Lee B

This exact topic came up in the all day seminar sponsored by the OSCPA that I attended on Tuesday where we spent al least 3 hours on 199 A. The coauthor and presenter was Chris Hesse, a National Tax Partner for Clifton Allen Larson. He is the past chair of the AICPA Ag Conference, author and presenter of the Farm Tax Update and Chairman elect of the AICPA Tax Executive Committee. I recite all this background because these are his answers, so if you want to argue or disagree your fight is with him not me. Mr. Hesse's answer was, the farmer landlord needs to have some involvement that at least rises above the farm equivalent of a Triple-Net Lease. In his opinion, there is absolutely no requirement for the income to be subject to SE Tax. He at least needs to be paying the property taxes and have some additional involvement, perhaps buying fertilizer, maintenance of buildings, erosion control etc. You may find more answers at their website claconnect.com since their headquarters is in Minnesota and they specialize in Ag Tax issues.

According this article in the Journal of Accountancy, Statutory Employees may be able to claim QBI: https://www.journalofaccountancy.com/issues/2019/jan/qbi-deduction-for-statutory-employees.html How many more things will pop up like this during this tax season?

I would still check with your state because most states, including my state of Oregon have mandated the efiling of all W -2s and 1099s, meaning that they will not accept any paper filed W -2s or 1099s.

Print a pdf copy then select which one you want to print .

Actually they first unveiled this 2 years ago. I submitted a chat request, some one was assigned to to my request, but no one ever responded. Severally months later, they closed the chat, but I never received any chat reply of any kind. This was one of the final straws for me before I switched to Drake.

I don't about your state, but my state of Oregon has never received any 1099/W-2 info from the IRS or the SSA. I would suggest you check with your state to make sure. More than likely you will need to submit the 2nd file directly to your state.

I think you have prejudged this situation. The name of the presenter and coauthor of the seminar I attended yesterday is Christopher Hesse, who is a National Tax Partner for a National Accounting Firm and who also is currently the Vice Chairman and the Chairman Elect of the AICPA Tax Executive Committee . He has had multiple meetings with the Senior Staff of the Joint Committee on Taxation who write the Blue Book which is official Statement of Congressional Intent with respect to the TCJA. He has also has had multiple meetings with senior members of the Treasury Department with respect to the TCJA. Mr. Hesse said, that it is the clear intent of Congress and the administration for Section 199 A and QBI to be interpreted liberally. I have been attending this seminar for many years and place far more value on what I learn there than any other source. However as a famous person once said," The thing about opinions is that everyone has one." I will sleep quite comfortably following Mr Hesse's advice.

Why do you think it is risky ?

Actually the presenter at OSCPA seminar that I attended yesterday said that he would claim QBI in scenarios like this. When I walked into the seminar I wouldn't have claimed it, however after spending 3 hours on 199 A he completely changed my mind !

As I previously mentioned, I attended an all day seminar today sponsored by the OSCPA where the presenter spent at least 3 hours on 199 A. I think most members of our profession, including me are strongly influenced by what we already know about how tax law and rental real estate intersect. The problem 199 A presents to both us and to the IRS is that TCJA does not cite or reference most of those familiar Code Sections. All of those key phrases we have etched in our brains with respect to rental real estate are actually impediments to understanding 199 A which is exactly why the guidance from the IRS has either been either unclear or yet to be written. To paraphrase the ancient chinese curse, we are living in interesting times.

Just attended an OSCPA seminar where at least 3 hours were spent on 199 A. My thinking has totally changed. The presenter convinced me that most rentals will qualify for 199 A Give me a few days to gather my thoughts, review the seminar materials and I will make a detailed post on this subject.

There are lot of independent government contractors who will receive no back pay.

The presenter at the OSCPA seminar I attended today said that he would reduce the QBI by the amount of what reasonable compensation should have been.

I guess things are different here. Our local financial institutions are so security conscious, that they now prefer paper copies. Back in the summer of 2017, I went with my largest client to meet with a local bank about the renewal of her commercial real estate loan.. I took with me a DVD with copies of 3 tax returns and financial statements. I went to hand it to the senior loan official who recoiled and asked for paper copies because of their strict security protocols. They also will not accept emails with attached pdfs, encrypted, password protected or unprotected, due to the security risk. I have returned to mailing tax return copies, because that is the only thing they will accept.

"While the ongoing government shutdown had some concerned about a possible delayed start to tax season, the Internal Revenue Service confirmed Monday that it would begin processing tax returns on Jan. 28 – and issuing refunds on a regular schedule. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig in a statement. In 2011, the Office of Management and Budget had directed the IRS not to pay out tax refunds during “a lapse in annual appropriations,” but this year, at the request of the Treasury Department, the OMB reviewed the rules and reversed itself" "Tax refunds will go out,” the acting director of the White House Office of Management and Budget, Russell Vought, told reporters at a briefing on Monday. (See “IRS will pay refunds during shutdown, easing pressure for a deal.”) As a result, the IRS will recall what it described as “a significant portion” of its furloughed workers, and plans to release more details in an updated version of its “FY2019 Lapsed Appropriations Contingency Plan” in the near future" I wonder if these will be furloughed employees working without pay like the TSA and the Coast Guard ?

No I don't use QuickBooks. Currently, I am using a combination of Payroll Relief and Drake Accounting. Payroll Relief is handling the STT correctly on W - 2s and Form STT-2. They still don't have Form STT-1 quite right and they are still working on Forms STT-A and WR. Are you using QuickBooks Desktop or Online ?

If you are talking about ATX Payroll, their past practice has been not to support this kind of application.

Used ATX last year, but not this year. Output a pdf file then pick the pages you want to print.

Just so that you aware, the definition of a "real estate professional" has nothing to do with whether an activity does or does not reach the level of an active trade or business, which is based on a totally different section of the code.

Perhaps, if he spends the majority of his time and generates the majority of his income from rental activities.

As far as tax season goes, the key issue that I am concerned about is which of my clients that have different kinds of rental properties will qualify for the 20 % PTE deduction which clients won't qualify? Second, due to the partial government shutdown, Congress is showing no concern or movement toward a TCJA Technical Corrections/Tax Extenders Bill. Is Qualified Improvement Property 15 years or 39 years ?

Can I assume that your client is the Managing Member and that there is no involvement of a Real Estate Broker or a Property Management Company ?

Not enough information. The key hurdle, you will probably have with this scenario is that for the commercial rental income to be included is that your client must be "actively participating' in the rental activity, which is a much higher hurdle that material participation and a different definition.

Here is what will continue to be done : Completion and testing of the upcoming tax-filing year programs Electronic returns that are processed systemically (requiring no intervention by service center functions) up to the point of refunds Processing paper tax returns through batching Processing remittances Processing disaster relief transcripts Continuing the IRS' computer operations to prevent the loss of data Protection of statute expiration, bankruptcy, liens and seizure cases Upcoming tax year forms design and printing Maintaining minimum staff necessary to perform accounting functions and to prevent the loss of accounting data Maintaining criminal law enforcement and undercover operation Here is what has been halted: Service center processing after the point of return batching Issuing refunds Processing non-disaster relief transcripts, Income Verification Express Service/Return and Income Verification Services Processing 1040X amended returns All audit functions, examination of returns, and processing of non-electronic tax returns that do not include remittances Non-automated collections Taxpayer services such as responding to taxpayer questions (call sites, during non-filing season) Information systems functions (except as necessary to prevent loss of data in process and revenue collections Supposedly this will be subject to change the longer the shutdown drags on.

Interesting I have had a Scansnap S300 for over 10 years and never cleaned it.