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    Qualified Business Income Deduction

    Both of those articles where wrote prior to Proposed Reg 1.199A, you should be able to google something more current, I agree they are a good starting point.

    Sch C or Sch A?

    I don't think you have given enough info to answer your question. However, I don't think you can call it a theft loss, it sounds more like a bad debt. If so, the question becomes whether it is bad dept from business (write off 100% as ordinary loss) or personal (treated as short term capital loss). Section 166 basically says that a business debt is one created or acquired in connection with a taxpayers business,: or incurred within a trade or business. It depends on facts and circumstances as case law tells us. For example, there was a case where a CPA incurred a business debt when he loaned money to a start up business with the expectation of providing professional services to the business. So in the case of your client, if he can show it was connected to a trade or business he gets a free pass to write it off as an ordinary loss. However, there is another possible twist since you mentioned a partnership. There are cases where the courts have treated loans as a capital contribution in exchange for a percentage of profits. If that was the case, then the loss becomes deductible under section 165. So then the question is whether the house flipping venture was going to be treated as a business or an investment in determining whether an ordinary loss or capital loss was incurred.

    Sch C or Sch A?

    How much did your client lose?

    Annual e-file shutdown begins 11/17

    Thanks for the reminder, still have some late ones to take care of.

    W-2 -> Home office -> Travel

    Sounds like client might qualify for OIH under Sec 280A(c) which would make travel to the base deductible. Is it necessary to work from home to carry out employer's business and to allow employee to properly perform his duties?

    Well, it's official

    Congratulations on building a successful practice and entering into a positive exit strategy that will take care of your clients and employees. Best wishes as you enter the next chapter!

    1041 and k-1's

    Really need more info to provide an answer. Basically "income" distributed to ben's is not taxable on 1041.

    overthinking 1041? and insurance?

    If this pertains to the Sub S case then disregard my post above and refer to the previous thread. The key is to liquidate the s-cop before the end of the tax year.

    overthinking 1041? and insurance?

    Estate gets stepped up basis at date of death. That won't help much for the wrecked truck and trailer but should not be much gain on the other assets.
  10. How about form 8879? I am really not that concerned about it, but if it becomes a common practice maybe IRS will look into the massive wave of rejects that occurs every year on October 15. By the way, if we happen to become cell mates, I get the top bunk.
  11. Have also done that but keep low key about it with clients. If IRS catches on could be an issue with filing an incorrect and incomplete tax return.

    'Equity Gift' in house sale transaction

    As Judy stated, looks like their is some stepped up basis involved.

    'Equity Gift' in house sale transaction

    From what I can tell, the house was appraised at $450,000. Client did a partial sale of $400,000 and gift of $50,000. Results in gain of $25,000.

    'Equity Gift' in house sale transaction

    I am confused as to who is involved in this transaction? Client, son, ailing parent, community spouse, marital house? How much actual consideration did client receive for the house?

    LLC and Truck Expenses

    No, because he and the business are the same entity. LLC has no meaning for tax purposes.