NECPA in NEBRASKA

My granddaughter just asked me why I do this for a living. I didn't have any good answers left. I remember it sounded like a good idea when I was explaining to my dad why I was switching career paths and colleges right before my freshman year began. (It was actually over a boy.) Very dumb!

I am having the same issue with a few people. With all of the medical issues in my family, and new ones that have cropped up, I did not get out all of my normal annual letters. I did get the organizers out late, but I haven't heard from a few people. They are mostly easy ones, so they may have prepared their own. I have been trying to decide if I should call them to let them know that I am still around. I think that asking if they want an extension is a good idea. Thanks!

I'm pretty sure that I am ok with preparing one Sch C for the same type of business. My client has been selling at parties, etc for one company that shut down and she immediately started up with another of the same type of item. Everything for the businesses are the same; office in home, vehicle, etc. I just wanted to hear other's thoughts on having one or two C's. This has been a tough year for me and I am pretty tired and shaky. My sister's brain surgery went well and she is recovering well, my dad is recovering from his broken hip, but now his macular degeneration is much worse so he is beginning shots in his eye, my step-sister has cancer that has spread to? It just kind of goes on. Thankfully, most of my clients have been wonderful about this and are dropping their stuff off, because I got super sick and when they hear my lingering cough, they don't feel the need to talk to me.

Thanks so much!

Bonnie

You can attach a PDF copy of the KS return to the OK efile.

Mine have not been accepted as of yet. The ones that I efiled earlier have all been accepted.

I was hoping that my HP Laserjet 4200 would last a few more years, because it is such a workhorse. It works fine with Windows 10 for one copy jobs and will still print duplex, but it refuses to print multiple copies of anything. I have tried the fixes that I've found online, but none of them have worked. I get an error message that says install an EIO hard disk. I have spent a few hours on this and don't have any more time to waste. I am looking for something that will print returns quickly and will duplex. I still have to print my organizers and annual letters after I get out the rest of my payroll returns. 

I am so far behind, because we found out that my younger sister has a pretty large tumor in her frontal lobe on 12/31 and I am taking her everywhere until they can finally get her surgery scheduled in a couple of weeks. She can't drive, because the tumor caused her to have a seizure and her memory and moods have been affected. She doesn't want anyone but me to help and I'm at my wits end now.

Anyway, I'd appreciate any ideas so that I can just order one and plug it in.

Thanks!

Merry Christmas to all of you!

I got my new computer today and it's all set up and running great! I love my IT guy! ATX 2014 won't open any of my returns unless I give them money, but I will work on getting that fixed later. He made my desktop look almost like my Windows 7, except for not so cluttered.

At least I found a driver for my HP Laserjet 4200. The builder is skeptical, but I hope that it will work. Hopefully, they can find a card for it or I can scavenge one from one of my old PCs.

I have terrible cell phone service in our area and try to keep my cell phone on my office wifi. I have extenders for the home network, but even those don't help alot. I'm not concerned about using the wireless printer, because I can always use one upstairs. This one isn't even turned on unless I'm printing. 

I am getting a new computer and I want a new router, also. I am deciding between a Dell XPS and having a computer built here by my IT guys. I don't really know much about routers for my office. I have a Nighthawk upstairs for the personal network and a TP Link for my office router that is really old. I use Cox Internet if that makes a difference. My computer is wired directly to the Internet. Is it OK to have a wireless secondary printer, or should I only used my connected ancient HP Laserjet  4200? Does anyone have any suggestions for an office router that is secure? I am trying to be very diligent about security. TIA!

I am so sorry to hear this. William helped me out many times when ATX was in Carabou. Thank you for letting us know.

I receive one when I print out my comparison forms for every return. I have ATX Total Office. I can't look at them on my screen, but they print out on my returns with C's and E's. Now that I'm confessing, they will probably take them away. It's probably a glitch.

I can tell you that my C, E and F comparison prints, but I can't look at them on screen. I have Total Tax Office. I am dropping to Max for next year, so I hope that I'm not sorry. I wish that I could afford Advantage. 

3 hours ago, TAXMAN said:

It seems to me that with the like kind being taken off the table, trade value becomes a sale price. In the event of 179 and bonus in prior years WILL come to haunt you as several of my farmers did. Income averaging for farmers worked good this year but probably not next. Ask him if you can have a peek at what his BUDDIES did. I hear this a lot. This seems to be a problem when tp's want to owe no tax. Just thinking to myself.

That's exactly what happened. Trading way too often and not getting the loans paid down. I managed to get the depreciation down with 179 so that he will have  a little left for 2019, but it will really hit him when he stops driving if he keeps trading so often.

I have a very ticked off client, but I don't see what I can do to fix this. He traded in a 3 yr tractor that he had purchased in 2016 with an AGI of $5,,899 -He received $110,000 trade in. He purchased a new one for $184K in Nov 2018. He has been trading every two to three years for eons. He does not get anything paid off. The only way that I can avoid him having to pay a ton of money for the recapture and capital gain is to use the 100% bonus depreciation. He is a Sch C. Section 179 will only take his profit down to 0 and he will still owe way more than he can pay. He says that none of his buddies had any income tax problems this year. Now he is worried, because he will have a good sized profit in 2019 without that additional depreciation. I told him that the 50% depreciation is gone for 2018. 

I have tried to explain for years that never showing a profit due to constantly trading was going to bite him eventually when he slowed down or retired. 

If anyone has any ideas, please let me know. Thanks! Retirement sooner than 70 is starting to look really good.

Great picture! Congratulations to all!

Which line are you looking at? I checked  a couple  of my clients and the numbers that comes across to my worksheet are coming from the Sch C, then I deduct the half self- employment tax and the health insurance. I'm just looking at the one that says activities, then those numbers go to the net qualified business income tab. 

Thanks so much! I'm not normally this dense. I did have them in yesterday and they don't really care what I do. They are elderly and this stuff makes them nuts, too. I just want to prepare the return correctly and not cheat them. It will not have any effect on this year, but it may on later years. 

16 minutes ago, NECPA in NEBRASKA said:

It's me again! I'm sorry to be dense, but I have been researching and stewing about this for days  Not all of the k1s were prepared by the same much larger firm  ( which I always feel knows more than I do) and two of them are throwing me off. They say "the ability to take the above QBI deduction is dependent on your ability to probe the activity is a trade or business or aggregate the trade or business with another trade or business. Please consult your tax advisor." I thought that the determination of trade or business was determined at the entity level, which is why the QBI information is on the k1s. If the S Corp or 1040 has to prove that it's a trade or business, I don't think that they can do it. They are just investments and they should not have to aggregate, because their income is super low and it will only be a carryforward anyway. I will continue to read my CPE materials and see if I find something different that says that the taxpayer has to prove it.

I just want to get these returns done, so that I can go on to the next ones. 

Thanks!

 

It was too late to edit my question. I meant that QBD is determined at the partner level, which is why I did not think that it was deductible on the 1040 originally, because they are all just various investments with no common ownership among them.  The partnerships had already determined that they had QBI and passed it on.

On 8/15/2019 at 11:29 AM, cbslee said:

Your post implies that your client's S Corp isn't an operating business, but instead is just a pass thru for these various investments ?

I have attended seminars and done way more reading and thinking  about this issue  than any other tax issue, since I passed the EA Exam back in 1992 !

The real question is " Does the ownership of these investments by a passive S Corp deny your client the use of QBI deductions on their 1040

when if your client owned these investments directly the QBI deductions would be clearly allowable ?

I don't have a cite for you, but I think the intent of the law and the subsequent rules and regulations

would allow you to  combine all of the QBI numbers from the various investments onto the S Corps K-1 s

and let them flow to your client's 1040. It's what I would do if this was my client.

 

 

It's me again! I'm sorry to be dense, but I have been researching and stewing about this for days  Not all of the k1s were prepared by the same much larger firm  ( which I always feel knows more than I do) and two of them are throwing me off. They say "the ability to take the above QBI deduction is dependent on your ability to probe the activity is a trade or business or aggregate the trade or business with another trade or business. Please consult your tax advisor." I thought that the determination of trade or business was determined at the entity level, which is why the QBI information is on the k1s. If the S Corp or 1040 has to prove that it's a trade or business, I don't think that they can do it. They are just investments and they should not have to aggregate, because their income is super low and it will only be a carryforward anyway. I will continue to read my CPE materials and see if I find something different that says that the taxpayer has to prove it.

I just want to get these returns done, so that I can go on to the next ones. 

Thanks!

Thank you. I guess that I am overthinking this. Maybe I am thinking too much about the safe harbor rule. They absolutely do nothing for any of these investments except invest. There are very few hours involved and they only own very minor percentages. All of the K1s say ask your tax preparer.
I will keep reading until I can feel better about it. The penalties are huge if I screw it up. I have taken a lot of classes, but I still don't feel like I have great retention. I can hardly wait to see what awesome changes await us after the next election.

I think that I know the answer, but I want to make sure that I'm not cheating my client. 

1. Couple owns 100% of S Corp.

2. S corp owns partnership interests in many Real Estate LLCs and LPs, none are PTPS. The partnership interests are minor, with all being under 5% ownership. No REITS.

3. None of the LLCs are SSTBS, but they all have given numbers for QBI. One has numerous businesses. I do not prepare any of the LLC returns, just the 1120S and 1040!

I don't think that the 1120S or couple are able to take QBI, because they don't qualify for the safe harbor, are not eligible to aggregate and none of the LLCS are PTPs or REITS. 

I've been reading and just want to make sure that I'm not missing any reason that they could take the deduction. They are retired and don't perform any duties, except a shareholder meeting. Any QBI would be carried forward, due to losses. Laws like this make me really wish that I could retire now, because it takes up too much time for a few clients that I really don't want to lose.

Thanks!

Very nice and professional. It should bring you added business. 

It is still down. 

JohnH, my clients need their 2017 return filed as quickly as possible for FAFSA. They didn't bring in their 2017 info until late April and they have two headed to college now, so they are pretty desparate to get their transcript. I also have a state ACK that I can't pick up since 2017 efile is still down.  I have several old returns that need to be filed for many reasons and I prefer efile since most of them have money coming back.