Pacun

I have that same issue too. The program is automatically adding previous years losses and dumping them on line 21 as a negative number. It is my understanding that you only can deduct losses in the following years only if you elect not to go back and amend previous years but ATX doesn't care if you missed your window of opportunity and didn't make the election. If a preson has rental losses for $30K (25K deductible) each year for 2010, 2011, 2112 and this year you have passive gains, you will have have -15,000 on line 21. Is this correct? I mean, do we have to make an election or we can take the loss when we sell the rental property? I have noticed that negative number on line 21 ONLY after the last upgrade to ATX.

Don't confuse the vowels. You said A but it should be E.

I agree with Jack. Please do an amended return. It should be a simple amendment. The explanation should something like: Tax Payers were going to file as MFS but later on decided to file jointly after wife filed MFS. So we are amending original filing to include husband income and filing MFJ. Line 1 has increased because his income was included. Line ... has increase because the tax liability has increased. In taxes, husband always goes on top, BUT not always. Please leave wife on top because that's the return you are amending and you want "not to confuse the IRS", which is not hard to do (I mean both). The following year, you can let the husband go on top again but this year, leave the wife on top.

Thank you. You just solved one part of the puzzle. There is nothing fancy about his partnership as a matter of fact, it stopped operating in Nov 2013 and they will close the LLC next month. So, why is ATX taking the 5K to line 17 of 1040 without taking into cosideration that the 4K loss for the partner?. I have entered the - 4K on line 1 of the K1 but maybe I should also enter it somewhere else. I am going to check the basis but I doubt that's the issue.

Has any one on this forum pass the MD exam? Is that a mute requirement?

You have her information, select "amend return" and enter his information and select "MFJ" on the "new 1040 that will never be filed" and enter his income and you will have a correct 1040X. You can also file that 1040 before April 15 and ignore the one you efile. In any event, you will have to paper file.

I meant, it defaulted to a partnership. AND I also meant that it only filed an information return.

That's one of my questions too. I am waiting for others to reply.

Is MD regulating Tax Preparers? Before being an EA, I prepared about 100 MD returns and I never heard of "regulations to tax preparers". Am I missing something? http://www.nytimes.com/2014/04/08/opinion/rein-in-shady-tax-preparers.html?ref=opinion&_r=2 By Alex H. Levy - April 8th, 2014 print release date When you hear the words "tax preparer," you may imagine a calculator-clutching accountant, carefully scrutinizing receipts beneath a green eyeshade. But the reality is that in most states nearly anyone can be a tax preparer. There's no test to pass or code of ethics to follow. Walk around a low-income community and you'll notice that check cashers, payday lenders, pawnbrokers and even furniture retailers offer tax-preparation services. Of the 142 million individual income tax returns filed in 2011, 79 million were completed by paid preparers, and a majority of those, 42 million, were filled out by preparers who were neither licensed nor regulated. (The rest were prepared by accountants or other professionals, like lawyers and actuaries, or by a relatively small number of government-certified tax practitioners known as enrolled agents.) With few barriers to entry, the field of tax preparation has drawn unscrupulous players. Many of them target low-income families who claim the earned-income tax credit, the nation's single biggest antipoverty program. The earned-income credit delivered more than $63 billion in refunds last year. It's no surprise that unethical preparers have descended on low-income communities to get some share of this money. Preparers typically charge hundreds of dollars; federal investigators have found preparers charging as much as $1,000. They usually skim their fees off the top of their clients' refunds, so taxpayers may not grasp just how much they're losing. The consequences of erroneous returns can be devastating: If the I.R.S. finds fraud, the taxpayer not only has to reimburse the government, plus interest, but may also be barred from claiming the credit for up to 10 years. Meanwhile, the preparer has likely closed up shop and can't be tracked down and penalized. Undercover sting operations by consumer groups and government agencies have uncovered brazen fraud by untrained tax preparers. One investigation in New York State found fraud among roughly 40 percent of paid preparers. Even when preparers aren't committing fraud or charging onerous fees, they are often incompetent. For example, some preparers claim the standard deduction when itemizing deductions would be more advantageous for the taxpayer. Only four states - Oregon and California, which pioneered tax-preparation regulation in the 1970s, and New York and Maryland, which followed suit within the last decade - regulate tax preparers. A national solution is both necessary and appropriate, but it has been blocked by small-government activists.

This is a disregarded LLC with two members. So everything passes through.

K 1 shows 4K in losses and 5K in guarantee payments to my client. It seems that the software is not taking into consideration the loss anywhere. Am I doing something wrong? Sch SE is correct because I entered 1K as income subject to SE, but line 17 of 1040 shows 5K.

Owner was renting out a house and her depreciation was based on 27.5 years because it was residential. Now in the "middle" of the year, she decided to open a daycare center. So last year I have depreciated 4 months on Schedule E and 4 months on schedule C. Am I correct to start depreciating the house using 39 years? The house was being remodeled (getting ready for the daycare for 4 months). So, I have to divide Real Estate mortgage and other expenses and enter 1 third on Sch E, and third on Sch C, How about the other third, Sch A????.

Nada (English pronunciation nara)

Not an answer to your question. If someone faxes 77 pages of documents, I doubt I will have time to read them. I think the best would be to mail them.

No, death should not be a choice because you could leave millions and your estate should pay for the student loans. If there was no estate, then file form 982 as insolvent.

You should fire him since you made 200 copies of the clip. He should try another tray or check the paper. He still has paper with the clip on the tray. That gives employers a good idea to try on April 1. See how stupid their employees are. I wonder how many times they have tricked and I wonder how many jobs I have lost in April.

No candies. They are bad for their health. How about some carrots? lol.

Deduct RE Taxes and Mortgage interest on Sch A until rented.

Well he demolished the building and got paid for it, so I guess you will have to reduce the basis on the land. (the same way you add to the basis of the land any cost to demolish the old building if you want to construct again. I honestly think you are right but he has not disposed off the property because he has to sell the land, correct?

Someone solved this issue for me. I discarded form 4562 and then I saved and close the client. Then I opened it back and invoked form 4562 and then "fixed asset" showed again.

I am stealing this answer as you can see from PART TWO of the same issue. I discarded form 4562 and saved. Then I open 4562 and it brought its little brother back.

EXCELLENT ISSUE SOLVED. Now I will be able to answer another question on this forum. I hope you didn't copyright your answer.

What I am afraid of is that if I discarded it a couple of years ago, I have inherited the problem when I roll over. This could be a development issue (I mean a programming issue) more than a mistake on my part. I remember that one time I have entered the miles for schedule C on the ex "asset entry" and on the schedule C itself, so I went to discard the "asset entry" form and since then, I cannot bring it back in the years thereafter.

In a prior or current year, I have discarded the "fixed asset" form and I don't seem to be able to bring it back. I have two tax payers with the same situation and one was for a test but the other I need to depreciate some tools. I have not noticed that on any other form but maybe only on fixed assets. I discard Sch SE all the time and then I bring it back without any issues, but Fixed asset seems to be special. I will hate to recreate this client.

Whenever another preparer takes a different approach, I feel like I might be missing something. Thanks for this forum I clear those doubts.