BulldogTom

Just checking to see if there are any major issues this morning before I start sending returns? Tom Modesto, CA

IRS Regulation 1.183-1(e) says in part: “The taxpayer may determine gross income from any activity by subtracting the cost of goods sold from the gross receipts so long as he consistently does so and follows generally accepted methods of accounting in determining such gross income.” Tom Modesto, CA

Amazing how all the sudden these dead beat kids of my clients are "miraculously" on their own and not a dependent anymore. Tom Modesto, CA

@PossiI think what Abby is saying is correct. For a hobby that is selling an item, the "Gross Sales Price Less the Cost of Goods Sold" is taxable. This goes back to the basic premise of tax law that only the accession to wealth is taxed. The expenses not related to the Gross Income follow the rules you posted above. This 2019 article from a CPA firm says it better than I can. "If you sell goods as part of your hobby, cost-of-goods-sold is deductible, subject to the gross income limitation. The TCJA suspended miscellaneous itemized deductions until 2026, removing the ability to deduct hobby activity expenses, other than cost of goods sold." To get to the proper reporting of the taxable income, and to reflect the full amount of the 1099NEC on the return, you would follow the procedure Abby outlined above, putting the full amount of the 1099NEC on the other income line and then backing out the COGS on the same line. Tom Modesto, CA

Never have, never will. I have clients moving out of state and I wish I could follow them. Tom Modesto, CA

We have struggled with this form as well. I did not have the situation you describe, just a part-year not covered and it took a long time to get the input correct. I did it by hand from the instructions and then did the input in the software and I got the form completed with no red errors. I suggest you try that and see if it helps. Otherwise support is probably your best option. Tom Modesto, CA

I would be very skeptical and keep that chat transcript in my files for penalty abatement (reliance on an expert from the software company). Tom Modesto, CA

A novel idea is much better than a novel coronavirus! Tom Modesto, CA

Any update on this? I just did a couple returns and it is pulling a red error for all my 1099Rs. Both these returns have multiple 1099Rs associated with each having withholding, so there is no single EIN to put on that line. And the EIN is on the input form. This is a terribly poorly thought out idea. Tom Modesto, CA

I will take a post dated check from my clients with the stern warning that if it bounces I will never do their taxes again. Tom Modesto, CA

This is the ATX sales guy who hounds the crap out of me every year from October until I renew in late December. Will Van Cleef (678) 797-6937 Tom Modesto, CA

Wow, that is a lot to deal with. Sending prayers your way. Tom Modesto, CA

All good points. But I think the IRS will not want to make an announcement on extending the tax season until later in the year to spur as many as possible to get their returns e-filed. My guess is somewhere around March 15th there will be some kind of action that allows for an extension of time to file/pay. Tom Modesto, CA

I would call ATX about the e file issue (I don't e file 1099s so I don't have an answer for that). I do know that IRS is not sharing the info with states from the 1099NEC. I don't think they have had time to update their systems to make it happen. In CA, we have to file the NEC with both the IRS and CA. CA has provided an address or a fax number to send the forms to. Tom Modesto, CA

I am wondering how ATX will accomplish the add back for the states (like CA) that will tax the PPP loan forgiveness. Any one seen how this will work in the software for Sch. C, 1065 and 1120 returns? Tom Modesto, CA

If you have an AMEX card, you can get 10% cash back on any Dell purchase (Add the offer to your card on the AMEX site). I have Dells and I am happy with them. Tom Modesto, CA

I hear you. I feel like I am not ready for anything this year. I have my software, that is a start. I am going to a Spidell webinar next week, hoping that gets the grey matter moving. 1099s and W2s are ordered but not here yet. I was just reading the article about all the tax law changes and I am thinking that I am woefully inadequate for preparing tax returns this year. I just know I am going to miss something and it will cost me clients. On the other hand, I just got fired from my day job today. I complained to much about taking a pay cut while taking on the extra work of laid off staff. The owner felt I should be grateful not to be on UI myself. I did not take kindly to that remark, and he did not take kindly to my characterization that he was preserving his wealth at the expense of my income. Case closed, owner wins that argument every time. So now I have lots of time to devote to tax season. But I still dread this year. Tom Modesto, CA

CA just stated that they will not conform. Expenses paid with forgiven PPP funds may not be deducted. To the surprise of no one. Tom Modesto, CA

My office is across the hallway from our HR manager. Employee comes in to the office today asking for his W2. Says he needs it right away so he can file before his baby-momma because she took the kids last year and he wants to file first. HR manager explains that the W2s will be coming out mid-January like always. Employee asks "Can I file with my last check stub?" HR manager replies "Yes". Here we go with the start of a new tax season. Tom Modesto, CA

I have tried to read this but I don't get it. It says a company that has already taken a PPP loan can get another one if they have spent the first one. But what I don't understand is the criteria looks exactly the same for the second loan as the first loan. Doesn't that mean that if $1 million was your first loan based on 2.5 / 12 of your prior year payroll, you have already hit the max loan amount? Or did Congress just double down and let you take another loan for the same amount to spend in the next 24 weeks? Please clarify for me. I feel stupid about this. Thanks Tom Modesto, CA

I have no idea how they do it. We used to have a conformity bill every year and they would pick and choose which provisions they would conform to. It started getting later and later in the year, which was a problem. Then they moved to an automatic conformity with exceptions, and that worked for a while pretty well, until Trump got into office. Now it is a big ol' mess. They did not conform to TCJA at all, except a couple of the revenue raising provisions. It is like doing two separate returns. I have a webinar from Spidell on the 7th and 8th that should get me up to speed. I used to joke with my wife that they needed to replace Lynn Freer (president of Spidell) because she always gave the CA Conformity lecture, and it was a bear to sit through 4 hours of that material. Lately, they have changed their material and are showing the non-conformity when they go through the federal material. Makes it easier to sit through. Tom Modesto, CA

Hoping California Conforms to this provision. Will be a mess if deductions have to be excluded for PPP forgiveness on the CA return. Tom Modesto, CA

Maybe this should be under covid 19 forum. Partnership is accrual based. They pay an annual tax to the state of CA based on the prior year income and the number of tables the facility is licensed to operate. The tax is normally due in April. Because of Covid 19 the state of CA granted an extension of time to pay until November 2020, then extended the time until June of 2021. Are they going to be deductible on the 1065 return as state taxes? For accounting purposes, the matching principle should govern the treatment on the financial statements, but I am unsure if they can be deducted if not required to be paid until the next year. Thanks Tom Modesto, CA

I see answerconnect prime comes with the MAX package this year. Is this the full version or a teaser to get you to buy a full package from them? I don't remember getting it in prior years. Tom Modesto, CA

Has anyone had any experience with Microsoft Teams? Tom Modesto, CA