Jump to content
ATX Community

EricF

Members
  • Posts

    105
  • Joined

  • Last visited

  • Days Won

    2

Profile Information

  • State
    NC

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. Will ATX provide a standard attachment to K-1s to let owners know a K-3 is not coming unless requested, or at least a box to check for it to be included, or will we have to type the statement in each return to attach to the K-1s?
  2. Cbslee, I was going to post the same. Thanks. Death was not addressed in the first stimulus payment law, but it was for the second. The Q&A 5 you posted relates to the first payment, and the IRS specified returning it if the taxpayer died before receiving the payment. The second Q&A is relates to the second payment, and repeats what Congress specified.
  3. I do not believe land rental qualifies as a Section 162 trade or business, a requirement for QBI (with real estate rentals having some other thresholds and requirements.) A trade or business has been held by courts to require regular, systematic and continuous activity, something is rarely part of rental of land.
  4. Items ultimately treated as short- or long-term capital gains, or short- or long-term capital losses, are not QBI, including net Sec. 1231 gain. But if Sec. 1231 gains are netted with Sec. 1231 losses to produce a loss, the loss does reduce QBI. If there is Sec. 1245 recapture or ordinary gains, that does increase QBI.
  5. In ATX, open up the Ln 18c, Sch K - Nonded Exp worksheet. There is a place to enter up to 4 nondeductible expenses other than meals and entertainment.
  6. He didn't meet the 5 year rule, so the penalty applies. The distribution itself is not taxable because he had basis exceeding the distribution.
  7. Try entering the $544 basis in the Roth account in Box 22 of Form 8606,
  8. The recognition of gain to the corporation on the distribution of property from the corporation is required by Section 311(b), even if the corporation is an S corporation. If he doesn't want to trigger the gain that would be passed through to his 1040, it's better to leave the property in the corporation. If he thinks the S corporation is costing him too much in fees, compare that to the tax on a gain on the difference between fair market value and adjusted basis.
  9. I think Publication 970 is clear. Both pages 15 and 16 have the same language: "the scholarship or fellowship grant must be one that may (by its terms) be used for nonqualified expenses." (Emphasis supplied by me.)
  10. Christian, In ATX, go to the 1040 ExExp worksheet, Scholarship Worksheet tab. The default is to show the scholarship as nontaxable on Line 7a. You can enter a different number you want to be tax-free on that line, and it will show the balance as taxable.
  11. It appears that ATX is forcing us to answer the question. Based on the answer, hopefully it won't print Schedule 1 for a "no" answer where Schedule 1 is not otherwise required.
  12. Re-entering the prior year is essential for the NOL worksheet, because the NOL carryover is not just the Schedule C loss. It can be affected by other income reported in the return as well as deductions from income. Don't forget that we now have QBI loss carryforwards, nothing from 2017 and before, but if there was a QBI loss in 2018, it carries forward to 2019 to reduce 2019 QBI.
  13. Yes, only make enough scholarship taxable to give dad $4,000 of college costs he can claim the $2,500 maximum AOTC. But with a standard deduction up to $12,200 for the daughter, it really doesn't matter how much she gets in most cases, unless the state doesn't have as generous a standard deduction, or none at all.
  14. Please see the discussion on pages 4 and 5 of the Form 8863 instructions, with fuller discussion on page 16 of Publication 970, for IRS approval of this strategy.
  15. There's no election. You just do it. See page 16 of Publication 970.
×
×
  • Create New...