Gail in Virginia

Unless there are expenses related directly and only to the rental, I would agree with how you are handling both of these. For example, if they hire someone to clean before or after the rentals, and no other times, then maybe you could take that expense. Or in the second case, if you could calculate the exact cost of providing breakfast for the renter only. Love the Arm Candy, Baby! comment, btw.

I am inclined to agree with GGRNY. IRA's will be accounted for in the limitation on taxable income, but not the original calculation of QBI unless somehow connected to the business. But I could be wrong.

I did the rollover in the off season. After the 2012 fiasco with ATX, we purchased ProSeries and rolled the customers over during the summer. As best as I remember, it went better than average with changes between vendors. There were some issues with depreciation for a while, and maybe some installment gains that did not transfer at all but other than that I don't really remember much of a problem. I have been happy that I changed for the most part. As always, there was a learning curve but overall I have been very pleased.

Am I correct that once you make the election to aggregate rentals, you are stuck with it forever? Has anyone seen a discussion of the pros and cons of doing so?

I don;'t have enough money for them to hear me. Money talks, you know....

At the rate we are going, the janitor might get promoted to BE the governor. And he might be as well qualified as many. Sorry, Christian, sometimes those Virginia manners fail me.

http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1372 I think this is the senate bill that is going forward, if you want to track it Monday.

My mistake - the two committees approved it Friday and the bill is expected to be passed and sent to the Governor Monday. https://www.wdbj7.com/content/news/Agreement-on-Virginia-tax-relief-includes-October-refunds-505570781.html Lnik is to local news story.

The Virginia General Assembly finally passed legislation and the governor says he will sign it. So now programmers just need to get it fixed, and we can move on.

Yes, I have e-filed the VA 502 for 3 s-corps and 1 partnership so far that have been accepted.

I don't know what it stands for, but if you google CFS Tax Software, you should be able to find them. They are a company that makes software to support tax preparers. Tax Tools is their most commonly used program, and is really a program that has a lot of useful utility programs such as loan amortization calculator, flowcharts, worksheets, some tax forms, etc.

I thought they went on schedule F.

I have already e-filed several PTE with the state of Virginia (I use Pro-Series - other software may vary.) I don't know when the General Assembly will agree and be ready for processing individuals. They can be e-filed now, but may require changing.

ProSeries is at least printing page 1 and page 2 on the same page! I still can't find anything, but I don't have two half sheets of paper!

I did not think that the safe harbor for 199A applied until next year....

Yes, but if you only need to print one copy for one contract worker (not employee!) because they lost it already, you can use the tabs at the bottom to pick the page you want to print on the person you want to print it for, and do the page print function. Tedious if you want more than one but not all. And I think that if you are printing copy A it prints both of the people that would be on that page.

I think his odds are about 50-50 of getting away with it since the baby daddies may not claim the children. But I also agree with Abby - good riddance.

Virginia does not require you to piggy back. I am trying to stall people on picking up their returns period until Virginia gets their act together. Even if I filed it, Virginia has said they will accept them but not process them until the General Assembly decides on what it is going to do. We have been late before, but this is the latest I can remember

I have filed a couple ofpartnerships, but I don't plan to do any individuals until the GA gets off the pot. I don't want to have several to amend.

But I do think that Pacun makes a good point. My older clients tend to value the relationship. Younger clients tend to value convenience. Younger clients are getting used to everything being self-service - order on-line, or ring up and bag your own groceries, pump your own gas, etc. As the apps and programs available get more user friendly and more cost effective, I think we will probably see our younger customers go that route. And our older customers eventually don't have to file for whatever reason. Those who are in business for themselves and need bookkeeping in addition to tax preparation will probably stay but our business model is going to change. But I also don't usually see a lot of young people at tax conferences I attend, so maybe we are a dying breed too. Or the younger crown gets all their education on line and doesn't see a benefit to the networking at conferences that I enjoy so much.

I am going to say that it depends. If it is straight forward, absolutely a business, no phase-out or W-2 or un-adjusted basis calculation, then probably somewhere around $25 to $50. If I am trying to help them determine if their rental is a business, or playing with a lot of calculations, or REITS, it is going to be a lot more than that.

It is my understanding they are not required to until the amount reaches $10, but many of them find it easier to issue them to every one with interest instead of sorting to only send those that are necessary.

It is an either or situation. The deduction is the smaller of 20% of QBI or 20% of taxable income as adjusted (in the simplest! form - assuming under the phaseout range.) That's why I am not telling anyone they will get 20% of their business income as a deduction. Like everything else in tax law, IT DEPENDS!

The other way to look at this, though, is if they only have SE income, then the taxable income would be after the SEHI deduction, and the SEP (or whatever) deduction, and the 1/2 SE tax deduction AND the standard deduction. So in your example, if they had NO OTHER INCOME, the actual QBI they would wind up with assuming they are single would be $14,070 (100,000-10,000-7,650-12,000=70,350 x 20%). There are so many variables in this mess, and I am still learning how they all come together. By 2025 I should have it down pat.

My mistake, Terry. I mis-read your scenario that the guaranteed payments were what caused the income to go into negative numbers. Since guaranteed payments are disregarded the negative total income would be irrelevant and get you back to the total income for QBI. I am not sure without looking what effect, if any, having negative income on the partnership that isn't caused by guaranteed payments would have. I was calculating guaranteed payments by taking 41187 plus the loss of 1678 and dividing it by 2 to get the guaranteed payments. My main point was to be careful about telling people they will get 20% of their QBI for a deduction, because after all the gyrations and the standard deduction it might be less - even a lot less.