NECPA in NEBRASKA

I have a married couple that began an S Corp on the advice of their now deceased, non-tax attorney many years ago. The only property that this S Corp holds is investments in Real Estate LLCS. It's all passive income, they are not active, just investors. It's been a pain for a long time, mainly because of the losses carryforwards and the basis computations. It just gets more difficult as they add more state K1s. I have never seen anyone else hold investments this way, but I have always worked for small companies and have been on my own for years. I was just wondering if this is a normal way to hold investments and maybe I need a more powerful tax program just for theirs. It is so time consuming and I spend a lot of time worrying that I am not preparing the corporate and individual returns correctly. The K1s from the LLC are turning into books now with all of the new regs on 1065s. I have gently tried to steer them to move to the much larger CPA firm that prepares the 1065s as their tax preparer, but they aren't willing yet. There won't be much choice for them soon when I retire. It just seems to me that it would be so much easier if they were held personally, but maybe the Corp is for some protection? TIA

I have told her these things, she listens to other realtors that tell her they are making a killing with their rentals. After my responses to her today, she said that she is tired of paying so much in taxes. I replied that then she would have to make less money. It is an endless circle. She agreed that maybe some of the people that she was listening to weren't exactly truthful, had the additional earned income that they have, or have few expenses or debt.

I don't know what more that I can do to help this client. I love her to death, but I'm not a real estate advisor and I'm not going to go take one of those seminars to tell me how much money that I can make by getting rental houses. Between her spouse and she they make from $180K-$250K in earned income. She is a realtor (Sch C) and they both make good money. They have three rental houses and think that they should have more deductions and make more money like other people tell them that they make. I can't pull expenses or income out of the air. LOL Much of the money that they have spent since buying them less than three years ago were for improvements, no they are really improvements. I try to expense anything that is legitimate expense. All three of the houses are mortgaged which probably doesn't help their cash flow. She has prepared a spreadsheet to qualify for real estate professional, but she wants to slow down. That will not help her when the expenses aren't deductible. I don't want her to feel like I'm not doing my job, but I don't know what more I can tell her to help them. She has already made 3 times as much gross income on her commissions in 2022 as all of 2021. That will probably slow down the last 6 months, but everyone loves her and she works hard, so she may still increase. I've mentioned way more money into retirement, but she does not want to tie it up. Does anyone have any ideas that would help since my crystal ball does not seem to be helpful? Thanks! Bonnie

Judy, My thoughts and prayers are with you. It takes a toll to be a caregiver to one person, let alone multiple persons. My mother disliked her BDG treatments with a passion. I am looking forward to turning 65 this year so that I can get Medicare. It is pathetic to want to get older to have better health insurance. You need to try to find time for yourself. I know that I fell behind in working out during this tax season, from being overworked, exhausted and taking care of my husband. Between his heart, COPD and constant pain, I never feel like I should complain. I am so glad that I am not taking on more work. I am finally leaving tomorrow for a few days to see our son in Littleton. My husband has orders to do nothing but hang out. His daughters and neighbors are watching out for him. Hopefully, we can both drive out later this summer. I will be here all year if you are looking for someone to talk to. I felt like I didn't get much done this year with not extended due date, but then I compared the number of returns to last year and was thrilled to find that I had pumped out a lot more returns, even if so many were a pain.

I received that, also, but thought that since I am already a This change only impacts new purchases and does not impact current subscription and renewal. Existing users will be able to continue their active subscription, and this change will not affect their ability to use the product or get support. I received that email and hope that I will still receive it, since I am already a Pro Advisor. I just need access to the different versions. I look forward to never doing payroll or dealing with QuickBooks again.

I finally got an email from a retention specialist this week and then a call. I just emailed back and said that I would touch base next week. I'm leaving for 4 days and don't even want to think about anything. I should bounce my emails and calls, because my clients seem to have ESP and know when I'm out of town to have some kind of emergency.

I have not heard anything from my sales rep or any ATX mail this year. I did have the same sales rep for the last two years, but maybe he's gone. He was actually helpful.

I had three random "clients" that just said "Sharing this IRS letter with you". Uh no! This is why I use a different email address on my website and with government agencies. I can catch scammers pretty easily, because very few of my clients have ever found that email. I keep asking myself why I have a website, when only a handful of clients will actually look at it.

43 years for me. I'm hoping to make it to 45 and then try something else part time. It's getting more difficult to take care of my husband and work this hard. I'm just thankful that we could move my office home. Thank you again for all of your help.

Get some rest, Judy. I still have way too many returns to finish and extensions to compute.

I have had so many that are supposedly new clients and want me to open attachments. I don't care if they are legit or not, I'm not biting. The ridiculous text messages that we have been getting from banks or credit cards that we don't have are scary. Some people would open them and not even think about it.

I'm so glad that nobody was hurt badly in any of these accidents. I am so grateful for all of you. I don't have any local tax preparer friends left after 43 years in this field. They are either dead, retired or decided to change careers. I learn tons from my classes, but this group and a few fb groups have taught me so much more and it seems to stick. I also have learned that my family comes first. I have great clients and they mostly feel the same as I do about families. Hugs! Bonnie

Logic does not make a difference. As far as I have been able to tell, the dependent can received the $1,400, also.

The best thing that I've read all day.

If you have any income in Nebraska and have to file a federal return, you have to file here. That's why they call it the "tax me state". I can't wait to move somewhere more tax friendly for retirement. Lots of my clients have moved to retiree friendly states and send me their taxes.

What's the code in box 7 and is this an IRA distribution or something else? I normally see box 5 filled out for employer pensions.

She is beautiful!

D, That is correct. The NE taxable income should be coming from page 1 of the 1040N, line 14. Then Sch III figures out the rest. The tax is figured on the line 14 amount less the personal exemption credit. That amount is multiplied by the percentage of NE income to the gross on line 4. $8 should be the correct tax. Thanks, Bonnie

Thanks, Tom. I guess we will be prepared for whatever shows up on the W2. He has heard both answers from other pilots.

Lion, If my reading about the Railway Labor Improvement Act is correct, his tax home should not be CA. It all depends on how much of his flight time is spent in CA air space. He is expecting much longer flights, but air travel is unpredictable these days. I am hoping not to strain my brain for CA returns, since I have not prepared one for at least 10 years. I know that there are tax preparers that specialize in transportation clients, so when or if the rules change, they can pay to get their taxes done.

Thanks, Tom. I will have to wrap my brain around unreimbursed employee expenses again.

I don't think that it is the same because they are transportation workers. I was hoping that California tax preparers would know if my research was correct. He says that most of his flying would be long distances and not inside of California. He expects his income inside of California to be less than 50% of his total.

My son will be commuting to LAX as a pilot, but lives in Colorado. He will just be staying in a hotel when necessary. He will not be signing a lease on a crash pad. He told me yesterday that he was told that he will have to pay California income taxes, so that I had better learn the rules. He has flown in and out of California before, but this time it will be his base with the new airline until October. I have been doing some research and I think that he should fall under the transportation worker rules and file in his home state. Am I looking this up incorrectly or has something changed? Thanks, Bonnie

I rarely see any 1099S with any of our home sales in Nebraska or Iowa, but I don't have any clients with super expensive houses.

I always create the e-file before I get a signature to check for errors. I recreate it if it is signed later to make sure that there were not any form updates.