ILLMAS

https://goo.gl/images/qMp5NU

I cannot wrap my head around this, but if I remember correctly, people who had multiple jobs had to adjust their withholdings so they won't owe at the end of the year, but how about a married couple, one with each job, zero exemptions and they owe money WTH? I understand the tax tables were released until late February 2018, but if they had zero exemptions for January and February, what is the factor I need to take into consideration to justify why the owe? Thanks

A Don Juan with a wife, no I cannot believe it

No wonder you looked familiar to me, I sort of recognized you from your picture.

I believe the IRS automatically classify it as a partnership, however it’s considered a disgarded entity when it has a single member, so Sch E should be fine. But can also be called a joint venture if it’s owned by a husband and wife. Spouses as Joint Venture LLC Owners The IRS tax code provides that an unincorporated business may also qualify as a joint venture LLC if it conducts a trade or business in which the only members are a husband and wife who file a joint tax return, both spouses materially contribute to the trade or business and both spouses elect not to be treated as a partnership. Ordinarily, the qualification allows married owners to file tax returns not as a partnership but as joint sole proprietors, where both are entitled to Social Security benefits and credits. However, if the joint venture is incorporated as a legal entity -- such as an LLC -- under state law, the IRS qualification is not allowed and the venture is treated as a partnership unless the married joint venture owners live in a community property state. In this case, the entity is disregarded and no partnership tax return is required.

I hear you, my friend just shared this article: https://www.forbes.com/sites/robertwood/2019/02/07/trying-to-trick-irs-during-audit-can-mean-criminal-tax-charges/

I am not in the office yet, but you can reconcile between book vs tax depreciation on the M-1 and should work.

This stinks, former employer is probably including the full-cost of the equipment, which he also benefited from, your client should of received the FMV of the equipment, not the full cost. I would report the FMV of the equipment he kept as other income and not subject to SE.

Does anybody know where I can some information as to what the IRS might use to calculate retail markup for retail and wholesale of sports clothing, accessories and shoes. I took a look at the IRS retail audit technique guide but didn't find any percentage. Thanks https://www.irs.gov/pub/irs-mssp/retail_industry_audit_technique-guide.pdf

Has the person notified the notified the issuer of the discrepancy? I would recommend for him/her to submit proof of payments he/she received.

Don’t these free AV program cause more damage, then a paid version?

Watch out for these two questions, you can no longer just click NO on every line like before (in most cases).

A quick restart should do the trick.

I went back to my notes to review wages: Wages for limitation purposes includes all wages, including shareholder wages. Wages not allocable to QBI are excluded from the calculation. PEO wages are included as wages for the business. Wages cannot count twice in two taxable years or for two trades or business. So my K-1 should look like this? Box 17 V -10,000 W 46,000 (Owners $6K + $40K employees) I am concern, someone might pickup on wages and calculate QBI and not take $10K loss into consideration.

You are correct, I just reviewed my notes, I was thinking it only applied to rentals. Thanks

Just want to double check with everyone, if a business has a loss, then there is no need to fill-in the QBI portion on the K-1? Business had a loss of $10K and the owner had $6K in wages. Thanks

1120S related, not 1040 Did you click on gray out box on page 4, line 17d? I believe no one here has made that point before, if someone were to explain it in detail it would be helpful, and if someone explained in detail about clicking on the gray box on line 17d, then it was not picked up on the QBI information sticky.

With Tom Gorczynski?

Hello Tom, are you on Facebook by any chance? If yes, there is an ATX tax software support group, I bet someone there will know.

For example Sch E Property 1 $10,000 Profit Property 2 $2,000 Profit Property 3 $6,000 Loss Aggregated Total $6,000 QBI $6,000 x 20% = $1,200 TI $30,000 x 20% = $6,000 Sch C Profit $30,000 1/2 SE $2,295 SEP IRA $3,000 SE Health Ins. $4,000 QBI amount $20,705 QBI $20,705 x 20% = $4,141

Just wondering if someone else has prepared a Pre-QBI worksheet to keep electronically for each qualifying/non-qualifying clients? I prepared one, so I just plug in the amounts on the atx QBI worksheet, then take the same amounts and verify them against online QBI calculator.

This only matters if the TP itemizes correct? I prepared a return yesterday, TP had $10,002 in property taxes not including state withholdings, but was way under the MFJ $24K SD, I stilled entered the amounts on Sch A because the property tax amount flows into the state for a credit.

Never mind, I figure it out, TP was being claim as dependent on parents return in 2017, not in 2018 and that solved the issue.

Can someone double check my figures, single TP earned $26K and has $700 in student loan, TP is under the $65K threshold, ATX is not allowing the deduction. Thanks

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