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Everything posted by JackieB

  1. Hi Everyone! I have an odd situation with a new client. I guess I am unsure of what to do. In 2016, he started a contract for deed on a property. His prior tax preparer took the entire gain in that year and has just been taking the interest income going forward. They are stopping the contract for deed because the person making the payments is expected to pass away within the next couple of months. His plan with his lawyer is to give her the $15,000 down payment back and consider all of the payments made in 2020 as rent as he is going to let her stay in the house until she passes. My question then is, basis, when he resells the property what is his basis going to be? If this was set-up as an installment sale at the get-go I would be able to figure this out easier, however, being they took the entire gain in the first year I am unsure about what to do. I've been doing research but haven't found anything directly for this type of situation. Any help or links would be much appreciated! Hope everyone is staying healthy (and sane!)
  2. 100% of the HOA's income is from member's dues. They have no other non-exempt income and the cable, telephone, and internet are for all of the members of the HOA.
  3. I am trying to find some sort of literature or an article or anything that talks specifically about homeowners association and utilities that count towards the 90% expenditure test. I have a new HOA client and 37% of their expenditures are for utilities. They have broken down each utility payment (electric, cable, garbage, etc.) My biggest concern is the cable, telephone, and internet. If they qualify exempt under the 90% test or not. The HOA is condominiums.
  4. Minnesota is shut down. However, accountants/bookkeepers/auditors/taxpreparers/payroll is considered "essential" but we are going to work from home for the next two weeks anyways!
  5. Client donated two cars. Value is found to be $500 for each of them. The place he donated to said that they don't give 1098-C or other written acknowledgement when the value isn't over $500. I still feel like they need some sort of written acknowledgement of the donation, yes?
  6. I either need an opinion or a fact. I cannot find anything that shows exactly my answer wherever I look. So I have a client, who won a big contest at a casino. The winnings were reported on 1099-Misc "Other income". The ticket for the contest is free if you gamble at their casino. He feels he should be able to deduct his losses from that day on Schedule A because he wouldn't have received a free ticket if he wasn't gambling. It feels like a gray area to me, because the ticket was really free. Any thoughts?
  7. Client this year went gambling and brought to me a HUGE stack of W-2Gs. I can just group them together right? I don't have to actually put in each one separate? This might be a dumb question, but a few of us here at the office are on the side of grouping them and others say you have to do each separate.
  8. My client actually talked to the CFO of the company she works for and because they paid her the sign-on bonus on a date before the date of the contract, she wasn't considered an employee at the time she received the bonus. Wow, what a loophole! So if they are saying they were self employed when receiving that bonus, they should get the QBI deduction right!
  9. In my situation, being it was $150,000, I e-mailed my client with both situations and a blurp from the IRS publication that talks about sign -on bonus's and left it up to her to decide. Here at our office I asked around and pretty much everyone has said that if they were in that situation they would just pay the taxes so their name isn't dragged across the mud in case their name was ever brought-en up later. In my opinion, if your company has enough money to pay you a $150,000 bonus just for taking the job, they can afford to pay their half of payroll taxes.
  10. I just got one like that today, she got a sign on bonus from the hospital for $150,000. Box 7. Oofdah!
  11. Partnership return, they have a vacation rental: 49 days rented, 65 days personal, rest are unused. I want to put the full income and expenses in to make the balance sheet work, I tried putting in the % to be used on the 8825 and it takes the percentage by the income and the expenses when I want to use the full income and % of the expenses. Anyway around this or do I just need to override?
  12. Yup! Got that covered! Thanks!
  13. Has anyone ever been denied by electing the S-Corp status with the first return?
  14. New client, C-Corporation. They said they called the IRS to get a copy of the EIN letter and the IRS agent on the phone told them that they have an August year end. The client wants to be a calendar year-end, they said they don't know why they think it's August, and make the S-Corp election with the first tax return. They haven't filed a corporate return in the past. So, should I just file the tax return with a calendar year, or do the Form 1128 for change of accounting period first? Reading online, it states that the business elects its tax year with the first tax return that is filed. Should I even bother then with the Form 1128?
  15. JackieB


    Yeah, the EIN is for paymasters and it doesn't say "in care of". It is kind of a weird scenario. I've never heard of anything like this before.
  16. JackieB


    I have a client who runs their payroll through a third party service called Paymasters. The W-2s issed to their employees show that the employer is the third party service. Obviously, my client still pays for the payroll and taxes, but even the 941's are under the third party service's name. Is this still considered their wages for QBI? I am not finding a straight answer when I research the issue.
  17. Hello! Is there anyway to convert the fixed assets from ATX to an excel sheet? I originally printed to a PDF and then converted to an excel, but it doesn't seem to like it when it's done that way.
  18. I received an e-mail from ATX just now. They said they will have the problem resolved by the end of the week. YAY!!! Majority of my client's response to log keeping: "OH, HELL NO!" HAH!
  19. There really is no explanation on what is causing the problem yet. But, from what I can tell, if you have a Schedule C or F and a Schedule E in the same return it errors. Because if the Schedule E isn't checked as "qualified" for QBI purposes, I think the software is getting confused and wanting the 8995 to be deleted. The Form is still filling out and calculating the deduction correctly, just won't let you create an e-file. ATX told me that they are working on the problem, checked again this morning and it is still an error. Hope they figure things out soon. If they don't, I suppose we would all have to just click the Schedule E as qualified and then override the deduction and 8995 to being correct?
  20. They took a copy of my file and told me they will call me back. It sounds like it's a problem they can't figure out how to fix as of right now.
  21. There was also two schedule E's, but there is nothing checked because they are not qualified.
  22. I have a tax return that it won't let me create an e-file for, it says "If no businesses are "Qualified for QBI purposes, please discard Form 8995". There is a business that is qualified, I have it checked on the Schedule C data and it shows up as checked in the activities section on the 8995 and is producing the QBI deduction correctly. Any ideas on what I am forgetting to check to have it let me efile?
  23. Am I understanding things correctly, if the partnership has less than 10 partners there is no need to opt out of the new partnership audit rules? Took a continuing ed and that is what they said but haven't found any sort of back-up to that statement anywhere.
  24. False alarm, it was a software issue and was fixed
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