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Correct, capital loss dies with the individual and is NOT available for use by the surviving spouse. Rev. Rul. 74-175 provides that "capital loss carryovers expire upon a taxpayer's death and cannot be used on the estate's income tax return. The decedent cannot transfer a capital loss carryover to the estate because the decedent and estate are separate tax entities. A taxpayer's capital loss carryovers also cannot be transferred to the surviving spouse."

Sch 5, line 66. Flows to 1040 line 17 and there's a blank line in the 2nd line of the text of line 17 where that amount should appear, almost like a memo item. I really dislike that.

What software are you using?

Possi is correct, you can't double dip. Qualified expenses are reduced by tax-free educ assistance and any amount of the expenses used in figuring the education credit to arrive at "adjusted qualified education expenses" (AQEE). AQEE is then used to determine the amount of taxable distribution from the 529 plan. Pub 970 has good examples.

Bumping this topic specifically to address the ongoing mentions of Drake or other software that continue to appear in the replies to general tax questions or ATX questions. @Eric Eric is too nice to us, and some here need to know that his original post was in response to some complaints that we've received about these posts. When posting a reply to a current ATX user seeking help, please remember that it is not helpful to that member to post about how any others' vendor software handles an issue better, fast, easier, or has great tech support.

It's not a problem and I'll take care of requests like that. I asked for clarification only in case there was a more direct link to an article with pages since that was referenced in BB's post. I just finished posting in the pinned QBI topic for anyone that may find it helpful.

@BLACK BART, someone requested that I pin your link which I can do. Your post made it seem that the link was to a document containing pages that you referred to, but when I click I get a webpage that looks like this EA's blog post. Is this what you were referring to with pages or is there some other document too? If this is what you meant to link to, please feel free to post the link and a short description in the pinned post re: QBI at the top of the Gen'l Chat forum. It's not a locked topic, or I can do it later. Thanks.

I fixed it for you because you wouldn't be able to.

Sch 1, line 33.

Ok, revision to talk about possible change in its status: For whatever this is worth to anyone, I found that there was a bill introduced in the House on 1/8/19 to make this a permanent deduction and includes amounts paid or accrued in 2018, so it would be retroactive. This bill was referred to the Ways & Means committee the same day. Nothing beyond that, and no idea if this will pass. "H.R.284 - Mortgage Insurance Tax Deduction Act of 2019" https://www.congress.gov/bill/116th-congress/house-bill/284/titles I have only a few that had this deduction, and some of those may be using the new higher standard deduction anyway. I'll have to weigh the potential impact since DE still allows itemizing if using the std for Fed. If of any significance, rather than extend the returns, my recommendation will most likely be to file and amend if this is enacted but that decision is ultimately the client's.

That deduction expired on 12/31/17. No mention of an extender provision as far as I've heard either.

Instructions to 8606, page 4 have details of how to report, depending on how and when the transactions took place. See under the heading "Return of IRA Contributions" https://www.irs.gov/pub/irs-pdf/i8606.pdf

With code 1 it seems your client may have simply asked for a distribution. He should have asked for a return of excess contribution and any earnings, and that transaction should be reported with code 8 if handled properly. Distributions coded "8" will not flow to the Form 5329, but may still be taxable if the withdrawal wasn't taken before 4/15. If the IRA was not deducted AND it and the earnings were withdrawn before 4/15, then the distribution isn't taxable in the year withdrawn. I'd get all the documentation from the client that you can NOW because I'd expect a notice from AUR to be generated.

To be clear on the # of views, that tally includes "guests" that visit the site in search of answers that are unable to reply. Also, one person looking at the post multiple times will add to the count as well. For example, if I look at the post once a day for a week or every time others post a response, that would add 7 views to the count, so your post may have only had a handful of members look at the post a few times each simply out of curiosity or to learn something new. Sorry for the hijack but wanted to explain that it might not be members purposely not answering or ignoring your question.

I think it is still a problem even if the employer isn't deducting it on the corp return. A SEP is an employer-sponsored defined contribution plan, and as such, even if the owners are putting in the flat dollar amount limit, the original post said this business does have other employees, so the business should be calculating the % of owner's compensation that the contribution represents and is required to contribute that same amount to each eligible employee's account.

I changed the title of the pinned post for QBI and I'm putting a link to this topic for future ease of finding. Hope this works for everyone, or if not, let me know.

I think it has something to do with REIT dividends.

This convo has been on thin ice for a while.

SEP participation rules : must be 21, must have worked for the employer 3 of the last 5 yrs, had at least $600 in compensation from that business during the year. The employer CAN make these rules less restrictive but not moreso, and employees can elect to not participate. The employer must use and contribute the same percentage for all eligible employees. Because the contribution is to an employee's IRA, it belongs to the employee and is 100% vested upon contribution. For these answers and more information, please see this IRS page and the linked pages it contains for rules of participation and for contributions.

Hi @EricF , would you consider posting this and your other tips in the pinned topic I set up for this purpose? I foresee that many of our members will be looking for this guidance throughout the season. Thx

Hi all, because we already have quite a few posts already with various scenarios and questions about entry of information related to QBI, the worksheet, entry in partnership returns flowing to the K-1s, etc, and because it seems that the same tips for data entry of information are being repeated throughout multiple topics containing specific scenarios that not all member would take the time to read, I thought it might be helpful to set up a pinned topic where the proper entries within ATX could be notated for easy reference. Please post the entry tips or problem workarounds here in this topic. Maybe include a heading for your post in capitals or bold for ease of use. What NOT to post - please do not post questions about specific client situations, or pose questions here. That is what the separate topics are for. If this is too narrow, if it should include other information, or needs a title change, please let me know.

I believe that the IRS does process a limited number of returns ahead of the official opening. Perhaps your client's returns were in one of those batches. If you are very concerned, Drake support should be able to tell you for sure.