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Everything posted by jklcpa

  1. The license is per EFIN per location, so if the secretary of the licensee is working at the same location and the laptops stay in one location, installation is allowed on both laptops. Secretary should be set up as a separate user with her own log-in and password, not granted admin privileges, and I believe the primary administrator can choose to further limit what the secretary has access to. Ideally the the laptops are networked, otherwise if standalones each data file worked on would have to be manually transferred between machines, at least I *think* that is possible. It would be best to check directly with Drake support. Here's the part of the license agreement that covers the EFIN/site location issue:
  2. As cbslee said, we could come up with a variety of labels, but client and "partner" need to describe what their intentions were and provide available documentation.
  3. Technically speaking, the sec 266 election is made by attaching a statement to the timely filed (including extension) tax return for that tax year. The election must be made each year the taxpayer desires to capitalize those costs. Also, sec 266 says that only those costs that would otherwise be deductible may be capitalized.
  4. The new fingerprinting rules are for new applicants or for modification to add new principals or responsible parties to an existing account.
  5. Need some clarification about exactly what the trust document says concerning the wife and when the assets of the trust are to be distributed. Does it say that the children only become beneficiaries if the wife should predecease the grantor? Does it say that the assets should belong to the wife and should be distributed as part of the settling of deceased husband's estate? Does it say that the rental is held in trust for the wife's benefit during her lifetime with her receiving benefit of the income or corpus, and then it passes to the children at her death? Something else?
  6. Does your state have any other filings where officers of the corp are listed? My state has an annual franchise tax for corps filed with the Sec Of State to keep the corp in good standing and that allows it to operate legally as a DE corp. That filing requires the officers be entered. Anything like that with St of NY that you could ascertain? You might try googling to see what comes up and if officers are listed. Also check LinkedIn for wife's profile to see how she lists herself
  7. Hmm, the error that M 7047 is getting looks familiar.
  8. I don't remember now but most likely had internet on at the time. Makes sense. Thx.
  9. Has anyone here actually installed a very early version of QB on a Win10 computer? When I purchased my current computer at the end of 2016, I could not get QB Pro 2011 to install, so I'm now with the 2017 desktop version but still have the 2011 software disks & license code.
  10. And that is why I said Tom must decide how this applies to his client's specific situation because I did not want to continue making assumptions and (probably again) misinterpret what was meant by the original post or what was included in the client's "travel." Tom, if the travel was only pre-purchase and investigative in nature, that would be start-up, but if once the property was identified and if client incurred additional travel or other costs to attend the actual closing and purchase of the ID property, those subsequent costs would be capitalized.
  11. To answer Tom's original question, "Is it part of the exchange costs for calculating deferred gain?," no, these costs do not belong in the exchange calculation on the 8824. Tom will have to decide whether or not it is recoverable as a start-up cost on Sch E. From the way Tom worded his original question, it sounded to me as though the Idaho property was already an existing rental. Especially if there is a current existing tenant(s), I would still say to capitalize the travel. From Sara's link, see the last section, specifically the last sentence, about purchasing an existing business. For Tom an anyone else not wanting to click Sara's link, here is the complete text from the IRS site:
  12. Because this is to acquire the property, I would treat this as an addition to the cost of that property.
  13. In addition to above, going back to your original facts, the client will offset the LTCG by the STCL and will have a net gain on schedule D of $23K. There is one other place that the ordering rules and these offsets can affect the tax and is taken into consideration, and that is the tax calculation if using the cap gain tax worksheet to Sch D, and that is also dependent on other items of income on the client's return. In your client's case, that net gain should produce the cap gain tax worksheet and may possibly yield a lower tax. If you are unsure how this all works, perhaps it is best for you to run a projection through your software and see the flow of these individual components on Sch D and that tax worksheet.
  14. I'm not sure what you mean, because in your wording above you have both types of gains but no losses. The way the ordering rules work is this: NET short term gains are determined, and NET long term gains are determined, and then those two are combined. It is possible that one or the other of those,or both, ( short or long) are losses and will be combined to determine the net overall gain or loss. If that overall net figure is a loss, you can deduct down to a net $3000 loss on that year's tax return. It may be helpful in your understanding to picture the flow of these items on the actual form 1040 scheduled D. Perhaps some of your confusion here is that the ordering rules do come in to play again when there is an overall net loss after using down to a $3000 loss in the current year and where the taxpayer still has a loss carryover to the following year and must determine the breakdown of the carryover between short and long.
  15. Whether or not the production goals are duties of his supervisory position is irrelevant. The fact is that these bonuses are tied directly to his employment with the company, not independent of it. In fact, it could be argued that his position as a supervisor directly influences overall company-wide production by making sure his department or employees under his control are working at their peak efficiency, or that his department is meeting its deadlines so that the company as a whole works more efficiently and is able to meet those production goals.
  16. If the main address that the partnership uses on the front of form 1065 has changed, use form 8822-B. If the main address of the partnership did not change and this is an address change only on the form 8825, I'd just change it there on future filings and not worry about the past because it's actually the same property and location.
  17. jklcpa


    If you are completing 5329 lines 52-55 to request the waiver, in addition to the explanation attachment, form 5329 should be as follows: Line 52 - the RMD Line 53 - amount distributed-your client's will have -0- Line 54 - should be -0- AND to the left of that block should have in parenthesis ( "RC" and the amount of the RMD if requesting waiver of penalty on the full amount of the shortfall) Line 55 - would be -0- (no penalty since the actual box on line 54 should also be -0-)
  18. It's not available yet and supposed to be by October on the Dept of Education's site. If a person is unsure if part of his financial aid package included a Pell grant, that can be ascertained on studentaid.gov in the section "My Aid"
  19. I would say that each is entitled to a copy of the individual returns for any year that was filed MFJ because each was a party to the return. I'd mask the SSNs just so that they can't point to the other and say that personal information was disclosed improperly even though they probably each already have that for the other. If you aren't giving backup supporting documents, I think it would be ok to print detailed schedules that the program generates. For the partnership, since the son's is a minority interest, you may feel that he can't have a copy of the complete return and only should receive the K-1s and other information pertaining to his capital investment (add'l contribs, distributions, payouts, etc) if that isn't specifically addressed in the partnership agreement (if there is one), but if he is a general partner I believe he still has the right to receive the entire return under code sec 6103 without including the DILs K-1s or anything pertaining to her. See the article below that has a good summary of the issue and has references to the code: https://www.taxlawforchb.com/2018/03/the-closely-held-business-the-minority-owner-accessing-information-from-the-entitys-tax-return/ I'm interested to hear others' opinions on this as well.
  20. The text from the link provided by Terry above: The Biden-Harris Administration's Student Debt Relief Plan Explained What the program means for you, and what comes next President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000. Many borrowers and families may be asking themselves “what do I have to do to claim this relief?” This page is a resource to answer those questions and more. There will be more details announced in the coming weeks. To be notified when the process has officially opened, sign up at the Department of Education subscription page. You'll have until Dec. 31, 2023 to apply. The Biden Administration's Student Loan Debt Relief Plan Part 1. Final extension of the student loan repayment pause Due to the economic challenges created by the pandemic, the Biden-Harris Administration has extended the student loan repayment pause a number of times. Because of this, no one with a federally held loan has had to pay a single dollar in loan payments since President Biden took office. To ensure a smooth transition to repayment and prevent unnecessary defaults, the Biden-Harris Administration will extend the pause a final time through December 31, 2022, with payments resuming in January 2023. Frequently Asked Questions: Do I need to do anything to extend my student loan pause through the end of the year? No. The extended pause will occur automatically. Part 2. Providing targeted debt relief to low- and middle-income families To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. In addition, borrowers who are employed by non-profits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This is because of time-limited changes that waive certain eligibility criteria in the PSLF program. These temporary changes expire on October 31, 2022. For more information on eligibility and requirements, go to PSLF.gov. Frequently Asked Questions: How do I know if I am eligible for debt cancellation? To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households) If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation. What does the “up to” in “up to $20,000” or “up to $10,000” mean? Your relief is capped at the amount of your outstanding debt. For example: If you are eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief. What do I need to do in order to receive loan forgiveness? Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. If the U.S. Department of Education doesn't have your income data, the Administration will launch a simple application which will be available by early October. If you would like to be notified when the application is open, please sign up at the Department of Education subscription page. Once a borrower completes the application, they can expect relief within 4-6 weeks. We encourage everyone who is eligible to file the application, but there are 8 million people for whom we have data and who will get the relief automatically. Borrowers are advised to apply before November 15th in order to receive relief before the payment pause expires on December 31, 2022. The Department of Education will continue to process applications as they are received, even after the pause expires on December 31, 2022. What is the Public Service Loan Forgiveness Program? The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal, or local government; military; or a qualifying non-profit. Temporary changes, ending on Oct. 31, 2022, provide flexibility that makes it easier than ever to receive forgiveness by allowing borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF. Enrollments on or after Nov. 1, 2022 will not be eligible for this treatment. We encourage borrowers to sign up today. Visit PSLF.gov to learn more and apply. Part 3. Make the student loan system more manageable for current and future borrowers Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers. The rule would: Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan. Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment. Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less. Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low. The Biden-Harris Administration is working to quickly implement improvements to student loans. Check back to this page for updates on progress. If you'd like to be the first to know, sign up for email updates from the U.S. Department of Education.
  21. You should be able to open a new S corp return in ATX and print the basis worksheets from within your software. If it needs an amount to print, fill in something like $1 opening balance.
  22. Did you mean Randall's post or my first post? The linked article had references directly to the final regs and all of the pertinent code sections. I didn't think it was necessary to quote or reprint the entire article in my post. Anyway, hopefully Randall has enough of a lead for where to look for additional information to draw a conclusion.
  23. From the article I linked to and that portion of the quoted material I had in bold, it seemed to be clear (at least to me) that in Randall's fact pattern, the costs that were paid in the 1st year would be recorded as inventory and not recognized as a cost of goods sold until the subsequent year when the sale was actually consummated and the product was delivered to the customer. What am I missing in this case that needs further research?
  24. https://www.thetaxadviser.com/issues/2021/may/highlights-small-business-taxpayer-regulations.html Read the part about being exempt from sec 471, especially where it says that those costs treated as NIMS still retain the character of inventory, that being exempt from 471 doesn't mean an immediate write-off, and this paragraph from the article:
  25. jklcpa


    Christian, you didn't say how old these clients are or if either are collecting social security, so remember that if they are receiving benefits and choose MFS status, that the base starting point to determine the taxable SSA drops from $32K (for MFJ) to $-0- (for MFS) for couples that live together. I haven't used ATX in enough years that I don't remember now if that requires checking a box or if that is the assumed default for MFS with SSA benefits.
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