JackieCPA

So - ATX isn't going to have the MN Revenue Schedule PTE available at all. They also said there isn't going to be any electronic attachment availability for MN returns for passthrough entities. Do you think I should mail the Schedule PTE by mail and e-file the rest of the return? This is going to be a lot of returns to physically calculate that form as most of my clients want to do the pass-through entity tax/credit.

I had the same problem, generally on the M2 it uses the net income per books to reconcile with equity. But this year it was using it after the adjustments - I checked with the 2020 returns and it is pulling a different number to the M2 in 2020 vs 2021. I overrode for now - haven't actually filed it yet as I was hoping the problem will be corrected.

You don't need a new EIN going from an LLC to an S-Corporation as they would still be an LLC just taxed as an S-Corporation. Unless you are filing for them to be incorporated as well. Or maybe I am misunderstanding the question.

Now that I see it - I feel like an idiot. Thanks!

Last year, on the M1NC there was a spot to add back the $300 above the line deduction. For 2021, they have taken that line away from the M1NC. Do we think they are going to put it back? They still have the M1M charitable subtraction, but I feel like it would be double dipping. The couple is married so it is really a $600 above the line deduction. I can't find any guidance from MN about it. Are we thinking they are going to adjust returns again this year? I am unsure if I should finish off returns or not.

Did you check the back? Most have been first side english, backside spanish.

This was insightful - thank you for the responses.

Hi! I have a tax client who is unmarried. Lives with his girlfriend and their child. Generally, he claims them both the girlfriend and the child because the girlfriend doesn't work. For 2021, she had about $4,900 of income, so he isn't going to claim her. For the child, it is his biological child, but the girlfriend called me and said that he doesn't have any legal rights for her. Does he still get to claim the child? All I find is the tie-breaker rules, with those he does get to claim the child. However, with the fact that he is the biological father but has no legal rights towards the child. Is she technically the custodial parent then and he would have to get a Form 8332 from her in order to claim the child? I haven't had the situation before where they all live together and he is the biological parent. But I guess when the child was born he gave up the legal rights for an unknown reason.

Hello everyone! I have a client who has purchased a resort - this resort has about 10 cabins on the property. The owner and his family lives in one of the cabins (100% of the year) - (sole proprietorship) As far as depreciating the cabins - I'm assuming he can only depreciate the 9 cabins that he doesn't live it. However, the utilities is under one giant bill. Is that something that I can back-out a percentage that we figure is for his personal cabin? I'm not finding anything online that is really helping me with an owner living on the property of the resort. Any help or advice would be much appreciated! Thanks!

Hi - My client was married and had a step-daughter. Now the couple is divorced. His step-daughter has still lived with him all year and he provides all of her support. Does he still get to use the "qualifying child". After the divorce, I wasn't sure if she still is considered "step-daughter". He does have full custody of this child.

They are staying with me to finish up the tax year, then the new company is going to a different firm. The only thing they have stipulated in the agreement is that old owners will pay their share of taxes on their income/expenses and vice versa. I will be verifying with both parties about the election 1377(a)(2) and that they are all in agreement. Thanks for the articles. Very helpful.

Okay, yes - so I have filed Form 8822-B to change the responsible party for the EIN. We will also be filing the 1120S with the election 1377(a)(2) to treat the corporation's tax year like it consisted of 2 separate tax years, the first of which ends on the date of the shareholder's termination. Thanks for everyone's help!

Do you know where I would find that on the IRS website or anywhere else? I just want to verify.

I've never waited before, just e-filed them both right away and haven't had any issues.

I also thought that the EIN would remain in tact since they purchased the actually INC. Will it let me get a new EIN number with the same name, address, etc? Normally it would catch that and not allow for a new EIN since the IRS thinks they have one already?

Hello - I have a corporation client who has sold the stock to new owners. I just want to make sure I am understanding the future tax filings correctly. My understanding is for the S-Corporation return, it can be done in two ways. 1. Do a short tax year for the original owners from 1/1/2021 - 8/5/2021 and another short tax year for 8/6/2021 - 12/31/2021 for the new owners. 2. Do one tax return showing the K1s prorated for the ownership change on 8/5/2021. Is that correct that it can be done either way? Follow-up: There was payrolls under the new ownership and old ownership. Do I file just one 941 showing both?

That happens to me every once and a while - usually I just have to close ATX and reopen it and it will work.

Hi - so I have figured out that yes, it would be all taxable in one year if it was 1250 ordinary income recapture. However, because we took straight line depreciation it is not ordinary income recapture and the 1250 gain even though the entire gain is from depreciation recapture, it will still be done on the installment method and take portions of the gain each year. So many rules to keep track of

Hi! So I have a sale of a rental residential real estate property (Section 1250 Property). The entire gain is from depreciation recapture. It is done on an installment sale, however, according to Form 6252 instructions: Any ordinary income recapture under section 1245 or 1250 (including sections 179 and 291) is fully taxable in the year of sale even if no payments were received. ATX is putting the sale on Form 4797 and Form 6252. The gain from 4797 is not going anywhere on the 1040, and it is wanting me to put the payments received on the 6252, but wouldn't it not go there since it would all be taxable the year of sale? What am I missing?

I will try Ebay thanks so much

They are only allowing me to order 2019 and forward. I am wondering if it would be a big deal to just print them online in the color red and file them that way. Any thoughts?

Any ideas where I can buy some 1099's for 2018? I have to do a corrected one but cannot find 2018 Forms anywhere.

The person who prepared the LLC's tax return said they will not do that as it is not in the LLC's name. So I guess I am back to my original, can I use this on her personal return?

Yes, It is a very odd situation. They swear that the tax preparer of the partnership return says they won't put it on the partnership return (They all pay the mortgage personally in proportion of percentage that they own the partnership). I'm going to maybe just have to get more information from them.

I have a client who is a partner in an LLC and receives a K-1 showing rental income. (She is listed as general, active partner) The client gets a 1098 for mortgage interest for the property being rented as she owns it personally and pays the mortgage personally. The LLC does not use the interest on the partnership return. Can we use this on her personal return as investment interest? Form 4952? She'd be not using it this year anyways as she does not have any passive income - but I know she can't use it as qualified mortgage interest on the A. Any thoughts?