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About Pacun

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  1. Thinking about it, it seems to be a contradiction in the way this is reported. A chef asked my client for $50K in exchange for a 10% interest in the restaurant. My client became a silent partner but he has never visited the restaurant which is about a few blocks from where he lives. To make more interesting, my client has never ever visited a restaurant but he invested the money. The contract reads that he is a 10% owner and 10% of the profits and losses belong to him. My client has his regular W2 job. It seems to me that my client should not get money reported as ordinary income on K1s.
  2. Yes, the question is about ordinary income for a passive partner who only contributed money to the partnership. I will wait for income to be available to deduct the suspended loss.
  3. Two partners 80% and 20%. I am preparing 1040 for the 80% partner and his K1 shows guaranteed payments for a total of $140K. The partnership ordinary income is $100K of which my client got $80K on his K1. My client is the one who does all the work for the partnership (active participation). I can deduct 199A from the $80K but not from the $140K, correct?
  4. I guess I associated capital losses as being passive.
  5. Thank you for the answers. It is a restaurant. He has no other passive income. I thought you could deduct 3K losses on passive activities.
  6. I shows the loss on 8582 and the it also shows it as "unallowed loss". Sch E has a check mark on "check if some not at risk". I don't where that check mark comes from but if I override it, it doesn't change anything. All his money is at risk. He should be able to deduct 3K every year until his basis is gone, correct?
  7. Shark bought 10% of a business for $50K in 2020. Partner invested only the money and has never visited or worked at the business. K-1 show a loss of 2K. I input the information of his $100K W2 and of his K1 loss. I entered -2,000 on line 1 Ordinary income (loss). I have also checked "passive activity" and "General Partner". I have also entered his basis as 0 at the beginning of the year and $50K cash contributions. The 2K should be allowed as a loss, but it never shows on 1040. It shows on other forms but it never transfers to 1040. What am I doing wrong? It is my understanding that
  8. I have a client that brought 2019 and 2020 documents. I am ready to efile. 2019 he owes 1K. 2020, he will get a refund for 2K (stimulus helped). I want to efile 2019 first and wait until the account shows that he owes the money so when 2020 shows up, the IRS is ready to get its money. How long do you think I should wait after I efile 2019 if I am going to efile both years? Child efiled by mistake for 2020. I filed 1040X freeing up his exemption so that parents can claim him. Parents tried to efile last month but it was rejected because child SS number was used on another return. H
  9. If it is a Roth IRA older than 5, nothing is taxable I think.
  10. Change the code from G to something else. Or you will have to make another entry for the conversion and pay the taxes.
  11. File her as MFS today. The tomorrow amend and add the husband's income.
  12. Most of us have a decent computer and it crashes a few times a month. In my case, it has solid state hard drive, 16G of RAM and this is my work machine. I don't play games or watch cool videos that my friends send me. I don't allow programs to stay resident and I don't have cool screen savers or other cool programs that are not needed for my work. If ATX would have programming errors, then most of us would suffer more than you because not all of us have 65G of RAM... not even half. Remember also that the default printer, its driver, its age, its memory, it firmware update, the connec
  13. Remove the form and efile at once.
  14. Install more memory on your computer... it seems you might need 32G or buy a new computer with at least 16G.
  15. If EIC credit is involved and if he has enough itemized deductions, maybe the mother can file as single and claim the child. I see these choices: Mother: Single which makes the father HH with a dependent Mother: Single with one dependent which makes the father as single with no dependent.
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