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jklcpa

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  1. NO. Each filing season, we are able to e-file the current return and the prior 2 years, so up until the shutdown date we are able to e-file 2020, 2019, and 2018 tax year returns. Then, after the IRS reopens for the next filing season, we will be able to e-file returns for tax years 2019, 2020, and 2021.
  2. Danrvan is correct. You should check to see if there is a shareholder agreement that details which method the now-former owner stipulated to use in the event of sale of the S corp stock. Also, check to see if the buyer and seller agreed to a particular method at the time of sale. If you are the continuing tax preparer and advisor, you may have a conflict advising both parties on this issue because what may be good for the seller won't necessarily be good for the purchaser of the stock. These are older articles but still apply that discuss the allocation methods, and the second one specifically shows how the allocation to each side may either be beneficial or be detrimental. https://www.thetaxadviser.com/issues/2010/dec/clinic-dec2010-story-09.html https://manningleaver.com/resources/articles-alerts/s-corporations-few-buy-sell-issues-consider
  3. I have a fiscal year C corp client that has large NOL carryforwards from earlier years and has not filed the 2019 return that also has a loss that will come forward. The 2020 return's extension is valid through 3/15/22. Both returns will be e-filed. Whenever I've had this in the past, I used to wait 6-8 weeks between returns to make sure the earlier one was processed before filing the next year's return. Now I'm unsure with the IRS backlog and its issuing of notices when one cannot as easily reach an agent should something be questioned. Tax year 2020 books have a loss, but because of unpaid accruals not deductible under sec 267, that add-back will create a small amount of taxable income before any NOL, and the NOL to be used will be from a much earlier year, not from 2019, but still.... How long would you wait to file 2020 if this were your client?
  4. It was to speed up the delivery of the stimulus payments. IRS and SSA don't have banking information for everyone, and even then can only process "X" number per day, so that means mailing payments. Again, IRS can only physically process a certain number a day or week, so it contracted with the bank to issue some on plastic.
  5. If it helps, I had one client that saved all the paperwork including one EIP that came on plastic. It seems very clear to me that it was from the U.S. government and what it was for. From some of what I blacked out though, I believe this client received this in June 2020, so maybe there was more awareness that payments were being made on plastic by then whereas recipients earlier on may not have realized that.
  6. The K-1 would show the s.e. income before the sec 179 deduction. The netting will occur on the individual return because there are limitations at the individual level that must take place to determine whether or not all of the sec 179 from that particular entity will be allowed or not.
  7. I do have Chrome for Android on both my tablet and my phone, and both of those are still on ver *.61 with the notation as being up-to-date. Has anyone read about or seen a more recent version for mobile applications? ETA - never mind, that is the most recent version available for Android.
  8. I, too, had to start the update manually and was then prompted to restart the browser to finish the install. I find Chrome to be slower and so only use it for a few sites that won't work on Firefox.
  9. The yearly dividend paid to residents from AK's permanent fund is in the range of $1,000-$2,000, so the amount your client's estate received isn't that. It sounds more like either accrued wages paid after death or uncashed paycheck amounts that were reissued and paid to the estate. I think this is reported on the Form 1041, and if that's where you will report it and with the 1099-misc in the SSN of the deceased, I'd show this as an assignment of income on the 1040 to be safe.
  10. For the purpose of due diligence by a purchaser of a tax practice, under sec 7216(n) the seller is allowed to disclose names, addresses, emails, phone numbers, the tax form and entity classification of the clients. You may find the following blog helpful in this regard: https://www.johnrdundon.com/irc-7216-disclosures-issues-to-consider-when-selling-your-practice-start-with-a-tight-nda/
  11. Allocate the selling price and the expenses of sale to each type of property sold. You will have separate sale entries for the land, the building and its improvements, and any 1245 assets that were on the fixed asset schedule. If I have lots of improvements over years, or have lots of 1245 assets listed, once I have the SP and expense of sale allocation figures, then I do group/bulk sale for each of those types.
  12. Tom, I agree that the non-refundable should be applied first to reduce the liability, and the refundable credits come after that, and that is why those are included in the "payments" section of the return. I'm not sure if this will help you sort this out, but here is IRM and the credits application is in sec 21.6.3.4, and the ordering of nonrefundable credits is at 21.6.3.4.1 : https://www.irs.gov/irm/part21/irm_21-006-003r#idm140499595953776
  13. It's now $210 per partner per month for a max of 12 months.
  14. Maybe some of these responses were helpful?
  15. If parents meet the requirements to claim him as QR, then parents can deduct the NET medical expenses they paid, net of any reimbursements from insurance, the trust, or from other parties. Assuming you are asking about 2020 deductions, this would include any net expenses PAID IN 2020 for medical services or expenses of 2019 even if son wasn't a QR for that prior year. For medical expenses paid for services that extend substantially beyond the end of a tax year generally aren't deductible (exception is LTC premiums), but for example, if the parents paid for in-patient rehab in late Dec for a couple of months into 2021, I'd be inclined to deduct that because many of those facilities expect payment up front at admission and may give a discount, for example if paying for 90 days in advance. Didn't look up the part about the trust, but I think the expenses paid by the trust could be a deduction there if it's a SNT, and that reduces the income of the trust that potentially is passed to the beneficiary.
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