schirallicpa

Taxpayer's father set up taxpayers business inside his 401K.  Business is run as a C-corp.  No real estate involved.  Father died in Nov and now Taxpayer is beneficiary of this 401K.  401K has some stock assets of other companies - like normal.  And owns this business.  At Dec 31, 2022 the Corp had retained earnings of 30K.  I'm thinking we need to do an accounting thru DOD and find the value at DOD, which won't be a whole lot different.  

So then what?  Can he take distribution of the business and roll over the other assets to his own retirement account.  Does this retirement account need to be a 401K or can it be a Roth? Or does he just leave stuff as is and take the 10 years to deal with it.  

Any thoughts on this will be much appreciated.  I'm kinda treading.

Maybe we can just tax income and remove all the BS credits and political gimmicks.  If we taxed wages straight forward and only took what was required,  we could cut tons of tax prep.  And if we removed all the credits, look at the scams we would avoid.  Leave welfare assistance for the welfare offices to deal with.  Then only those that have businesses or rentals or farms, etc would have to create a tax return each year.  

Thank you - I was looking thru the elections tab.  

I know it's red.  Most of mine reject because I create it and then it's more than 5 days when the client signs and pays.  I'm just thinking it would be a little more fun.  

You know how on the insurance commercial the aunt is going thru the fridge pulling stuff out: "Expired!"  "Expired!"  "Expired!"

I want my efile rejections to say "Rejected!" "Rejected!" "Rejected!" 

Will I have to paper file to include a late election or is there a way I can get this to say late election on the return.  Can I efile the 2553 with the return.  

I guess I thought that when the corp discontinues business the final return is filed.  We had a corp that finished up business early 2022.  I filed a final return knowing there was still a small balance in the checking account.  So what - that is part of the winding up of business that is outside of needing reporting - an accrual is paid or some small misc fee is paid.  But I just got told by a "big firm" CPA that the final return should not have been filed because the bank account was not closed yet.  I personally think that that is just milking the corp for one more bill for one more corp return that doesn't need to be filed.  Have I treated things wrong all these years?

Do I need to file an extension for an S-corp that hasn't been approved yet?  Will I get penalized for not filing extension when they approve it next week?  He's a single member LLC electing to be treated as S-corp.  

Yep - I had to call back.  The first round of agent was absolutely not helpful.  The second agent was helpful and even quite nice.  

Why do they make this stuff so difficult.  I know - omit the W2 and see how fast they send you the corrected info.

Yep - the 1040x still just says 1040.  My state is NY and it says IT-201-X.  Not sure why but that's how it seems to work. 

Why can't we just have a simple online look-up.  Put in their EIN and find out.  I have been on phone with the most inept IRS person who could not take any ID # from me without transposing it, and then told me my POA did not authorize me to know this information.  What?  

that was able to use a passive loss carryforward - in full!

I have been waiting for a very long time.

When AI gets that smart, AI can do the whole tax return and we can find something more fun to do.

Taxpayer is 68 years old PA resident.  Has a 1099R with code 7D.  The 1099R shows this as a PA distribution.  But is it taxed in PA?  The D part is throwing me. - "Annuity payments from nonqualified annuities that may be subject to tax under section 1411." I know PA generally doesn't tax retirement pays.  

No - if it's in the system, don't send another.  Do you have POA?- maybe you can try to call about it in your spare time and see where it stands. 

And I'm so happy to have an extra February day.......Is tax season actually over on April 15 this year?!?!?!?!???

https://images.app.goo.gl/qa4qp1MY4jq4Dcc88

This is like watching soap opera.  Where's the popcorn?

ummmmmmm- I must say I would like to have gotten a stipend in college for 30K to do research.....but......

I was going to put this as other income and be done with it.  But then the father sends me all this information about her travel and expenses doing this research.  The thought that it is SE income had not crossed my mind.  Do you guys consider this SE income?  Honestly - it's a lot less costly to her to just have ordinary income.  And I have had other students who have gotten stipends to work for a college that I have just called it other income.  

Much thanks for your guys' 2 cents on this.  (They don't make the cent sign on the keyboard anymore do they. Wait. Did they used to?)

Medicaid is a college class of it's own.   Sometimes family members can receive money tax free as a care-giver, but be careful how that contract is written.  The money has already been paid with little forethought so - hey - let us know.  I'm at that wonderful stage right now where my mother with dementia has given away loads of money that Medicaid is not happy about it. But I don't think Joel Olsteen is going to be writing a check back to the nursing home now.  I'm a little late getting the power of attorney that I needed months ago, partly my own fault because I was not realizing how wacky she had gotten.  Not exactly close to her, and certainly not happy trying to figure out what she's done with all her money.

Having everything in someone's cloud makes me nervous.  I still want a little hard piece of plastic and metal to back up on.  Need to find out how much access google has to your info.  My google knows when I sneeze.  What will my google cloud know?

Thanks guys - we shall report and pay.  It was about 7500 in interest so it certainly creates a bit of tax, but the TP has certainly taken benefit.  

he paid the company but the company did not apply money to the cc

These debt relief programs are BS and we all know it.  But it's always an older person that gets scammed into them.  This guy paid payments thru some program, and has proof of the payments that was supposed to pay off a credit card.  But now - 2 years later - he gets a 1099C because the debt was discharged and his payments apparently didn't go to the CC company and the debt relief company cannot be found.  What to do.  Seems hugely unfair that he should have to pay tax on this.  But until this came in the mail last week, he didn't know he had been scammed.  I'm not sure if the IRS gives any room on this kind of stuff.