BulldogTom

You may be able to call a new vendor who is approved by VA, ask them to give you a deal on 2022 software so you can evaluate it and send these returns. They may even have a conversion tool that will bring all your ATX files into their software. Most sales people would love to get another sale on software that is not really in demand anymore. I am assuming you have about 3 months to get all of this completed and while it is not ideal, you do have time to check out what may become your new software product. This really sucks - I would drop ATX and find a new provider if I was in your shoes. Tom Longview, TX

When I was in college I worked for a CPA. The Audit report said what the client paid for it to say, the higher the fee, the more items were passed on. As a 3rd year accounting student I could see what was going on. That is when I found the EA designation and decided the CPA route was not for me. Old, Jaded & Cynical. Sounds like a 80s rock band on their 2023 world tour. Tom Longview, TX

The only reason it came up was Spidell sent me an email with a 4 minute primer on the topic. It is not as in depth as it will be at their update seminars, but it was a good overview of what to expect coming down the pipeline. @cbsleeI am thinking about packing for our vacation more than I am thinking about this issue. Tom Longview, TX

I agree about forming companies with the SOS. Not for me to do. I just ask for the proof of filing, articles, EIN, etc. However, since this is an IRS reporting requirement, and we do IRS STUFF with our clients, I think they are going to want us to do the reporting for them, very much like our clients wanted us to do the FINCEN reporting. Where do we draw the line in what we do for our clients? Tom Longview, TX

Adult child with a minority interest (less than 25%) of the company but the parents own more than 25%.... Tom Longview, TX

@cbslee Nope, there is not an IRS form for it. It will be an online portal (Like FinCen?). Corporations forming in 2024 must report within 30 days of formation. Existing corporations must report by 1/1/2025. Responsible Parties (25% owners and board members) must be listed with current residence address and picture ID uploaded (Like ID.me?). Any changes to the information must be updated within 30 days of the change. Penalty for non-compliance is $500 per day. Tom Longview, TX

You remind me of the first CPA I worked for. "Explain it so a 3 year old can understand". Tom Longview, TX

I am looking forward to hearing more about this when I do my CPE this year. I still don't know if a related party is considered to have 25% ownership - anyone know that answer? Will you be filing these for your Corps? I plan to stay as far away as possible. $500 per day penalties is too much liability for me to take on. Tom Longview, TX

Fake News or Conspiracy theory alert....I have no proof for what I am about to say. I would guess that Microsoft knows that a lot of people (like me) do not upgrade their OS, they get a new computer with the new OS pre-loaded. Could it be that they are trying to get more new computers out there so they can pre-load with Edge and the new AI Bing and add the new AI features to their Office suites? Also, I have heard they are not selling the Office Suite as a product any more, only as a subscription, so if you are updating your OS and getting a new machine, you would also have to move to their subscription model for Office products? More recurring revenue to impress Wall Street? Just me thinking about how I think the mega tech companies are looking to get more and more of our hard earned money. Tom Longview, TX

I only have a couple of CA S-Corps and Partnerships, and none of them are making the PTET election. None of my Shareholders or Partners that I don't prepare the entity return have given me anything related to PTET either. I am sure at some point it will come up. Can you elaborate on what the issues are with the forms and entry? I would like to learn from your struggles if you don't mind posting a little about the issues? Tom Longview, TX

Where is she domiciled? If MA, I would file just to start the statute. Why put a potential complication out there for her in the future. Just my 2 cents. Tom Longview, TX

What Catherine said. I am waiting for someone to post what the heck that is....just have not had the time or the inclination to look it up myself. Tom Longview, TX

That sounds like improvements, depreciated over 27.5 years for residential rental property. The post implies that they did the work before they rented out the property, which makes me feel more strongly that is part of the acquisition cost and depreciated over the life of the building. Tom Longview, TX

I didn't know that.... Thanks Tom Longview, TX

Taxpayer had a tool shed built for his construction business. Pretty big, but not the size of a garage, more like the size of a shipping container. 100% business use. I am trying to set it up in fixed assets and I don't know what the life is. My first reaction was 39 year commercial. But that seems silly for a 10K building, but it may be correct. I see 20 year and 15 year options, but I am not sure that is correct. Any help appreciated. Tom Longview, TX

In ATX, it would actually be "Transaction Type" of "Inherited" that you select to get you the "Long Term" tax treatment. The date acquired and the date sold will be the actual date you inherited and the date sold. Transaction type overrides date input in ATX. It may be different in Drake or other software. Tom Longview, TX

It is not an initial return, we e-filed last year, which was the first year. The 7004 says it is for tax year 2022. I have reviewed everything on the form and I can't see anything I have done wrong. That is why I am thinking it relates to the 8832 issue from 2021, like they are not recognizing the LLC as a corp in the IRS computers. Tom Longview, TX

This Corp was established last year. LLC filing as a C Corp. Got a letter from the IRS about 2 months ago that the return electronically filed last year could not be processed because the 8832 was not included with initial return. Had the client re-submit the 8832. Trying to file the 7004 for 2022 and I get this error that I think is related to the 8832 not being processed yet by the service. F7004-904-01Federal Extension Form 7004, the tax year ending date ('TaxPeriodEndDt' specified in the Return Header) must match the data in the e-file database unless one of the checkboxes in Line 5b - "Initial Return", "Final Return" or "Consolidated return to be filed" is checked. Is there some way to fix this? Client needs to make a 10K estimate payment. Can I have them mail in the 7004 with a check and hope it all works out by the time I file the return? Thanks Tom Longview, TX

How is it there are six shots left? Or is that the second bottle? Tom Longview, TX

I see it now, depreciation taken over what would be allowed under straight line depreciation. Thanks @kathyc2 Tom Longview, TX

Why? What am I missing. The gain on the property sold is all related to depreciation taken which was deducted against ordinary income, therefore must be recaptured and taxed at ordinary rates? Is there another rule I am forgetting at the moment? Tom Longview, TX

Like @kathyc2 said above, you elect out by reporting all the gain on the 4797 on a timely filed return (including extensions). Out of curiosity, what are the numbers on your 6252 lines 5 thru 14? I think it should go like this: Line 5 - 150K Line 6 - 0 Line 7 - 150K Line 8 - 200K Line 9 - 80K Line 10 - 120K Line 11 - 0 Line 12 - 30K Line 13 - 150K Line 14 - 0 The form says if Line 14 is Zero, don't complete the rest. That is because all the gain is "absorbed" by the 4797 amount reported on Line 12. Tom Longview, TX

@jasdlmYour depreciation recapture is greater than your gain, and all depreciation recapture is required to be recognized in the year of sale, even if you are doing an installment sale. So I think you should have $30K net gain reported on the return. I think you should elect to report all gain in the current year since it is going to come out that way anyways. Double check me, this is off the top of my head and I don't have time right now to look it up to be sure. Tom Longview, TX

I have no idea, but probably because the IRS told them to program it that way.... Tom Longview, TX

Yes she gets step up. If the stock was held only in his name, she gets full step up, if held jointly only half step up. Inherited property is automatically long term. When you enter inherited as the transaction type, ATX will fill in long term for you. Tom Longview, TX