Tal10

Hello. I have a client who is a real estate professional. He only deals in residential rental properties. He has been subject to 163(j) since inception. He did not make an RPTB (Real Property Trade or Business) election from 2018-2021, as he gained more benefit from the depreciation deductions than he would have from the interest deductions. This changed in 2022, however, with the more restrictive limitations in place. So, an RPTB election was made for 2022. But now there are several million in disallowed business interest expense carryforwards, and I cannot, for the life of me, find information on how I should be completing Form 8990. Has anyone run into this, and if so, what resources did you use to muddle through this form?

Are gambling winnings subject to the 3.8% Net Investment Income Tax? My software says yes, logic says no, but the tax code says...? Some sources seem to indicate lottery and gambling winnings are not subject to the NIIT, while all other sources are silent in this regard. Thanks in advance!

Hello. Well lots of clients claiming the ERC. Since this is a federal wage credit, and the reduction to the wage deduction is not required for Wisconsin, how does this affect Schedule 5M? Of course ordinary income is reduced on line 2, but is there also supposed to be a corresponding increase to the Other Adjustments account? If not, doesn't this pose a big problem with the potential for distributions in excess of the Wisconsin stock basis? I'm running myself in circles.

Thanks for your reply! I didn't think the government would be so generous. I will read through the reg. I've never come across such a scenario.

Hi all. I have a client who passed away in February 2021. He was a 50% member of a partnership that owns rental real estate. His interest in the partnership after he passed went to his 2 kids. Just before he passed a property was sold by the partnership resulting in a $500,000 net section 1231 loss. I'm working on the 2021 partnership returns. If I'm using weighted averages for transfer of interests, do his kids really get the benefit of this loss? Or is there some regulation out there preventing this? Thanks for any input!

Thanks for the response! That's the direction I was leaning. Trust income is relatively small since assets were liquidated to cash in a relatively short order, so I'm going to simplify life and avoid the K-1's altogether!

I don't know why I can't find an answer to this. Revocable trust. Grantor dies. Trust is now irrevocable. Trust document requires trust assets to be liquidated to cash and distributed to beneficiaries, $10K to a, $10k to b, $20K to c, $50k to charity, and the balance to z. No stipulation on how to divide trust income, so I will not be passing the income to the beneficiaries on a K-1, but rather have the trust pay the tax. For assets sold by the trust (stock) what do I use as the date acquired, and do I force long term reporting? Thanks!

I was hoping someone could push me in the right direction. I have a client who has an s corporation and is headquartered in Wisconsin. My client is also a resident of Wisconsin. In 2021 he opened a division in Ohio. Should I be filing the IT 4708 or the IT 1140? Is it possible to use separate accounting with one or the other? I normally only work with businesses solely inside of Wisconsin. Any help would be appreciated!

So what is to stop small businesses from laying off employees now that the covered period has been extended to 24 weeks?

I have a client whose daughter received a stimulus payment using the Non Filer IRS tool. The daughter, unfortunately, is a dependent of her mother. Her mother's return is now being rejected by the IRS as a result of the dependent Social Security number being used as a primary social security number on another return. My thoughts are to have the mother paper file her return claiming her daughter as a dependent with an explanation as stated above. Has anyone else experienced this? Would you return the $1,200 stimulus check with the mother's paper filed return? Thanks in advance for sharing your thoughts!