ADK2ATX

Hi all,

A client has a K-1 showing that he is a Limited Partner in a Publicly Traded Partnership.

What I think that I want to do is populate the taxpayer's Partner's Basis Worksheet, but I do not seem to be able to do this.

Using ATX,  I go to Form K-1 (1065), Tab 'Input', and I check the 'Calculate basis limitation' box as well as the 'Calculate at-risk limitation' box.  I can enter Cash Contributions into the Basis Limitation section, only when the 'Publicly traded partnership' box is NOT checked.  Once I check it, poof!, the Basis Limitation section disappears and the Basis worksheet is all zeros.

Does this mean that limited partner interest in a PTP will never have an outside basis?  There are capital contributions reported on the Partner's Capital Account Analysis of his K-1.

Thank you.

On 4/10/2020 at 10:01 AM, Terry D said:

 De-minimis the water heater as suggestion. Take the bonus depreciation on the fridge. 

This seems correct to me, but would it be "incorrect" to use the De Minimus Safe Harbor for both the water heater and the refrigerator?

I have a potential client that is a non-resident alien (does not even come close to the 183 day test) whom is on an L1 visa and the spouse and two kids are all on an L2 visa.  I have never prepared a return for a non-resident and would like to get some advice before deciding to take on this client or to take a pass on this one.

The husband's employer has initiated the green card process.  The kids do not have ITIN numbers yet and the parents would like to claim them.  Other than that, their taxes are easy: one W2 and one 1099G.

I believe that the best course of action would be to do the following:

1.  Help them fill out the children's ITIN application.

2.  Wait until we have the ITIN, possibly filing an extension.

3.  Complete the 1040NR with the children claimed as dependents.

4.  Complete Form 843 to ask for Social Security back?

Does this sound correct?  Am I missing a lot? 

Thanks for all the help.

Thanks for all of your responses. 

Margaret, what trends have you seen that would set up clients for an advantageous MFS return?  For example, one high earning spouse and the other spouse was phased out of QBI deduction as a result?

9 hours ago, Margaret CPA in OH said:

It would be wonderful to have that in the program but then I think the program would cost much more.   What I have done for several years for a number of qualifying clients, is input all the data and code each amount F or S.  I sometimes use J or just half and half. Some J things are not allowed MFS.  When the comparison shows a clear advantage to MFS, I estimate the additional charge to do that as you then have to strip out one of them and create a second return.  Sometimes the tax savings isn't that great.

The clients that do benefit from this are mostly returning clients so I then rollover the MFS return of the S and strip out S data in the MFJ.  Clear as mud?  It is very important to make very sure that the combined numbers entered match those of the joint with only the tax calculation and disallowed items being different.

Hi all,

If the MFJ vs MFS comparison form reveals that MFS would be the ideal filing status, is there a button in ATX that I can push to "rip" the MFJ return into two separate MFS returns?

Thanks