tax newbie1

I have never e-filed forms 94X before. A few clients ask me if I can e-file for them and I’m thinking why not? I have e-filed forms 1040 and 1120S for a few years now and I’m wondering if I can efile form 94X? or do I need to apply for a new EFIN to e-file these quarterly payroll tax forms. Thank you for your help

Thank you so much for your help.

This is a really dumb question, but I cannot find it in publication. If a partnership has revenues and expenses net to zero and no sec.179, do I need to attached form Schedule K-1 with the form 1065 to file with the IRS? Thanks,

Hi, I have a client that gave me a form 1065 schedule K-1 for 2009 tax year that has ordinary loss about ~$9K and interest income of ~$4K. He has no basis (he works for the LP, and they gave him some shares). I know I have to report the interest income on schedule B, but can I report the loss up to the gain amount of interest income on schedule E Part II on line 28h? Thank you for your help.

Thanks for all responses. To clarify a little bit - we did not set up the structure in this format. It was done before we begin doing the return. The way it is set up is actually not bad in that the attempt was to safeguard assets as the owner is a multi-millionaire with numerous holdings and business dealings. Without convuluting this conversation further, it was set up as follows: It has a GP up top that is a 1% General Partner of the LP (a husband and wife own 50% respectively of the GP and 49.5% of the LP). The LP owns a 100% member interest in the three separate LLCs. Of course, if we had been involved from the start, we could have recommended some other steps to simplify things (I'm like most of you, I like to keep it efficient, but as simple as possible), but we were not. Having said that, if my client and his wife owned these single member LLC’s, it would be much easier as we could report them on their personal return. However, since the LP has a 100% member interest in those LLC’s, we have to report all of the LLC’s activity on the LP’s partnership return. This has created somewhat of a matching problem for the IRS because all of the form 1099’s were issued to the LLC’s. The IRS has no way of matching them with the 1065 return. That was the main reason for the intital questions on this topic and why we wanted to get some thoughts as to the suggestion that each of the LLC’s elect to be taxed as a corporation and report on its own. Then we could send the 1120S-K1s to the LP for the LP to report it on the 1065. That way the IRS can match all of the 1099s form to the respective 1120S return. Just a thought that we wanted to get some feedback on as the best way to avoid matching issues in the future. Thanks Newbie

KC and OldJack - sorry for the confusion. Let me try this again. I have a client that operates an LP (not single member as I said below - that was a mistake). This limited partnership has a 100% member interst in three single member LLCs. All activity rolls up from the single member LLCs to the limited partnership. If we elect to treat each of the LLCs as S corporations (using Form 8832), can the LP own 100% of the LLCs taxed as S corporations? As always, I appreciate your assistance

I'm sorry KC, it was a typo. I mean LP, Limited Partnership.

A client of mine has a single member LLC, however that single member is a LP. He wants to elect to be classified as an association taxable as a corporation. Is there anything that will prevent him from filling the form 8832? I know he can if that single member is a person, but not sure for a LC. Thank you for your help.

Thank you for all your helps. I will claim it as a non-business bad debt and deduct it on schedule D subject to $3,000 net loss limitation.

Hi KC and OldJack, The developer uses the fund to build restaurants, shopping center and hotel. It seems to me that he invested in a bad junk bond because there was no clear business relationship to the loan. The borrow promised to pay seven equal payments at a fix rate of 25% (it just too good to be true). Do you think it should go to schedule D? Thank you for your help

I have a client that let a real estate developer borrow $50,000 in a form of a promissory note. The real estate developer filed for bankruptcy and defaulted on the note. How do I report this on his tax return? Do I treat this like a schedule D capital gains/losses transaction and subject to $3,000 limitation? Thank you for your help

Hi, I need some help with print the return to the pdf file. Everything looks ok with the exception of the xxxxxxxx... on line 73B and 73D on page 2 of form 1040. Would you please show me how to get rid of the xxxxxxxxx. Thanks,

I have a client that transferred his personal rental property reported previously on Sch. E to an LLC. The newly form LLC is owned by a LP. My client and his wife each own 50% of the LP. They have about $10K losses that they can not take because their AGI is over $300K. So for this year, I file a partnership return for the LP and the rental property is reporting on the form 8825 for them. My question is where in ATX software can I keep track of the passive loss carry over from Sch E to the 1065 form? If they decide to dispose the property in the future, ATX can calculate it properly. Thank you for your help