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About jklcpa

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  1. jklcpa

    1120 with payment due keeps getting rejected

    Yes, definitely try that.
  2. jklcpa

    1120 with payment due keeps getting rejected

    I, too, think this is the problem. I was getting a similar error check message from Drake's program on an individual return where I'd entered a payment withdrawal date a few days after the filing date so there was no actual reject, but the issue sounds the same and the program would not allow the e-flie creation. The only date acceptable was the same date as e-file submission.
  3. Please note that to keep this topic on point, i moved posts by SaraEA and JohnH to a new topic of its own that deals with the new sec 199A QBI deduction and W-2 income.
  4. jklcpa

    Canadian Tax question

    See my answers above. Convert to U.S. dollars and enter all of it the same as you would gross social security benefits. It goes on line 20a.
  5. jklcpa

    Canadian Tax question

    @Linda Mathey Linda, the OAS and the CPP are the equivalent of social security and as I said before, it is reported on line 20a that will use the same formula for calculating the taxable portion of benefits. If these are in canadian currency, please convert it to U.S. dollars and enter it on line 20. Please see pub 915 where it instructs that the OAS benefits received should be entered on worksheet 1 which is the worksheet to use for line 20 of the 1040. And this also on the OAS:
  6. jklcpa

    Microsoft to charge monthly for Windows 7 updates

    The phrase in the original article of those that will receive this offer was poorly worded, and I think Abby is correct on this, that it won't be offered to most small businesses. This was within one of the linked articles:
  7. That's creative and something I'd suggest not to do; he isn't self-employed. You should report what actually took place, not what he'd like it to be or some fabrication to keep him out of trouble. I would look closely at those distributions to see if they are the same amounts as his net paychecks were in prior years. In other words, was he paying the paychecks and not recording them properly in the books and not filing and paying the payroll taxes? Or did he do this himself instead of having a bookkeeper or hiring you to do it properly, or have a new bookkeeper that didn't know the difference between paycheck vs distribution? Or...is he starting to use his S corp as his personal checkbook?! You need to inform the client of the consequences of the S corp not paying him a reasonable salary, and discuss what has transpired thus far in 2018 before the year is closed.
  8. jklcpa

    Dell Computers - Good Bad or Indiferent

    Tom asked for recommendations for laptops and Abby's search was narrowed to only search for only Dell laptops, no other brands or desktops either.
  9. jklcpa

    Canadian Tax question

    The clients I have with NR4s are for income from dividends and the OAS so my experience is limited to that. U.S. citizens are supposed to report on worldwide income, and there are some special rules pertaining to pension income depending on the type of pension, and U.S. citizens that invest in Canadian mutual funds. Since you didn't say what type of income the $3K+ so it's is hard to give an answer on that. Whatever you report on the 1040 will need to be converted to U.S. dollars based on the exchange rate at the time. If the client doesn't have the amounts paid in UDS, you can look up the exhange rates here: https://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/treasRptRateExch_home.htm Canada's OAS is similar to our social security benefits and is reported on line 20a along with our SSA benefits and using the same formula to calculate the taxable portion. Your client has probably been receiving this for years and not telling you because he didn't realize it is reportable and could have additional taxable income in those prior years, depending on the exchange rate at the time and his level of income. If you tell us more about what type of income that larger amount comes from, maybe we will be able to better answer on that. If, for example, that is from dividends, that would be converted to UDS and reported on our Sch B. Canada does withhold tax directly on dividend income that would also be shown on the NR4, and that also must be converted to UDS and is claimed on Form 1116 as foreign taxes paid to calculate the FTC.
  10. jklcpa

    Good Grief

    You all probably already know that a PLR is intended to be relied on for only the taxpayer that requested the ruling based on an exact fact pattern, and I posted it more for the code section references it contains in this one particular case so that those could be used as a basis for further research. I do think it's an interesting ruling with the IRS allowing the deferral.
  11. jklcpa

    Good Grief

    With a quick search of the web I found what might be some useful info for you, especially in the second link, a PLR that has relevant code sections, that would be a place for you to start for further research: some general information from SEC on how long the states hold securities, in general: https://www.sec.gov/fast-answers/answersescheathtm.html and this 2009 PLR where the IRS ruled that the taxpayer was allowed to defer gain or income recognition by purchasing replacement securities using the escheat funds (proceeds) received from the state. https://www.irs.gov/pub/irs-wd/0946006.pdf Hope this helps you some.
  12. jklcpa

    Vehicle Donation of $5k+

    See this IRS brochure (pub 4303) that answers the question of recordkeeping and what the statement must include, and has more information that you may find useful: https://www.irs.gov/pub/irs-tege/pub4303.pdf
  13. jklcpa

    Suspended Rental Loss & Disposition

    Yes, that is correct.
  14. jklcpa


    Oh yes, that's been going on for years, and it's probably not Google that is calling. The ones I'm getting now have a spoofed caller i.d. that is supposedly from within the state's area code and may appear from a local exchange as well. https://support.google.com/business/answer/6212928?hl=en
  15. jklcpa

    Earnings and Profits

    I wanted to add a few more adjustments to arrive at E&P, list still not meant to be all-inclusive. Other adjustments to taxable inome to arrive back at E&P would be to disallow and add back artificial deductions that do not require cash outlay such as sec 199 DPAD, div recd deduction, and carryforwards (NOLs, contribs, cap losses), and to reduce E&P for income taxes paid or payable because these do no reduce taxable income but do require cash outlay. This reduction for taxes would not include any state or local taxes that are deducted as an expense on the return to arrive at taxable income. Remember, E&P is an economic measure of the corp's ability to pay out the dividends, and taxable income isn't fully reflective of that.