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For a business devoted to buying and selling houses, I'd say it's listed under inventory costs, to be used when the house is sold.

Direct Pay is pretty easy.

I am aware that I am doing way too much work. This has never happened to me before. I am doing what I have to in order to make it work and get this tax year over with. I know that you are all correct, but I cannot handle any more frustration with my assistant and getting this to work correctly. I filed several (including my own) yesterday and have no outstanding issues. Thank you all for your attempts to help me. We had way too many extensions and my resolve is to cut back next year barring another health crisis. Thanks again.

Send him to IRS's Direct Pay immediately. He gets an instant confirmation of payment. You can calculate his P&I to pay, or he can wait for the IRS letter with P&I.

I'm in NY. NYS likes to do more auditing than the IRS here. But I have successfully argued my way thru a handful of farm/ag audits. The first issue in NY is the ridiculous property taxes. Try to have a farm without property. Try to have profitable farm when you have to pay property taxes here. (yes - there are some credits available.) Second is interest. Farmers are always indebted. Interest is a fact of life eroding the profit. And third is depreciation. Most farmers are turning around equipment and taking advantage of bonus or Sec 179. After taking these things out of the picture, the hobby argument tightens up. Now we can talk about hours. And we can talk about why someone would do all the stuff as a hobby. And then I can start my rant about how the farmer can't seem to raise his price on milk as he needs. He can't recover the increasing costs of trucks or equipment or electric by raising the price of milk, or soy, or any other product Uncle Sam has his hands in. Any time the government subsidizes the price of the ag product, you will have a farm loss. So most of the time, the IRS or NYS ultimately have to back off.

If the losses are handled by the 8582, then these are regular partnerships and not PTP partnerships. But in either case, if this is a new client, you enter the losses on the K1 input screens.

Doesn't the K-1 input sheet have a place for this? That is, prior year info if this is your first year for the client. If this client is a continuing client, doesn't that info rollover?

All expenses you referenced should be reported as part of inventory on Sch C. Your client is operating a business, so things like business insurance, cell phone, internet, office supplies, tools, etc may be deductible, even when no income is generated for the year. I would also include business mileage within the inventory.

Correct, but for a continuing client, the losses roll over on the Personal tax return.

Thanks Lion. I have provided him with the Direct Pay website. I hope he knows how to use it.

@mcb39I am with @Abby Normal on this. You are doing way too much work. I have extensions every year and I have no issue with efiling the extension and then working on the return and when I have everything, efiling the return. Something is not working for you the way ATX works for me...... Tom Longview, TX

That should not be necessary.

Not entirely averse to your message from Ohio - large farms in the midwest. I do have a few farmers with $2 million in equipment and annual repair costs that are huge. These guys have to have $150,000 in annual revenue just to break even. Ohio is perhaps the easternmost area of the "farm belt" extending from there to the Dakotas with huge farms. A "large farm" in the Southeast can be 100 acres. The Ford F450 I wouldn't allow was on a "farm" of 32 acres, with the owner having a full time job.

Seeing as how the federal refund comes in less than two weeks, in most cases, I'll wait a week or so before amending.

IR-2022-130, June 23, 2022 [announcement of e-filing of amended returns] ...Additionally, a new, electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being filed electronically. A superseded return is one that is filed after the originally filed return but submitted before the due date, including extensions... I don't think this ever came about (or it's not in ATX)--I believe an amended return filed before the deadline acts the same.* *just did a bit of digging--technically it's not the same thing but in most cases it won't make a difference.

Efile 1040X

When you see someone's name pop up on caller ID and your heart drops, fire them. Life's too short to be miserable.

There are lovely people I serve too though. I delivered a return yesterday to a client/friend of almost 40 years. She's 95 now in assisted living. Return isn't *that* complicated but has half a dozen 1099Rs, one consol broker 1099 package with only 40 page or so, the bigger main consol broker 1099 package that was only 60 pages, and a PTP. We had a really nice visit and did some reminiscing. People like her remind me why I still do this work.

It's really crazy. I think we need to have a giant round table session (at Rita's burial ground ;)), or maybe a giant zoom call) just to discuss practice management. I've been working 90 to 100 hours a week since the first week of February, and I literally am getting too old for this. I feel like I can hardly push myself through this final week. I have good staff, but it's still just too much. I think others work faster than I do, and I need to learn efficiency steps. Last year I did 730 returns including extensions. This year, I'm at 525 so far and working as fast as I can. Client documents are delayed, and everyone just needs to talk to me for '5 minutes'. I feel like such a loser when I put someone on extension whose information was turned in during March. I set my deadline at March 7th for a guarantee of no extension, and I have passed that 'check-in' date, but people are still really good at making me feel bad, anyway. Thanks for listening. Yes, I like cheese with my whine. I do think some sort of 'trading trade secrets' meeting would be amazing. I'd host you all in Kansas ... you probably don't want to come in August, though ;).

I would NEVER do a return without Sch L because it proves that the return is in balance.

I arranged for "Bob" to pay his tax liability ($3000) with a bank draft to occur on 04/15. Didn't happen. Bob says all that happened was a $30 charge from the credit union for a disallowed check. Here's why (I think). On such planned withdrawals, Drakes asks us to designate "checking" or "savings." I indicated checking, as the taxpayer did not indicate any other preference. "Bob" says he put $3000 in savings for the IRS to take. When confronted with a draft, most banks/creditunions will transfer the money to checking so long as there are funds in savings to cover. This credit union did not. These are the facts. My question now is "What should the taxpayer do to pay the IRS?" Will there be a collection letter forthcoming? Will the IRS try again? If so, when?? "Bob" is waiting for me to tell him what to do. To be honest, I don't know.

MD and Marilyn, I really feel for y'all, what a nightmare. Certainly sounds like an ATX glitch; fortunately here in my last year I had no extensions. And the IRS seems better acquainted with Federal disaster areas than ATX--two of my clients had most of the underpayment penalties calculated by the software returned to them.