Abby Normal

Here's my first draft of an organizer question. Feedback appreciated. Using ETax847's suggestion of all caps. DID MAKE MAKE ONE OF THOSE $%&*# QCD DISTRIBUTIONS FROM YOUR IRA?! IF YOU DID, AND YOU DON'T TELL ME ALL THE DETAILS, YOU'RE FIRED! DO YOU HEAR ME?! I SAID FIRED!!! AND DON'T YOU DARE INCLUDE THE DONATION IN YOUR TOTAL DONATIONS OR I WILL HUNT YOU DOWN.

With fewer people itemizing, we're going to be seeing a lot more of these.

The letter from the charities isn't going to indicate that it was a QCD. The client I'm working on now had letters from the IRA trustee for each donation she made as a QCD, and the client was kind enough to give all of those to me, but if the IRS form had a box on it for POTENTIAL QCD, then we'd at least know to take care of it. The, of course, the client lists all of the donations including the ones that were made with QCDs, so you have to back them out. They should have put a line on Sch A charitable showing a subtraction in the amount of the QCD. This isn't rocket surgery!

Why, in the interest of sanity (mine), did they not add a box to 1099Rs for the QCD amount!?!? If the client doesn't tell you, you have zero way of knowing! Guess I need to add a question to the organizer.

Since beginning inventory is already on the Sch C, wouldn't you need an other income amount on the Sch C to zero out the ending inventory since you're putting that cost on the 4797? Otherwise you've deducted the same inventory twice.

The K1 input forms have fields for entering the foreign income info, if you need to do the 1116. If not, it should flow straight to the 1040.

I'm choosing 3 estimated payments in ATX so the 7/15 is doubled up. And if the 2nd qtr payment date is wrong, just manually edit it.

I've read it too, and I believe the above parts are not excluded for the self-employed. The part you quoted just tells you how to calculate the wage, and it doesn't say that the other components do not apply.

https://theweek.com/speedreads-amp/908081/federal-program-promised-small-businesses-2-million-loans-now-maxing-15000 Several applicants reportedly said SBA representatives told them funding for the program was running out. Deb Wood-Schade, a chiropractic wellness business owner, told the Times she had been approved for a nearly $25,000 loan, but was given documents on Wednesday telling her the loan had been cut to less than a third of that amount.

Not just income. Deductions, nondeductible items and distributions all reduce basis. Just as contributions of capital, other income and notaxable income increase basis. And it MUST be done year by year, because at the end of any year, if losses, deductions and/or distributions decrease basis to zero, and excess losses and deductions are carried forward, and any distributions in excess of basis are long-term capital gains (after the stock is held for at least 1 year).

Corporations are just shareholders and as tax professionals (if we want to call ourselves professionals), we should do everything we can to track basis both on the corporate return and any individual returns we do. Shrugging and saying it's not my job is a dereliction of responsibility, in my opinion, because we all know shareholder have zero clue how to track their basis or even what that means. Losing track of basis creates a lot of problems. The IRS made a huge mistake by not having a basis form as part of the K1 from the 1120S and as part of the 1040 Sch E page 2.

We're still waiting for the portal to enter bank info if you've already filed and didn't provide bank info or changed banks since filing.

This service is delivered by Intuit.

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

His basis went up this year by the amount of income on the K1. If you enter it in ATX it will show basis increasing. Does the K1 show any distributions? When you say 'pay stub' was it a payroll check or just a regular check? If the corporation bought his stock (dumb move) then this is a capital gain, whether they did a 1099DIV or not. Recreate the basis as Judy suggested. Too many lazy (or ignorant) preparers have not tracked basis. I wish the IRS would just create a form for it to force everyone to comply.

Net earnings from self-employment for 2019 divided by 12 x 2.5, plus retirement plans plus SEHI is what I've done. If they want to discard the health insurance because it's not group, then let them do that.

MD doesn't require a state trust return unless there's taxable income. They don't want the bother of processing a return for no money, but I think I'd file MA returns going forward and let sleeping dogs lie.

Self-rental of home office is fine as long as the rental shows a profit. Losses on self-rental are suspended as passive, but profits are not passive income, so if you have no other passive income, those losses are suspended until you sell the house.

Well, that's just great. I just this week helped a family who runs a small grocery and food truck as a C corp. They have no employees and do all the work themselves. They are not taking any money out, yet, because they're reinvesting in their business. That means no EIDL advance/grant. This means almost no help for businesses without payroll.

If regular home office is substantially more than simplified, it's well worth claiming because it saves SE tax and income tax. Paying tax on the depreciation later (if the house even sells for a gain) is a small price to pay for that. But I do use simplified on some, for various reasons.

They have proof of mailing, so they should be fine to get the refund. When... now that's another story. BUT the IRS does pay really good interest!

It's one of the most covered songs ever, or so I've heard.

Why can't we ever do anything important, right?

Yes, remaining basis as a capital loss for S corps and partnerships.