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I'm as confused as everyone else by this. This sounds more like a partnership with one partner selling to the other, and that this was incorrectly handled as two proprietorships. If not, how does your client explain the shared checking account?

Where is this money coming from? Existing bank account for the LLC that was not sold to the new owner? Is there income coming into this account. How were the books kept for this LLC? SP draws are not income. By the way, for tax purposes, you have to treat the sale as a sale of assets, not a sale of the LLC.

I believe if injury or disease prevents one of a married couple filing MFJ, the spouse can sign the return. There is a checkbox that will allow you to attach the required dated explanation. In Drake, this is found on the Misc tab and then on the screen entitled MISC-Miscellaneous Codes/Notes. Look to the right side of the screen where you will see "Special Signatures". Check that box and click "SCH" to attach your explanation. I used this method for several years where husband suffered from several alzheimers and was in a facility, and the wife didn't have POA, and at that point husband lacked mental capacity to grant POA anyway.

Simply viewing an email will not infect your computer. However, clicking on links or opening attachments can. Even when I get an email from a a company I do business with, I don't click on the links. I go to their website and login.

So is he stealing money from the new owner? Is the money part of the purchase price? Is it his equity? Is that being tracked? How is the new business accounting for this? I'm confused.

Just found part of my answer. In Drake, you have to use the screen 3 for income deductions and payments to enter the trust expense information. This kinda blows my mind as the 5227, 1041-A and 1041 are all processed through the 1041 package. So, an input in the screen three flows to both the 1041, 1041-A and 5227.

Yikes! I hope you managed to shut down everything with lightening speed. Several years ago something similar happened to me and the computer guy said to just shut down everything and bring it in. He checked it all out and said I was lucky. I hope you are, too!

I received an email with a pdf attachment this morning from "Department of Public" stating that the FTC has evidence that my SSN has been used in NM and TX for international wire transfers to blacklisted bank accounts. The sender's email addy is some gibberish through gmail. I never click links in email or open attachments, but unfortunately when I moved my phone out of the dog's way as he tried to jump on me, I touched close enough to it on the screen this this morning to open it.

retrying a few minutes later turning off and on the service in task manager rebooting

Terry, so glad you resolved this on your own. Yes, for several years I prepared CRUT returns for one client but the last one was 10 years ago. I would have had to go back to refresh the little gray cells and not sure that would be possible. Good memory on your part though! What a team here as resources, right?

You have an asset sale to report on the sale of the proprietorship to the new owner. Then, as Abby said, the withdrawals of cash by him do not create income. He is just taking his own money out. Has he officially closed the LLC down with the state or keeping that open for some reason? Why is he keeping the SMLLC bank account open? He could close that at any time without any tax effect.

I think it should still work. In the case I mentioned, the husband was listed first on the return as the taxpayer and the wife signed the returns. When you check that box and create the explanation, a statement is generated that goes with the return, and "see statement" will print just below the husband's signature line on pg 2 of the 1040. The 8879 doesn't have any indication, so I'd have the wife sign both lines and keep a copy of the statement with the 8879 in your file. If that makes you uncomfortable, you could switch the wife to the primary taxpayer and husband as spouse.

plus the $5.50 for back years e-filing for each fed and state return - I now add additionally and $12 for certified! if the year that isd closing. d/WI

I don't work on these. Glad you found your answers.

I think the phaseout you mention is for earlier model years. The 2023 Model 3 qualifies for 2023. Some models will qualify for 2024.

Multiple Drake Community posters are reporting that the Drake program is crashing whenever they upload Form 8879 to the Drake Portal. One user reported that the problem went away after he reinstalled the program. It looks like we may be seeing the effects of Drake cutting expenses to keep CINVEN (the new owner) happy.

I have been using Drake since the 2017 tax season and this year is the first time I have had the program freeze or crash.

Just received an email from "Karen" that says "I have uploaded my 2023 tax documents in the workdrive below secure link, please look through it, and let me know if you need any additional information. Also will it cost the same as the last." I'm small enough that I know all my clients and didn't fall for it. Those that deal in volume returns or have staff beware!

Also don't click on "unsubscribe" links. Just send it to your spam folder.

Income from a partnership is taxable even if it's left in the partnership. The K1 should also show distributions. If you scroll down about 3/4 of the page, there is a Section 199A Information area. In the future, watch out for partial dispositions. They're very easy to miss.

Beth Logan remarked that she never opens email on her work computer and with Judy's episode, I'm thinking of doing the same thing. Not sure how inconvenient that will be, but I'm going to give it a try.

That's federal law https://www.congress.gov/bill/104th-congress/house-bill/394/text

I doubt monthly totals matter.

I looked for any kind of exemption, but couldn't find anything close. I was looking. I just deleted the 3508P and warned the client.

It's always one little checkbox, isn't it?? Those things feel like the bane of my existence some days!

Normally current rates, but if it involves having to refresh your mind with all the covid programs around then, I would charge a lot more.

AND could you ask it to explain to my clients why they have to carry forward part of their foreign tax credit when they didn't have to last year? (I mean, while we're askin')

Cool. Could you ask it how to explain Passive Activity Losses to my client? Tom Longview, TX

Actually winning anything at gambling would also be fictitious if JohnH is involved. Don’t ask me how I know…

No offense taken. I've always resented being included among "you guys," perhaps because after growing up in a household of three girls, my own family was all male (even the cat). I did not want to be included with those creatures that eat over the sink, miss the toilet, and think armpit burps are hysterical. I was just trying to inject a bit of fun into the decidedly unfun days we are all having right now. EVERY return I started today had things missing. Grrrrr

I'm with Bulldog Tom and Lion. No matter the year being prepared, if it is current work it is charged at my current rates. If the clients are late because of procrastination or disorganization, then they are paying more for that because I raise rates each year, and if the work involves me working even more on it because of that disorganization, again a higher fee will be the result.

LLC is held as sole proprietorship. Sept 1 the LLC was sold to another proprietor. (To me, they should have been an S-corp and made the transition easier, but there was a lawyer involved that told them to stay an LLC and just sell the LLC.) So far that works fine.........but.........the 1st SP continues to take money on a weekly basis September thru December. Prior to this sale, I would have considered it as a draw. He's an SP. He can take all the money his wants, right? I had run estimates on all this in September and it didn't occur to me that he would still be taking this money or that it may or may not still be his taking from the equity. The business is profitable and would have "retained earnings" of a sizable amount if it were a S-corp. He insists (of course) that this is still his equity that he is taking. (On top of a weekly payment on the sale) and is arguing with me that it should not be construed as income to him. I'm thinking it is taxable income. Love to hear your input.

Buyer and seller are friends. Seller over years had buyer's name on joint business account. No stealing. Seller actually still has access to bank and can see what's going on. All on the up and up. They've been keeping track of the money/draws/equity. I got hung up on the seller still getting a draw each week. But I think this chat has helped me understand that that was still his money to draw. And we have an accounting at date of sale of equity and we keep a separate account for his draws. This tax season just seems a little sticky, doesn't it?

Sell a SMLLC? How? What?! Is there a relation between the buyer and seller?

He did not close account. New owner had held it with him jointly for years. So it was easier for sales tax, payroll and all the other EFTs to continue. Yes - sale of assets. The books are kept in QB and reconciled regularly. Payroll is thru Paychex. I think the bookkeeping is in pretty good shape.