Lion EA

The client does no accounting, just gives me a list. (She used to at least use Quicken and then an Excel spreadsheet, but so few transactions during Covid that she's been emailing me lists the last couple tax seasons.) I'm trying to do the tax reporting from her notes. I use ProSystem fx which pulls assets and accumulated depreciation from the depreciation schedule. So, If I'm not depreciating something that's not been placed in service, it doesn't flow to Schedule L unless I do some overwriting. She did give me her closing bank balance; they paid cash for the food truck. She gave me a list of expenses, and the new food truck is on that list -- but it's not in service yet. Her income list includes money she/partners put in and RRF as well as actual income. Her expense list includes the truck and petty cash on hand as well as actual expenses. Just trying to move all her items to the right 1065 schedules. And, I don't know where to put something that was purchased but not used. My quandary is not that it's on a depreciation schedule only, but that it should NOT be on a depreciation schedule at all. Is it an asset if it wasn't used in business during 2021? It's not a depreciable asset.

Well, Margaret, that makes lots of sense! Now I need to figure out how to get it there if not from the depreciation schedule...

Yes, it's the same partnership. And, it's my son and DIL's partnership, so a freebie. I can't believe I haven't had this situation before, but as I said in my other post, I prepare only about four business returns. Partnership bought a food truck in 2021, but placed it in service this summer 2022. I know not to depreciate an asset not yet placed in service. But, again, the BS is my weak point. The money is out of the bank account, but I don't put the truck on the return yet, right? How do I balance the BS? (I was doing well with this partnership for years, because I started when they started, with all zeros to open, and had good detail from the partners. Now, I get a problematic list, bank closing balance, and two new items for my limited experience!) Thank you to all who can help me get unstuck on this 1065.

Not really, it's actually the Restaurant Revitalization Fund. Someone pointed me to Rev Proc 21-49 which states that the RRF is treated like the PPP and other Covid relief programs. This partnership received the money in 2021 and has until 2022 to spend it on qualifying expenses; they spent part in 2021 and expect to spend the rest in 2022 and all on qualifying expenses, per a partner. I don't prepare very many business returns and only two partnerships, and the other one had no PPP or RRF. How do I report it?? At 12/31/2021, some was spent but much remains in the bank account. How do I balance the BS? (I have lots of notes from a couple of S-Corporations that had PPP; M-2 addition to AAA, subtraction from OAA. But Form 1065 Schedules L and M are the same as Form 1120-S.)

The state may've deactivated the corporation. You're going to need lots more information from that potential client &/or collect a very large deposit toward your hours.

The firm was founded in 2021? So, you're filing their first return on extension? Or, 2021 was filed by someone else and you need to...what?

You have to keep checking online. The IRS doesn't notify you of anything. Anything to do with the IRS is DIY. Don't trust, but verify!

That's what tax preparation feels like...

I've heard from one of my professional groups that the IRS is considering a mid-year mileage adjustment. That will be so much fun breaking out mileage (that clients pull out of the air anyway) into the before rate and the after rate. I use MileIQ, so I have the my dates, and urge my clients to use it or a similar app or notes on their calendar (paper or electronic) or a paper log, but we all know which ones will not follow our directions.

The remaindermen need to contact their lawyer. But here are some articles about your topic: https://wernerlawca.com/who-owns-property-life-estate/#:~:text=While a life tenant cannot,over the role of remainderman. https://burnerlaw.com/who-owns-the-property-when-there-is-a-life-estate/ https://www.fendrickmorganlaw.com/a-life-estate-deed/ https://www.bowmanlawfirm.net/blog/selling-property-life-estate

Thanks for looking that up. (I'm in the midst of an S-corporation dealing with a SEP.)

The SSA has their own time limits on including back payments on the tax payer's SS account. Check their website, but I think after three years the contributions are lost.

I haven't gotten around to ordering myself a new phone, but it's high on my to-do list. I'll let you know on here when my old one is up for grabs. We used to pass them down to our "kids" who are now grown and have phones from their jobs.

Yeah, 2018 has to be mailed.

3/15 of 2022 for 2022 returns? Or 2/15 of 2023 for 2022 returns like the partnership/s-corp return filing deadline?

3 open years, so 2019, 2020, and 2021.

That's exactly what I tell my clients. The IRS is broken.

Do you want my old iPhone 6 when I get a new phone?

Does MetroPCS have any "deals"?

CT is required and lowered the % of the pass-through credit. NY has opt-in deadlines, which I think they extended. Every state is a little different. If your partnership/S-corporation files in multiple states, you can have some complex computations to determine which PTE scenario works best for the partners/shareholders. Even more complicated/time-consuming if you're not the preparer for both the business AND all the partners/shareholders. This started out as a benefit to the partners/shareholders, but it's really a money-maker for the states. So more and more states are getting on board. We have to keep up.

Grandma met RitaB!

You can have a lot of fun for Halloween!

Measure out where the donut shop entrance needs to be so your round trip uses up the amount of calories in a donut.

If you like ProSystem fx, contact your sales rep. Put him/her to work getting you the best deal for the practice you have. Show him your UltraTax quote, and ask him to beat it. I have a combination of unlimited and pay-per-return to keep my price down.

TaxWise desktop has federal & state biz entities. Online didn't have biz for 2021. Check with them now for 2022.