Abby Normal

https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

6 hours ago, joanmcq said:

I dummied up a 1099-INT.

Then you must have split the interest amount into two separate 1099-INT forms, because the adjustments have to be less than or equal to the interest amount. I've combined multiple adjustments into one number routinely over the years, and never had a problem.

The question I always wanted answered is which states have a separate LATE FILING penalty, in addition to a late PAYING penalty.

In MD, we always filed MD extensions, but eventually learned that there was no penalty for filing late (like the feds have), just a penalty for paying late. So there really was never any reason to ever file a MD extension (except to pay money in).

In other words, if you file a MD return with a balance due of $1,000 and you filed an extension, the penalty is EXACTLY the same as if you did not file an extension.

It's just common sense that you can't claim the deduction, without claiming the same amount as income, because you have no basis in the deduction.

The win here is that you can claim expenses against the rental income, and maybe get it down to very little income or even a loss. I don't see any issue with that as long as it's FMV rent to an unrelated 3rd party.

That would be nice. But alas, no.

Also, most of the time I don't use 1099NEC input forms. Quicker to list on Sales schedule of Sch C or just enter in total.

Value of a company car is supposed to be calculated and added to the W2 if in a corporation. Sole prop is just prorated. I forget how partners are handled.

Just combine the two items and use the Other code.

One important distinction is that originally filed returns must be filed or postmarked by the due date, but amended returns must be RECEIVED by the due date. Efiling, thankfully eliminates this distinction.

How about smelly clients? I had one older woman in particular that practically bathed in this sickeningly sweet perfume. You could still smell the perfume lingering in the office 4 hours later. And sometimes, she would hug me and slime my clothes. Eww.

So is he stealing money from the new owner?

Is the money part of the purchase price?

Is it his equity? Is that being tracked?

How is the new business accounting for this?

I'm confused.

Where is this money coming from? Existing bank account for the LLC that was not sold to the new owner? Is there income coming into this account. How were the books kept for this LLC? SP draws are not income.

By the way, for tax purposes, you have to treat the sale as a sale of assets, not a sale of the LLC.

Simply viewing an email will not infect your computer. However, clicking on links or opening attachments can. Even when I get an email from a a company I do business with, I don't click on the links. I go to their website and login.

Income from a partnership is taxable even if it's left in the partnership. The K1 should also show distributions.

If you scroll down about 3/4 of the page, there is a Section 199A Information area.

In the future, watch out for partial dispositions. They're very easy to miss.

Not new. I remember getting these 7 or 8 years ago. One pretended to be from a legal firm in town, that I did some work for. I called to be sure and it was not from them.

Accounting "system"

On 3/23/2024 at 10:43 PM, Sara EA said:

Ahem, I take offense at the title "You Guys."  Many posters here are not guys.  Did you only want the guys to answer?Now that I've moved to the South, I've taken a liking to the term y'all.  It's gender neutral, respectful to both old and young, and sounds friendly.  I used to think it was slang until I read some linguists' take on it and I'm now with them.

Henceforth, I shall either use ladies and gentlemen, or peeps.

On 3/20/2024 at 12:23 PM, schirallicpa said:

Thank you - I was looking thru the elections tab.  

 

Yeah, they could have chosen a better place like the top of the 1120S.

1 hour ago, mcb39 said:

No!  I am actually in the process of laddering CDs right now and making more interest money since we did in the late 80's and early 90's.  Unfortunately, in those early years, we had very little money to  invest.  Now that our wants and needs have decreased dramatically, it is sort of fun.. Just always remember to keep a cushion.

Same. I don't want interest rates cut too much, too soon. I consider these current rates, normal.

Yes, because the cash used to pay the expenses, increases the basis by the exact same amount as the expense.

At the very bottom of the Main Info form, there's a checkbox for Late election to file 2553. When you check it, it put the text on the top of the 1120S.

Then answer question G bear the top of the 1120S, Yes.

Then attach the scanned 2553 to the efile.

47 minutes ago, Corduroy Frog said:

Good question Joan.  Obviously, they cannot be DIRECTLY affected by the NIIT on their tax return.

Where they get affected is in the slowdown of real estate movement because taxes are too high.  In my career, I've been through two political movements to do away with capital gains because only the wealthy could benefit.  Once they did away with LTCG altogether.  Before the year was out, they brought LTCG back to rescue a sick real estate market.

The current rates for LTCG are 15%, plus another 5% for the big income people, plus 3.8% NIIT.  Total 23.8%.  I do have a few landowners who ask me to calculate tax on sale of their farmland.  Farmers are not used to paying these bodacious taxes, and most of them simply tell me they will just hold on until someone meets a price sufficient to pay taxes.

Sound like trickle down voodoo economics to me.

5 hours ago, mcbreck said:

The 25/32 income figures go back to the 1983 change to make 50% of social security possibly taxable.

The 50% figure came from the fact that the employer paid in 50%, except for the self-employed. The 85% came about because someone calculated that, with earnings, the part employees pay in, amounts to 15% of the benefits paid out. Not sure if they factored in inflation, or not.

On 3/16/2024 at 5:45 PM, Terry D EA said:

Client replaced the septic tank at one of his rental properties. Because this is betterment or extends the life of the property, does it have to be assigned a 27.5 year life using SL?

Are you sure it's a betterment? Just replacing an existing system usually qualifies as a repair.

Here's the page that has 2022, but not 2023, yet.

https://support.cch.com/oss/ml/kb/solution/000245732

You have to click on the up arrow/chevron off to the right of where it says attachments, near the top.

Oddly, I can't find the ATX Database Repair batch files for 2022 or 2023. In the past you could edit the batch file for  the most recent year, and change the year in the script, but I'm left wondering if ATX has another database repair method now.