jasdlm

Hello, again. One more question (long shot). I want to run my logic (or lack thereof) by some of you: If the salaries paid to the shareholders were greater than the guaranteed payments from the partnership (they were) then would it be fair to argue that the guarantee payments paid the salaries (retaining all the same characteristics) and the other patient fees received directly by the S-Corp were what composed the s-corp profits? Trying to think outside the box but take a defensible, reasonable position. Thanks for any thoughts. I might be too caught up in this.

Thank you, Judy! That's what I was afraid of, unfortunately. I really appreciate it!

I don't have the partnership agreement, and I don't do the partnership return. I made a typo in the original post; I apologize. This year, for some reason, (The S corp has been getting a k1 from the partnership for the entire time I've been doing the return), the income, instead of coming through on line 1 of the K1 from the partnership (return I don't do) to the S corp (return I do), it came through on line 4. The question is essentially whether I have to pass that income on to the S corp shareholders on line 10H (other income) not eligible for QBI and creating a loss in the S corp. Sorry to be unclear.

Just reading my original post. Should read 'if the guaranteed payments flow through to the shareholders' in number 1. Sorry.

Since the granddaughter is now over 18, I wouldn't see how the guardianship/custody issue would matter.

S Corp is member of a partnership. The partnership has always issued a K1 with income on line 1. This year, the partnership issued the S Corp a K1 with almost $200k income on Lin 4 - guaranteed payments. I'm stumped. 1) If the Guaranteed Payments flow through to the partners shareholders (2), the partnership has a substantial loss, because the income is part of what they use to determine their S Corp salaries. (They are physicians; the partnership is an umbrella that some patient fees go through and are passed on; I'm not certain why because there is also substantial direct patient billing in the S Corp.) 2) If I simply count the $200k as S Corp worldwide income (avoiding the loss issue), I then set up for a QBI calculation; how does that reconcile with the fact that the income was 'guaranteed payments'. This seems like the right solution, but the QBI issue is gnawing at me. I found a thread that Abby & Lion responded to in February of 2021, but the question was posed by a non-tax professional, and there wasn't much discussion. Thanks in advance for any thoughts!

This would be a game changer!

Individuals dropped off early, but many of my corporates are saying things like 'Oh, whoops ... I'm in Tahiti ... I'll be back on the 27th and get you my 'stuff''.

Just FYI ...ATX gave me real fits over the opt out. I opted out, but it continued to take the bonus depreciation. I would try to override it, and it would give me a popup warning telling me to go to the elections screen to opt out. This song and dance went on for a long time. I tried saving and reopening the file, restarting the program, etc. I finally chose 'custom' under the bonus tab, and then it let me override the bonus depreciation it had calculated with zeros. I have no idea what I didn't toggle, etc. Almost caused me to say a bad word.

Sorry. 50% under 179 and depreciate the remainder. Poor word structure on my part.

Taxpayer purchased a large piece of equipment. If bonus deprecation is taken, then negative capital account and distributions are I excess of basis. I elected out of bonus depreciation for the asset class (7 year), and manually entered 50% depreciation. 2 questions: 1) I believe this follows the most recent rules, and this is all I need to do (no 3115 since I made the election) 2) This is a one-year election, correct? Am I missing something huge here? Thanks so much.

Thank you!!

Right, but since the partnership terminated for tax purposes, I think Rev Rul 99-6 says that he made an asset purchase. Eager to hear your thoughts on this. I haven't had to do this before. Thank you for having this conversation with me. I'm truly grateful.

He purchased the entire LLC, so by default, he purchased the interests of all 3 members. It's late, and I'm thick. What am I missing? Is there a way he could purchase the undivided whole when it has 3 separate owners?

ID not idea. Stupid auto-correct.

Thinking about this issue is what got me started down this rabbit hole in the first place. Sheesh. However, if it's treated as an asset purchase sale, then I think the LLC inside basis shouldn't affect him, right? New tax idea for the old LLC and roll on down the road? Am I missing something huge?

Geez. Now that I've thought this through, I feel like a complete idiot for posting this. Sometimes I can't see the forest through the trees. I know that never happens to anyone but me :(.

Thank you. I can't believe I didn't see the forest through the trees. Essentially then he made an asset purchase, and his basis is his purchase price; no 754 election needed. Agree? I need to tell him that he can't use their old tax ID number. Any other thoughts? I really appreciate your quick response and advice.

Am I correct that a Single Member LLC would still need to file a 1065 (rather than a schedule E on the 1040) to make a valid 754 election? RE agent advised that client purchase the LLC rather than the property outright to save real estate tax since the sale wouldn't be recorded at the county. Property had substantial depreciation inside the multimember LLC that sold it. Thanks much. I don't do too many of these. I've asked Mr. Google, but I haven't found a definitive answer.

You are my hero. I spent 20 minutes trying to figure this out before I stumbled on this post. Thank you, thank you. I love this forum. Reminds me to go make my annual donation!!

Does anyone know how to calculate the non-taxable portion of a survivor annuity (OPM)? I can find plenty of references to the calculation for the participant, but does it change at the death of the participant since the survivor benefit is 55% of the original annuity but the after-tax contributions haven't changed? Am I over thinking this? Under thinking this? Smoking crack? Thanks.

In my experience, Where's my refund will show the 2020 return info until you file the 2021. Then, as Abby says, you're done. Just looked up a 2020 return with a $13k refund that client has been waiting on. Says 'processing'.

I can't get to it either. Ideas?

The best thing I've ever gotten in a client's bits was a $50 off coupon for H&R Block. I thought about dropping their return off. The second best thing I've ever gotten was a 1099-SSA with a huge red stain on it and an arrow to a note from my client saying 'this is squash'.

Hello. I thought we had someone on the Board (for some reason I thought he was in Minneapolis) who was very familiar with Companies doing business in the US and Canada. I want to refer a client, and I can't figure out who the person was. I even have it in my mind that his name was Tim, but I could be making that part (and the part about Minneapolis) up. Thanks in advance for any help.