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David

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About David

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  1. Yes, that's correct. The TP just got under the wire. That's why I asked the question. Maybe a limited deduction in 2019...
  2. You say they can play nice and agree to the every other year. However, if it's the non-custodial parent's year that person won't be able to claim the CTC since the child did not live with him/her more than half the year and he/she does not have F 8332 to attach to the tax return. The due diligence requirement would not be met. Correct? Thanks for your help.
  3. If the statement included the custodial parent's SSN then it appears that it would include all information required on F 8332. Would this then qualify as a similar statement?
  4. What qualifies as "similar statement" or "other written declaration" in lieu of filing Form 8332 by the non-custodial parent in order to claim a child for the CTC? I can't find any examples or definite requirements in the regs or other information. A non-custodial parent TP has a signed, dated, notarized statement from the 2018 current year custodial parent that says each parent agrees that for all remaining years the child will be claimed by the 2018 current year custodial parent in odd years and by the 2018 current year non-custodial parent in even years. The agreement doesn't designate custodial or non-custodial parent - I am only trying to describe who the 2018 custodial parent is. The parents were never married. The statement lists their names but does not list either parent's SSN. If the definition of a similar statement or other written declaration means that it must include ALL information on Form 8332, then I would say this signed, dated and notarized statement doesn't qualify as a substitute for Form 8332 since it does not list the custodial parent's SSN. Is this the correct interpretation or am I being a stickler about this? There is history between the TPs and a lot of fighting. I want to make sure that I am correct by saying the statement doesn't matter to the IRS and only the custodial parent can claim the child and the CTC. Thanks.
  5. Hopefully that is the correct assumption. I'd hate for this to backfire on the client when it is my interpretation of the SSTB.
  6. Thanks, Black Bart. Yeah, I've often wondered why architects seem to get favorable treatment in a lot of tax law areas. Yes, I have read similar articles and even the IRS information on SSTBs and still am not sure on the IT service business. It appears that consulting is mainly the business coaches, counselors, psychiatrists, etc., isn't it? My main concern was the skills of the business owner, which may apply to an IT service business. However, the research seems to indicate that the intent of this definition is for celebrities who endorse products. So I'm leaning toward the thinking that the IT services business is not an SSTB. However, I want to make sure I'm not misreading the information that's out there. Thanks for your help.
  7. Also, he does advise clients on what systems or servers or computers they need for their business. I would say most of his time is involved in solving computer problems and installing servers and computers.
  8. He fixes clients' computer/server issues. Sets up clients' computers, printers and servers. Also, sells computers, servers, printers, etc.
  9. I have an S Corp single shareholder client. Is this business considered an SSTB? Originally, I thought it would be considered an SSTB because of the consulting aspect and the primary asset being the skill and reputation of the owner. However, reading the definitions in the 199A instructions and research materials, it appears that this business isn't considered a SSTB. Is my understanding correct? Thanks.
  10. David

    Rental property owned by two SMLLCs

    The property is owned equally between each of their SMLLCs. The father owns a real estate business and he and his wife also have a rental property - Sch E. This is the father's first fix and flip. The son is just beginning to purchase property so this is his first fix and flip. Since the father owns a real estate company does this mean the fix and flip and the rental property previously reported on Sch E should all be reported on Sch C as business activities? It appears that the son can report the fix and flip as capital gain, correct? Thanks for your help.
  11. A father and son each own a SMLLC . They purchased a fix and flip property which was owned 50% by each of their SMLLCs. Since the SMLLCs are disregarded entities, is the sale of the property reported on each of their 1040s? Or is the purchase and sale of the property considered a partnership owned by each SMLLC and reported on a 1065? Thanks.
  12. David

    1065 K-1 Sec. 754 Amortization

    Thanks, Judy.
  13. TP received a Sch. K-1 (1065) with an Additional Information statement stating Section 754 Amortization and an amount. This amount is not reported on any lines of the K-1 with an asterisk relating to the additional information statement. Should this additional sec. 754 amortization be reported as supplemental business expenses or UPE on the TP's 1040? Thanks for your help.
  14. Taxpayer purchased rental property in Feb 2017 and spent all of 2017 restoring, repairing and improving the property. The property was not rented in 2017. I know that all of the restoration, repairs, and improvement expenses are capitalized and not depreciated until the property is advertised for rent (ready for rent). I can't tell for sure from pub 527 whether the mortgage interest, taxes, insurance and utilities expenses can be deducted or if they must be capitalized. It appears that even though these costs are for managing, conserving, or maintaining the rental property, these expenses aren't deductible until the property is available for rent. However, I am reading that the expenses such as utilities, insurance, interest and taxes can be deducted while the property is vacant for repairs and improvements. Can anyone let me know the answer and possibly a cite? Thanks.
  15. I just received an S Corp's books late last week and am beginning to prepare their 1120S. I just found out that the S Corp officer didn't take a salary in 2017 but did take $55K distributions. This is the first time the officer didn't take a salary. At this late date I'm wondering how best to handle this. I'm thinking I could report the distributions on the officer's 1040 Sch C so that the SE tax is reported. Also, report the distribution amount as a negative Other Income on his 1040 line 21 since the S Corp profit will be reported on the K-1. For those of you who have had this situation - is there a better way to handle this? Thanks for your help.
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