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tax1111

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  1. Judy, Drake has fixed this error. Thank you for your help!
  2. TP changed her job and forgot to submit reimbursement claims in time for previous employer's dependent care FSA so about $3000 in the plan was forfeited. She said she heard that IRS has some remedy options that she can get compensated from tax perspective on the forfeited money. Does anyone hear about this? Thanks!
  3. The subject nonprofit is a online coding teaching organization. More than 1/3 of its support is from the receipts of this exempt activities. It falls under the 509(a)(2) classification.
  4. Has anyone done this before? How was it? Is it easy to get approved? There is one option to convert private foundation to public charity by retroactively reclassify the foundation as a public charity. But I did not find the instruction on how to do it. Can anyone illustrate? Thanks!
  5. Thank you, Judy! That is very helpful tip! I used to use ATX and Taxact. So, I tested in ATX 2019 and Taxact 2018. Both allows negative amounts in column B and E although the relevant table in ATX 2019 is called Option 2 rather than Option 1. I can not find NJ 2210 2019 version so I am not sure what is the right name of the table. But basically the ATX Option 2 table does the same thing as Option 1 table in 2021 NJ 2210.
  6. Thank you Judy for confirming my understanding. I have called Drake about this and the response from Drake programmer is that the column E can not be negative, which obvious is wrong. I also have send the Drake NJ programmer team an email about this and waiting for their response. I will update here once I hear anything.
  7. Line 13 of column A 1st quarter is carried over to col b, line 7 and so forth. But in Option 1, the calculation of interest, those overpayments are not carried over. I think this is a bug of Drake 2021
  8. I got lost in the Option 1 (calculating the interest) in NJ 2210 form. TP paid estimated tax $18000 for 1st quarter and $4000 for second quarter. Based on Option 1 form: the tax amount due for each quarter is 6000. My understanding is that TP should not be penalized for paying estimated tax early. But the Option 1 form shows that the overpayment for first quarter 12000 (18000-6000) is not carried over to the next quarter. So, TP is charged for interest for the third quarter on the underpayment of 8000 (2000 from second quarter 4000-6000, and 6000 from third quarter 0-6000), he is also charged for the 4th quarter on underpayment of 14000 (the 2000 from second quarter, 6000 from third and fourth quarter). The calculation is unreasonable to me. If TP paid the estimated tax evenly with 5500 for each quarter (18000+4000)/4, he is charged much lower interest than the current case. Can anyone comment on NJ 2210? Is this an error on NJ side? Thanks.
  9. I just efiled an extension 4868 but later realized that I need to attach MTM 475 election with the extension. How can I fix this? Can I let client paper mail another extension with the election statement today? Thank you!
  10. Thanks for the clarification. If the limited partner incurred some reasonable expenses and partnership agreement allows the reimbursement but has not reimbursed those expenses, are those expenses deductible even the losses on his k1 are not allowed on his personal return?
  11. Thanks for the help! Do you mean if partnership agreement does NOT allow reimbursement of out of pocket expenses, then the limited partner can deduct on his personal returns, right?
  12. TP is a limited partner of an real estate partnership and incurred some out of pocket business expenses. He want to deduct them on his personal return. Can he do that as an passive investor?
  13. TP owned and lived in the property for more than 2 years out of 5 year before the house was sold in 2021. But they also rented the property for the time they no longer lived there. I used the 121 exclusion but how to deal with the disposal of rental property at the same time? Will the suspended passive loss be released in this case or it is lost. Thansk.
  14. TP received 1099B which contains a sale of Proshare ultra bloomberg crude oil fund shares. The basis of the sale is the original purchase prices which is illustrated on the final k1 from Proshare ultra bloomberg fund TP received. The final k1 shows substantial amount of short term capital gains and 1256 income. Based on my understanding, the cost basis of 1099B is wrong which does not reflect the cumulative basis adjustment which TP has already reflected in his personal income return each year through k1 data input. So, I need to manually adjust the 1099B basis by the cumulative basis adjustment. Is my understanding correct? Also, TP said he never receive any k1 for previous years except the final k1. How should I deal with this also? Ask him to contact Proshare fund asking for previous years' k1s and amend each impacted tax return? Thanks.
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