Lee B

Depending what the L I are, they may be elgible for Section 179, however since Congress still hasn't made any technical corrections to the TCJA, they are definitely not elgible for bonus depreciation.

"On Wednesday, the American Institute of CPAs requested a delay in the tax deadline, along with other tax relief steps to provide relief to all taxpayers in the midst of the pandemic. The AICPA asked the Treasury and the IRS to extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020 to give individuals more time to file their taxes and make payments through Oct. 15, 2020. The AICPA wants an automatic extension to Oct. 15, 2020, without the need for taxpayers to file any forms or request an extension. The Institute also asked the Treasury and the IRS to waive late payment penalties if at least 70 percent of an individual’s current tax due is paid by April 15, 2020, and to waive interest through Oct. 15, 2020. The AICPA also requested the Treasury and the IRS to waive underpayment penalties for 2020 estimated tax payments if they’re paid by Sept. 15, 2020, as well as to extend the IRA contribution deadline. For businesses, the AICPA asked for broad tax relief, requesting the Treasury and the IRS to extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020, to give businesses extra time to file and make payments through Oct. 15, 2020. For businesses too, the AICPA asked for an automatic extension without the need to file any forms or request an extension, and for the Treasury and the IRS to waive late payment penalties and interest through Oct. 15, 2020. The AICPA also asked the Treasury and the IRS to provide appropriate relief for all businesses and tax-exempt organizations regarding elections and filings (including payroll, excise tax, and more."

Different media reports have varying interpretations of what this means. Looks like we will have to wait to see what the Treasury Dept decides.

Tentatively, it sounds like it will be a 90 day extension to pay if you qualify, so it's not going to be blanket extension.

Copied from the Wall Street Journal: "The Trump administration plans to delay the April 15 tax deadline for most individual taxpayers as well as small businesses as part of an effort to mitigate the effects of the spread of the novel coronavirus, Treasury Secretary Steven Mnuchin said Wednesday." Looks like it going to happen

Perhaps it never bothered you before, but it was certainly a problem for many years before I left for Drake.

If as you say there is no change in the in the numbers, I would just mark the the 2019 return as "cash" and move on. It's what I did when I had a kind of similar situation some years ago.

Based on my past experience, if the EIN was not issued by 12/31/19, an attempt to efile the return will be rejected.

Just curious, I don't use QB or QBO. What is so bad about QBO?

Copied from Pub 537: "Example. In 2016, you sold land with a basis of $40,000 for $100,000. Your gross profit was $60,000. You received a $20,000 down payment and the buyer's note for $80,000. The note provides for four annual payments of $20,000 each, plus 8% interest, beginning in 2017. Your gross profit percentage is 60%. You reported a gain of $12,000 on each payment received in 2016 and 2017. In 2018, you and the buyer agreed to reduce the purchase price to $85,000 and payments during 2018, 2019, and 2020 are reduced to $15,000 for each year. The new gross profit percentage, 46.67%, is figured on Example—Worksheet B. You will report a gain of $7,000 (46.67% of $15,000) on each of the $15,000 installments due in 2018, 2019, and 2020."

Not enough information, but it would be questionable.

You have to recalculate the capital gain percentage

I would do a more in depth look at whether she can be claimed a a dependent. 1. Disability Income is not considered to be wages. 2. You need to look at where the disability income went, for example if a chunk of it went into savings, that doesn't count as support.

"Box 1—Wages, tips, other compensation. Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions. Include the following. Total wages, bonuses (including signing bonuses), prizes, and awards paid to employees during the year." I am sorry but the CFO's glib sophistry doesn't pass the smell test.

IRS Pub 4681 is a good reference for what to do.

The most troubling thing is your reference to a "long-time client"!

David, basically this is correct. However, you should read the article referenced in Judy's post. Also, you need to make sure all of the assets were transferred to the S Corp, some assets may have been held back by the owner.

That's not what Judy is saying. The way that you started your original post is correct. You contribute assets in exchange for stock, so the assets that you contribute are recorded on the S Corp Balance Sheet. One issue that can be a tax trap for the unwary is if the S Corp assumes liabilities in excess of the assets value, taxable gain can be triggered.

I would definitely consider it Investment Property. Then there is the question of whether there were any 2017 or 2018 expenses that need to be capitalized. If so, would filing 2017 & 2018 late returns offset the late filing penalties for the S Corp?

That's the thing about opinions, everyone has one.

If you do you a side by comparison with and without SEHI included in Box 1 W-2 Wages, you will see why the SEHID needs to reduce QBI, otherwise as minkcpa says it ends up creating a double dipping deduction.

I am using Drake and it was that way last year too. I am going to assume Drake is handling it correctly.

.Net Framework is a subset of Windows related software that ATX needs to run it's programs.

Copied from Investment News: "For the first time in a decade, the income brackets used to determine Medicare premium surcharges for high-income retirees will be indexed to inflation starting Jan. 1. As a result, some retirees may experience a reduction in their Medicare surcharge costs next year. Beginning Jan. 1, the income related monthly adjustment amount brackets used to determine high-income surcharges for individuals and married couples will be indexed to the consumer price index based on the 12-month CPI change from September 2018 through August 2019. In August, inflation increased 1.7% over the previous 12 months, according to the CPI data released last Thursday. As a result, the income brackets used to determine Medicare surcharges in 2020 will increase by 1.7%, rounded to the nearest $1,000. In general, that means income tiers will increase by $1,000 to $3,000 for individuals and by $2,000 to $6,000 for married couples filing jointly, according to a new analysis by HealthView Services, a leading provider of retirement health care cost data for the financial services industry. Medicare premium surcharges for 2020 will be based on income reported on 2018 federal tax return." Therefore next year the IRMMA brackets will be indexed to the nearest $1,000 based on the change in CPI form September 2019 thru August 2020.

See Pub 5137 A gift certificate for a specific item may be de minimus and not a cash equivalent.. A gift card with cash face value which can be used to purchase different items is a cash equivalent.