ETax847

Client's CEO emailed client saying "With regards to effects on your personal return, profits interests won’t have a tax basis or at-risk basis to take any losses.Tax advisers should know that any disallowed losses are carried forward and will be allowed at any time you dispose of your interest" My question is why is the Ordinary Business Loss carried forward?

Client has a loss of $89k in box 1 for Ordinary Business Loss and Guaranteed Payments of $125k in Box 4 of his 1065 K-1. His ending capital account on Line L shows a negative amount. Is the tax payer able to take the loss having a negative capital account or does that change things?

Thanks Abby. As always, I greatly appreciate your help.

I'm amending a new client's 2018 tax return as her previous tax preparer considered her HSA distribution as taxable income plus a 20% penalty. In doing this amendment, should I include a transaction summary for the qualified medical expenses for the HSA distribution or is that not needed? Thanks!

Circled back with the attorney and a Trust Return is in fact the way to go. Thanks to all who chimed in.

Trust EIN

Thanks for the prompt response and guidance!

It's a settlement trust. From what I've read, "The trustee of a settlement trust is selected by the grantor, who is also the beneficiary because the trust is established with the beneficiary's own funds." Does that mean I should prepare a trust return?

Client is the sole owner and beneficiary of a trust. Client received a k1 for the trust. Does a trust tax return need to be prepared or since she is the sole beneficiary, the k-1 can just be included on her individual tax return?

I'm with you with clients dragging their feet and this headline is only going to make it worse.

This article came out today on CNBC: https://www.cnbc.com/2020/05/07/white-house-weighs-pushing-tax-deadline-back-to-sept-15.html Think it is likely to happen?

I found this online: Who pays for unemployment benefits? Unemployment benefits are paid out by the state using a portion of the payroll taxes that employers should be paying regularly. “Assuming that the family has been paying their required unemployment taxes throughout the time that the employee worked for them, the state will pay the employee directly, and it does not come to the family in the form of a bill,” explains Mills. But if, for some reason, you were paying your nanny “under the table” and not taking out the necessary taxes, the nanny would not be eligible for unemployment benefits, and you would then be liable for paying all back taxes, penalties, and interest. Does that impact anything if she was paid under the table?

I had a lady call me today asking for help in helping her file for unemployment. She nannied for a family until March 15 of this year, and then left to start work at a day care as a W-2 employee. As a nanny she was paid in cash. The daycare laid her off after 1 week due to the coronavirus pandemic. Is she eligible to file for unemployment?

What was the discount you received? Were you able to negotiate a steeper discount than the 15% mentioned above?

Does anyone have any tips for walking clients filling out a new W4 form? Is the IRS calculator the way to go, or is there a more efficient way?

This person has no tax liability, but did file his 2019 tax returns. What then?

Have you heard anything regarding the IRS "Get My Payment" tool for those taxpayers who had no tax liability. Currently the tool asks if the taxpayer received a refund or owed money, but does not account for those that didnt do either. Thanks for your help!

Roberts, you're work around worked! Thanks so much for the timely response.

Im filing a zeroed out Trust Return (1041) as the final K1 finally came. There are no inputs from the K1. The Federal E-File was created without a problem. The State E-File gives me the following error: IL-K-1 Input Error "Partner K-1-P entry 1: Partnership's identifying number must be removed. No amounts are present." What does this mean and what do I need to remove in order for the error to be removed?

I added a question to the Tax Organizer in all caps. This has made life much easier.

An hourly rate seems reasonable to me. Thanks for the advice

What rate do you charge for a Form 5500 filing? This is my first one and am curious as to how much to charge.

I got it via email. What is the best discount anyone has been able to negotiate? Is it much better than the early renewal discount?

Base price went from $1,789 to $1,880. Does anyone know what the "processing fee" is all about?

Is anyone applying for these loans / grants for their own practice? I have lots of clients who are applying for these funds and was curious if anyone whose practice has been affected is also doing the same? Hope everyone is staying safe.