jklcpa

This makes me really angry, because aside from the potential harm to the public, the programs and monitoring that came about because of previous ethical violations actually costs me a lot of money in peer review fees and annual enrollment fee into the program that administers those reviews.

You didn't say what entirely makes up the $21K of AGI but will assume since you used "AGI" and have input the data, that the $21K includes only the taxable portion of their social security. As far as the Sch D/8949 activity, the determination of gross income for the filing requirement includes capital gains but not capital losses, so your client may still have a filing requirement if they have losses offsetting the gains in your calculation AGI. You must use only the gains in the filing requirement calculation. There is a whole list of items in Chart C of the 1040 instructions that lists other situations that would require filing. Probably the most common for older retired folks are if they had any distributions from an HSA, or Archer or Medicare MSA, even if those were used for qualified medical bills that has zero taxable effect. Obviously this doesn't consider the state requirements either, so you'll have to check that also.

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.

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.

Thank you. Is there a specific place to check POAs that are recorded, or do I just try to get the transcript again?

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.

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.

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?

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.

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?

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.

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.

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?

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.

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?

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.

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.

They carryforward and attach to the property(ies) received in exchange. It is because the property was exchanged in a nonrecognition transaction, not disposed of in a fully taxable transaction. It's under sec 469, sorry don't have the exact reference. It's the same section that says the PALs can't be used in other nonrecognition transactions such as 351 and 721 transfers and when a passive activity property is sold as an installment sale (PAL allowed as gain is recognized in that case).

For support for minors, there is an obligation to provide shelter and its related costs, food (whether at home or providing an allowance for meals outside of the home, clothing, health care costs, possibly some nominal allowance to meet those needs not provided at home. I'd include travel costs to school (but not for vacations/parties), so that part of operating the vehicle and its related costs could be included in support. I would also include cost of a laptop/computer and internet access in support at this point too. Clearly, if the parents purchase a car for a 26 year old titled in the child's name, that is a completely different scenario. Gifts would be contributions to UTMA, 529, IRAs; larger amounts not for support; a car; other expensive gifts not required for their health/well being. Also, this is an older article on the subject of dependency of college students but still worth the read: https://www.thetaxadviser.com/issues/2010/aug/nichols-aug-2010.html

If you would like to continue this as an extension of the topic, please do so via PMs.

Yes, the client must have an account to retrieve online. IRS also has a # to call for assistance, but I'm not sure of the wait times or availability at this point, and it's been a year or two that one of my clients had lost their pin, iirc actually never received it because client failed to notify IRS of an address change. More info here: https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

So this is why @RitaB hugs 'em first.

Were you able to resolve this with the agent so that the return will now be processed? Were there items of income or deduction on the return that would have been filed with IRS on paper 1099s. Remember, only paper-filed documents were shredded, not anything electronic. Does the return have items that the IRS may be waiting to verify with outside sources that may not have been filed yet such as IRA or HSA contribution made before 4/15/22 for 2021 that would be on a form 5498, or something like excessive federal withholding on a W-2 that would be filed with SSA? Maybe something else that is not within an acceptable parameter to the IRS? We're all just guessing at this point, and I'm concerned that the agent couldn't tell you why this return was held up.

Maybe a stupid question, but is that the IP PIN for the 2021 tax year, or for 2020? Client could try to retrieve her 2021 IP PIN from the IRS tool to verify it and to make sure it is the one for the year you are trying to file.

Not enough information to answer you. What was the reason IRS denied the claim? Was it something about the loss itself or its calculation, some calculation made with the claim to the carryback year, or you didn't supply all information with the c/b return? Did you include AMT calculations? You have to include that even if it is fairly obvious that AMT doesn't/can't apply, and if you don't, IRS will not process it. Depending on answers to those questions, I suspect you will end up correcting something with the carryback to 2015 to move forward with processing.