they had a $500/day penalty with no limit, I backed off, just as the malpractice insurance companies were telling us to do. I referred my clientele to corporate attorneys, and bailed out. I never looked back, and will not.

The final interim final rule...

The trust may have been closed on paper but not for tax purposes if it is still collecting income in its EIN. If the trust is closed and the money is going to the beneficiaries directly in their SS numbers, no trust return required. "$398K early distribution from IRA with NO tax withheld. They bought Bitcoin with the proceeds. You can't fix stupid." To use an interrobang, they did WHAT?! Or to borrow from Scarlett O'Hara, God's nightgown! Hope they are ready to sell a lot of that bitcoin to cover the immense tax bill. Reminds me of the client who took a lump sum for his wife's generous government pension that could have sustained them for life because he could do so much better investing it. (Said he, who already had $400k in long-term cap losses, being written off at $3k per year, evidence of his investing prowess.)

So when the interim final rule is finalized, will it finally be the final rule? Or the interim/interim final rule? Or just "the rule"? Or something else?

I am overthinking this, at least I think I am overthinking this? What do you think? Seriously, I have a trust that had a broker withhold because the trustee never gave them the EIN of the Trust. Broker withheld and sent the trust a 592B. Stupid me, I put the withholding on the final return. Now the FTB is denying the refund and says the trust needs to prepare a 592 and give 592Bs to the beneficiaries. OK, I can do that, or maybe. What has me flustered is page 2, schedule of payees. If I was a company, and I withheld from a vendor or other business, I would put them on schedule of payees. But the trust did not withhold from the beneficiaries. How do I tell the FTB that the money was withheld by the brokerage. How do I tell the FTB that the Beneficiaries are entitled to the amounts withheld? Can someone walk me through the process because the FTB instructions want to make me puke. I am very tired. Tom Longview, TX

thanks for the responses. Yes, I looked at 2023, where I had calculated basis. I don't see anything that would have generated the 8949 entry on 2024. I'm going to treat it as a glitch. I really like ATX but when you get into the weeds, it's just not as robust as the $20-30k programs.

You're right. And I think this was always the actual goal. It wasn't necessarily to chase down people who make minor mistakes in their listing (or even didn't list at all), but rather to create a trap for those who were laundering money IF they were caught by other means. Regardless of whether they had lied on the BOI form or had never filed, the draconian penalties would serve as a wedge to force them to give up info on the major culprits in exchange for penalty forgiveness. Failing to cooperate would be financially devastating. (Of course, cooperating might be even worse in the real world ). Anyhow, we couldn't say any of this to our clients because there remained a real risk of huge penalties for even simple clerical errors, much less not filing, for which they might try to hold us accountable. So we were intimidated into giving them just enough information to scare the hell out of them without being able to offer them any real help - on a simple clerical task that would only take about 15 minutes on average. Makes us all look sort of silly in the eyes of many clients, IMO.