Randall

That would be the reason for the S election, not a C. It will increase his basis. If he needs to retain the money in the business, he can distribute only enough to cover the tax, 'retaining' the rest. He's in good shape having profit and not losses.

Friday's WSJ had an article about this very thing, MLPs. They specifically mentioned Linn Energy LP, which is the one my client had. A billion dollar debt restructure, reported as cancellation of debt income on K-1. My client's share was $29k. Ouch. Another $8k to be reported as ordinary income. Ouch again. He sold units at a big loss, reported as capital loss, limited to $3k. Ouch a 3rd time.

Canceled debt income of $29k showing on a K-1 from a publicly traded partnership. Wow, how much was the total if my client's share is $29k. Has anyone had this before? The partner instructions say if he did not materially participate, it would be treated as passive income. That's good because he has a lot of suspended rental losses he could use against it. In ATX K-1 input sheet, if I enter it on the appropriate line, it automatically goes to 1040 page 1, line 21. How do I get it to go to Sch E, page 2 as passive?

Has anyone heard about the student loan repayment schedules that will be lower based on MFS income being lower for the one with the loans? New client couple tell me they need to file separately regardless of higher tax because their loan repayment will be much lower. And they say they have to file separately every year because the repayment schedule will be reviewed every year.

Thanks. I agree but was racking my brain to find where it actually says so.

Two brothers owned rentals, reported half each on Sch E. Formed an LLC, transferred property to LLC. My understanding is that the assets and depreciation just continue from their original depreciation schedules. But I can't 'quickly' find verification of that. I don't think the LLC starts over with previous NBV. Just looking for some reference.

Two brothers owned rentals, reported half each on Sch E. Formed an LLC, transferred property to LLC. My understanding is that the assets and depreciation just continue from their original depreciation schedules. But I can't 'quickly' find verification of that. I don't think the LLC starts over with previous NBV. Just looking for some reference.

I agree. Rollover the SEP-IRA to a traditional IRA. Then it's classified properly for new contributions. May be too late now but this is the proper way.

You might also request a copy of the member agreement. If she was told she had to invest and has no management decision input, there should be something in the member agreement. It might help support your position if you go the 8275 route.

At this time, I'm hoping they come in later. Good excuse to tell them I'll have to file an extension. I tend to get some of the quick easy ones done ahead of the queue. Also some who don't get some K-1s until about this time. I know they have to wait until around this time.

Jack, Part III of Form 8965 seems to indicate a person can get an exemption without going to the Marketplace. Part I seems to be for Marketplace granted exemptions. My original post doesn't apply for my client but it seems an exemption could apply to some without going to the Marketplace.

My experience on this has been small differences. I do as cbslee, just override the accumulated depreciation.

I don't have any cites off the top of my head. But I would agree. Besides, amending might cost him more in legal fees then the tax savings on $5000. And he has the $5000 in his retirement account to continue at tax deferred earnings.

I suppose this company was not aware of this. This was mid year last year.

A penalty exemption Code B is for lack of health coverage for less than 3 months. If a person changed jobs and was not eligible for health insurance with new employer the first 3 months and did not have coverage for a month in between jobs, total 4 months, can the exemption be used for two of those months? I don't think so because there was 4 consecutive months without coverage. But I wanted to ask thinking maybe he could be eligible for the first two months of the total 4 months.

I thought I had a list. Can't seem to locate it now.

I look at the amounts. I do have a list of states and their requirements. If the amounts get in 100s, I'll check the list. I run it by the client. Client makes the call for me to prepare or not.

And my 2nd Bachelors at a small church school.

Not always that old. Breast cancer, prostrate, bone cancer, by-passes, stents. Then there's adult children on drugs, died, rehab. Not pleasant.

Just had a Ky personal return with S Corp K1. Ky Sch M was picking up Fed 179 to add back and subtracting Ky 179 max 25k. Yes, that is correct but the Ky S Corp K-1 already includes that and gives a net number to add or subtract on the Ky Sch M personal return. The Ky personal return was auto entering the numbers from the personal 4562 (pass thru). The more I looked at it, the more it didn't seem right. The amounts on the Ky Sch M auto-filled were actually blue highlighted boxes so I just deleted them and entered my net change from the Ky K-1. I know I'm correct because I do the S Corp. I'm just wondering if Ky will generate a letter.

All of mine went thru ok.

My past two computers have had a SSD hard drive and a 2nd regular HD. With the previous computer the SSD was only about 160gb and my intention was to use it only for the OS. I loaded ATX (and other programs) on the 2nd HD. Found out the hard way that ATX was putting the backups on the c drive anyway. With the problems of 2012, I now load programs on the c drive (ssd drive). With my latest computer, the SSD is 500gb and the 2nd drive is 2T. I'm not a programmer or computer tech but I realize there are just too many bits and pieces that these programs have and they load them in a number of places. Best to have it all on c drive and let the program have the easiest time getting to everything. I use the internal 2nd HD for other files, backups of certain C files and copied all my files from previous computer. Things like that. I also alternate 2 external HDs for backups, taking the most recent home for a separate location. All encrypted. I'm a one person office with just a stand alone desktop. Don't want to think about how to run things with staff and workstations, etc.

But how is the basis adjusted in ATX in the final year or a year after the first year? I have an installment sale for 2015 but there are legal fees still to be paid in 2016. I was wondering ahead how I get these fees into my basis and lower the gain.

As Jack Hawkins said in the movie Ben Hur, 'We keep you alive to serve this ship. Row well and live.'

Yes Jack and grmy2h. My understanding is if only one S shareholder employee or two spouses are only 2 employees (can count as one) OR with other employees, if the plan is a group plan compliant with ACA, then the 2% S shareholder employee treats the health insurance premiums as we have in the past. That is, add to W2 box 1, not boxes 2,3 and take above line deduction on 1040. Also, LTC premiums are exempt from the ACA and can be treated this way even if there are other employees, etc. I'm not sure about the HSA treatment.