mircpa

Information is not flowing from K1 to 1991Wkst. You need to manually re-enter K1 figures onto 199 worksheet in 1040

I do see code V on Sch K1 codes list. Don't know how to enter code V onto K1. Its a locked field or some bunny hop will take it there.

I believe we need to insert respective code on Line 17 of K1 for example Code V for Section 199A QBI income

I thought CPA, attorneys, doctors are disqualified & not eligible to claim QBI. Am I reading it correctly. Here is where it says Definitions of Specific Disqualified Fields The regulations attempt to leverage off existing regulations under Section 448 and provide further interpretation of the disqualified fields. Let's see who's disqualified and who isn't in each field: Health Disqualified: doctors, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists, and other "similar healthcare professionals." It is important to note, in the proposed regulations, the language included "other similar healthcare professionals who provide medical services directly to a patient." The final regulations removed the italicized section, which likely broadens the scope of the field of health. For example, removal of that language means that someone like a radiologist or technician, who may not meet directly with a patient and thus perhaps previously had an argument that they were NOT in the field of health, will now fit squarely within its definition. In addition, the final regulations responded to a string of public comments by providing examples reflecting that with the right facts, an assisted living facility and a surgery center may NOT be in the field of health. Not disqualified: people who provide services that may improve the health of the recipient, such as the operator of a health club or spa, or the research, testing, and sale of pharmaceuticals or medical devices. Law Disqualified: Lawyers, paralegals, legal arbitrators, and mediators. Not disqualified: Those that provide services not unique to law, like printing, stenography, or delivery services. Accounting Disqualified: Accountants, enrolled agents, return preparers, financial auditors, bookkeepers, and similar. You don't need to be a licensed CPA to fall victim to this rule. Not disqualified: No one. We're all screwed.

So, CPA practice income is not eligible for 20% QBI ? Looks like doctors, attorneys are also disqualified

And its suppose to include perjury statement

If all it is reporting is interest income & capital gains I don't know why anybody would suggest to float an LLC. I would continue to report as I normally would report on Sch B & D & would report $ 1 income on Sch C LLC (just to be complying with filing requirements for LLC)

Is this construed as installment sale ? Even though client never took control of money

Hello all Have this question regarding 1031 exchange. Client bought land in 2013 & sold in August 2016 for gain, replacement property bought in February 2017 (within 180 days). Funds were held in 1031 exchange. The replacement property bought was less than relinquished property so there is recognized gain & small amount of deferred gain. I read instructions it suggest to file 8824 in 2016. My question is, it is only in 2017 I was able to find out recognized gain i.e. replacement property was less than relinquished property. Can I file 8824 in 2017 instead of 2016. I know instructions say to file in 2016 but in 2016 I would not know recognized or deferred gain, window of 180 days was not closed until end of calendar year 2016.

Never mind. His AGI is 126K. High threshold income limitation is 119K for married filing jointly, so ATX disallowed. Thanks to all who responded.

I got a question. Client is covered by 401K thru employer & contributed 1,284.00 towards 401K during 2017 & .W-2 has code D with this amount. Also contributed 2,500.00 towards IRA. I checked IRS guidelines it says sure he does qualifies as his income is less than limitation. When I punch this amount in traditional IRA in ATX. It is disallowing & covered by retirement plan is checked. I am wondering is there a way to work around to make ATX allow this deduction.

Prior year unallowed losses (which might be prior year depreciation + rental losses) will show up on Sch E in the year of sale & prior years deprecation will knock of cost basis on 4797, it could square off but necessarily same unless prior year unallowed losses were only depreciation amount.

WI & IL has reciprocal agreement. If WI resident earned income in IL taxpayer would pay tax to WI not IL & vice versa. File IL Sch NR & back out income by marking clearly resident of WI. Find out if they have filed IL W5-NR

This is unclear to me. You said client closed S corporation. Now what does it has to do with single member LLC. Is it that this LLC was treated to be an S corporation & now it is closed ?

Ever if you were to choose to include in personal tax return you still need to file corp tax return & back it out (may be you can take this approach if client deposits check in their personal account)

It depends in which state ultimate services are being provided. If employee works in TX then TX is the state for payroll purpose.

They need to find out If they followed accrual basis of accounting & if in fact this amount was included in 2016's tax return if not amend 2016's tax return & include this income OR if cash basis of accounting file 2017's tax return as final & include income.

I agree with John it is quite common in contracting business clients does insist on having to look at insurance before taking any services. I suggest keep in mind totality of circumstances to even share copy of policy & having him/here as client.

What about husband's CA source W-2 ? since you say he was stationed in CA for whole year don't you think he should file CA 540 & NR adjustments. I am just wondering if he was stationed in CA for whole year why would W-2 says FL.

Thanks John I followed that approach & sent each other's tax return to both so that it can be clear for them.

Hello I have a client who was W2 employed in NC for whole year of 2017 & will continue to be employed in NC for 2018. In 2017 he was resident of NC from 01/01 until 10/31. He bought a house in SC moved in 11/01. Going forward for 2018 it will be NC NR & SC resident take credit for taxes paid in NC. My question, I would be mentioning SC address in 2017 tax return but no SC source income would it trigger audit issue from SC. I want to file part year NC 01/01 until 10/31 all W2 income allocated to NC & part year SC from 11/01 until 12/31 with no SC income. Is this OK or any of you would be suggesting some other route.

Yes, you can include. Make sure you send this to IRS Austin TX office. You also have to find out closest Certified acceptance agent for verifying original documentation OR they can walk down to closest IRS office.

For international students on F-1 visa you need to start with 1040NR. Probably there's your answer. I agree with Pacun.

If in fact he was on contract as salaried employee I don't think he is subject to SE tax

From what I understand is foreign tax credit is non-refundable credit that is, it knocks down tax if any, whereas excess premium tax credit is refundable credit meaning taxpayers would get refund even if there is no taxes to offset. Because of this reason premium tax credit gets showed up under payments in 1040.