Ryanvv126

I never see shareholder "loan" paperwork. So this makes sense Abby.

When would you use the Special Allocation Percentages on the K-1 input screen? Just curious. 

The incoming shareholder bought 25% of the stock from the sole shareholder of the s-corp

Is there a section in Form 1120S to put the sale of a stock of one owner? I know this would affect the basis, but is their anywhere else to put it?

Also, on the K-1 input if you bring in a new shareholder during the year, would you have to use the weighted averages to calculate the ownership percentage for that year? I'm guessing so.

Finally, when would you use the Special Allocation Percentages on the K-1 input screen? Just curious. Thanks!

I've been lurking on here for a while and have really seen some great tips and advice.

@David W Ristau CPA How do you put ATX on a virtual machine? That would be nice. 

Where would you view the return completed date?

Hello Everyone,

I was just wondering if anyone else tried out this new feature that came out with the 17.3 release? It is definitely short on some line items when doing the tax mapping. However, it is not bad for importing a simple Schedule C.

I use it for my 941, 940, and most estimated tax payments. It is definitely not the most intuitive piece of software, but there are not many other options.

Thank you @Catherine & @Lynn EA USTCP in Louisiana for your responses! For some reason, I could not find any information about system maintenance online. 

Has anyone attempted to use the Transcript Delivery System in IRS E-Services? It has been down for maintenance the past couple days. I cannot find any news about how long it is going to be down for.

"Fast"

45 minutes ago, jklcpa said:

I haven't seen anything about it and checked the Delaware Code. Nada, the Delaware Code shows no revisions that I've seen.  Title 30, Ch 11, sec 1109 still basically says DE allows itemizing when using the standard for Federal, and that DE itemizing piggybacks the Federal to start with and talks about the modifications we already know about that are printed on the Form 200. 

Since it is still illegal under Federal law, and with DE starting with the Federal and making the few modifications allowed, I'd say most likely the answer is "no". 

 

I was thinking the same thing since the State of Delaware starts with the Federal Schedule A like you said. I wonder if any other state allows for Medical Marijuana to be added on to the Federal Schedule to calculate the state itemized deductions.

So I had a client provide me with her statement from the medical marijuana dispensary in Delaware for 2016. Apparently, this cannot be deducted on the Federal Schedule A as a medical expense, but I wonder if it can be deducted as a state itemized deduction by creating a proforma Schedule A. Any thoughts?

I can't find any answers on the state website. 

@jklcpaThank you so much. I'll have to see what the fair market value was on the day of conversion. That will be tough though. 

Like you said, what he had on his tax return in 2008 could be correct since that was when the housing market took a hit and his property was in AZ. From my understanding AZ took a big hit in 08. 

2 hours ago, jklcpa said:

 

Do you know what the $222,750 represented at the time it was put on the depreciation schedule?  Was this after a salvage value or after land was broken out? 

It was after the land was broken out

2 hours ago, Pacun said:

I don't have time to do the calculations but this is what I think.

Cost 400K

Depreciation taken was about 1/3 of the 222,750 which is about 70K. So the house now cost him this:

400K - 70K equals 330 and he sold it for $325. I don't see a "huge capital gain".... as a matter of fact, I see a loss.

I have not even considered improvements or selling costs.

 

 

Thank you. You're number for depreciation is right on. I think I was confusing myself because I forgot to add back in the land that he allocated a lot to in the beginning. I guess allocating a lot to land actually helped him. 

I'll just get right to the point. In 2006 my client purchased his principal residence for $400,000. Then, in 2008 he converted his primary residence to a rental property because he had to move to another state for work. The cost basis my client used was only $222,750 on his 2008 tax return (he did not have any improvements as the house he purchased was brand new). Finally, in 2016 he sold his rental for $325,000. 

As you can probably guess, this is causing my client to have a huge capital gain. Does anyone have any recommendations on how to appropriately adjust the basis since he recorded incorrectly in the first place? Thank you!

On 3/2/2017 at 7:42 AM, Yardley CPA said:

I organize my packet as follows:

• Cover Letter - combined.
• Tax Summary
• Planner
• Comparison
• Copy of 1040 with cover sheet
• Copy of State return
• My invoice with a self-addressed stamped envelope to return payment to me

All of my clients drop off their info.  I prepare the return and then call them to discuss.  Send them a secure email with copies of the 8879's to sign and return to me.  Once I receive the signed 8879's, I eFile the return.  When the IRS and State accept the eFile, I prepare the packet and mail it out to them.

This has worked well for me. 

 

 

Do you put the State cover sheet in front of the state return or do you just use a cover sheet for the 1040?

It would be nice if ATX put the State cover sheet in the State Forms section so it will go in front of the state tax return when printing. 

Hello Everyone,

I was just curious on how everyone printed their electronic version of the client copy of individual tax returns. I organize mine like this:

• Cover Sheet
• Engagement Letter
• Federal Cover Sheet
• Federal Client Letter
• Form 8879
• Federal Tax Return
• State Cover Sheet
• State Client Letter
• State E-File Authorization
• State Tax Return

The issue with the way that I print is that I have to go back into the PDF and re-arrange the state cover, letter, and e-file since they print in the front. I was interested to see if there is a way that you print it where you do not have to re-arrange the pages as this would save time.

I appreciate any feedback. Thank you!

8 hours ago, Abby Normal said:

I have to write my signature date on every 8879. I also have to enter it in the EF info form. Now I don't.

Yeah, it's pretty impressive. I also link my most common state forms and connect them to the federal as well. It saves some time. Also, there are a lot of times that a client does not come in to sign their returns on the day they say they are going to sign it. Now you only need to change the date in one spot and it auto populates the rest.

7 hours ago, BulldogTom said:

Thanks Ryan,

I tried that and it only gave me the option to look for 1040 or Business returns(1120, 1065 etc.).  The taxpayer has not filed 1040 tax returns, but he tells me he has filed the 941's and the 940's.  I don't see an option to pull the PR return transcripts, which is what I am looking for.

If you don't mind, could you elaborate on where to find those transcripts?

Thanks for taking the time.  If I can get this from the website it will save me a ton of time.

Tom
Newark, CA

 

Bulldog,

Did you figure out how to get the Account Transcripts? Saving a phone call with the IRS definitely saves some time and adds a few years back to your life haha.

7 hours ago, Jack from Ohio said:

ATX already does that for the forms.

It does not link the dates for the taxpayer signature. 

4 hours ago, BulldogTom said:

If you don't mind following up on this...How do you do that?

Tom
Newark, CA

 

I'll break it down since I'm not sure if you have used the e-services system before. 

When you log into IRS E-Services and then select your organization, you can get the Account Transcript by using the "Reporting Agent e-Services" or the "Transcript Delivery System" links on the left. Assuming you are using the "Transcript Delivery System, " you click that link, and for some reason the IRS makes you click that link again. Once you get to the "Transcript Delivery System" portal click "On-Line Transcript Request" under what you can do. Put in your CAF info on the next screen and select business. Then, it takes you to where you input Taxpayer Information. On this screen is where you will select "Account Transcript" in the Product Type drop-down.

Obviously, you will need a Form 8821 on file to pull the Account Transcripts or an 8655 if you are using the Reporting Agent section. 

I've been using this to the link the dates between 1040, 8879, state return, and the state e-file authorization. That way I only need to change the date in one place, and it auto-populates my entire tax return for me or changes the date if needed.

You can get Account Transcripts for the 941's and 940's. Not exactly the line for line transcript, but it does provide you with some detail you may need to see.