Gail in Virginia

Statement 7 in your scenario shows them getting QBID on the amount eligible from the partnership. However, it is my understanding that the deduction is also limited to the amount of taxable income, such that other factors may come into play. In other words if one partner is married and his wife earns more that the standard deduction so that their taxable income is greater than the partnership income, your calculation might be correct assuming no capital gains, or losses or other QBI. But the other partner could be single, with this as his only source of income. That partner would have $21432.50 in guaranteed payments, minus half the partnership loss of 839 for gross income of $20593.00. If the Guaranteed Payments are subject to SE tax, half of that would be subtracted from his income (1514) to get an AGI of 19079. After the standard deduction of $12,000 for single tp, his taxable income would be $7079. So his QBID would be limited to 20% of 7079, or $1416. Not the $3950 you calculated. So 50/50 partners can wind up with different amounts of QBID on the same income depending on all the facts and circuses. At least that is my limited understanding at this point in time. Ask me again tomorrow and I might have a different answer.

If I read the notice about the safe harbor right, the 250 hours are not necessarily provided by the partners and not necessarily documented by a log. Part of the time counted towards this could be by contractors, and the time shown on the invoice they send you could be counted towards the 250 hours based on that invoice. Did anyone else read it that way? I am just getting tired of the service requiring separate signature statements for everything - I thought when the taxpayer signed the tax return it was under penalty of perjury and applied to everything on the return.

It is my understanding from someone who spoke to the office of the counsel about the technical corrections that their position is that Section 162 has been around a long time, and there are plenty of court cases clarifying the law, so there was no need for clarification from the IRS. HA!

Just curious, though. Do the ones that don't have to come in because they are non-essential get paid their normal rate, and the ones that do have to come to work because they are "essential" get paid their normal rate? So in other words, not working pays the same as working in this case?

This is what I use as a confidentiality agreement (I copied it from one of my customers who used this). I don't require a non-compete because I have not had good experiences with them in the past. (Formatting and spacing changed when i copied it into this space, but you should get the idea of what I am using.) I make no representation of the enforce-ability of this document or its legality. Confidentiality Agreement As a member of XXXXXXXXXXXXX’s team, there may be times when you have access to client information and records, along with other information and documentation which should not be made available to the public or any other persons or entities. By signing this agreement, you agree not to disclose or divulge any information whatsoever regarding the clients of XXXXXXXXXXXXX or any other information and documentation regarding the corporation, its staff or its clients. This also pertains to any information about the day-to-day business activities of XXXXXXXXXXXXXXXXXXXXXXX. By signing this agreement, you acknowledge that breach of this confidentiality agreement will give rise to legal proceedings instituted by XXXXXXXXXXXXXXXXXXXXXXXXXX against you for damages and/or injunctive relief. This document shall not constitute a promise or guarantee of future employment. This document remains valid and in effect following the termination of employment. Signed: ________________________________ Date: ___________ Witness: ________________________________Date: ___________ Confidentiality Agreement/Rev. 9-19-06/TY

So do we attach an 8275 to every return with rental property because there is not definition under 162 of trade or business? Whichever way we classify them may be wrong in the end when this is finally clarified (if it ever is).

I am still waiting for the state of Virginia to decide how they are going to handle the federal changes and whether it will affect the tax returns for 2018. So even if we can file federal by the end of January, I doubt we will be able to file state returns.

We don't use an RDS, but we do have all of the data resident on a server, and use work stations for the program. 3 of the 4 workstations installed without a hitch. The 4th, which is the newest workstation, will not install. We are waiting for a call back from upper level support to my IT person. Hold times have been outrageous to get any help at all, and we are almost at the 24 hour mark for the call back. I left ATX for taxes after 2012, and now that they have changed the payroll reporting software, this looks like my last year with them at all. Do they not test their programs before release? I could understand with last minute tax changes how testing might be difficult, but printing and filing W2S and 1099s? Really?

I bought stock in a paper company.

Trying to get them ready but I don't like to send them too early. I want them to get there before they get all their paperwork and have a chance to lose it, but not early enough that they put the organizer away never to be found. It is a guessing game.

Just be sure you ask the questions regarding length of residence and ownership, etc. Then what cbslee said.

Happy New Year to everyone - and I hope we all have a smooth tax season! Good Luck to all!

Yes, but who is getting the computers and programs ready for the filing season? Is anyone at home?

Virginia insists that you are a domiciliary resident of Virginia until you change your residence to another state as a rule. If you are living overseas and you left from Virginia, you are still Virginia resident if you are filing a federal tax return. There are a few exceptions, but if you ever filed in Virginia, and are still using a Virginia address, Virginia is going to try to collect state tax if you reach the filing threshold with your federal income.

If I understood correctly from the NATP seminar this week it boils down to how involved in the rental you are as to whether it counts for QBI. If you use a management company, you cannot claim the rental as QBI. If you do not, and you act as the management company you probably can. But then again, facts and circuses.

But even there, you have people that don't have enough sense to stay home when they should. My assistant doesn't want to miss any time because she is paid by the hour (she has two weeks paid vacation, but she doesn't want to use that for snow days - or sick days). Can I tell you how many times she has come in on snow days without giving us a chance to clear the driveway, and then because she doesn't drive as well in snow as she thinks she does she winds up crosswise in the driveway and has to be dug out by hand because now the plow can't get around. She comes in sick too.

I think that is justifiable as self-defense!

We hope. With all the changes, possibly early February if you feeling pessimistic. Never thought I would be more pessimistic than Jack.

I replaced the computer I use at the office this year. The one I replaced had been used since 2009, and I never shut it down. I did have to replace the power supply on it after about 2 years, but I think it was because the power supply in it was bad from the beginning and just got worse until we could diagnose the problem. That computer was one my son built for me when he was in high school. My new one is just an off the shelf Dell.

Congratulations! I hope everything is smooth sailing from here on out!

If you are doing the full 990, then Part XI on page 12 is the reconciliation. Line 8 or Line 9 would be the place to put changes to beginning balances that are necessary to reconcile the books, and then they would be explained in Schedule O. I suspect that if the change is relatively minor, you could get away with changing the beginning balances but I would do it this way so there is a record that it did not reconcile and you are adjusting it, with an explanation if you have one.

I am so jealous!

I liked the music too but every time I was getting in to the music they would interrupt to tell me my call was important and that if I hung up and called back it would increase my wait time. I knew that.

I agree with Rita mostly. There are people on here whose posts I sometimes ignore (or gloss over really quickly). But there is no one on here who has annoyed me to the point that I have blocked them (yet.) And it is the personality of the people on this board that keep me coming back - especially during the off season. Kind of nice to know the block feature is there if I really need it. Now if only there were a feature to bring back some of the posters who left that I really enjoyed. Of course, some of them may have moved where there is no internet.

Actually, I think Sara meant the 1999 Connecticut form W-4P. Which if I Google, I can get a copy here https://www.ct.gov/drs/lib/drs/forms/1999forms/withholding/ct-w4p.pdf But the top answer is still the 2018 form here http://www.ct.gov/drs/lib/drs/forms/1-2018/wth/2018-ct-w4p.pdf And there is a HUGE difference.