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GGRNY

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About GGRNY

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  1. My client is an engineer and owns his own S-Corp. He got his bachelor's degree from a smaller school, has been working in the field for a couple years now and wants to get his PE license. However, the school he got his bachelor's degree from doesn't qualify him to sit for the PE license since it didn't have the right accreditation. So he has to take many of these classes again from an accredited school to qualify for the PE license. My question is this. I think if he were getting his bachelor's degree only, the education expenses wouldn't qualify as a business deduction because the IRS views a bachelor's degree as "training for a new profession" regardless if you're already in the profession. But an MBA in the field WOULD qualify as education expenses of the S-Corp because they "maintain & improve skills in your current profession." So here's the tricky part. Since my client already has the bachelor's degree, and he's only taking some of the undergraduate classes to qualify for the PE license, you think that's enough separation to qualify for the "maintain & improve skills in your current profession" and take the deduction through the business? Or am I really reaching here?
  2. Just got a notice about this from PayPal. They are no longer refunding ANY of the PayPal fees when refunds are processed. This is gonna piss off of people. Many of my clients will probably skim right over this unaware. Just in case you've also got clients that utilize PayPal, you might want to let them know too. https://www.theverge.com/2019/9/20/20876570/paypal-refund-fee-policy-change-sellers-controversy?fbclid=IwAR3Hsky9TmN_uTd84i7CupJTuoFCSkwuSeYrM8jM2GVcp_D-KcHeiYrKvgk
  3. This is what I've already done so thank you for confirming it. My belief that I was still somehow overriding it was based on the DETAIL tab of the 1120S K-1 data entry. When I check mark the "calculate basis limitation" box on the K-1 1120S K-1 INPUT tab: I then get the pink "override" boxes automatically filled in on the DETAIL tab. Not sure why ATX would do that since it makes you think you've done something wrong, but things flow through nicely and line up with my paper copy so I'm happy. Thanks for all the insight everything.
  4. Oh, I still don't see how to enter this information into ATX without overriding a box. Any clue how to get the new Schedule 2, page 2, line 28 box to be check-marked in the first place?
  5. Interesting. I have filed other S-Corp owner returns, but this is the first with a loss so it piqued my interest. I can see them sending letters for lack of basis reporting if a loss if reported or stock disposal, but I wonder how much enforcement there will be for distributions only as I would think most S-Corp shareholders have distributions. It's my understanding that reporting the basis information is only required if a shareholder reports a loss, receives a distribution, disposes of stock, or receives a loan repayment from the S corporation.
  6. Was reading an article from Kiplinger regarding expanded cases when on Schedule E, Page 2, Line 28, the box labeled "check if basis comp required" is checked. I'm about to file my only S Corp return this year that has a loss to report and I can't see how ATX even utilizes this box unless I override. Even in the K-1 Detail Anyone ever check this box without an override and if so, how? And while we're discussing it, how many are actually doing the basis computation and including it with the return when their reporting a loss? I've spoken to other accountants who looked at me like I had three heads when I mentioned it.
  7. You honestly, genuinely and sincerely just made my day
  8. Resurrecting this beast as I'm really trying hard to do this RIGHT, and it genuinely feels impossible using the 974 as a guide. I'd honestly LOVE to see an IRS auditor explain this whole thing. I'd bet many can't. Regardless I've got a CRAZY method and I'm hoping one of you can logically talk me out of it. I'm using ATX. I've already completed the SE Health Ins. worksheet, Worksheet W & Worksheet X and form 8962. The only thing blank on W is the very bottom where it asks for the simplified or iterative method results. THEN, I took total premiums listed on 1095A (ie $16k) minus premium tax credit listed on 8962, line 24 ($13k) = $3k. So I then reduce my SE Health insurance deduction by $3k. Let's assume I was deducting $7k in premiums originally, so now it only says $4k. I go back to 8962, see what the newly calculated premium tax credit says and continue to adjust the SE Health insurance number up and/or down until I get a summation of SE Health insurance and Premium tax credit that's most closely totals the total premiums. Is this crazy? Is this in effect the Iterative calculation?
  9. GGRNY

    Catch-22 SEHI PTC

    Resurrecting this beast as I'm really trying hard to do this RIGHT, and it genuinely feels impossible using the 974 as a guide. I'd honestly LOVE to see an IRS auditor explain this whole thing. I'd bet many can't. Regardless I've got a CRAZY method and I'm hoping one of you can logically talk me out of it. I'm using ATX. I've already completed the SE Health Ins. worksheet, Worksheet W & Worksheet X and form 8962. The only thing blank on W is the very bottom where it asks for the simplified or iterative method results. THEN, I took total premiums listed on 1095A (ie $16k) minus premium tax credit listed on 8962, line 24 ($13k) = $3k. So I then reduce my SE Health insurance deduction by $3k. Let's assume I was deducting $7k in premiums originally, so now it only says $4k. I go back to 8962, see what the newly calculated premium tax credit says and continue to adjust the SE Health insurance number up and/or down until I get a summation of SE Health insurance and Premium tax credit that's most closely totals the total premiums. Is this crazy? Is this in effect the Iterative calculation?
  10. Ugh, I did a search in the forum for this before I posted and came up dry. Guess my searching skill need work. Thansk Pacun.
  11. And I found it. Never mind. For anyone looking, it's under the "over 65, blind, deaf, etc." boxes.
  12. Rolled over a client's return from last year where his mother claimed his exemption. His mother cannot claim him this year, but the box at the top for "Someone can be claimed as a dependent" is checked and for the love of me, I cannot find out how to remove this. HELP!
  13. GGRNY

    Timeshare

    This is what I thought too, however, after researching it and I think because it doesn't qualify as a 2nd home (they didn't stay in it the minimum of 15 days necessary to qualify as a 2nd home), then that rule doesn't apply. https://www.redweek.com/resources/articles/tax-aspects-renting-timeshare
  14. GGRNY

    Timeshare

    Client owns a 3 week timeshare. Uses it for 11 days personally, rents it out for 10 days. Got a 1099 for the rental income. Just want to confirm. The timeshare doesn't qualify as a 2nd home because they didn't personally use it for 15 days correct? I report it on Sch E, but losses are limited to rental income. After that they are disallowed, correct? Do I have to split the association fees and other expenses between personal and rental? Meaning, only (10/21 or 48%) of expenses are deductible on Sch E? Are the disallowed losses carried forward or permanently disallowed?
  15. Did you complete this line?
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