Lee B

The ATX Board has had a flurry of posts with similar problems from several different states.

Perhaps you should see if you can elect out of capital gains treatment, which would than allow the investment interest to be deductible. You would have to calculate the tax both ways to see which way produced the lowest tax. I don't have time to research this approach.

My understanding is that this election is done on an annual basis. Ideally the election to do so would have been done the very first year it was realized that the investment interest was not a viable deduction.

Dell is still selling desktop systems with Win 7 Pro with an Upgrade License to Win 10 Pro included.

Here in sunny Oregon it's raining on the daffodils.

Not so fast, there are a number of court cases where businesses were advertising, knocking on doors etc and were considered to be in business. Myself, I was in business for almost a month before I received my first check from a client. If you are actively open for business, ready to perform the services you intend to provide, then the expenses may be deductible.

Actually, I have had 3 clients, with former residences turned into rentals, where the debt was forgiven and they weren't bankrupt, but they were insolvent. At the time of the debt forgiveness, all 3 were renting. I filled out the 982, no questions from the IRS.

First, I agreed with Tom. But now, if at all possible I would put this on the back burner until after tax season. This is going to require some serious research.

Year Up is a 1 year program ( Modern version of Job Corp ) that provides disadvantaged youth with 6 months of classroom training followed by a 6 months internship with a local business with the possibility of being hired as a regular employee at the end of the 12 months. They receive a monthly stipend of $600 to $ 1,000 plus various incidental expenses like transit fees etc. So it's probably all taxable.

The facts & circumstances of this situation has come out in bits and pieces. I have changed my mind - Schedule C

Actually in my school district they have "Life Skills" classes. One of my clients is math/science teacher and when she taught this class, she taught her students about our tax system and how to to fill out and file a tax return.

FROM THE CPA PRACTICE ADVISOR: Let’s take a look at what we can anticipate in the next few months with potential new legislation. Federal health reform — President Trump wants to replace the Affordable Care Act … what he’ll replace it with is anyone’s guess. What we know for now is that the ACA is here to stay for 2017 and possibly longer. Forms 1094 and 1095 will most likely survive for at least this year, so make sure to keep tracking. The Cadillac tax will probably go away later this year, and it is possible that the employer mandate could go away this year, as well (not yet confirmed). Tax reform — An early look at tax reform shows that this has a long way to go. Everyone is talking about it, but there are major differences in opinion, even within the Republican Party. Regardless, we’ve been down this road before, so don’t expect many changes in 2017. Something that could happen is a reduction in brackets and possibly a top bracket of 25%. Fraud prevention — We’ve already accelerated W-2s (with January 31 employer deadlines for submission), and look for more fraud enhancements in filings and verifications. The IRS goal is to match identification and income to returns before processing refunds. Dead legislation — The new EEO-1 reporting rule with wage classification and grouping was supposed to go into effect in 2017 — but as of now, this legislation is dead. The rule may be revived in the future, but it will likely start from scratch. Also, new exempt dollar thresholds were supposed to take effect on December 1, 2016. This is considered dead and probably won’t be revisited for some time. Payroll cards — We already have new legislation in New York on a waiting period for new cards to activate. Look for federal consumer protection by October 1, 2017. Minimum wages — President Trump would like to see the minimum wage increased slightly — but not to anywhere near the $15 level some of the public wants to see. Many states will continue to increase their respective minimum wages in 2017 and beyond (recently, 21 states increased their minimum wages for 2017). Paid leave — The president would like some sort of mandatory paid leave at the federal level. Several states did not wait for federal and have already enacted legislation. E-Verify — Although nothing is confirmed yet, the general understanding is that mandated E- Verify is right around the corner for all new hires. Since I do some payroll processing, the mandated E-Verify will be a big deal. So many industries rely on illegal immigrants, Agriculture, Meat Packing, Construction, Restaurants and Hotels/Motels that every time in the past when a bill came to the floor of Congress to put some teeth in this issue, very few Congressman would actually vote for the bill due to heavy lobbying pressure from these industries. I notice that in order to try to overcome this resistance it would apply to "new hires" only.

In my state a 12 X 50 mobile home is considered to be personal property. Would you really report this rental on Schedule C or C - EZ.

Yeah, I have had this happen 3 or 4 times. Actually, I don't think it ever occurred them that it could create a problem. My experience is that they know very little about our tax system and how it works.

Hooray, it will also repeal the dreaded Tanning Salon Tax !

Interesting, since the proposed bill keeps the Net Investment Income Tax and the medicare surcharge in place thru 12/31/17.

Thanks for the input. Now I have read Pub 451 and instructions for Forms 1065 and 8825. So after entering the GP on Line 10 of page 1, this generates an ordinary loss on line 22 of the same amount since all the rest of the income and expenses flow thru the 8825. Then on page 4 line 14a (Net Earning from SE) the ATX worksheet nets the ordinary loss against the GP resulting in a $ 0 on line 14a. From there I did have to use the special allocation features for the GP, but the remaining K - 1 allocations flowed automatically. Very Interesting. I am not a 100 % confident, that this is the correct way to do this, but it is the best I can do. C'est La Vie !

If the RV has Cooking, Sleeping, and Bathroom facilities, I would report on Schedule E. This would also include Houseboats and Sailboats.

Jack, are you saying that I shouldn't enter the GP on Line 10 of Page 1 of Form 1065 ? I wondered about that entry creating an ordinary loss which would be partially allocated back to the Member who received the GP ?

I have a 3 member LLC with multiple rentals. One of the members is doing most of the management functions so they decided start making monthly Guaranteed Payments to this member. My question is where to enter the Guaranteed Payment as an expense. I know how to enter the Guaranteed Payment to the members K - 1 where it belongs. There is a place on Line 10 of Page 1 of the 1065 but that flows to the Ordinary Business Loss line on the K -1. Do you enter the GP expense in the 8825 so that it reduces the Passive Rental Income ?

You have my sympathy. I was wrestling with Oregon Business efiling rejects about two weeks ago.

I sympathize about the progressive lens. It took me more than 6 months to adapt. Even now I have to be careful matching up numbers and descriptions. If there is a big gap between the description and the numbers, sometimes I will confuse the number on the line below with the correct number.

I would probably charge $895 to $ 995

OK, how did you disable the active links and how did you determine one might be questionable ?