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You might want to read this older article in its entirety about filing MFS: http://archives.cpajournal.com/1996/1096/features/Married.htm For those that don't like links, I'll include the entire last section here:

I don't think it's so much that he wants it transmitted with the return but that it should be generated with each shareholder's K-1. At least that's how I interpreted the issue.

I don't use ATX any more, so maybe someone else here will chime in. Sorry I can't be more help, and welcome to our forum. I googled and found this that may help you find the footnote editor. It's for Axcess, CCH's program with more features, but ATX should have a place for the preparer to enter statements and footnotes that can be applied globally: https://download.cchaxcess.com/pfxbrowserhelp/TaxHelp/Content/Tax Returns/TR_UsingFootnotes.htm

I would put it on Sch E again. Unless it is more than a nominal amount of land basis to allocate, I probably wouldn't worry about that. I knew you weren't questioning it being taxable. That part of my reply was to grandmabee's "14-day" statement. As someone pointed out last year, your client may lack adequate insurance coverage for people using the property as other than personal guests.

Either should be recorded in the corporate minutes and the stock records for any changes of ownership, shares retired, redeemed, held in treasury, etc. Lawyer will do this and will draw up papers for either one of the transactions. I'll assume that your state will require that documentation for proof of the change in ownership for any sort of licensing such as gaming or liquor licensing.

Assuming a C corporation - If the company buys back the stock, then that would be reported by the individual like any other stock sale via schedule D/8949. The corporation would have balance sheet entries for the cash outlay of the repurchase and a debit to Treasury Stock for those shares. If the individual wishes to gift the stock to the other shareholder(s), there is no entry on the corporation books other than the transfer of ownership in the questions pertaining to ownership and the area of officer comp where percentage of ownership is shown. The gift would require Form 709 reporting appropriate valuation of those shares. If you aren't familiar with the valuation methods, consider subbing this out to someone that is. If it is a closely held corp, depending on location, and if this is a minority interest, a discount for lack of marketability may be appropriate. Like any other gift, the donee's basis will be that of the donor. Assuming there is gift tax exemption available, there may be no tax consequence other than the costs of valuation, attorney fees, and preparing the appropriate returns.

Two topics on exact same question, so this one is being locked. The other topic where ongoing answers may be posted is here:

That rule is a special provision of 280A that defines rental of a residence, so with this being rental of only the yard, I'm not sure that would be applicable with the facts presented. There's definitely a profit motive, so I'd say that it is reportable. Max W, does this client advertise this in any way, and if it is the same client as last year, how aggressive is he with this? Could it be construed as a business at this point? Is there any access to the home or other facilities at all? How does one host a party of any duration without having bathroom available? Anything else available to the guests such as a pool, gazebo, or any other structures or improvements to the property?

Is it this one from last year? How did you handle it then?

Always easier when it isn't my client and being pressured to complete the return.

Well, you forced me to get up and look at my software if I had one of these. (not feeling great today) There is no special code to allow the wages to flow directly to SE. The entries from the W-2 input would carry to the appropriate wage line of 1040, AND then the preparer DOES have the ability to enter an amount directly on SE for line 2 as "other SE income". Perhaps ATX has a place like that.

If doing it by hand, the W-2 would be reported as wages and Sch SE instructions actually address this and say to report it on Sch SE line 2.

The second of those two links said to report the compensation as wages on the 1040 and complete schedule SE. It doesn't say anything about reporting it as self-employment income on Schedule C. Of course making the software do this is another matter. Are overrides even possible in ATX to complete Sch SE?

Helpful info in these links: https://www.irs.gov/individuals/international-taxpayers/employees-of-a-foreign-government-or-international-organization-fica-including-social-security-and-medicare-tax https://www.irs.gov/individuals/international-taxpayers/employees-of-a-foreign-government-or-international-organization-how-to-report-compensation

You have to look at the underlying reason why the expense was incurred. The legal fee is directly related to the financing and not for protecting, preserving, or maintaining the asset itself, and not for production or collection of related income. It was incurred to save on the outlay of interest expense, but is that enough to be considered ordinary and necessary in the operation of this rental activity? Unless it is a nominal amount such as would be charged for the attorney to write a letter to the other party, I would probably capitalize. Caveat - my opinion, not researched.

It's fixed now. Thank you @Eric

Hope it will be fixed soon. If anyone can read this you are doing better than me!

Catherine uses Drake so her experience with this won't be helpful. I'd say that if the deceased had a will then the court won't be needed to appoint a representative b/c the will should have specified an executor. I think the way you've answer the top questions B & C are a mismatch for the answers in the next section. If you check box 'C', then I'd answer as follows and see if that clears your errors: line 1 - yes line 2a - no line 2b - no line 3 - yes I haven't checked the instructions, but with this fact pattern I believe the instructions say to not attach any documentation to the return but to keep the will on hand if IRS requests it. I've never had that request to date for any I've filed this way, YMMV.

Did the correspondence look legit, or could this be a phishing scam?

I did exactly as Abby described when I last had an LLC with this issue. In my client's case, the LLC made the payments, not an individual partner. The partners are also my clients, so in those years before the debt was paid off I attached a statement to the personal returns and the LLC returns each year with something like this: Interest expense in the amount of $___ reported on Form 1098 in the name of ___ and his SSN ____ is for a property that was legally transferred to ____LLC EIN# _____. Bank continues to report that interest using the partner's SSN, however, that interest expense is now a debt of the partnership and is properly reported on the partnership return.

My guess would be that it was originally purchased in her personal name and transferred to the LLC but the bank wouldn't change the name on the debt. Haven't we all seen that before? But why is she still paying it personally? Yes, a total mess!

I did a google search that showed one of the top selections as a KB article from Drake. It indicated that 1040V could be used for mailing in the payment if the 1040X is being e-filed and said to pay particular attention to the address that the 1040V should be mailed to. The instructions for 1040X don't mention this method and encourage people to use direct pay on the IRS site or EFTPS.

No, the 5-month rule is applied for the purpose of determining whether the person is considered a "student" for the age test. For the residency test, the person must live in the taxpayer's home for at least 1/2 of the year. The 5 months before graduation is a temporary absence from the taxpayer's home, but it isn't long enough to meet the "at least 1/2 year" of residency part of the dependency requirements.

Husband texted me that he was running late and I answered with what was supposed to be "ok, thanks for letting me know" that I sent as "ok, thanks for loving me now." Then I started to send "geez, I should proofread before sending" which started to convert to "Cheese Arthur profit..." which started me laughing so hard that I had tears running. It was at that exact moment that a representative from the state's division of revenue returned my call. All I can say is that poor woman must think I'm totally nuts, and that it's a good thing I don't text much with my clients.

For the year the employee turns 21, you use the entire plan year's compensation, not just the portion after attaining age 21. One of the requirements for SEP plans is that the employee must have at least $650 in compensation in 2021 ($600 in 2019 and 2020) BUT PLANS MAY BE WRITTEN WITH LESS RESTRICTIVE REQUIREMENTS, and that sounds like that is the case of your client's plan. Be sure to recheck the plan documents for this though. If the plan is less restrictive by not having a minimum compensation requirement, then this employee would be a participant for 2021.