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Darlene, I don't use ATX and have no farmers, but since you've not received any answers, I will try to help in a more general way. You should have an input area to enter all or most of the information from the 1099 PATR amounts that will flow to Schedule F. That input area may, or may not, have a place to enter the information for what's shown on the PATR lines 8 & 9. If you don't see a place to enter anything for boxes 8 & 9, you may have to enter it on the input area for the Sch F. I would think that the input area for Sch F should definitely have an area for you to enter the QBI-related information, and so you shouldn't have to enter anything directly or override anything on the 8995. Those boxes 8 & 9 on the PATR show the amount of the coop income already reported on the PATR (boxes 1,2,3,5) that also qualifies for the QBI deduction. I can't tell you if it has anything to do with a REIT. What type of activity is your client involved in?

I use Drake too and it does allow filing of the 8938 because the 8938 goes to IRS, but not the FinCen 114 because it is not an IRS filing. To file the FinCen 114 would require setting up direct access through another portal so, like Randall, any clients had to file the 114 themselves.

It is almost never included with the legal documents. It is prepared by either the seller's or purchaser's tax preparer, and each party to the transaction is supposed to include it with the return for the year of sale/purchase. The ones I've had, one of the party prepares and shares with the other party so that there is no chance that the forms aren't the same.

FASB is the Financial ACCOUNTING Standards Board that governs accounting rules that can differ substantially from tax law. The tax code section for amortizing these particular intangibles is 1.197-2(f) which states the period of amortization is over 15 years. I did not address any state issues, and hopefully with Deb being from CA, she is already aware of differences from the federal.

Someone should be preparing form 8594, and both the seller and purchaser are supposed to include this with their respective tax returns. If you look at the snippet below that is a portion of the 8594, from what you describe of the sale, all of the building, land, equipment, and fixtures will be shown in class V. Then, the covenant is a Class VI asset, and the remaining $700K of goodwill is a Class VII asset. You will note that the Class VI and VII assets are combined on one line, and also note that the instructions state that these items are amortized under sec 197. https://www.irs.gov/instructions/i8594

OP should have a form 8594 that shows the categories of assets. With new C corp being created, any cash or assets coming in should be recorded, and the other side of the entry to capital stock or loans from shareholders, if any is to be repaid. Then, assuming the payment for the business purchase was made from the new C corp funds, record the depreciable assets using the values as they are shown in the purchase agreement. Treat each of the items purchased as you would any other business that went out and bought these things. Don't get overwhelmed by the fact that this is an entire business purchase with many pages of terms of sale and intent documents. That is: for land, building, fixtures, and equipment. If the values shown on the list of assets purchase do actually add up to the sales price for those assets, then you may use those figures as your basis for depreciation. If, however, you were provided with a sale price for a category of assets (for example, the equipment) but the list is the seller's depreciation schedule with historical cost, then you will have to allocate a portion of that purchase price to each asset purchased. For the remaining amounts, the $5,000 covenant, and the final $700,000 you say is not accounted for, those are both intangible assets amortizable under sec 197 using a 15 year life. In your posts above saying the $700K is left over and not labeled as anything after all other assets are purchased, then I would treat that amount of $700K as GOODWILL, again amortizable under 197 using a 15 year life.

Do you need to change a checkbox on the FL1120EF INFO form in ATX or some other place to tell the program that the extension was previously filed and you are now ready to file the 1120 itself? Sorry I can't look into it further for you; the last year I used ATX was for 2011. I don't see why you can't file the FL 1120 if ATX has the EF INFO form in its program.

The covenant not to compete and the goodwill are both amortizable assets amortized over fifteen year life under section 197. See article below from The Tax Advisor for a more complete discussion. https://www.thetaxadviser.com/issues/2021/may/tax-issues-noncompete-agreements.html As for the price paid for fixtures snd equipment, you have the price that the purchaser paid, and it is to be allocated over the assets that were purchased and depreciated over their respective tax lives. If you have the seller's depreciation schedule, you can use that as a starting point for your allocations of the purchase price For the depreciable assets, and use each individual asset's basis compared to the total of its category as a starting point first or the allocations.

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@BulldogTomThanks for your explanation and the correction!

Form 8379 is filed solely by the injured spouse that was one of the filers of a MFJ return, so in your client's case, YES, your client is able to file this form. Instructions state that the names should appear in the order that they appear on the MFJ return, but then there is a check box for which filer is the injured spouse, and then that person is the one filing the 8379, and it does have only one signature line. https://www.irs.gov/pub/irs-pdf/f8379.pdf https://www.irs.gov/instructions/i8379

I don't have a farmer return to test this one, but the only thing I can find is on the NOL screen that is found on the "Other Forms" tab, or type "NOL" in the search box. From there, the screen shown below will appear, and there's a checkbox where I have the red arrow. You'll have to test this to see if it gives you the correct election.

Is this a married couple or a single person? In other words, is there any reason to protect the portability of estate tax exemption of the deceased for a spouse, if there is one, since we don't know if the exemption will actually revert back to pre-TCJA levels after 2025?

It's from Thomson Reuters, originally called Creative Solutions DS II, now the Fixed Assets module that integrates with Ultra Tax.

@Ocean26 if you were able to resolve this problem, would you mind sharing the solution?

Thank you, Tom. That was my general plan, but wasn't sure if it was overkill. Like I said, it's easier to have too much detail rather than have to dig it out or extrapolate later on.

Dennis, none of that is what I asked, and this is where your answer is from the POV of a business owner and differs from that of a tax preparer. The question has nothing to do with proper accounting or tracking of income either. I will be doing the write up work and keeping all depreciable items on the FA schedule for this very large project outside of the tax preparation software. I can handle all of that easily, and the number of line items on the return is irrelevant to me. I will provide as much detail as is needed for a proper return. I only mentioned that Drake allows overrides so that the readers here realize that the tax software won't require a duplication of effort entering all detail again within the tax software to generate a complete return. The question has to do with the FA schedule maintained outside of the tax software, specifically for the fixed assets of an apartment building having many units, with an eye to the future for when items are removed and replaced and how best to set up that FA schedule now for expediency in future years. In my experience, it is always easier to start out with too much detail rather than schedules I've followed from other preparers over the years with not enough details that then causes struggles down the road, and my question was how to best to initially organize all of that on the FA schedule.

For those of you having clients with rentals having many units, a client will be building an apartment building with 24 or 25 units in a future year, and my question is how best to set up the subcategories for the fixed asset schedule to make it most useful for future. Should I separate into land, main building and structural-related items, and then unit-by-unit for appliances and fixtures, etc that are sure to be replaced sooner than later, meaning 25 more subcategories all for this one rental activity, or some other way entirely? I do have a separate fixed asset depreciation program outside of my tax software that allows for various methods of categorizing and sorting within the main unit such as by location/unit, asset categories, etc, and it will produce all of the tax forms too. Drake's tax software isn't as versatile but does allow for direct entry on the 4562, so I wouldn't need to duplicate all of the work again within the tax program itself. Maybe I'm overthinking this, which wouldn't be unusual.

I have a client that is developing a parcel and will be building an apartment building with somewhere around 24-25 units. Does anyone here have an approximate dollar value or rough idea of what the building's costs need to be where a cost segregation study becomes beneficial?

Sure, as long as he meets any one of the 7 tests for material participation. Probably one of the easier test to meet would be the 100 hour rule and where his participation is at least as much as others including nonowners.

If taxpayer materially participated, income from the self-rental is considered nonpassive. Did you check the box D for "nonpassive" on the K-1 input? I suspect that you checked box A for "active" instead. Is that correct?

Did you see this in the IT-203 instructions? This appears directly below the instructions for line 18 in a section with the caption "Other Adjustments to Income"

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That sounds like a programming error and you may have to open a ticket through ATX support. I try not to override unless there is no other option.

Please wait for the short certificate or court appointment. If like here, that should take a week or two for the executor to receive, if not in hand already by daughter since you know she met with the attorney yesterday. In the meantime, accept whatever additional medical deductions from the daughter and have it ready to go, but don't discuss the return in detail until you know that this is the daughter also acting as executor. Just say it is in your queue to work on. ETA - saw you are waiting for the document. You are on the proper course.