jasdlm

I think that's really strange, because usually if there's a FTHB credit and a 5405 required, the efile will reject (in my experience ... having clients who didn't tell me they took said credit and needed to pay it back).

Patti, I like you.

I agree, but should I have her pay in as if it is SE income (how can it not be?). Really ... am I missing something? I feel really stupid right now. About this time of year, I usually start thinking I'm not qualified to do this. Does anyone else have those types of thoughts when something like this floats across your desk? Maybe I'm not qualified to do this ...

Client joined a new firm. They call her a 'non-equity' partner. Received a K1 for $500k in 'ordinary income' and $800 in 'guaranteed payments'. Limited partner box is checked. Box 14, Self employment income, is the $800. However, there's a 401(k) deduction of $35,000. I feel like I'm crazy ... the $500k is, of course, SE income, but I have to report the K1 incorrectly (change box 14 to $500k plus $800) in order to get the SE to calculate since she's a limited partner. Owes much more money that way, even though the 401(k) doesn't flow through unless there's SE income. What am I missing?

I'm getting old and spicy, and now, when people tell me something preposterous (or give me some crazy tax rule they 'know'), I look them straight in the eye and say, 'Did your hairdresser tell you that'? Stops them cold. Literally. You should try it. They look at me dumbfounded for a minute, then they usually chuckle, and then they remember that it's a 'fantasy tax scenario', and we never speak of it again. You have to be over 50 to pull this off, but I've now made the cut, and I use it every time.

Agreed. This sort of reminds me of when clients sell a depreciated asset and bring you all the costs from the first purchase on assuming they're all a deduction against the sale and not realizing they've already taken those deductions. They just don't understand how it works.

Thanks so much to both of you! Non-resident state is PA.

Client is 85% owner in a firm in another state. Works remotely and never visits the State. S Corp. W2 income on resident state, K1 loss (in this case) on Non-Resident state because that's technically the situs of the firm. The question: Client has a distribution in excess of basis of $30k. (Has been going on for several years - I know, I know). I think the income is resident state income, and that's the way the prior preparer handled it, but now I'm questioning myself. ATX flowed through to NR state because it came from the K1 entry, but I'm not certain that means anything. I'm sending myself in circles on this. Ridiculous. Apologies for asking a question I should know the answer to.

When I first started practicing, a client (new to me then) got audited and his long-horn steer ranching business was determined to be a hobby (which it was, but ...). They're serious about that! (Or they used to be).

It's really crazy. I think we need to have a giant round table session (at Rita's burial ground ;)), or maybe a giant zoom call) just to discuss practice management. I've been working 90 to 100 hours a week since the first week of February, and I literally am getting too old for this. I feel like I can hardly push myself through this final week. I have good staff, but it's still just too much. I think others work faster than I do, and I need to learn efficiency steps. Last year I did 730 returns including extensions. This year, I'm at 525 so far and working as fast as I can. Client documents are delayed, and everyone just needs to talk to me for '5 minutes'. I feel like such a loser when I put someone on extension whose information was turned in during March. I set my deadline at March 7th for a guarantee of no extension, and I have passed that 'check-in' date, but people are still really good at making me feel bad, anyway. Thanks for listening. Yes, I like cheese with my whine. I do think some sort of 'trading trade secrets' meeting would be amazing. I'd host you all in Kansas ... you probably don't want to come in August, though ;).

I don't know what software you're using, but it might be that there are boxes at the top of the K1 entry screen that need to be checked to create an accurate flow. (Like the passive income box)

100% agree. Every corporate/partnership I do goes with Schedule L.

You rock, Abby! Thanks so much! Believe it or not, I spent about 10 minutes on google but couldn't come up with it :(.

Does anyone have this? Client received a death benefit. 1099R didn't make it in the mail, but I have a copy of the check. Thanks.

Announced at the end of the day on the deadline day AFTER I had already made all my clients file. I feel like a loser :(. I found out other colleagues here were telling their clients not to file.