Slippery Pencil

25 minutes ago, Rmm said:

I need help depreciating a new lawn mower (10k) and a skid steer (60K) in ATX. What would be the category and subcategory and how do I elect not to claim the 179 and just do it over the years? I don't think ATX is calculating it right. 

Just answered your similar, but not as detailed, question on the other forum.  If you want to ask a new question you should start a new post instead of asking on a month old post.

6 minutes ago, WITAXLADY said:

aaarrgg - so you did not answer my stupid question -

JKL answered your question in the first reply.

The balance sheet amount is the reconciled cash balance, not what is on the bank statement.

Thanks.  I noticed the 37 a few minutes ago and switched to it when I couldn't figure out how to get the Form R to say it was for North Ridgeville. 

It's North Ridgeville, which is a RITA city and I'm using the General City Tax Form R.  I just couldn't find a way to efile it and wanted to confirm.  Thanks.

3 hours ago, Gail in Virginia said:

I am not surprised, but why on earth did she ever admit to that if she was going to do it in the first place?

Pretty sure that post was a joke as it wasn't made by the OP.

Can Ohio Cities be efiled w/ ATX?  I don't see a EF-Info form.

Check the Corona related box near the bottom of the 1099R input.  That will put the amount on 8915-E and eliminate the penalty.

The fiduciary probably coded it correctly.  As far as it knew, there were no exceptions.  If it wasn't covid related and an exception applied, fill out the 5329 and list the exception. 

The 1729 number is the TIN of the IRA.  As the other posts state, this doesn't go on your client's return.

Ignoring that, if it was your client's and not his IRA's, being a limited partner, this would be a passive loss and only deductible against passive income.

13 hours ago, BulldogTom said:

Yes....it would....and it would break them.   I for one would like to see it happen.

So would I, except I think they're already broken but not in the great way that should be.  For one client's 2017 return, "Where's My Amended Return" says, "Your amended return was received on 7/29/20. However, it has not been processed."  It's been At least we know it's been received and isn't sitting in a trailer full of mail in the parking lot.

Haven't done one this year, but in previous years I entered it on page 2 of the Sch D.  Top of page 2, Part III, lines 17 & 18.  Put the amount in column 1.  Maybe there's a better way since you'd think it would flow through automatically, but I never could get it to. 

Losses flow through on final year.  Not a trust expert so can't tell you if there's some odd exception that might apply.

39 minutes ago, Abby Normal said:

Why can't they write these things more clearly? A simple "per taxpayer" at the end, would make this really clear.

Per taxpayer would mean limit of $10,200 on a MFJ.

Sale $350K
Basis 275K
Gain   75K

How do you get previously reported income of $130K when there's only $75 of gain?

https://www.law.cornell.edu/uscode/text/26/6428

(2) Joint returns
In the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

Which is also what the 1040 instructions for line 30 say:
Married filing jointly.
• If your EIP 1 or EIP 2 was based on a joint return, you and your spouse are each treated as having received half the payment that was issued.

Legal disclaimer:
The date at the bottom of Cornell's page is 3/27/20 and the instructions were probably written 3 months ago, so none of the above may be currently accurate.  If you wait another two days, the answer may differ.

Medical insurance paid is deductible on Sch A.

Not going anywhere with it.  I'm answering the OP's question.

According to Deloitte:

Reduce the reporting threshold for third-party settlement organizations from $20,000 and 200 transactions per payee under current law to $600 without regard to the number of transactions, generally effective for transactions after December 31, 2021. Special reporting rules would apply as of date of enactment.
https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2021/TNV/210306_1.html

Everyone selling junk on eBay is going to get a 1099-K.  That seems like it's going to get extremely messy.

Bad programming, just like all the other forms that are added for no reason.

Line 7 on 1120-S says "compensation of officers", not "wages of officers".  Line 7 instructions state:

Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.  Enter on line 7 the total compensation of all officers paid or incurred in the trade or business activities of the corporation. The corporation determines who is an officer under the laws of the state where it is incorporated.

1 hour ago, jklcpa said:

True, the retroactive changes aren't your fault, but I think at a minimum you now have a responsibility to inform clients of the potential change to their returns and give them the choice to file or wait.

It's not like this is totally out of the blue.  The bill was introduced the first week of February and there's been discussion about it on all six tax bulletin boards I frequent.  You've had a responsibility to inform your clients for the past month that there was a possibility of this happening.

The schedules only print for me if there is data on them.  Was also that way in past years.

11 minutes ago, JoeFreitag said:

Thanks for the heads up.

You're welcome.  Good luck in life if you purposely choose to be so easily offended when someone answers your question.

12 minutes ago, JoeFreitag said:

So in your opinion I am stockpiling returns by following the instructions of the client solely for their benefit?

No that's not her opinion.  It's fact of law.

On 2/27/2021 at 9:53 PM, Sara EA said:

 We do that and charge for the work involved.

How do you sign the return as preparer?

You could send a copy to the taxpayer along with a note regarding your $X,XXX retainer requirement for being a POA and ask them to submit retainer if they want to continue the relationship.