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Everything posted by ILLMAS

  1. I remember in prior years there was a notes tab on top, I cannot seem to find it for 2018, anyone? Thanks
  2. Wow, I always thought my brother-in-law was weird for saving his first payroll check, keeping the cup of my nephew first sip of starbucks coffee and having to buy a shipping container to store all the junks he holds on to
  3. Thanks, I am looking into this, TP is not too happy with the financial advisor at the moment.

    Online Fax

    Myfax $10 a month: https://www.myfax.com/pricing FYI: Just once an IRS agent refused to send me TP transcripts because electronic faxes are not secured lines.
  5. I am using ATX, I will look for that worksheet, thanks.
  6. TP received two 1099R's: Box 1: 10,000 Box 2a: 1,100 Box 2b: Total distribution Box 5: 8,900 Box 7: 7D I see box 5 is the difference between 1 & 2a, however the second 1099R looks like this: Box 1: 25,000 Box 2a: blank Box 2b: Taxable amount not determined Box 5: 22,411 Box 7: 6 Right now, ATX is taxing the $8,900 and the full $25,000, however out of the $25K, TP kept $2,589 and the rest was put into a long-term care insurance + the $8,900 totaling $31,311. Since I can back track what should be taxable for the second 1099R, would I be okay putting the $2,589 on box 2a?
  7. Just out curiosity, does it flow automatically to 199a worksheet? If not, how does one populate it to the worksheet?
  8. I just order it for my clients that want it because they know they are going to need it, others don’t want to pay the $1XX + whatever the attorney will charge. I don’t prepare it.

    1040 Trustee

    There was a will left, TP is the executor and beneficiary to my knowledge, there will be no probate court because no one is contesting the will or is probate court mandatory?
  10. ILLMAS

    1040 Trustee

    Is there a special form required to be submitted with a 1040 for a trustee that will be signing for the deceased TP? Our state requires one, but I am not sure if the federal requires one. Thanks
  11. I will be working on a 1120S later today or tomorrow, but I went ahead and took a look at the calculate basis box, but I don't see it, neither on the basis worksheet. Unless it's the box labeled "Check if special ordering election made", but if I check it, nothing populates. Thanks
  12. No, it was always the intention for the business to do well and recooperate the loans after profits, there are some assets but the potential buyer is interest in the shop for its location and existing customers.
  13. Its always failing to pay employment taxes, its hardly ever failing to treat employees as subcontractors.
  14. The question is more on their 7% withholding tax for service.
  15. ILLMAS


    ATX recently updated it's QBI worksheet to automatically calculate, however there is a glitch, if you have a client that is a service business, you need to also check off qualified business, if you don't, ATX will not calculate QBI. Also, you still need to enter the data manually for Sch-C's.
  16. There is always a catch, I hate when that happens, but you are right I wasn’t seeing the other side as to the gift. Thank you
  17. Scenario: Father and son (50/50) opened a business with each $1000 in paid in capital 15yrs ago, within the first of operation the father decided to move to another state to enjoy the nice weather, the son was 100% in charge of the business and would give the dad his k-1 every year. The business pretty much operated at a loss every year and the son loaned the business close to 100K to cover the losses, for 2019 there is someone who might be interested in buying the business, can the son reclassify loan to additional paid in capital (50/50) to try to break even? Father Paid in Capital $1000. Basis negative 50K Son Paid in Capital $1000. Basis negative 50K Son knows the father will not have money to pay the tax on the negative basis when they sell the business, and is willing to give up a portion of his loan as additional paid in capital to the father and reclassify his loans as paid in capital as well.
  18. Got it, I was focusing on the relationship, and support test. Thanks
  19. Thanks, the child is a son The child must be your biological child, stepchild, foster child, sibling, step sibling, half sibling, or a descendant (child, grandchild, great grandchild, etc.) of one of these relatives. Son The child must have lived within your home for more than six months during the tax year. Full Year The child needs to be younger than you. Yes As of the end of the tax year, the child must be under 19 if he is not a student, or under 24 if he is a full-time college student. No The child must not have paid for more than half of his living expenses during the tax year. Parent paid everything, son pocket his personal money
  20. According to the TP and adult child (early 30s), TP provided more then 50% of support, lived at home with parent full year, parent paid all utilities, property taxes even cell phone bill for adult children with a 100K salary. Adult child was working full-time for about 3-4 months and quit their job with earnings under 10K for the year, would the parent qualify for HOH? I looked up the IRS rules and I see why not, but with all the due diligence penalties, I rather get someone else's thought that has gone through this before. Thanks
  21. No wonder mine stopped working yesterday, had to restall it.
  22. ILLMAS

    Federal letter

    Under preferences, client communication, I had to mark efile tax return, that solved the problem.
  23. ILLMAS

    Federal letter

    The return has not be efiled yet.
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