Max W

So, NJ will allow pass throughs to take a personal deduction on a business return. Guess what will happen in an IRS audit! The article included sole proprietorships. If that is the case, it is more than just pass-thrus. I'm betting that this gets shot down.

The IRS finalized the rules in June of last year. It essentially killed state workarounds. There were a lot of states that tried it, including NJ. https://apnews.com/ae4615f0b27c4e0da7a0352dac0456e9

Unless a client keeps very good records, tax reporting of cryptos is going to be a nightmare from hell, worse than reporting stock sales where basis is not provided. Because of the trading of one coin to another, the basis tends to get lost. On top of that, each coin has to be converted to dollars and each type of coin has its own conversion rate which varies on a daily basis. There is software designed to handle a lot of this, but you will still have to know when each coin was acquired, so records have to kept going back several years. The reporting is done on Sch D/8949 Some crypto coins issue a 1099-K, but usually for only large amounts. The 1099K only shows the sales and if this is not reported, the IRS will issue a CP2000.

At the same time, I am going to ask her who is going to win the Super Bowl. She has a 1 in 4 chance of getting that one right.

Well! Whatta ya know. Here is the answer to Edsel's question courtesy of cbslee's posting two lines below Edsel's. "Employers who misclassify workers: with the lack of experienced IRS field audit resources (i.e. revenue agents), this important issue is not on the IRS radar. The IRS only audits 0.14% of employment tax returns, and reserves complex worker status (employee or independent contractor) audits as a part of its small business audits. The growing gig economy and incentives to classify workers as independent contractors is a concern for the IRS – but there is little the IRS can do about it until they train more auditors to specialize in complex employment tax issues."

Getting back to the original Q! To answer the question I know of a little office down on 4th St., over a store front, that has a neon sign in the window with a lady wearing a turban that says "palm and card readings $25". Tomorrow, I'm going to run down there and ask her your question. Seriously, I think the answer is No. The ten years referred to I think was more than 20 years ago and came in on Section 1122 Small Business Job Protection Act of 1996. It probably came on with a big push, but those audits are still ongoing. I also think it is No, because the states will do the job with CA leading the way as they have just done with AB-5. It is not necessarily the state enforcement that will force much of the change, it is the new legislation that has opened the door to employees, treated as IC's by the employers, to file complaints against the employers for re-classification. https://www.natlawreview.com/article/california-legislature-adopts-several-new-employment-laws-2020 https://www.irs.gov/government-entities/worker-reclassification-section-530-relief

Illmas, thanks for the nice reference, It seems the question is, was the refi part of a plan to do the 1031, or did the idea for the 1031 come up later. If they haven't already started the 1031, it might be wise for the to wait a few more months. Of course there could e other mitigating circumstances, as the article explains.

These numbers are misleading. They are surely based on full time employees at large accounting firms and not on seasonal income that most tax preparers have. If you extrapolate seasonal income to a full year, then I think you will get something reasonably close to the survey.

Apparently it can be treated one of two ways by making, or foregoing, election 643(e)3. See para 4 of this link https://www.cpajournal.com/2017/09/29/tax-planning-distributions-kind-estates-trusts/

It takes some getting used to, especially the menu. It is all worksheets, but you can go to the form based entry, which will take you to the right worksheet. The best part of Drake, if you get stuck, is customer service. They answer on the first ring and are very helpful. Good Lick!

The IRS repeatedly says they are going after S-corps, yet few of us ever have had an S-corp client audited. I don't doubt that thousands of S-corps are being audited, but they are at a much higher level than we are ever likely to see. They are certainly not going after the little guys. Lack of funding and lack of personel are contributing to cutbacks in audits. In Sep. 2018, the IRS suspended the ASFR (substitute for return) program and there is no indication as to when it will resume.

This should be of interest to those with S-Corp clients. I have linked to the page that I think would be the method that most of us would use. https://rcreports.com/resources/reasonable-compensation-blog/three-methods-of-determining-reasonable-compensation-part-i-the-cost-approach Although, the pricing is high, $1049 for the Premium package, it looks as if we here at Atx Community might be able to work out some sort of group thing.

Anyone who gets upset over $4 of depreciation has some other issues going on.

The Org and startup costs, $5000 ea, are deducted in the year the business becomes operational. Anything over $5000 fro ea., is depreciated over 15 yrs starting with the month the biz begins operations. Anything over $50,000 is phased out. The reason you see new business locations open without much promotion and the Grand Opening taking place a week or 2 later is so the promotional cost is not considerd a startup cost and can be written off, rather than depreciated, or worse, phased out.

ROBS are reported on form 5500. There are exceptions if less than $250K. https://www.irahelp.com/slottreport/robs-plans-and-irs-form-5500 https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project

Gee! Another retirement savings plan. Love the way congress comes up with acronyms to form a word. SECURE, SIMPLE, JOBS, FAIR, ETC For more - https://www.washingtonpost.com/news/the-fix/wp/2015/08/03/364-bills-that-have-been-introduced-in-congress-ranked-by-acronym-quality/ Notice how some of the old tax provisions, excluded from TCJA, are slowly creeping back in, with the 4 extenders.

Well, I don't know what you are reading. The first part of my question is the 8332 permissible for prior years. The form itself - Part 1 - says ....... Current year. That is ambiguous as it could mean only 2018, or it could mean the year, i.e. 2014 that the form is being filed with. The second question clearly is not addressed. It is addressed in Pub 501, page 16, Ex. 1, 2, 3. Example 1 is what I am dealing with and it is clear that the parent can voluntarily allow the grandmother to claim the child as a dependent. BTW, if you are going to use a reference to back up a statement you have made, you should either quote the text, or point to the the part of the text that supports your claim.

EBOOK BUSINESS UNIT ????

What reference do you have to back up these statements? The way I understand it, if grandparents, daughter and 3 grandchildren (from daughter) all reside in the same house, both GP.'s and mother can be custodial parents. Since the GP's have a higher AGI they can claim any of the grandchildren. Form 8332 is to allow claims by a non-custodial parent, non-custodial meaning not living with the children.

Don't hold your breath.

Would the 8332 be accepted for late filed returns? Specifically, 2016, 2017 & 2018. And, is it required if everyone concerned lives in the same household?

Anyone want to bet that this becomes the 1040 for 2020? https://www.irs.gov/pub/irs-dft/f1040s--dft.pdf

Can the error be corrected by amending the return? If the filing deadline was missed and there are late filing penalties, a First Time Abatement can be requested by calling PPS. Yes! it can be handled by phone.

Beneficiaries of a trust/estate are non-US citizens residing in a foreign country. Do they need an ITIN? The distribution is going to be about $300K each.

I don't see why you would need a worksheet, if 5 years have passed since it was converted to a rental. There is no sec 121 exemption. Just treat it as sale of any rental. Of course there could be some issue here - rental income was never reported, or depreciation was never taken?