JackieCPA

I have a client that has been waiting since August for his 2019 refund.

Hello! How long is everyone else planning on waiting to see if Minnesota changes that PPP law? It hasn't even been talked about in the news since March 11, so I am thinking I am safe to finish up everyone's return I was waiting on. Any thoughts?

I hope soon! We have a lot of returns here that I am unsure what to do with. Part of it is because MN keeps saying they are going to change what they are doing and keep changing what they will have excluded.

I'm glad that the actual EIN is on here! I have been using 00-0000000 all season (all got accepted!) But, It is nice to have the actual one

False Alarm - figured it out.

So - since tax payers can elect to use donations up to 100% of their AGI - how can I do this on ATX? it is still using the 60% limitation

The disallowed loss from a wash-sale is added to the basis of the replacement security. When it is sold, the disallowed loss effectively reduces the gain or increases the loss of that transaction.

Yes, I am talking about the partners who are inheriting the partner who has passed a way's interest. The partnership consists of the parents and their children.

I have a partnership where one of the partners have passed away. I was given the amount of their step-up basis by their lawyer. There is only land so there is no 754 depreciation or other deductions. I have made the election on the return - my question is now about keeping track of each partner's outside basis. Is there a place in ATX that I can use to keep track or is this something I have to keep track of separately outside of the software?

Everyone's tax season has been fantastic I hope! I have a client who sued the credit reporting agencies for some discrepancies. Received a 1099MISC from Experian and Equifax for the full amount, he also received a 1099MISC from the lawyer who collected the amount, deducted his fees, then gave my client the money. He gave them a 1099MISC for the net amount. So he really is doubling up on money if I put all three 1099s on their tax return. I had him inquire with the lawyer, who told them that he was required to also 1099 them for the amount. My plan was to put all three 1099s on the return, then also list on the schedule 1 other income for the negative amount of the lawyers 1099s saying 1099MISC error. Does that seem like something that would work?

I have a few Form 990's for 2019 that were e-filed about a month ago and it still says transmitted (yes, I did remember to click receive ack). Is this a lost hope and I should just have those returns paper filed?

Awesome! Thank you for the response! I wish MN was that easy!

So in MN the PPP Loan Forgiveness is income, there is even a line for it on the MN tax return. I have a partnership that is from MO, but I cannot for the life of me figure out if PPP loan forgiveness is income there - expenses are deductible/nondeductible or what. Any assistance would be so much appreciated!

Thank you! I just needed someone to agree with me

It's like Avon or Mary Kay

Hello! Client is selling nails or makeup and it was reported on Form 1099NEC. However, she made it clear that it is a hobby as she pays more for the products than she sells them for and sells to family and friends mostly to get discounts on her products for herself. On the instructions for 1099NEC it says "If you are not an employee but the amount in this box is not self-employment (SE) income (hobby), report this amount on the "Other Income" line (on Schedule 1). I get that, makes sense, easy. However, I had a client a few years back with the same scenario and he received a letter because they wanted the self-employment tax on it since it was put as Nonemployee Compensation. So my thinking is to put the amount on the schedule C, but the same amount as the deduction, netting it to zero. Then putting the amount on Schedule 1 as Other Income. I might be thinking too much into this, but it's only February 11 and my brain is tax fried already.

I know! It's early! But, since we have returns in I am getting them ready to go. I noticed that in the e-file error one of my clients, whom we have had for years. It says there name is too long to be e-filed and must be paper filed. Has anyone else run across this? I was going to put their return to the side for now and hope that by the time we can e-file returns it won't be an error anymore. Thoughts anyone?

Hello! Hope everyone is having a great 2021! I am trying to e-file a 2019 Form 990. It rejected. The rejection error states that the Year in Submission ID is incorrect: '2020', should be '2021'. Is there a way for me to change the submission ID or will it fix itself in a few weeks when e-filing opens back up for individuals? I guess I always thought that the e-filing was shut-down for individual returns but not for Form 990's, but I guess I usually end up e-filing my last 990 in December and not January, so I never really thought about it or had this problem before.

Congress also stated that this PPP loan forgiveness will INCREASE a shareholders basis. If I just do a M-1 adjustment, it doesn't increase the shareholder's basis. That is why I thought of putting the forgiveness amount on line 16b "Other tax-exempt income". This will increase the shareholders basis and do an M-1 adjustment.

Since congress has passed that expenses that were used from the PPP funds that were forgiven are still deductible and that the amount will increase their basis. My plan was to put the PPP forgiveness amount on line 16b "other tax-exempt income", because a balance sheet has to balance. Am I correct in thinking to place the forgiveness on that line?

Oh wonderful, Thanks!

E-filing Form 990 is mandatory for tax years beginning after July 1, 2019, unless the exceptions listed in the instructions of the 990 apply. They will not accept a paper filed return. My question - I have many clients who's 990's are due 12/15 and we prepare them around that date or so. That is after the e-file system is shut down until January. However, that is not one of the exceptions. Are we thinking they will still accept the paper filed return for that reason?

Gotcha - so shuts down around the end of November and opens back up about January. Thanks Everyone!

Can you e-file a return after 10/15? (Current and/or prior year?) Some people say no - some people say yes I never normally need to so I've never checked in on it.

I'm a little confused - we got an e-mail from ATX talking about their new Advanced Calculation and Compliance. Where the module will include calculations of education credits, taxes paid for other states, and the two year comparison for C, E, and F's and some more. Are they saying that the 2020 software will no longer do that stuff if we don't pay the extra $499? Our software always has done those things in the past... Any thoughts?