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About Possi

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    ATXaholics Anonymous

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  1. I have looked back at a couple of discussions on this, and I think I'm right, but looking for validation. Parents phase out of claiming any education credits, income over $200k. Son has no wages. Son goes to school out of state. Parents funded VA 529 college account for son. VA 529 is in son's name. Total distribution was $30,500. Earnings were $11,880. All of that was spent on college expenses, tuition and fees, supplies and equipment, room and board, etc. Correct me if I'm wrong, but 1099Q in son's name is not a taxable event to son. Parents can claim son on their tax return.
  2. No, the other rentals are still cooking and shouldn't have become part of the suspended losses allowed. I have sent this to TWise and they are looking at it. I'll update when I get a response.
  3. My client is retired military and he has started his own business as a sort of special ops consultant. He trains SEALs, other military teams, and missionary teams going into hostile territories on various subjects. I have no doubt of his integrity. My question is this; are related classes taken at college deductible as business expenses? These are master's degree classes in missionary, world, hostile territories, etc. Not English and math, but very targeted subjects toward the work he is presently doing. It enhances his credibility in his profession.
  4. Wow, that's true... but way too much work for me... Great information. I am postponing some clients whose income went over the top in 2019. That's about all I'm capable of doing.
  5. That is correct, and I totally get it. With your help, I have narrowed it down to the Sch E being wrong. I have had at least 3 other sales of rental properties this year alone, and they have all been smooth. However, none of those had suspended losses. In the past, the suspended losses flowed real sweetly to the Sch E allowing a large loss on the E and a gain on the sale. Something is wrong with the way this Sch E is computing. You have confirmed that for me. I redacted the screen shot of the Sch E and worksheet for you to see. In the worksheet, it is grabbing "Prior year AMT unallowed loss" from the first 2 properties, it appears, as the "AMT carryforward loss to 2020" is zero on both properties. The only loss on Sch 1 Part 1, line 5 is from Sch E line 21, is $3893. I have no clue. That figure is totally wrong. I am stepping out of here today, and I hope you are, too. If I have not properly redacted these forms, you know what to do! ABORT! LOL Thank you for looking at this. I think it's a software glitch, as I have done these before with no problem. Let me know if you agree. And if so, I will override some figures to get where I need to be. I really don't want to do that because this is a high risk return. There are 4 rentals, all swimming in different water, different states, different times. And one of my high $$ clients. Not many of those. nav sch e wksht.pdf nav sch 1 part 1 line 5 loss.pdf
  6. I just looked again, and the Sch E is netting the suspended losses for 2 properties (he has 4 properties, but only one sold) and showing a total loss of $86k. Not to worry... it's not like it's GOING anywhere. ugh This is not working right. I've done lots of these and none of them are as messed up as this one is. I'll call TWise on Monday and see what they say. I'll also send them the return. This isn't right. Thank you so much for your help.
  7. The 8582 line 4 has income, over $88k, and if that line shows zero or higher, the instructions are not to use this form, all losses are allowed. The 8582 definitely recognizes it and reduces the gain, but then it says "don't use this form" and "report the losses on the forms normally used." Ok, what? Where? So, where do these suspended losses eventually land? I will need to force the entry, but don't know where to put it. I use Taxwise. I need to study this more and see why this 8582 isn't biting. The numbers are on the form, but not anywhere else. I'll repost when I figure it out. Now, where are those BIG GIRL panties?
  8. I use Taxwise. I need to study this more and see why this 8582 isn't biting. The numbers are on the form, but not anywhere else. I'll repost when I figure it out. Now, where are those BIG GIRL panties?
  9. There's the problem. The 8582 isn't kicking in. I'll keep working on it after I close the office. I did click the box for sold property. So it must be something else. Thanks for the guidance.
  10. My client who sold the rental at a gain has suspended losses and I don't see it balancing anywhere. The 4797 is showing the overall gain of $174,928 with no regard to the suspended losses. That lands on page 1, line 6. The Sch E worksheet shows an overall gain of $130,250, reflecting the current year loss, plus the suspended losses. (All reducing the gain on the sale by $44,678.) But, that's where the easter bunny stops. He is being taxed on the overall gain with no regard for those suspended losses. Where, exactly, should the suspended losses land on the tax return? I thought the loss would have been on Sch 1, line 5. It isn't anywhere. I wonder if it's a problem with the software or if it's a problem with my brain? This just isn't making sense.
  11. This is a small community college, so it could be full time. I'll research some more.
  12. Well, according to my client, she is a full time student, but the 1098T does not have the box checked for "at least half time." Will this be questioned if I trust the client on this? It's daughter's first year of college, fall classes, $4005.
  13. That's a great prospective.
  14. Thanks, that is what I read, too. I just wanted to be sure there weren't any other avenues before I hit him with the bad news.
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