ETax847

Prospective client will be receiving a 1099K from Stubhub for his ticket sales of his baseball season tickets over the past year.  Is this income to be reported on Sch C or Sch D?  

It's definitely interesting given that he devotes 2-4 hours a day in research for his sports bets.  He is trying to make the argument it is no different than a part time job.  He keeps records detailing his bets, has a separate bank account for this activity and has a profit motive.

Prospective client has made $20-40k in gambling income for the last 3 years.  Prior to me, he has been claiming this income as self-employment income on his Sch C.  He says he devotes 2-4 hrs a day to gambling on top of his regular W-2 job.  Has anyone dealt with anyone who claims to be a "professional gambler"?

New client had AMT of $50k in 2021 due to exercising his ISO's.  In 2021 he has not exercised any Incentive Stock Options and will not have any AMT.  Is he eligible for the Credit for Prior Year Minimum Tax on his 2022 taxes?  Where is the unused AMT credit and carryforward captured in ATX?

With costs for materials at an all time high, by what percentage will you be increasing your tax prep fees?

Client's uncle passed away recently.  Client sold uncle's business via an installment sale to be paid out over 5 years.  Does the client inherit his uncle's basis or does he get a step up in basis?  I'm wondering what the tax treatment of these installment payments received by the client are.

I did it today. T he 2 FA is nice to see but the systems has some bugs to work out

Indiana no longer has a separate tax return for amending Tax Returns for 2021 and beyond.  When amending an Indiana 2021 Tax Return, do you know where to include the tax liability previously paid with the original Indiana State Tax filing?

I bit the bullet and renewed. 

My new atx rep is impossible to get a hold of.  When I dial the sales line, I'm on hold for 60+ minutes.  Anybody having much luck communicating with their rep?

On 4/21/2022 at 11:29 PM, Slippery Pencil said:

I believe the discount on ATX in December is just as good as the one in April.  Last year I bought MAX on 12/1/21 for $1929 less a 20% discount plus a $95 fee to be their client for a total of $1,638.20.  $77.75 sales tax was added for a grand total of $1715.95. 

What are they charging you this year?

I was notified that I have a new ATX Rep midway through Tax Season.   I still have yet to receive my renewal notice.  Not sure if I'm supposed to proactively reach out or continue waiting for my "early bird" deal.

On the K-1 it shows up as "Other Portfolio Income".  Randall, what adjustment did you make on the K-1 or 1040 to have this flow through as retirement income?

On 4/3/2022 at 4:46 AM, Randall said:

I did just this a couple of years ago.  Included comments on the K-1 showing the 1099R info for payer and tax ID.  I entered the amount as retirement income on the Fed 1040 and included that form showing diff between K-1 and 1040 entry.  There was no change in the Fed 1040, just showing on a different line.  But I wanted it to flow to the Ky return as retirement income.

I have a client who is filing a 1041 Tax Return.  He distributed $100k to 5 different beneficiaries.  When I am completing the Input form for the Sch K-1, the distributed amounts aren't populating on the K-1.  Any idea how I enter the $20k distribution so it populates on the K-1? The Tier 1 distribution and Tier 1 percent of total lines are confusing me.

Thanks for your help!

Excellent point! My brain is fried at this point in tax season.  Thanks for the guidance

I have recently come across a few clients that have received bonuses on a 1099-NEC from an entity different from their employer.  Are these bonuses that are reported on SCH C eligible for the QBI Deduction?

Where do you go to add a footnote to the K-1? 

Illinois Client passed away in 2021 and named his trust his beneficiary.  Executor of Trust took a distribution from the Trust Inherited IRA to distribute funds to various beneficiaries named in the Trust.  Is this distribution from the trust taxed at the Illinois level on his IL 1041.  Normally retirement income isn't taxed to the individual in the State of Illinois.   Since it's IL Trust income, is this exempt from taxation? Currently IL 1041 is showing this income as taxable

mcbreck,  that did the trick! Thanks for your help!!

I keep getting the database validation error when E-Filing a client's Federal Trust Return.  The error states that the Filer's EIN and Name Control in the Return Header must match data in the E-File Database.  Does anyone know what this is referring to?

The name control and last name of the individual listed on the 1041-EF are the same as in years past.

Those that do this, do it as an Other Expense on the Sch E

The client sent me this link saying is allowed to do this:

https://www.biggerpockets.com/blog/taxes-not-real-estate-professional

Do you have anything to cite? I'd love to be able to share this with a client

Happens to me everyday.  Would love to know what the solution is.  I'm still on Windows 10

Yes to both.  There seems to be a lot of gray area here.  I know you can claim the home-office deduction only in connection with a trade or business. In his case he seems to be operating the rental property as an investment, not as a trade or business.