ETax847

Box 19B is populating with a figure of $12,500. I have not keyed this in nor do I know where it pulls from. Because of this figure, I receive an error message "Lines 18b, 19a and 19b should only be completed when filing a 1041 return." Any idea of what is causing this field to populate?

Thanks Terry! I appreciate your help as always.

I have a client who solid his rental property in 2018 for a LT Gain. In the fixed assets tab, I'm completing the disposition fields but I am hung up on the part "Force 4797 Section". Option 1 Form 4797, Part 1, Long-Term Option 2, Form 4797, Part 3, Long-Term Any one have any idea on what the difference is between the two?

I had an ATX customer service rep call me yesterday and everything he said did not match to the Forms Release dates. -1 point for ATX

Thanks!! Surprised that form is being released so late.

Does anyone know when ATX will be releasing the "Last Year Comparison" form? Thanks for your time!

Also, where is the Last Year Comparison

I just spoke with someone from ATX and they said they expect it to be released on February 4th.

Lol, Catherine! I'll try that! One more day of sub zero temps!

This is super frustrating as I have clients asking and I have nothing to tell them. If anyone has an answer on this, I'd be very appreciative.

People value the relationship. If a client calls outside of tax season, I am there to answer. Software can not compete with that.

Turbo tax will never go away. If you can provide value to your clients, you will never go away in their eyes.

I use office 2010 but havent found a reason to switch off of it.

Illinois still has not released their 1040 yet. Does anyone have any idea on the timeline for this? Stay warm!

Team, let's just focus on helping each other get through tax season and keep it positive.

ATX definitely could have made this worksheet more user friendly.

Just a heads up on 2 important areas for the Qualified Business Income (QBI) deduction in new code section 199A. The IRS published final regs last week. The first is rental real estate. There was substantial debate over rental real estate, and whether it ros eto a "trade or business" eligible for the QBI deduction. Trade or business is still a facts-and-circumstances determination, but the IRS created a safe harbor that basically requires 250 hours of work a year on each set of rental real estate activities for it to qualify. The work may be performed by the owner or agent(s), but a log must be maintained for years starting in 2019. More info is at www.irs.gov/pub/irs-drop/n-19-07.pdf The second is a clarification for the self-employed that has caught some of us by surprise. Many professionals and most software packages used a starting point of net Schedule C income for QBI. The IRS clarified that the QBI deduction is done after the deductions for SE health insurance, SE DC pensions, and 1/2 the SE tax: "Thus, for purposes of section 199A, deductions such as the deductible portion of the tax on self-employment income under section 164(f), the self-employed health insurance deduction under section 162(l), and the deduction for contributions to qualified retirement plans under section 404 are considered attributable to a trade or business to the extent that the individual's gross income from the trade or business is taken into account in calculating the allowable deduction, on a proportionate basis." The net is that the after-tax value of contributing to an SEP or solo 401(k) declines by at least a few percentage points; I'm still calculating scenarios. For example, with $100k of SE income, and a $10,000 SEP contribution, the 20% QBI deduction is calculated on $100,000 - $10,000 SEP - $7650 SE tax = $82,350 x 20% = a $16,470 deduction. Not $20,000.

Anyone else think ATX should hire Jack as a customer service rep? He is much more timely with his responses and much more helpful.

BullDog Tom, thanks for clarifying! I felt silly asking, but I do appreciate you taking time to answer.

In the worksheet it is asking us to check boxes for a Qualified Business and Service Business. What are the definitions of each?

The Wall Street Journal just published this article that should clear up some QBI confusion: https://www.wsj.com/articles/trump-administration-sets-final-rules-for-new-business-tax-deduction-11547839824 Hope this helps!

As a result of the tax law changes, I have had a huge uptick in people reaching out to me for my services. Is anyone else experiencing this? Uncertainty seems to be creating opportunity for us tax preparers.

I'm still waiting for my first tax return to get my hands on. So far not one client has received their W-2 yet. #PatientlyWaiting

Talk about one confusing topic! I think I changed my mind multiple times after reading through this thread. Ugh.

Holy moly! Thanks for all the info! I appreciate all of the guidance.