Lion EA

I Google but use the irs.gov finds and the AnswerConnect finds, but that means only one search to get all those. Well, as many searches as I can think of combinations/permutations of search terms.

The unemployment cliff is $150,000. If he can't get RRC1 and RRC2 and EIP3 because his income is over $75,000, does his spouse qualify for those? Run the numbers. Let your software do the math.

But does that get one under the $150,000 cliff so the unemployment is not taxable? And, get one RRC1 and RRC2 and put them in line to get EIP3?

You know, I searched the IRS website for a very long time last night, and found lots of articles about the Simplified Method for OIH, but not a one mentioned less than a year, a biz starting or ending. Many of them discussed what to do for 2020 if the Simplified Method was or was not used in 2019. My search terms (and I used several combinations) never took to me to a Q&A page. That's why I love this forum: multiple sets of eyes, multiple ways to look for information... Thank you.

Thank you, all. My client had the grand total all worked out -- correctly -- but I couldn't see the right data entry to show the detail without prorating the square footage. Now I can show him that the IRS instructions DO match his computation. (This is a client who never told me last April that he was starting a biz then, so Surprise! as I started preparing his 2020 return last week. In response to my requests, the expenses dribbled in. Want to get this done today.)

A client started his business in 2020 and wants to use the simplified method. Do I prorate the simplified method for eight months? There doesn't seem to be an entry for start date when not depreciating.

Did you compare MFS with MFJ?

Well, you could see if the operating agreement gives the newcomer a 35% capital stake but 0% income/loss. But if that's a different class of stock than the original owner, then the company might've lost it's S election.

What would be our due diligence? What do we ask for re value of house, ownership, mortgages, etc.?

When did "community" end? Several years ago, you said.

Double your fee and hope he goes away!

The IRS and some tax programs split the EIP and the RRC into two halves for the taxpayer and spouse. Is that what's happening on your client's return? Did you put zeros for the amount received for the taxpayer AND the spouse? Check for updates. Maybe delete the RRC worksheet and re-add it.

Can you enter the $ amount directly on the form (Schedule C?) and not use the Form 1099-NEC template?

Yes, the IRS allocates so the innocent spouse can receive her/his ratio of the refund.

And, THAT's why I need to raise my fees, no matter how much clients complain!

Definitely inform them that if their virtual currency is held overseas, they may have reporting requirements on their returns and separately. At my age, I have no desire for new clients so would not take on someone new with VC. I have one existing client who bought some VC last year. Didn't do anything with it during 2020. But the reports she brought me were to-date and showed she "earned" partial coins in 2021 by letting them "lock up" her VC &/or watching videos about VC. I told her that that will be income on her 2021 tax returns. And, I told her to know where her VC is "stored," because if it's overseas, she will have additional reporting requirements as her holdings grow. I also sent her information about the reporting app that her Coinbase recommends, free for a certain number of transactions and then a monthly fee. I told her she could choose any reporting service she wants or do it herself, but that I do NOT do bookkeeping.

If you're using MFS, why do you need the innocent spouse form?

https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

Flipped property in a Schedule C is inventory.

If it came straight from the SBA (not from an SBA lender, such as a bank) it might've been the EIDL. If EIDL, but she receive only the grant part -- $1,000 per employee up to $10,000 -- it's pretty much like the PPP. If she received the loan part, also, then it's a loan on her balance sheet with interest expense on her P&L. But the SBA has lots and lots of small business loans, so ask for the loan document.

If all they did was buy virtual currency with real currency, you answer No. If the did anything at all with it, you answer Yes. Then you have to find out if they sold, exchanged, mined, received it for doing something (I have one that watched videos and earned fractional coins), spent it on goods/services, etc.

As far as I know, you're correct. Is your client a Schedule C?

CCH's more powerful (expensive) version that will do the 8615 is ProSystem fx!!

My DIL texted: With a NYS license you can buy anywhere in pa full size fireworks I think the closest from 84 area is just to take 84 all the way to the pa border. Huge firework places there

My PA kids buy in PA. They're in Starlight, PA, and I think they go to Honesdale. Some strange PA law that you can sell fireworks, but only to out-of-staters? So, my son goes with a PA summer-home owner who has out-of-state license plates on his car. They live at The Inn at Starlight Lake and set off fireworks from the dock in the middle of Starlight Lake for their restaurant and Inn guests to enjoy. I'll check with them.