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I've been using ATX software for many years. I do not prepare financial statements but a client needs to keep their books on GAAP basis. Therefore, I need some fixed asset software that will calculate a different life/basis. Does anyone have a fixed asset software recommendation? Not super expensive as this is for one client. Thanks!! Bonnie

I have two clients that want to turn ownership of S corps over to children. First scenario - Dad owns the business 100% but son has always run business. Dad wants to turn business ownership over to son. We have a value of the company. Minimal assets, minimal debt and basis is close to zero. What items should be taken into consideration in structuring this transaction? Second scenario - Dad owns the business 100%. Son has become much more involved recently. As parents transition to retirement, they want to turn business ownership over to son. No estate tax issues here but no value of company either. Minimal assets, no debt. Once again, what items needs taken into consideration? They want to transfer of ownership to be effective 1/1/19 with little to no tax consequences. Thanks for helping me navigate both these transactions!!

A statutory employee pays health insurance premiums for himself and family. Are these treated as self employed health insurance premiums or is he stuck deducting on Schedule A? I have looked and do not seem to be able to find the answer. Thanks in advance, Bonnie

Taxpayer and spouse bought land in 2005 for 160k. During 2017, taxpayer gifts land to child and child's spouse. FMV was $56k. I believe there is no loss to be claimed as the child and child's spouse now have basis in land of $160k. Is this correct? The property that was given had $68,000 on disallowed investment interest accumulated. Since the taxpayer no longer owns the investment property, what happens to that previously disallowed investment interest? Is it able to be deducted or continues to be carried forward? Any sites would be helpful. Thank you in advance.

I know a SEP IRA can be transferred to another IRA account tax free. Is there any length of time the SEP IRA has to be in existence before such transfer can occur?

Client’s mom died in a house fire in August 2017. The house was insured. My client received the insurance proceeds for the property and the contents of the house. Due to insurance limitations, the amount received was not what the house/contents were worth before the fire. The insurance agent gave tax advice ( ugh) to be sure to take the casualty loss for the difference. How would I calculate the casualty loss? At what point did my client inherit the house? I know in normal circumstances, it’s the value before the casualty loss minus insurance proceeds. How does the death complicate or change this calculation? Does stepped up basis impact anything in this scenario? I believe any casualty loss would be the son’s rather than mom’s. Mom died during the fire not later as a result of the fire. She was trapped in the burning house. Any citations would be most helpful as well. Thanks!!!

I have an LLC that was owned 51% by my client and 49% by Joe( fake name). Anyway, on 7/13/17, Joe gave my client his 49% ownership just as a gift. Joe was never involved in the business. They filed a 1065. Also on 7/14/17, My client who is now 100% owner, elected S Corp status. I know we need to file a form 1065 for period until 7/13/17 and 1120S for period from 7/14/17 forward. My question – since Joe walked away, does my client just gain basis in the amount of Joe’s basis? Is there an election to make for this? Retained earnings is positive but breakdown between Joe and my client shows Joe equity account as positive and my client's is negative. Please help. Thank you!

I'm curious what the fix was for the zip code crash problem. It began happening to me this morning. So frustrating!!

Is there any means by which I can pull up all the client files that have a specific form within them? I thought we used to be able to search for that but so far have been unsuccessful in figuring it out. thanks, Bonnie

I use ATX tax software. Is there anyway to search the files for ones containing a certain tax form? I thought we used to be able to do that. I'm trying to ascertain a list of all Form 2553's prepared this year and send letters to those clients. Thanks, Bonnie

Thanks everyone for the clarification. Have a wonderful day!!! Bonnie

Client operates as an S corp. The only employee is the owner. I believe they can continue contributing to their SEP but where does the deduction show up? Would it be deductible as retirement plan on the Form 1120 S or on the front of Form 1040? I do not believe I've ever run into this for a client but now have it on several.

I have a client that has an S corp that generates a R&D credit. For 2015, the S corp generated taxable income but the credit could not be used at individual level due to AMT limitations. For 2016, the S corp had a loss and the credit is not allowed because of no taxable income from the entity. Both credits are being carried forward. I’m trying to understand what the scenario has to be for him to actually be able to use the credits. The total carry forward amount is $38k. Can you help me better understand this? Would wages from the entity be considered taxable income attributable to the entity? Also, if the taxpayer is no longer an owner of the S corp, does that mean those credits are useless? Any help or guidance is appreciated. Bonnie

Is there a way to make a list within the software of all clients that contain a certain form, like Schedule C? I thought there was but cannot seem to locate it this morning. Thanks for any help!!

I have a client that is looking to prepare their own payroll. Only two employees and the one is the S corp shareholder. What options are there for a Mac user? I've used and recommended Medlin for years but they are not Mac compatible. Thanks!!

I stumbled upon the answer. The Form 4562 was on manual mode( why, i have no clue). Solution - delete Form 4562 then add Form 4562 back to return. Deduction now being allowed.

i am using ATX software. i have a client who has $225k in basis in the S corp. Current income was $133k with section 179 of 7062. No other section 179 taken on return. The software is not allowing me to deduct the section 179. AGI is currently showing as 381k but i didn't think that mattered with Section 179. What, if anything, am I missing? I'm tracking basis within the 1040 return and marked them as greater than 2 % shareholder. On the basis worksheet, it says the Section 179 is allowable for 2015 but is not transferring the deduction to page 2 of Schedule E. I can override but want to know why this issue exists.

Just an FYI, yesterday began receiving this error upon attempting to recreate an efile. Called customer support today after I could not resolve the issue. Apparently, there is a known issue regarding creating e files that contain a K-1. They advised me to wait until tomorrow to attempt to file. They are currently working on a solution. Frustrating but I suppose I'll wait until tomorrow.

I use Send2fax and pay $8.95 a month. The fax number is toll free for my out of area clients too. I've been using it for 12 years and love it. Fax comes in as pdf and I set up a separate folder within my email so I see a fax came in. Bonnie

The instructions to the form indicate in addition to the form, you need a signed statement, to stay in your records, that includes several items in it. I was wondering if anyone had a template for that statement.

Client and 5 siblings contribute monies monthly for mom's care. They qualify for the exemption based on the rules. Does anyone have a signed statement template that they can share with me? Thanks,!! Bonnie

I just picked up this account this year. Client is getting me more info.

Partnership charged material costs to a credit card. Customer stiffed partnership for income and never paid. Partnership was unable to pay credit card and 1099C has been issued. Is the 1099-C income subject to SE tax? Thanks for any guidance!! Bonnie

Single taxpayer age 62 Signed up for coverage through marketplace. Total household income is only $6000. Monthly premiums paid were $611. SLCSP was $609 per month. No credit calculating. Is this because they were eligible for Medicaid based on low income? Thanks for any guidance.

What are the 1099 requirements when a S corp shareholder leaves and sells stock back to company? it does not appear a 1099-B is required as the S corp is not a broker. Thanks for any guidance.