WITAXLADY

I have a client who switched from a Sch C to a 1065 with a major investment firm and the K-1 has foreign amounts in line 16. Atx e-file is asking for info - I do not know how to fix the numbers or answer to get rid of the red errors. K-1 Income category is required to foreign sourced income 16 B and D are filled out, Canada also K-1 Enter each sec 199A income in different columns as in separate K-1'sseparate Used Non line 1 and then put after this $$'s down in other income sstb for investment income Would someone help please? I can email the k-1 if that would woork I have a fair understanding of the QBIC but not so much the extras on the K-1 and this has me stumped -

wait -did you say efile AMENDED return?? Can we do that with ATX now?? 2019, 2020? thx d

That is how I do it - but I think the line 21 or whatever the new line is needs to be added as an attachment as I routinely get an IRS request to explain away the canceled debt D from WI...

ours are going out today - by mail and emails Monday. We send a newsletter, Engagement letter and this year as we are not allowing Anyone in the office- we even put a 6 ft table across the entry - we enclosed a check-in sheet for them to fill out. They receive by mail an organizer if they request it. Be email - they are emailed their organizer - time consuming as individually created and then a blanket email bc of the above. and $10 off if they return their check-in or organizer completed and I am raising my prices 10% to offset the 4% rate of mostly credit card payments and a price hike. Darlene

Restaurant received $76,000 in PPP - used for that.. and now it is time to do paperwork But if they take that as a low interest loan over X years at about $350/month payment- as times are bad... They then instead can get abut $56,000 thru paycheck retention - will pay off their 2019 and 2020 amount owed to the Fed for withholding, SS and Medicare Is it worth taking the $76,000 loan to get a $56,000 credit? They should now be able to get the 2nd round PPP and they would be in good shape. And they are still waiting on the $150,000 EIDL from SBA that is out there since April? That would go towards an elevator for their second floor - have a landing so stairs complied but need for banquet/weddings/concerts access. Comments? Thankyou Darlene from sort of snowy WI

goodwill was not in there.. Now beneficiary came thru and said equipment was only worth $54,000 so I recommended an appraisal!! I cannot see the cranes etc being only worth that much - I would not touch that.. The $900,000 is only the business, not the entire estate! also if the business is closed 12/31/20 - can the estate be closed then as well? Thank you so very much, Darlene

thx - where at? what name?

Looks like the Estate beneficiaries may be switching as the current CPA is asking for all the prior depreciation lists and not accepting the EOV of equipment - estimate of value from one of the most highly regarded in the field.. says overvalued. 1- is that their job? to question the EOV? 2 - Do the bene's need to get a certified appraisal or can they use the EOV? - about $600,000 of equipment only 5 cranes, trucks, etc - If anything it is undervalued! Plus real estate, etc comes to $900,000 I thought - in my opinion that for less than a million the EOV should suffice.. Certified maybe if it was 6-10 million but for a long list and $600,000 and pictures - comments? please. Thank you Darlene

I have some 2019's to be mailed and I will wait until Jan to e-file... rather than take the chance with mail. 2016 amends are being processed... Identity thefts mailed in are in "control' meaning someone has them - one in a few weeks and one says 180 days.. and the best part is I called Thurs and I had the option to leave my number and they called me back in less than 15 minutes!! today - Fri I called at 5:30 and said sorry too busy - call another time

HI, trying to get them printed but still dealing with letters and projections.. You stamped them with postage? Dated now for Jan 4th? on a postage meter? Isn't that illegal? D Merry Christmas!

ps - K-1 for 2019 is -0- with a NOL of $160,00

I never said good will was not deductible. I said the EOV isn’t an adequate or correct determination of the goodwill, in my opinion, based upon regulation 20.2031-3. #1 – The EOV does not comply with Estate Valuation standards, as discussed below. #2 – It would be very difficult to sit on a witness stand and argue the EOV is a reputable valuation, when you weren’t able to find a buyer and subsequently had to start selling assets, on a piece-by-piece basis. This is from the CPA to my client.. I am 100% fine with walking away from this engagement. I’m the preparer and it is my license. We can agree to disagree. My findings are laid out below and I won’t be persuaded otherwise. Jxxx hired Cxxxx Business Services for an “Estimate of Value” of Sxxxxx Construction LLC. The value was based on the entity being sold intact to a 3rd party person and made no reference to the sole-owner’s death and even referenced lack of management as a challenge (but made no discount). The value was $902,717. I’ve attached a copy for your records. In my professional opinion (take it for what it is worth), the EOV would not be a valid appraisal for estate purposes since it does not comply with Regulation 20.2031-3, which requires: The net value is determined on the basis of all relevant factors including - (a) A fair appraisal as of the applicable valuation date of all the assets of the business, tangible and intangible, including good will; (b) The demonstrated earning capacity of the business; and (c) The other factors set forth in paragraphs (f) and (h) of § 20.2031-2 relating to the valuation of corporate stock, to the extent applicable. The attached EOV does not take into account the value of the assets or liabilities, as of the date your father passed away. I’m not a valuation expert, but in my professional opinion, there should be some discount for “lack of marketability”. My position is supported by the fact that you couldn’t locate a buyer to purchase the business as a whole. The loss on the equipment sale and the net operating loss will pass through to you went the revocable trust is liquidated and closed. What can or should my response be to the CPA or my client, please? Thank you, Darlene

Hi - I use both - but I am wondering about the security of insta messenger - due to being Facebook linked? Comments? Thx D

Foreman left - "gifted" - I do not know why he did not buy!! brother/son gave it to him when he left.... I could talk to the accountant but I needed more to back up my position... we are not very friendly - she is a very competitive CPA Estate and business was appraised at time of death - and included goodwill as it was a very successful business - he died untimely - about 1 hour from hospital release - choked on a pierce of apple crisp! The company really is no more so, exactly, I am unsure what a restructure could do as there is really no value as of 12/31/19 or minimal - except the accountant thinks then the client could write off the goodwill But that begs the question - in the restructure - how does that new entity have any value? Wouldn't it be -0- at the time? Or is the accountant thinking the appraised value would carry thru to the new entity? and then -0- upon time of dissolution or when the shares carry thru to client - they now become worthless as a business loss on the personals? Why would the goodwill die with the owner? He has a customer list, good employees , good reputation, etc? That would continue if the business was sold as a whole rather than piecemeal? My client says the attorney and her brother - neither one have a clue and she is trying to stay out of it for the most part as tis is in WI and she is in CA and she wants to still be able to talk to her brother... However, she knows her dad would not want to pay lots of taxes on this and she will pay her share but not leave deductions on the table.. Looking for something to cite or give to the accountant and brother - Thank you again! Best, Darlene

Their Dad passed away 01/03/2019. Ran a very good construction business - LLC for the operation = Sch C Looks like buildings were rented in a partnership. 12/31/19 - Foreman wanted his 401K so could assume business was virtually worthless at that point. 2 other employees continued with odd jobs until early spring and sister to owner (Aunt) continues to work as bookkeeper- company bleeding $12,000/month with her salary, utilities, etc. Only income is from sale of equipment and inheritance that should go to his 2 children. Sometime in July 2019 - company restructured from old company to new within the estate. My client (daughter) wants the tax person who has been doing the taxes over the years to write-off the goodwill since when the foreman left (with tools, trucks, etc to start up his own business) the company itself virtually became unsalable and the $1 million minus equipment should be a loss - including writing off the Goodwill... Accountant says only way to do that is to restucture the business by 12/31 and make shares so she can write it off on her personal taxes? Why can this not be finalized and written off from the appraised value? Thank you for your thoughts D Eckerman WI

every 2 or 3 returns I open to create an e-file it closes.. grrr grrr

so rebooting for the last 4 hours!! cannot efile - not respondng.. will not get done in time. grrr

Thank you - the issue is these returns have been created off-site remotely.. But it seems if the extension was in the imported copy, it is holding. I just had some very early ones to finish?? Dealing with it - just taking time and I do not like in efficiency.. I like the earlier programs where every keystroke counted - put in 5 digit zip and it jumped to next cell, etc.. So I really like the zip putting in and it adds the city and state!! wish it did it anywhere the zip was asked for!!

well I certainly hope not - that is part of a normal tax return, is it not? !!

ok - I know replacing means overwriting - but usually an e-file never goes away and definitely not in this case?? How do the rest of you reconcile this? THx d

hello, so when I go to import a tax return that has an e-filed extensions and instead of doing another copy - as that doubles my count!! the extension status disappears! How do I keep that? Is that just me? Now I am going in and printing the acknowledgement history - but that is extra steps and time and I do not have that now.. help please? thx d form northcentral beautiful fall leaf season!

I send an email first. However, many are having issues signing and returning within verifyle - not techy! So they print and then email back regular! Or just ask me to mail..

Can I file H/H Fed and MFJ WI? thank you, Darlene

Thank you - He said they lived together all of 2019 - she just told me she moved out in Feb 2018. She wants the soc sec numbers masked.. And I gave 1 2018 copy but I will be nice and give him a masked copy.. and he would not be a client as he has no income but if I have to do a MFJ he will have to sign the engagement letter - right!! She will talk to her lawyer Can I file H/H Fed and MFJ WI?

thankyou - Phil Harris - was - now someone else - just released - will do that - do not like the topics as much but I am not going to Pewaukee!! in these times d