GLGACCT

Out of state client is settling her father's Estate, she needed to travel two different states. Is mileage tax deductible on the 1041? Also, one house was damaged in the recent storm, and she needed to travel once again to another state, would that also be deductible as the house has not yet been transferred out of the Estate?

That is the one, I am on a slightly older version. I believe there is a free trial on the Kofax website if you wanted to demo it first.

Just looked again at the site it only gives town and state no address or telephone.

IRS website Directory of Federal Tax Return Prepares https://irs.treasury.gov/rpo/rpo.jsf

Inside ATX, you print the Questionnaire to a pdf file. Open the file you just created in Kofax. At the top of the screen go to Forms. Select Form Typer (this converts to a fillable pdf). Save it, then upload or email it.

You are correct, in NJ you can not offset a k-1 loss against other income, hence the carryover to be used against future k-1 income. If you have income next year, the full net profit from next year's k-1 will flow to line 21 of next year's NJ 1040, and then a portion of the loss will appear on line 35 of next year's NJ 1040. Lines 30 - 35 are reductions and will reduce NJ taxable income. Unfortunately, you will not be able to reduce taxable income in NJ this year.

It is my understanding, that NJ does not allow you to take the loss, but rather carry it over to future years to offset the income. If you had income, column A would be filled in on NJ-BUS 2 and appear on line 21 of the NJ-1040. Then lines 7-11 on NJ-Bus 2 would also be filled in offsetting the carry over loss but be reduced by the adjustment percentage on line 10 and appear on line 35 of the NJ-1040 as a reduction. Also, in NJ if you are paying taxes to other states, you do get a credit as well see NJ Sch NJ-COJ/NJ-DOP.

Have you looked at NJ - Bus 2?

Unfortunately, no answer to your question. But have you talked to the TPA who set up the FSA plan, as he may be able to offer more guidance on the matter.

TP calculated non-taxable portion of a 1099-R based upon a percentage when he rolled over the funds into an IRA over 15 years ago. TP is now deceased. How should the taxable amount of the 1099-R be calculated for the final return? Can probably calculate using the simplified method, but would not know what was taken over 15 years. TP did his own returns by paper every year, records are lacking. Client will be going on extension. Any recommendations?

Unfortunately, can not get the prior year worksheet from the previous accountant. Used two programs to recalculate the amount of the tax free benefit as well as doing it by hand and came up with the same answer. However, the non-taxable portion does not agree with the prior year tax return, only by a few hundred dollars. I have the annuity from the current RRB-1099 and the year of retirement. Could the annuity have been different years ago or is there a missing component?

Thank you for the response, I looked under the tabs and do not see anywhere to make the adjustments. The only thing I can do is manually adjusted Interest Income on the NJ 1040 and then change the business income by the Interest and also to deduct the remaining 50% of meals. I am looking for validation to see if this is the correct way to do this or am I missing something?

Currently, I am evaluating ATX software, while entering in a Schedule C with Business Interest Income and meals among other things the federal return works perfectly. However, for the State of NJ adjustments need to be made to Federal and I do not see a way to do that other than overwrite the numbers manually. I am sure I am missing something somewhere. In this particular case Business Interest Income on Federal is part of Schedule B, for NJ it needs to be adjusted and called Business Income, also, the State of NJ allows 100% meal deduction. Is there an adjustment screen or do you manually override Interest Income on NJ and add it to Business Income and then also reduce Business Income by the remaining 50% of meals. Any help would be appreciated. Thanks