michaelmars

Good time to do a cost seg

ignore the term, all inherited stock sales are considered LONG TERM

I have had no problem with NYC taking my clients money.  I do it through the software and not directly with the city.

I don't know how they can check dates as long as the signed date is prior to efiling.  I have had clients sign 8879 and then mail it a week later.

USUALLY THE trust pays any taxes and no K1 is needed.

Easy answer, yes!

NY requires 100% to be on the w2 and you allocate it on the it-203

If a grantor trust it can just go on the individuals return.

Yes you can, the split of NYS NYC is only for there budgeting forecasts.   ON the return the estimates are entered as total only.

150-250 sound about right, just wondered what HRB would charge.  Catherine, I think you worry too much about these penalties.  We have had clients face the loss of 50% penalty and another facing jail time but never once were we questioned once we showed the documentation presented to us.

technically NY says yes but we hardly do it in this situation.  With the crazy rules a small entity with a few partners could be filing in multiple states.

Got a simple fbar, 1 country 3 accounts.  Mostly curious what H&R would charge?

A bit more complicated than you think.  First of all mortgage is Qualified NonRecourse thus is counts for basis, that's for the new property.

On the old property you have to follow the interest tracing rules.  The percentage of new money that was distributed [for new partnership] is reported separately and on schedule K line 13D.  It will flow to the k1 as such.  Then it is up to each partner to determine the use of the money they received.  Invested on a partnership, deduct on sch E, invested in the market, deduct on sch A, bought a yacht then not deductible.

I would do this form and consider it a learning experience.  Software got much better in flowing the credits from 1099-Div statements.  I don't use ATX anymore so can't help with input but you should just have to enter counrty or I always use various and type of income. In this case passive, and everything should flow.  Other option is to enter it on sch A as an itemized deduction if taxpayer receives any benefit from that.  But honestly, 1116 is only a pain in the but when its from earned income or K-1

the entity was set up as a SMLLC in 2020, totally inactive till 2022.

I am aware of the late election for a corp to S but what about a disregarded LLC to an S?

Can a late election be made for 2022?  And in any case do I just file 2553 or do I have to do a reclassification too? 

if they operate  as LLC then no payroll is needed for the owners.

On 1/2/2023 at 3:45 PM, Medlin Software, Dennis said:

Many owners are also employees. Easy to use the ssa site to see if their personal earnings data is updated. Could be a way toonitor the data recording, or prove the data was actually recorded.

I had to do this with 2 clients, similar situation.  took about 5-6 years of correspondence and then one day a client got the letter saying everything is ok and the other client never heard but the letters stopped coming. 

Once the person dies revocable trusts end and they usually become irrevocable.

On 12/15/2022 at 1:58 PM, mcbreck said:

Maybe I'm confused. Are they filing a 2022 tax return showing this capital gain via the 1065?

yes, in 2022 they have a capital gain on a piece of property so i want the payment to show on the 2022 federal return.

but on a cash basis taxpayer, they won't get the reduction to next year and this is just a one shot deal.  their won't be a tax return for 2023.

Anyone have some expertise in Missouri taxes?  I know the ptet is new this year and I can't figure out how to make the estimated payments.  On line they tell how to do so for an S corp but not for a 1065.  This client is 1 shot deal with St Louis capital gains of 2.5mil

I have had this a few times.  you can not charge if a subpoena is issued.  Definitely contact your carrier and they may be able to squash or limit what you have to provide. 

We are forming at least 10 entities a week here and I would say 90% are LLC's taxed as partnerships.  This is for real estate and investment ventures.  Some retail or wholesale businesses will go with an S corp.    Yes they cost more to set up in NY but a year or two of paying us to prepare payroll taxes negates that.