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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.

I've seen this exact issue and asked about where the the auditor doesn't care about the salaried hours directly EXCEPT to be trying to figure out if the taxpayer had enough hours to be considered either a real estate professional or if materially participating after working a F/T salaried position, especially with this many properties, and depending on how each is reported on the returns. And, no, you do not tell the auditor to pound sand.

I agree with Bulldog Tom in that your work may also be an inaccurate recreation using only the bank statements if what was retrieved from the prior accountant and client was incomplete data. By using only the bank statements, then it seems you are recreating using cash basis. Is that the basis used for the prior 990s and financials? If the NP used accrual basis, that would be a possible explanation why the revenue and expenses could be higher than your recreations. Are the 990s and financials presented on the same basis of accounting? I generally don't amend a predecessors work without knowing I have all of the data. To do so from incomplete data, there is no way to know that your work is any more accurate than what you are amending from.

Please don't take this discussion to contract "employee" that SHOULD be payroll instead of 1099 reporting. Plenty of small businesses and rental owners pay contractors and attorneys that require 1099s to be issued that have nothing to do with being on payroll at all!

Daughter needs to give you the short certificate that designates her as executor to act on behalf of estate, or the court appointment if she doesn't have the short certificate. You know POA died with the mom, so once daughter gives you whichever document grants her the authority to act on behalf of the estate, only then will you be able to work with her again on behalf of mom and mom's estate. At that point, you could choose to have her sign a release to provide copies of returns directly to attorney, if you are comfortable with that. Otherwise if not, you will provide daughter with extra copies that she will provide to attorney herself. I don't see how you could possibly provide either of them anything today since those returns are not yet completed. Sorry, can't answer about the paper vs e-filing. Depends on what document you get. Check instructions for form 1310. There was an extensive discussion a couple of months ago on here. I'm not in office right now or I'd look it up for you. Maybe later tonight I'll have time to revisit this discussion.

The joint extension covers both taxpayer and spouse no matter whether they file MFJ or MFS. It will be fine.

Please, folks, try to stay on the topic and remember that the original poster is a tax preparer awaiting an answer to solve his or her problem in order to finish a project or return, and it is not helpful to that person to receive answers that derail topics sideways into other areas with anecdotal stories. If you don't have the technical answer, that's OK, please scroll on by and hopefully someone else will chime in with the answer. If a topic or post jogs a memory or brings a related question to mind, that's OK too, but PLEASE START A SEPARATE TOPIC. If you take the time to read your typed response before clicking "submit" and the post swerves off course with something that sounds like "this reminds me of when my spouse's second cousin's brother's wife's stepchild once removed brushed her pet rabbit..." then please rethink your answer. Obviously, this doesn't apply to the occasional nontax-related topics that are posted in fun.

Ah, glad to have helped solve the puzzle.

If not the sole residence, the use of a motorhome for business falls under the interpretation of 280A(f) like any other 2nd residence would. Here's an older post from Bradford Tax Institute with its discussion on this matter that some here may find interesting or useful: https://bradfordtaxinstitute.com/Content/IRS-Audit-Questions-Motorhome-Use.aspx

Moderator note: Responses pertaining to use of motorhome/2nd residence for business is a different subject completely than was asked and has been moved to its own separate topic.

Lion answered best that the mileage to and from the island home IS commuting. If the business is from this location, then the business mileage once on the island would be deductible. Documentation is key!

Is there a schedule for details of other items to allocate to shareholders that relates to 1120S pg 4, Schedule K, Line 17d? If not, when you add all of the amounts on the K-1s for that item, it doesn't add up to the amount of net sales on line 1 of the 1120S? Is it possible that there are special allocation %s for this item being carried over from the prior year? Or did you hit an input line in error that is having some effect?

Link to a Drake KB that should help; it describes the calculation and when and why it is needed. https://drakesoftware.com/Site/Browse/17113/1120S-Line-17-Code-AC-Change-Drake20-and-future#:~:text=Line 17%2C code AC on,for Section 448(c).

Yes, just a shifting of assets per the divorce settlement, not any sort of sale or gain/loss to report at all.

Mod note: 2 posts hidden as O/T. Please stick to the OP's topic of 1099 reporting and if non-issuance makes that expenditure nondeductible for tax purposes. Anyone wanting to discuss accepting or paying for services in cash/check v. plastic or any other side issue should start a separate topic of its own.

A practitioner. In another post it said he's been with ATX since 2006 and had forgotten about this site until very recently. Also, I can see the email that confirms that he is a tax & financial professional.

The fact that 1099s aren't issued doesn't mean that the deduction isn't a valid expense of the business, but that the taxpayer isn't compliant with reporting and backup withholding requirements. You may also have clients that have unreported income because some people believe that amounts below the $600 threshold aren't taxable income because the IRS form wasn't issued. I'd suggest that you review the reporting requirements with each of your affected clients that are disregarding the rules and then decide how to proceed ewith those clients, if at all.

I see you are already "following" this topic. There is an additional notification setting too. Click on the icon at top right that looks like a bell. On the box that opens, you should see a gear icon at the top right labeled "notification setting." Click on that to set additional ways the system contacts you with content and frequency. I don't know how often this site cycles through to send those notifications because I don't use that feature.

In the title of the post, he is under 59 1/2. Terry, you will need to complete form 8606, part III for the distribution. Afaik, custodians don't complete box 2 for the taxable portion of ROTH IRAs. Instead, it is up to the taxpayer and preparer to figure that amount.

Terry, your client ending up with the home and ex with the mortgage may have all been part of the divorce settlement. If that is the case, sec 1041 says that a transfer “incident to a divorce” is one that occurs within one year of the divorce and not more than six years from the divorce. Existing basis would shift to the person ultimately holding the property, and because your client owns 100% of the home, then she would report 100% of the sale, basis, and gain. She would also be entitled to the full $250K exclusion if she meets all of the requirements in sec 121.

In general lenders don't rewrite terms because of transactions like divorce or contributing encumbered property to an LLC. Are you sure it wasn't handled through the divorce with an assumption of the mortgage by one and release of liability of the other? The other way would have been to refinance in only the one name.

Exactly!

For 2023, the widow can't file as QSS because the TP died during that year. Her choices for 2023 are MFS or MFJ, but joint is only available with permission from executor of his estate. I would suggest she continue as MFS so not to open up the possibility of her becoming liable for his tax debts. QSS is available to a widow that meets the requirements in the two tax years subsequent to TP's year of death: 2024 & 2025. I have never dealt with CNC status and do not know if that would remove the protection from TP's tax debts that MFS has afforded her since he is now deceased. His tax debt would become a debt of his estate, and any assets should be used to satisfy that debt before she gets anything.