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G2R

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Everything posted by G2R

  1. This is what I ended up doing. Thanks for the replies everyone. Yes, I tried this. It didn't change anything. Thanks for your input.
  2. Hello! I've entered approx. $8k in startup costs for a client into ATX. I cannot figure out how to get ATX to allow the $5k deduction. Anyone know how?
  3. Unfortunately this isn't going to happen. Bitter infighting amongst the SHs. Long, sad story. But thanks for the suggestion. This is what I was hoping wasn't the case. I didn't realize an actual cash transfer was a requirement. Thank you for your insight @DANRVAN.
  4. What a great read. Thank you @cbslee. I appreciate it! I found a number of articles regarding the uneven distribution discussions and definitely gained a tweak perspective on them. The loan idea came about for two reasons. The left out SH would earn something on the cash he wasn't given like the rest. The amount of time that uneven distributions existed would be shortened. That's why I'm hoping it's not a violation of any existing rules. So far, I haven't found anything that says it is.
  5. 1120S has four shareholders. All were also officers of the company. Reasonable compensation was paid to all four. Three of the shareholders took it upon themselves to take large distributions in the previous year leaving one of the shareholders out. I've let them know this violates the S-corp rules and puts the S-corp status in jeopardy. The company currently doesn't have any remaining cash to pay the 4th SH his distribution. Can they draft a loan agreement between the company and the SH, with proper interest, for the distribution that should have occurred? And if so, can the distribution be recorded at the time the loan is drafted?
  6. This is how mine flows thru. Hope it helps. Keep in mind, in my example below, the expenses paid for by PPP loan funds were expensed in 2020, while the forgiveness was given in 2021 so line 3 of the M-2 AAA column includes this fact. In my example the PPP amount was $3250. Also, to answer your question, I do not have K-1, box 12 data related to PPP. K-1 Basis stmt: M-2: see below for how I entered these data points. To get M-2 to populate: K-1:
  7. I've been using TaxDome which is an entire online portal that offers e-signature with KBA ($1/signer), and so far it's been a breeze and my clients haven't had any real issues. It offers the audit trail download too. I haven't even begun to use the pipelines yet, but many have said they made a huge difference in the office workflow. Summer project for me is learning them. I use CamScanner. It takes the picture and converts it into a VERY CLEAR digital copy and offers PDF, JPEG, etc.
  8. Yes, I have to add back the pre tax items the NJ doesn't allow to be excluded from taxable wages. Some of those items that need to be added back are EE paid health insurance premiums, vision, dental, etc. I'm looking to confirm that when I add those items back to wages for NJ purposes only, they are also now eligible items for medical deduction on line 31 of the NJ-1040.
  9. The employer doesn't acknowledge the employee's NJ residency at all.
  10. Client lives in NJ, works in NY. Employer does NOT provide a NJ wage detail on the W-2 so I have to calculate myself. It's my understanding that NJ only allows 401k to be deducted from wages But on the NJ-1040 I see a medical expense deduction for 125 Plans. Limited research suggests I can take the premiums my client paid for health, vision etc and deduct the amount over 2% of NJ AGI on the front page of the 1040. (Luckily they gave me the 12/31 paystub so I know they portion). Any NJ preparers that can confirm this? Previous preparer didn't do this so self-doubt makes me hesitate.
  11. Thanks! That's where I ended up putting it and it flowed through perfectly! Thanks again for your reply.
  12. Client overdrew his basis (S-Corp). LTCG will be recognized on his personal return. 1120S Return: In ATX, page 4, Balance Sheet, R/E line is directly linked to the M-2 AAA analysis. Because my client overdrew his basis, the balance sheet SHOULD list R/E as a negative value and the M-2 should be zero, but since ATX links the two, the balance sheet is unbalanced. Without forcing the entry somewhere, where/how can I make ATX display the balance sheet retained earnings amount (which will be a negative value) different from the AAA which will be ZERO?
  13. Separate question. Is there any way to confirm an S-election status? I have two clients (new) that started businesses last year, that filed form 2553 (supposedly) but never got a letter from the IRS of the S-Corp approval. Is there a way to confirm without .... (gulp) .... calling the IRS?
  14. I would paper file the extension with documented copies of the 2553 filed timely, certified mail. Then if you still haven't heard anything when you're ready to file, file the corp return with late election noted at the top of 1120S, and again, a copy of the timely filed 2553 with a note of all the history of trying to get this filed properly. What a mess.
  15. Has anyone had ANY extensions be accepted in the last 24 hrs. I sent out a bunch yesterday and so far, they are all still waiting for acceptance.
  16. G2R

    Form 7203

    Nice. I haven't seen this yet, but I am very happy to hear ATX did this.
  17. G2R

    Form 7203

    I was wondering about this too. I do plan to attach it. I prepare many NY returns and CT-399 is a PDF attached requirement too so I'm used to the extra legwork. On a separate note, it would be nice if ATX pulled the Shareholder basis stmt info from the 1120S return to the 7203 during the K-1 import. Probably a big ask, but it would be nice since it's pulling the K-1 data anyway.
  18. That's a damn shame @cbslee. Wonder if they ever thought back to childhood memories and asked themselves, is this really what we've come to? Had a client who gifted shares of his company to his children. Easily worth millions. The son got mad at at his dad and sold these gifted, never earned them or worked a day in his life, shares to the minority shareholders, which then gave them the majority, and they eventually pushed the owner/dad out of his own company that he had built from the ground up. Most cold-blooded move I ever saw in my career.
  19. Correct. Thanks for your reply @cbslee. As always, I really appreciate it. When they first got into this mess, I told them "The only one that's gonna win in this are the lawyers."
  20. Family business. The shareholders are in a bitter legal battle with each other over ownership, money handling, trademark infringement, etc. The way I understand, legal fees paid for the protection of company assets (trademark), and in the ordinary course of business (like being sued by a customer or vendor) would be deductible to the company. But the battle over who will retain ownership, buyouts, etc, is NOT deductible to the company. I have asked the lawyers to be very specific in their billing so I can pick through the bill for deductible items. Any one have experience in this area to confirm my research. TIA
  21. Thanks Dev. Do you know when ATX updated this? I was just working on a return last night and didn't see the numbers flow as you've described.
  22. Hi JKLCpa, this confused me. I thought the updated 1120S instructions actually does say to increase AAA.
  23. Question: When preparing the K-1 schedule for an 1120S, so a SH can keep track of their basis, I think box 16 should have code B (other tax-exempt income) listed. Can someone confirm this?
  24. Hi @Yardley CPA I have a client that works in NY, but lives in FL for her own convenience, not the employers. I only file an IT-203 and allocate 100% of the W-2 income from the NY job to the NYS amt column pm IT-203. Another client of mine work in NYC, but come Covid, he worked remotely in NJ the entire year. All wages were still allocated to NY earnings despite his lack of physical presence in NY. I think IT-203B is meant for W-2 jobs where some of the wages are earned inside NY and some are earned outside NY, the deciding factor being necessity. Meaning the wages earned outside NY and are not allocated to NYS because it was necessary for them to be outside of NY to perform the job. I agree with your assessment of the convenience test. I was confusion about the NJ/ Penn reference in relation to NY so if I misunderstood the question, I'm sorry for a pointless reply.
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