Terry D EA

Hmmm, let's see what the outcome is on this one.

Ron is correct, loss can only be deducted for the amount of basis.

You can also detach the return and save it in another location. I don't know how useful this is after the return is detached. If you have ever amended a return with OneDesk you'll find out that you can't keep the original return. When you amend a return, the amended return is the only one you can access. Don't like this feature. ATX kept both.+

There is a check box on the 4562 input screen that says "Check here, if it is a section 179 property. This is under the Section 179 Election and Special Allowance section about half way down the page. It took me a bit to find this as well. Just put the amount on the "Section 179 Elected Cost. if any. Hope this helps

Exactly, thanks

Will do, too busy to even think about it at this time. What if you tried to delete the NY return and added it when the Fed and NJ are completed? Does NY have an entry to show the amount of pension not taxable to NY? In NC we have an entry field for non-taxable government retirement benefits. Just wondering.

According to the original post, it doesn't appear this was a "liquidation". The shareholder retired and therefore I have to agree with Old Jack on this one. The only other thing that may come into play is if the shareholder has loaned the S-Corp money and the assets could be converted to personal use as a return of capital.

Just to add to JB's post below regarding the dreaded reject, has anyone heard of any of the professional software companies having any issues like Turbo tax has had? What about Pro-Series? I am wondering what steps they have taken to protect someone from hacking into their software. I have a client who has been a victim not only with their tax return but credit cards and bank accounts as well. I have given them every piece of advice that I know of from contacting the credit bureaus to lock their credit, as well as taking the necessary steps with the IRS to file their tax return with form 14039 and contacting the IRS identity theft specialized unit. Any other suggestions?

Unfortunately one of my clients got rejected today with this dreaded reject. This client is not due a refund but has a balance due that she may have already paid. I wonder how many more times this is going to happen to people. Heck it could happen to any one of us at any time.

No. All research is done in NC

Here is some news. The spouse in this situation has called, (she left her husband to inform me and question the grant) and now tells me that this grant is a fully taxable fellowship grant and does not fall under a NIH grant. I did question her extensively about the paperwork with the grant and sure enough it is taxable. I guess their confusion was everyone who works or does research and is a part of this project all use turbo-tax and have always included the funds in taxable income. I did the same thing from the get-go. They complained about paying the State of Maryland and not NC. Okay, NC gives credit for taxes paid to another State. Yes rates are different but there is not a huge difference in the bottom line. No one else on her team files anything with Maryland. This is a government grant issued by Maryland and I am still not sure that Maryland doesn't have to be done. Nice to find out all of this after I have burned the candle out doing research. If she would have only called a week ago.

I still say there are too many weird and unacceptable things going on and will probably change software this year.

Thanks Judy for bringing this up. OneDesk does generate a statement that shows both entries with the amount of zero on line 21. I will call tomorrow to see what forms are e-filed. As far as I can tell, I can't see what forms get e-filed. I really think this is the last year that I will use OneDesk. I's not bad software but just too many things I don't like and this is one of them.

Wow after re-reading this I realized that I meant I am questioning almost every entry. I have called Dan about the poor MFS vs MFJ when itemizing problem. no return phone calls. It appears the support is dropping off this year as well. Another reason to make me re-think purchasing next year.

Judy I believe you are correct. Had a client a week ago that we had to access his account online. However, his information was not available and one phone call allowed us to get the information. This will be a good thing because so many people don't know they need to bring that form with them to their tax prep appointment.

Margaret you are correct they have to repay the PTC. This usually is result from under estimating their income. Had one this morning with the same thing. Does ATX pull from the 1095A input? I haven't used ATX for a number of years is why I am asking. My program does this without a hitch.

I have one client who has a CRUT and has changed brokers at least twice since I have been completing his returns. Each broker has not tracked the cost basis from the earlier one. However, this guy is the ultimate dream client. He has kept every statement and transaction detail since the inception of the trust (1994 to be exact). This enabled me to create a spreadsheet with all purchases and cost basis without the broker doing so. This also enabled us to avoid a 50,000 penalty that resulted from his previous preparer using the wrong form which he/she did not know it was incorrect. At the time it should have been form 1041-A and 5227 not form 1041. Pay dirt was the original SS4 form with instructions from the IRS to use form 1041. Without the records this guy would have been nailed with the nastiest penalty ever.

Thanks for the answers. I am using OneDesk software and in some scenarios it does not allow manual type entries and I was not sure how, or even if it would, would generate a statement reflecting the entries. I did find a way to enter the 1099G which does go to line 21 and then was able to do a manual entry entering the same number as negative with the NIH explanation. Now I am hopeful that a CP2000 will not be generated. I agree notes and post-it notes are a plus. I normally keep all the documents for the returns that I am working on in a jumbo zip lock bag. A post-it note works great for identifying the need for missing forms, info or other items. Also, works great for documenting where I left off and what needs to be finished.

Everything I read leads me to believe there is no reporting requirement with this type of grant. Pub 970 worksheet indicates NOT to report amounts received from NIH type grants or fellowships. I realize this worksheet is for determining the taxable portion of any other type of fellowship or scholarship and I am not sure the reporting to the client was in error. It appears it is up to the TP to determine what amounts are taxable and if it is a NIH grant then it is not taxable at all and should not be included in income. I am trying to prevent a CP2000 and need all the documentation I can get to amend last year. I looked at including the grant amount on line 21 and then making a write-in adjustment on line 36 of the 1040 but the grant does not fall under any of the categories for a write-in adjustment.

Forgive me for being a little dense here. I'm not following the method of putting it in and then take it out. Where do I do this? Line 21 other income? Then where do you show it coming out at?

KC thanks for the reply and I still feel this is non-taxable. The 1099G payer is "The National Institute of Health" which falls real closely under the description in my original post. I can't give you any more details that what I have already. I do want to avoid the CP2000 and do need to amend 2013 as we claimed it as income then. I have offered to do this pro-bono based on the apparent mistake last year so I want to be sure.

I would only give one very important tip here. Get the trust instrument and read it completely. Most trust documents tell you how to handle the taxation. Consult the attorney that created the trust if you have to. Are you talking about keeping the first page of the 1041 blank?

mrichmann333 I did respond to the PM. What you are experiencing is unacceptable and makes me seriously uncomfortable. I am not questioning almost every entry and I can't afford that.

I'd like to know too. I am doubtful at this time that I will renew OneDesk. Alot of issues are purely unacceptable.

I am moving this back to the top of the list. I would like some other's opinions please.