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G2R

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  1. Deadline to opt in for 2021 is TODAY. This is from an email NY sent out a while back: To opt in: Log in to your S corporation's or partnership’s Business Online Services account. (If the business doesn’t have an account, we recommend creating one by October 8 to avoid missing the election deadline.) Select the ≡ Services menu in the upper left corner of your Account Summary homepage. Choose PTET web file from the Corporation tax or Partnership tax expanded menu, then select Pass-through entity tax (PTET) annual election. Reminder: Tax professionals cannot make the election on behalf of their clients.
  2. Let me add, it only seemed really advantageous for the higher earning clients. Those making under $100k profit in their business, and/or not in the higher tax brackets personally, it mathematically didn't justify the election.
  3. I'm doing a side by side analysis of my NY clients and how it affects them. It seems to be a great deal. Even with the lower QBID deduction, the fact that it lowers AGI, those on the borderline of phaseouts will reap the benefits. I'm still a bit shaky on the NY personal return effects. I read that they get a credit on the NY return, but is that credit AFTER the tax is added back on maybe the IT-225?
  4. Hi! Does anyone know of a good website or webclass that might provide a sample of this strategy actually executed?
  5. Thanks everyone! The $1 suggestion worked and saved me the hassle of paper filing!
  6. ATX won't let me efile a tax return that has income items, but the entire 1040 is blank due to basis and passive loss limitations. Do you still paper file this so the IRS has a log of the activity & carryforwards that happened on the other forms (ie, Sch E pg 1 & 2)? Also, is it a benefit to paper file just so the statute of limitations commences?
  7. Yes Gail, that's exactly what I was saying. Thanks for confirming it too!
  8. Thank you for the reply @Lion EA & @Gail in Virginia -- Originally I was told the LLC was a C-Corp and I'd never seen an S-corp own a C-corp so I was curious how reporting that information would work. I finally got a copy of the actual K-1, and it's an LLC taxed as a partnership, NOT a C-Corp like they said. But for future reference, if the S-Corp DID own a portion of a C-Corp, I assume the dividends would simply be reported through the 1120S K-1 right?
  9. My client's company (Sub-S) invested in another company (LLC, taxed as corp) in 2020. For 2020, a K-1 was issued from the LLC to the Sub-S for the 2020 profits, however dividends were not issued until 2021. Am I correct that the 1120S for 2020 will not show any tax implications, but in 2021, the Sub-S will show dividend income to my client on his 1120S K-1?
  10. I was just reading about this this weekend after NYS sent out an email last week about it. It's on my list of to-dos so thanks for bringing it up here. I can see the obvious tax savings in their efforts to work around SALT, but I'm just worried that NYS will get all too comfortable getting this tax income and eventually make it a permanent thing. NYC doesn't recognize the S-election so a further state tax is tough to explain to clients that don't grasp over tax strategy very well. (Sigh) @TaxCPANY I tried to click the link above and it's broken.
  11. Resurrecting this topic to emphasize how much this thread has meant to me as an accountant. The knowledge here completely changed my understanding of AAA/basis/RE etc. It couldn't have come at a better time given the losses many of my Sub-S clients experienced in 2020, basis reporting requirements, and throw in PPP loan forgiveness reporting and basis challenges and I'm just so grateful to have labored through learning this stuff. I now have the attached picture below taped to the wall of my office so it's information continues to be reinforced in my head. I hope it helps someone else that maybe struggles grasping what I found to be a complicated, difficult concept. I tried to keep the summary info simple and limited to what my own clients normally encounter so it's not a complete textbook of the concept, but if anything below seems wrong, please let me know.
  12. Hi everyone! I can't thank you enough for all the help with this. I was able to get through the 3115 (insert proud smile) and now I'm working on the tax implications of their state taxes. Any NY preparers ever dealt with NY or RI regarding this form? I read that California requires approval before a change in accounting method but I haven't found any rules regarding NY or RI. btw, @Lion EA thank you for recommending that self study course. It was well worth the price.
  13. Thank you everyone for the advice and encouragement! I really, really appreciate it.
  14. I've never used that form, but read about it multiple times on this forum. Ugh, @Abby Normal every time you answer one of my posts I have to actually LEARN a whole new section of the code. Skeleton in the Closet: Would filing this form make the IRS go back and review what depreciation they actually took? Because if so, the Pandora's box that might open could be a disaster.
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