Abby Normal

Most states accept the federal extension and I've yet to find a state with late FILING penalty. States seem to just have late PAYING penalties and interest. If you must file the state extension, just show no balance due.

The Payment tab is where you choose direct debit, but you also need the Bank Info form added in ATX.

Called an elder client yesterday who had a battle with cancer, chemo and radiation, and she told me that sendinc.com would not let her send me the documents I needed, but she couldn't tell me what the problem was. I think her brain is fried, which is completely understandable. Also, she was trying to use an ipad and an ancient computer. Sometimes, you just don't have the hardware it takes.

You need to do a journal entry for the deposit based on the closing documents to record all of the associated costs. Depending on the entity and the timing of the withdrawal, you may have issues with debt financed distributions. https://www.thetaxadviser.com/issues/2007/nov/interestdeductionondebtfinanceddistributions.html

Color me confused.

Sure it does. It's just like federal.

I get best results from articles on https://www.thetaxadviser.com/. I print a lot of those article to PDF for future reference. Very practical examples with clear explanations.

I've never noticed that here on the east coast. Must be a certain IRS location that does that.

If it's not his Social Security number then it's not his K1. It could however be in the name of a revocable trust and therefore would go on his 1040.

There will not be an IRS letter since 1041 (and 1065) do not have absolute filing requirements like 1120S or 1120 do, only conditional filing requirements.

It can't be done. Call support. It will likely have to be elevated since this is a fairly rare situation. You may have to not do this through fixed assets and just make all of the entries manually. Use a disposition method in fixed assets that doesn't calc any gains.

There are some field you just should not modify, and this sounds like one of those fields. Did you mark the Sch E 'complete disposition'?

Nah, the IRS knows that trusts and estates often don't file returns. I wouldn't file.

Assets removed from an S corp are essentially treated as if sold for FMV. https://www.thetaxadviser.com/issues/2011/apr/casestudy-apr2011.html

From the link: Tax considerations An IRA is an exempt entity separate from the beneficial owner of the IRA and can be subject to taxation on its own. UBTI is subject to taxation in all varieties of retirement accounts, such as IRAs, retirement plans like Keoghs, and health savings accounts (HSA). When total positive UBTI across all applicable investments held in a retirement account equals $1,000 or more, then Form 990-T must be filed. Sounds like fun, right? Tell client to get rid of these investments in an IRA because they're not good for IRAs.

Yes, use adjustment code B for basis adjustment for the cumulative adjustments to basis in the K1 notes. And use code O for the 4797 portion of the gain, then put the gain on the 4797 part II. There's a dropdown box to choose the K1 that it comes from. The B adjustment is a minus and the O adjustment is a plus, so just net the two into one adjustment amount with the code BO (because these investments stink!) And mark the K1 final and complete disposition of a PTP. This will release all of the suspended losses for that K1.

I too have uttered, "What the hell was I thinking?" when reviewing a prior year return I did in the heat of battle. It's always a wake up call.

You get to be the hero by amending and removing those K1s from the return. The only time a K1 can impact an IRA is when there's unrelated business income, and it has to exceed a certain amount before it creates taxable income. It's usually recommended to NOT buy these K1 investments in an IRA. https://www.fidelity.com/tax-information/tax-topics/ubti

There are blank lines at the bottom.

Maybe you meant type C for short term with no 1099B.

Back in the early days, the IRS said crypto would be considered collectibles, and I thought they dropped that, but when code C popped into this thread, I thought I'd ask if it still applied, because I haven't been using code C for crypto sales.

Is crypto still considered collectibles? I couldn't find anything definite on the IRS site, pubs, or instructions (as usual).

Rules for individuals may not be the same for trusts, but if the income was passed out the actual beneficiaries (not designated gifts) on a K1, they might be able to exclude it. This is why you normally want individuals as bene's for any retirement accounts. Why run it through an estate or a trust?

Does the series of substantially equal distributions exception to the 10% penalty apply here?

The installment debt will become part of the estate. The estate is responsible for liquidating the assets and paying off the debts.