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jklcpa

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  1. Have you tried entering the IRC section in the box just above the serial number area? Or possibly there is a different entry required for "method" and "convention"? Sorry, no longer use ATX so just guessing it is something simple on that screen.
  2. The person that paid $1,500 back in 2010 has died and family member who inherited the basket is the donor. Basis in the basket is FMV at DOD.
  3. Thank you. Is there a specific place to check POAs that are recorded, or do I just try to get the transcript again?
  4. I'd enter this on the balance sheet in the Other Asset section with the caption "Asset Not Yet In Service". Then in 2022, make a journal entry to debit the fixed asset account, credit the Other Asset to remove it, and put it on the depreciation schedule.
  5. If parent was on good terms with the former preparer, perhaps that person would be willing to share the depreciation schedule with the child who inherited the business. I would provide that data if child could provide documentation that he or she was executor and the new owner of the c corp.
  6. I went through e-services today and uploaded POAs for H&W as pdfs that were hand-signed in person and received email confirmation. With this being first come first serve processing by IRS, anyone have experience with the wait time I should expect? Do I recall correctly that it could be 6 weeks or more? Will I receive notification when these are finally recorded in the system? ETA - these cover 2018 - 2020, and I did previously call in to discuss a 2018 tax notice with an agent and faxed them directly while on that call, but they are not in the system. Does the agent not record those through CAF but merely verifies that the representative has authority for that call?
  7. Agree with the others to get back year returns and check those. Also check the books used to prepare the returns: trial balance may have separate categories for types of assets (autos, furn & fixt, leasehold improvements, etc) and look for details in the general ledger, if you are able to do so. Tom made a good point about listed assets where this could have been their automobiles. Maybe that's why he/she has no idea.
  8. I see, and thank you for explaining. Sorry I don't use ATX any more to see the actual input, but perhaps it isn't sophisticated enough to automatically transfer the unused PALs from the old to new property so that you may have to change the numbers manually. Possibly let the program calculate the total allowed PAL for the year, if any, leaving the relinquished property on for the 2021 tax year, and then delete it at the rollover on the 2022 return and combine the carryover of PALs from the relinquished property into the newly acquired one. That wouldn't allow the detailed worksheets to be correct, but the overall totals to 8582 and what it calculates going forward should be, I think. Has ATX support given you any guidance at all?
  9. Yes, that's true, and ALL of that should happen on the S corp return. Are you preparing that also, and is that where your question is (?), because initially you mentioned the form 8582 and the answer your initially received mentioned Sch E and 8582 which would indicate that the discussion revolves around the individual return. At the individual level, the shareholder receives a K-1 with one figure for the rental loss that will be passive in most cases. At the individual level, the client must pass three limitations: basis limitation, at-risk limitation, and then finally the passive activity limitation on form 8582. BUT, on the individual return there isn't any such reporting on a property-by-property basis of those properties held in the S corp.
  10. In that case, there should be nothing to change as far as the PALs for specific properties on the individual return. That happens at the s corp level and the indiv shareholder receives the K-1.
  11. How could there be anything to transfer from one property to another on the individual return if the exchange took place all within one S corp. Is the new property acquired in the same S corp as the property given up, or just what piece of this puzzle are we missing?
  12. jklcpa

    SSA Payback

    I thought that was usually withheld from future monthly SSA payments until fully repaid, so in other words, it is automatically handled prospectively by SSA and the future reduced net SSA amount would be reported in for that tax year.
  13. Found these: on IRS site from 2020: https://www.irs.gov/newsroom/proposed-regulations-address-direct-primary-care-arrangements-and-health-care-sharing-ministry-memberships and this article from JoA in 2020: https://www.journalofaccountancy.com/news/2020/jun/irs-rules-direct-primary-care-arrangements-health-care-sharing-ministries.html a couple of more: article by a CPA in Jan 2021 on the subject: https://bradyware.com/proposed-changes-hcsmp/ and this blog-thing-article written this year, more geared toward employers and HR depts that may be helpful?: https://intercom.help/take-command-health/en/articles/4399639-update-on-sharing-plans-and-qsehra-for-2022 Maybe some of that will be helpful?
  14. Terry, you need to slow down and research this more. The IRS was proposing back as early as 2020 that these plans should be considered as insurance (they weren't in the past) if the particular plan meets the minimum essential coverage (MEC), that "premium" (aka member dues) should be considered a tax deductible expense, and that reimbursements should be tax free. That all being said, that does not mean that these plans would qualify as a HDHP. Sorry, I don't know the status of these IRS proposals and don't have time to look into that for you. A quick google found a couple of articles and blogs but no authoritative references. With regard to the actual medical expenses paid, I don't see how this client could deduct those either way since, basically, someone else footed the bills.
  15. I believe that taking some cash out and creating boot would allow that amount of PAL to be utilized, creating a tax-free aspect to the boot. That would involve more planning though, and they also have different rates.
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