ILLMAS

Its always failing to pay employment taxes, its hardly ever failing to treat employees as subcontractors.

The question is more on their 7% withholding tax for service.

Anyone?

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.

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

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.

Got it, I was focusing on the relationship, and support test. Thanks

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

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

No wonder mine stopped working yesterday, had to restall it.

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

The return has not be efiled yet.

I was informed by a TP that the federal letter says TP needs to mail the payment ....., however the payment is scheduled to be debited later on this month, I tried deleting the letter federal and adding it back, but the same message appears, anyone know a solution? Thanks

Newegg.com but why not go with 10 better

Proseries my friend, but a little secret, they are paying top dollar for a software that prints on one page.

Does anybody know if there is a website where one can plug info to get estimates of tax due by states? I will be helping an associate that will not be available for a while, I don’t want to create dummy tax return to get the figures.

I believe it's a trust, not estate, I would have to check with the TP, I have seen the return and in the past year it has not impacted their personal tax return. I have a copy of the depreciation, the property had a step-up basis at time of death. Thanks

The estate did, the property has been fully rented for a couple of years.

Your thoughts on this one, TP was transferred ownership of a rental unit on 12-18-18, however there were no income or expenses from 12-19-18 to 12-31-18. My dilemma, does it make sense to report it on the TP for a couple of days only or just wait to report it starting in 2019? Besides the transfer of the unit, former owner had a separate bank account, that was also transferred over and taxes were paid on that money, basically it’s the profits. Rental unit was in probate court and took about two years to finally close. Thanks

I seen it work on Proseries, you dont have break your head calculating the 10 year UBIA amount, it does automatically.

Out of curiosity, what are the specs of your computer? A couple of years ago, non-returning tax client were told the HVAC they had installed qualified them for the energy credit, I said sure, send me the make and model number and I will look it up on energystar.gov. I could not find it, so I voluntary called the manufacture, gave them the serial number and they said this model is X years old and was discontinued X years ago, but was brand new.

Zionks, after reading the original post, I have a client that went into business with A & B, A & B loan/invested $30K into my clients business. My client made A & B each 25% owners, fast forward to 2019, my client is thinking of buying A & B out, don;t know for how much, but A & B's basis is -130K. Once A & B knows they would have to pay taxes on the negative basis, they might not want to sell.

Yes, I have seen where a company changes payroll company during the year, and employees get two W-2's, I would ask the employee to double check his wages are correct, sometimes is lack of communication.

We all figured that, I hope you get compensated very well.

Did they consulted with you before hand?