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About jklcpa

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  1. I'm happy to have helped solve the puzzle.
  2. OK, I looked back at the pdfs you posted. Is there a 4th rental with income of $3,091? I think this return is probably correct. Property A had a current loss of $1850 plus the suspended losses bring it to a total of $44678. There's some sort of worksheet you referred to that is netting all of that with the gain from its sale of $174928 to arrive at a positive number left over from the gain to apply to the other rentals that also have losses (current and prior coming forward). That number is 130250. That figure is what is allowing the carryforward suspended loss on property B to be deducted in this year. That positive balance is allowing the current loss on property B plus its suspended losses to also be utilized in 2019. Those losses total $45231 Then there are properties with net income: property C of $165, and another that isn't shown on the schedule you shared that must have income of $3091, All of that nets out to the loss allowed of $86653 (-44678, -45231, +165, +3091) The other schedule you shared was Schedule 1, line 5 showing a net loss from all Schedule E activity that would include the K-1 activity. The figure on line 5 is -3893. Does the K-1 for being a physician have ordinary income in box 1 of $82760 that is shown on page 2 of Sch E?
  3. I think we aren't communicating fully here. All the rentals are passive. The distinction of "active" or "materially participating" each have their own limits on losses, BUT losses should be allowed in full on the property that was fully disposed of regardless of the designation. The gain may also be sufficient to allow some, or all, of the losses on the other rental because that is also a passive activity loss. The K-1 activity for his physician business is non-passive income and does not factor in to the passive losses allowed. In your first post today concerning the K-1 income you wrote this: "the gains from the S Corp K1". Are there some sort of gains on the K-1, or does the K-1 only show ordinary business income in box 1?
  4. Possi, if there are gains on the K-1 that are related to the non-passive activity of being a physician, then those gains would also be NON-passive. I agree with Gail that you should have a way to tell the program to NOT allow those gains to offset the losses. Only the gain on the sale of the one rental should be what is allowed, so that should be the amount of the losses used, and the rest of the losses should carry forward.
  5. Same question that Tom asked. Is the K-1 income passive? That is the key.
  6. jklcpa

    logs sold

    I've always reported these costs exactly as Dan has described too, that is as long as they would have qualified as additional basis or expense of sale. I'm not sure whether or not there is some authoritative source for this handling though, but this is how I've always seen it handled.
  7. jklcpa


    @Christian ,there are a couple of other good posts with ongoing discussions on this same topic over in the COVID-19 subforum that you might want to read also. I'll be moving your topic there in a little while.
  8. I've had to force myself to work on some returns each day between the phone calls. With clients not coming in, the dress code has slipped down a notch at times to T shirts, sweatpants, and slippers. Today is warmer so it's jeans and bare feet...and a shirt. I do have a shirt on too. I'll be able to finish everything on hand that will leave only a few that haven't come in yet, and one of my clients with a larger return was still stuck oversees last time I checked.
  9. I don't mind deleting the links, but when I clicked on the first link I was able to view the entire 11-page document. The second link took me to an email that I've deleted and included the modified contents without links and that removes the ability for anyone to unsubscribe you. If that isn't sufficient, please let me know.
  10. Thank you, Lynn. This is good news for those that don't need to file, but that leaves the question about my clients I was trying to help and other seniors that do file and whose 1040 always shows a balance due. Will IRS look for the direct deposit information on file with SSA?
  11. Thanks for the heads up. I fixed the link in Lynn's post to go to the proper page, now found at "sm967".
  12. Thanks, Gail, that does make sense in a way. I'm going to drop my suggestion and see if some family member will be able to help these few folks when the "portal" becomes available.
  13. That's an idea but I have several returns like this where the clients are elderly and have never used the internet. I was trying to come up with the easiest solution for all of these people and me at this point. Plus, you know how many older people worry, worry, worry, especially when it comes to money.
  14. No penalty if the withdraw is for the excess contribution and any earnings on it. It's as if the excess was never in the account. Total distributions including any excess and related earnings withdrawn would be entered on form 8889, line 14a. Then the amount of the excess contribution and its earnings that were withdrawn would be reported on 14b, distributions for qualified medical expenses on 15. Any earnings withdrawn are reported as "other income." So we're all on the same page, below are instructions from Form 8889 that I referred to earlier. The instructions for Form 5329, line 47 say the exact same thing too.
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