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GGRNY

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About GGRNY

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  1. I've spent every free moment of the last few days researching this thread's info. I come from a family of accountants and we always maintain books on a tax basis. Our clients are small mom and pop businesses and reporting books that mirror the tax return just makes explaining things so much easier. Quite honestly, I never knew S-corp bookkeeping to be any other way. In fact, my father adamantly followed the rule, "1120S Sch L R/E MUST = Schedule M-2." I now know better thanks to the knowledgeable members of this forum and countless tax articles & publications I've read since.
  2. Tracy Lee, you might find this thread helpful.
  3. The above order of operations is exactly how I close books. The only difference is I have always changed the name "Retained Earnings" to AAA in Sub-S client's Quickbooks as I found it easier to discuss AAA & basis monitoring with this change. Given I've never had a client overdraw their basis, I wondered how others handled the bookkeeping of that negative balance. jklcpa, Thank you for your time and considerate replies.
  4. Thank you! I constantly remind and borderline harass my clients about keeping their personal and business finances separate. In the follow year, assuming it's profitable, do I net it against the negative R/E first? Then once all the negative R/E is exhausted, proceed as usual with the AAA?
  5. Client is a new single owner S-corp. Profit was $1k this year. Company took out a $56k loan from the bank. Then proceeded to issue a stockholder draw to the owner for $56k. Aside from simply reclassifying the $56k draw as a loan to the shareholder, lets say that isn't done. Then owner has overdrawn their basis by $55k and he's got a $55k LTCG on his personal return. But how is the $56k draw account closed out for the year? I usually close out all draws to AAA, but since AAA can't go negative by distributions, only losses, what is it closed to? Meaning, in my YE closing
  6. This worked! Thank you very much for your advice!
  7. Just had a 2019 South Carolina efiled return bounce. EFC Reject says "Wrong Submission Year" "Year in Submission ID is incorrect: 2020, should be 2021." I'm in ATX 2019 so just curious if maybe SC doesn't accept past years being efiled. Can any SC tax preparers please confirm? TIA!
  8. My apologies. Her TAXABLE INCOME is negative. MFS because her husband lived in RI all year and she's the only owner of the VA property. He made a good amount of money and so their Federal and RI is MFJ. She mentioned filing the VA return anyway for school/residency purposes? But if I'm reading the VA tax rules correctly, she's only allowed to claim one of their two dependents AND only if she herself had provided at least HALF of the earnings. Correct?
  9. Lastly, when assessing only HER income, her AGI is negative. So, if filing even still required?
  10. Every time I get an email from this client, I cringe knowing it's another new item to add to a multiple-times-completed return. Client is Married. She has a place of abode in Virginia. She spent 44 days in VA. The remainder, she was in RI with her husband. Her driver's license is still Virginia and I'd wager she didn't update her voter's registration either. She's bounced around various states and hasn't actually met the 183 days in VA since 2013. I assume because she hasn't taken the necessary steps to separate herself from VA residency I have to file VA tax return, MFS correct
  11. Need to file an amended Rhode Island tax return. Clients originally filed MFS, now want to amend and file, MFJ. I called RI and they do accept amended returns electronically, but ATX says, "RI DOR does not currently accept electronically filed amended returns" in the Check Return feature. Is this only because the portal is currently not accepting them till the 2/12 date, or does ATX just not offer this service?
  12. HI Dan, Thanks for the reply. Given there's no K-1 for this kind of trust (the Grantor is given the 1041 Grantor Information form), I was able to find an old forum discussion about 1041s and JKLCPA mention this area of the Fixed Assets data entry that corrected the depreciation not flowing in my 1041 return. I'm adding it to this discussion so hopefully it helps someone else in the future. Thanks DANRVAN & JKLCPA for your assistance.
  13. New Client. Needs me to file her Irrevocable Trust return which has rental property. After reading the trust documents, I reached out to the lawyer and confirmed it's a GRANTOR, IRREVOCABLE trust. A unique setup done for Medicaid purposes I'm told. Fine. I have to file a 1041, but for informational purposes only. Then, the grantor is given a 1041 Grantor Trust information form to include the rental income & expenses on her personal return. When I complete the return in ATX, it's not flowing the deprecation through to the information form. I've research this and do see w
  14. That was my only logically solution too so thanks for the reassurance. I just always wonder, before computers were doing all these calculations for us, how in the world did accountants figure this stuff out?
  15. Anyone have experience with the 8582-CR form? I have a new client. She gets a credit each year from a partnership for Employer SS/MED taxes on the K-1, and she many years of disallowed credits that she's carried forward. I think the previous accountant was using Drake, so I'm hoping some of the Drake users here might know. When I'm calculating the 8582-CR, line 6 amount on page 1, ATX does NOT auto-calculate this for you, it wants me to calculate it. I've manually calculated it, but when I go back and use my methodology to check myself on the previous returns filed, I don't get the number
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