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I think my brain is just tired... are the legal fees associated with collecting SS disability income deductible? 85% of the benefits are taxable for all years... I know the lump sum calculation but for this client, it doesn't change anything. Bonnie

Can someone please confirm my understanding of basis and UPE? Taxpayer has zero basis in the partnership, had a loss in 2023 and has UPE. The loss and the UPE are carried forward for future years, correct? Drake software is allowing the UPE to be deducted even though taxpayer has zero basis. Is this correct?

The seller is not receiving the consulting income as a separate payment... it is incorporated into the total loan payment in the seller financed loan from the buyer. I know the Form 8594 is to be filed and they agreed to those amounts in the final contract. This question is how to allocate the consulting portion of the loan payment.... or is that even an option? The buyer is my client. From my perspective, the buyer owns everything as of the date of the sale so they can begin depreciation /amortization right away. Should the consulting amount be categorized as a prepayment of services and then recognized each year for the amount paid within the loan amount? The seller has a four year employment commitment as part of the sales contract.

A client purchased a business that was owner financed. Part of the total purchase price included $345k allocated to consulting during the transition period. What amount should be put on the 1099 as Non employee comp? Goodwill/client list 1,840,000 Furniture 69,000 Non compete 46,000 Consulting 345,000 Total sale 2,300,000 $115,000 was paid as a down payment with the remainder being the owner financed - $42000 paid on principal during the year. If the 1099 is not for the full $345,000, how would i possibly determine the amount it is for? Or can I allocate the $345,000 over life of seller employment agreement for new owners which is 4 years? Thank you for any guidance. Bonnie

I'm a CPA and am looking at options for cyber insurance. Recommendations? I am a one woman practitioner so not a large company. Also, any ideas on what reasonable coverage and cost should be? Thanks, Bonnie

It's not you.... now ATX is saying it will be available tomorrow.... I guess we shall see. I don't recall ever having such a delay in prior years.

E filing of 941's is to be available on 1/13/24. I just chatted with ATX support.

I have a taxpayer that received SS disability in December. Prior to that, they had no earnings and were on marketplace insurance with a subsidy for just herself. Are there any exceptions to having to re-pay the $2800 subsidy? From 1/1/22-12/15/22, her income was zero. Of course, SS paid late December for a time period going back to part of 2021.

No children are from this marriage. I'm not sure why wife got 60% but that is what WV law determined.

Client's husband owned the rental property 100%. He passed away without a will. The wife gets 60% at sale and two teenagers get 20% each. All parties get stepped up basis for value at time of death. Does the depreciation taken during the husband's time of ownership die with him... meaning there is no recapture to deal with once asset is sold? Thanks in advance. Bonnie

What laser printer would you recommend for tax office? The HP one I just bought last year is doing some funky stuff and probably just easier to replace it.

I am late to the game here... but ATX does have an exception box. It is under Elections, Form 1120S and the very bottom. Just FYI.

yes, some loan payments have been made. At minimum, interest has been paid as well. Basis is restored each year as the business shows profit. I'm just trying to plan in advance and the figure out how the basis is restored.... plans to pay considerably more for 2023 in the form of loan payments.

Does anyone have a spreadsheet they would share that calculates the amount of loan basis restoration for debt basis that has been reduced in prior years? I'm trying to follow my program ( ATX) but cannot determine how it is being calculated. A worksheet showing the details would be helpful... especially as I know the client will want an explanation. Any help or sites would be appreciated.

I too use the Fujitsu for scanning. I choose to use File Center for my storage capabilities. It has some great integrations with my portal that make it even more efficient. I could use Windows to save, but found File Center worth the money for the time saving features.