ETax847

I have a client who is filing a 1041 Tax Return. He distributed $100k to 5 different beneficiaries. When I am completing the Input form for the Sch K-1, the distributed amounts aren't populating on the K-1. Any idea how I enter the $20k distribution so it populates on the K-1? The Tier 1 distribution and Tier 1 percent of total lines are confusing me. Thanks for your help!

Excellent point! My brain is fried at this point in tax season. Thanks for the guidance

I have recently come across a few clients that have received bonuses on a 1099-NEC from an entity different from their employer. Are these bonuses that are reported on SCH C eligible for the QBI Deduction?

Where do you go to add a footnote to the K-1?

Illinois Client passed away in 2021 and named his trust his beneficiary. Executor of Trust took a distribution from the Trust Inherited IRA to distribute funds to various beneficiaries named in the Trust. Is this distribution from the trust taxed at the Illinois level on his IL 1041. Normally retirement income isn't taxed to the individual in the State of Illinois. Since it's IL Trust income, is this exempt from taxation? Currently IL 1041 is showing this income as taxable

mcbreck, that did the trick! Thanks for your help!!

I keep getting the database validation error when E-Filing a client's Federal Trust Return. The error states that the Filer's EIN and Name Control in the Return Header must match data in the E-File Database. Does anyone know what this is referring to? The name control and last name of the individual listed on the 1041-EF are the same as in years past.

Those that do this, do it as an Other Expense on the Sch E

The client sent me this link saying is allowed to do this: https://www.biggerpockets.com/blog/taxes-not-real-estate-professional

Do you have anything to cite? I'd love to be able to share this with a client

Happens to me everyday. Would love to know what the solution is. I'm still on Windows 10

Yes to both. There seems to be a lot of gray area here. I know you can claim the home-office deduction only in connection with a trade or business. In his case he seems to be operating the rental property as an investment, not as a trade or business.

This is his only rental and he has a full time W-2 job

If a client owns a rental property, can they take the home office deduction on their Sch E? If so, where do you input the expense? I have read conflicting things on whether or not this is allowed.

Is there a worksheet for reporting the sale of a second home? This is the first time, I've come across this and didnt know if there was a certain way it needed to be reported in ATX?

It's way off. I'm hesitant to take this client on given that issue.

A new client walked in wanting his S-Corp taxes done. In his prior years' returns, his Schedule L did not balance. Is this any cause of concern?

Yes, thanks for all you help. Now I just wish ATX would release Form 1116.

Form 5329 shows me a penalty of 10%. What input is needed to remove this?

Thanks for pointing me in the right direction!

Client is under age 59 1/2 and withdrew some of his contributions made to his Roth IRA. Since he is able to withdraw contributions he made to his Roth IRA anytime, tax- and penalty-free, how do I report this so there is no penalty incurred for the distribution of his contributions? Is this done on Form 8606 or 5329?

Thanks guys. I appreciate the prompt responses. Client switched jobs for a different subsidiary under the same parent company. I have notified the client to contact her employer and ask for a corrected W2 and refund. I hope the company cooperates.

Client had too much social security tax from having multiple employers. However, ATX is saying "you must ask your employer to refund the excess or file Form 843 to claim the refund. You cannot claim it on your return." The amount is only $3,500, but is ATX in correct in saying that the excess cannot be claimed on Sch 3, Line 11?

GA Sch 2 (500) is not allowing me to enter any tax credit information in. Any idea what I am missing?

Has the IRS taken a formal stance on how NFT's are taxed?