cl2019

4 hours ago, Lion EA said:

You said the spouse remained a NONresident alien?

Yes. spouse was a nonresident at year end. 

On 2/20/2020 at 10:33 AM, Lion EA said:

 

Just found the answer on Pub. 519. The spouse can choose to file MFJ for the whole year. 

Taxpayer became us green card holder in February 2019. But her spouse remained as nonresident at year end 2019. 

Does this situation qualify for the choice of filing married filing jointly for the whole year as residents for both of them. Or the choice is only available to the situation where the resident spouse has to be full year resident? 

Thanks. 

3 hours ago, Possi said:

I had a client's ex doing this, too. We never let it slide. I also included additional proof of dependency with my client's return. She eventually learned. I believe she was claiming EIC and the IRS nailed her for it. 

@cl2019, encourage the client to file early in the season. 

Thank you so much for the info and suggestion. 

1 hour ago, Abby Normal said:

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes.

Thank you for the info.! I will use last four letters of company name as name control then. will see if efile goes through. Thank you!

Thank you so much!

Thank you all for the comments. Very helpful!

According to IRS, name control for sole proprietor is 4 letters of his last name and for corporation/LLC is 4 letters of company name. If taxpayer is a single member llc, does that belong to sole proprietor or corporation/llc category. should I use first 4 letters of company name or owner's name? Thanks. 

taxpayer's return efile was rejected as dependent ssn "was used as a Dependent SSN on a previously filed tax return for the same tax period"
I understand one option is to paper file the return and let IRS check the issue. But due to the current IRS center closure, is this still a valid option? 
Any other ways to go around this issue?
Thank you
 

Thank you all for the quick response. 

The entity is a single member LLC treated as disregarded entity. 

taxpayer bought a new car under his own name and used 90% of it for his business. My question is
1. can he use actual expense method for car expenses rather than simple mileage method if the car is not owned by the business?
2. the car was paid with down payment and the rest is under lease arrangement. If actual expense method is allowed, what will be the total cost basis for the car? The down payment or total car price?
3. since the car is under personal name not business name, can taxpayer use section 179 deduction and 100% special depreciation allowance?
4. also want to confirm that as listed property, the car can be depreciated using DB200 method.

Thank you so much!

taxpayer received 1065 k-1 distribution and paid tax to a foreign country. can he claim foreign tax credit for that payment? My first thought is that he can as although the distribution (if less than basis) is not taxable, the distribution is actually part of a pool of ordinary income plus contributions, etc. all of which have been taxed, so, he should be able to claim foreign tax credit to avoid double taxation.
Can anyone comment on this?
Thank you so much!

can anyone give guidance on how to add vehicle mileage to partnership income/loss in 1040? I used to be able to do it in taxact. but don't know how to add it in atx max. Thank you so much!

7 minutes ago, grandmabee said:

What kind of LLC,  single member, S-corp  etc.

If single member it won't matter.  If S-corp you don't want to put real estate into Corporation.

Thanks for the quick response. It is treated as partnership. 

Not sure if this is the right place to ask this. taxpayer owns a building in his own name and also has recently set up an LLC to do reconstruction of houses. can he put the building on the LLC's books before title of the building is transferred to the LLC? Any tax consequences of doing that? Thank you so much!

additional question. for the New Jersey return, total 2019 rental loss of the property which was sold in 2019 is carry forward to 2020. Is there a place I can adjust that? Thank you again!

Thank you guys, very helpful and solved my problem. 

In ATX, how can I enter the suspended loss carryover from former years, when the rental property is sold. Based on IRS, those loss carryover can be used without passive limitation. I don't know where on the software I can input the loss. It seems if I entered as an expense, form 8582 will limit the loss. 
Thank you!

taxpayer needs to file form 3115 and need to attach answers to some of the form's line items such as Part IV line 26, schedule E, line 7, etc. But it seems there is on option for them to be attached. Only signature, form 2848, etc. can be attached to 3115. anyone knows how to attach onto form 3115 in atx? Thank you!

Thank you for your suggestions!

I am curious how accurate atx max's mfj vs. mfs analysis form is. e.g., foreign tax credit, how can you split the number between filer and spouse in the analysis form without going through the process of generating the credit for each one vs. for both. not to say, if clients have not done mfs filing last year, how can atx know how much ftc carryover from last year each one of the couple can enjoy. Does the analysis automatically generate the numbers by completing seperate 1116s vs joint 1116 behind the scene? 

Also, how do you guys deal with state mfj vs. mfs analysis? Need to duplicate the joint return and modify on each copy for filer and spouse seperate info.? How to generate a comparison summary for the analysis without same analysis form as federal return has.

Thank you!

Does rental property have to be treated as business to apply qualified special depreciation allowance for its newly purchased appliance and furnitures? Or so long as those property are as follows, special depreciation allowance is allowed?
-Tangible property depreciated under MACRS with a recovery period of 20 years or less.
-Computer software defined in and depreciated under section 167(f)(1) of the Internal Revenue Code.
-Water utility property.
-Qualified film, television, and live theatrical productions, as defined in sections 181(d) and (e) of the Internal Revenue Code.
-A specified plant for which you made the election to apply section 168(k)(5) for the tax year in which the plant is planted or grafted (explained later in Certain Plants Bearing Fruits and Nuts ).
-It is not excepted property (explained later in Excepted Property ).

Also, are there any amount limit on special allowances?

Thank you!

Thanks. If they can release form on March 2nd, I am fine with that. But is it possible that the final release date is even later than what they posted on their website? did it happen before?

anyone in NJ can respond to this? I checked the atx calender, it looks like CBT-100s will not be available until 3/2/2020. That is too late. Has atx always released nj cbt100s so late? 

Thank you all! very helpful.