JackieCPA

Hi guys!

I am amending a tax return. They received a refund on the original, but it was applied to next year. They owe money with the amended return. Do you think she should send a check for what is owed with the amended or can I write in the explanation to net it with what was applied from the original return? 

Found a Form 1065 that I didn't list the amount of QBI in Line 20 Code Z on the K-1. I printed them a new K-1 and marked it amended. However, do you think I need to actually amend the return to the IRS, or just give corrected ones to the partners and leave it like that?

Right in front of my face!

Thanks!

Hi guys!

My client wishes to make a Section 454 Election to report savings bond interest on a final return. 

I'm trying to find the election in the elections/statements but can't seem to find what I am looking for.

Any ideas?

SHe had the bank call me. They said that "Yup it was submitted to Texas". She has to call the big branch bank to see if there was even an ID number for it or if it was submitted as sales tax or something since they don't have income tax. I just don't see how it was even an option for the bank to withhold income tax from texas.

But of course, the bank makes it seem like my problem because "I'm the tax preparer". 

It's an IRA distribution.

The bank says that it is correct and withheld from Texas state. 

I'll have to do some research to see how to get that back seeing how Texas doesn't have a state income tax return. 

It just says Texas with no state ID number.

So my client from here in MN has a 1099-R. There is state withholding showing but it says it is from Texas. 

Normally, you would file with the other state to get the withholding back since they wouldn't owe taxes with the state they didn't live in.

However, Texas doesn't have a state income tax return to file to get that money withheld back.

Any advice? 

Does anyone have a good resource that explains the 2018 DPAD that is allowed? I have heard that it is for agricultural coop's that sent 1099-PATR with the DPAD on it, they have special rules for getting that deduction in 2018. I can see where you put the amount on the 1040 line 10. However, I know you are supposed to decrease your regular QBI deduction by so much. I just can't seem to find anywhere that is good and reliable to explain it better.

THanks!!!

If you retained earnings is negative or less than the distributions it won't show up. You need to go to options and click the box that "Allow distributions to go in excess of AAA"

Yes, but if the taxpayer is drawing on Social Security, they get an exclusion and don't have to pay self-employment tax on the payments.

That is from what I understood. I believe it is Section 1402(a)(1) exclusion.

I have a new client this year who is an active farmer (with a schedule F).

He is also on social security benefits.

He receives Ag. program payments. Prior preparer put those on the schedule F. 

My understanding is that if the taxpayer is on social security they do not have to pay self-employment tax on the payments and those payments should not be reported on the schedule F.

Am I correct or is the prior preparer correct?

Thanks!  

The extra reporting on the K-1 has found to be a lot simpler than I had originally imagined. There is a box for W-2 wages and a box for the unadjusted basis and boom!

6 hours ago, Evan S. Golar said:

Has everyone forgotten that despite your wizardry in computer technology- there needs to be a Section 351 incorporation process with the IRS in order for it to be officially correct?

 

Section 351 does not apply in this situation. 

That is a really great idea Lynn! I never thought of that! Thanks!

LLC who made the S-election.

He has a lot of assets! 

Is there a way to transfer a Schedule C's assets to a 1120S return in ATX?

The customer service I talked to had no idea why I would want to do that because "someone who has a schedule C can't make the S-election"... as he put it.

I have a new client this year, they are an S-Corp.

They pay themselves and have other employees as well.

They generally put money into a SEP IRA for themselves (Shareholder) but nothing for employees.

Is the SEP IRA like other rules that if you have one you have to let employees have one as well if they want it?

Can I e-file them using the ATX payroll software yet?

I can't seem to find the date.

Does anyone know when we can e-file W-2s and 1099's? 

I faxed in form 2553 and got an "it went through" response from my fax machine. It has been a few months now and the taxpayer still hasn't received a response saying that it was accepted. Do you think I should send it in again, or just send in the Form 2553 with the 1120S when I prepare it this next tax season? Follow up, should I have him start paying wages to himself right away or tell him to wait? 

I'd say charge finance charges every month that they don't pay. We have a lot of clients here that as soon as they realize they are charged finance charges, they pay quicker.

I have a lot of non-profits who have a 990-T for gambling who are generally in the 15% corporate tax rate, they will now be in the 21% corporate rate and only get to use 80% of their NOL's. I find that frustrating because they aren't in the business to make a profit, every dollar they earn goes towards taxes, allowable expenses, and donating to good causes. They already pay more in gambling taxes, federal/ state corporate taxes, and other taxes on their profits than they actually get to donate. 

This is true, but it sure would make me happy!

I really like using the 1040 tax planner in ATX. Super helpful! Does anyone know if ATX has one for the states, or is it just a federal planner?