Abby Normal

On 8/11/2023 at 10:43 AM, random said:

I'm not getting any errors on putting multiple income boxes in same K-1.

In such case, how do you handle entries in other boxes? Fox example, would box 19(Distributions) would be duplicate in such two K-1s(one with box 1 income and another with box 2 income) ? 

The duplicate K1s will normally just have entries in the income boxes and all the other items can go on the main K1. Would be nice if ATX had sub-K1s so they could all be linked.

Of course, depending on the type of K1 (PTP, PTE, etc.) additional steps may be required.

15 hours ago, Sara EA said:

We use UltraTax for most tax prep, and we can enter income in all the boxes, so I don't think the IRS doesn't allow it.

It has nothing to do with the IRS, it has to do with how lazy the programmers are. These different types of income must be handled differently, which I guess is sort of an IRS requirement.

Might be better to amend all of those years, to come up with the passive loss carryovers. Since the older refunds will be lost, I probably wouldn't bother filing those. Just file the last 3 years.

Sounds good to me, if they can successfully implement this.

Treasury Secretary Janet Yellen said that by the 2025 filing season, the IRS will digitally process all the tax returns it receives, as well as half of all paper-based correspondence, non-tax forms and notice responses.

The IRS will also start to digitize more than a billion historical documents, which will give taxpayers greater access to their records, and will save the agency about $40 million in annual storage costs.

More immediately, taxpayers will have the option to go paperless with their IRS correspondence by next year’s filing season.

https://federalnewsnetwork.com/it-modernization/2023/08/irs-to-eliminate-oceans-of-paper-by-digitizing-all-new-tax-returns-by-2025/

Yay!

I've been using the same Dell 24" monitors (3 of them) for about 10 years. They work fine but I'm sure new ones would be clearer. I'll get new ones when I get a new computer this year.

Beautiful! Congrats!

I think I'd just leave the Sch E if there are operating expense carryovers or passive loss carryovers. There's no downside to leaving the E.

To track the depreciation taken in ATX, just leave the asset in fixed assets, but make it unassigned. Might need to make business use % zero.

Unreal. I always encourage epayments.

Not sure which tax you're referring to. The estate might owe some estate tax.

The parents should have been making annual gifts to all 11 heirs in the amount of the annual gift limit to both help the heirs and reduce the estate value. Parents could jointly gift 34,000 to each heir now, and to the heir's spouses or any other family members.

https://www.irs.gov/tax-professionals/practitioner-priority-service-r

29 minutes ago, cbslee said:

In all the years that the third party designee has existed, I have always filed in the details but I have never used it 

Same.

For new clients, create a blank return with everything the way you want it. Duplicate this blank return to set up a new client.

For existing clients, it should rollover.

You could just report this on the surviving spouse's return and respond to any notices with a copy of the 1099R. Or, if the withholding is close to the tax due, simply ignore it.

I'd say no, because you're just making them whole for the penalties and interest they paid/will pay, so it's not income to them.

Tax wise, It's not a big deal if there was one K1 for one spouse or two K1s split 50/50. The 1040 tax will be the same and there are no SE issues.

This more of a divorce settlement issue. Who gets the corporation? This will be part of the overall property split (you get the corp, I get the house, etc.).

If we applied SS tax to ALL income, we could lower the rate. A lower SS tax rate would benefit low earners and small business immensely.

9 hours ago, mcbreck said:

Reality is that most probably don't include the 10% in their income or expenses because they never see it.

I had a very small broker and every year he'd remind to record the 10% cut to Schwab and I'd debit commission expense and credit sales without explaining to him that the bottom line is the same either way. He was happy and that's all that counts.

36 minutes ago, Lynn EA USTCP in Louisiana said:

This morning I froze my credit on the 3 agencies and secured an IP PIN  from IRS

In addition to the big 3 agencies, you should also do freezes for:

ChexSystems
Innovis
NCTUE

I also have in IRS IP PIN. I got one as soon as they made them available for anyone who wanted one.

ATX has a place to enter estimated tax payments in this situation. It's part of the 1040 form. One of the last pages.

Stocks are intangibles and intangibles are not "goods."

4 hours ago, mcb39 said:

Our favorite is  "tars" instead of tires.

They say it that way in rural MD as well. And the stuff you put on roads sounds more like tire.

As I'm fond of saying, we account for what actually happened, not what someone hoped had happened.

There is zero basis for capitalizing past due real estate taxes in this situation.

Multi member or single member?

Partnerships don't have to file if they have no activity.