Gail in Virginia

I am trying to understand the question. It sounds like a parent who had a sole proprietorship passed away, and the business passed into a trust. But the children are closing the trust and putting the business in their own name. Now, did the trust set up an S-Corp, or did it set up an LLC and elect to be taxed as an S-Corp? Which structure are the children setting up? Members sound like an LLC, S-corps usually have shareholders.

I would add installment sales to that list.

I think individual chapters must have different partners, then because the NC site specifically mentions Gleim.

Terry, I don't know if you checked out the North Carolina Society of Enrolled Agents website, but hey have a SEE prep class coming up in July using the Gleim materials. I don't know how the price compares for the class and materials, and just the materials, and I don't have any idea how it is taught or how you learn best. I am sure you will do well either way!

I am just curious about how you can tell whether or not the marriage is legal. Virginia recognizes all ceremonies performed by a licensed minister, I believe, and any one can become licensed to perform weddings as long as they can get any clerk of court to recognize them for the purpose. Is there a central listing?

I did not think that investment income, such as appreciation on stocks, was subject to UBTI unless it was debt financed. Most of the organizations that i deal with sell stocks as soon as they get their hands on them, however, so I could not say for sure without research.

If he has income under the table and is not willing to report that income, then wife may prefer to file MFS rather than sign a return that deliberately under-reports income.

If they sell it as soon as they receive it, then it was a contribution of property and not investment income or UBTI. If they hold it until it has appreciated in value considerably, then the gain would be investment income.

Possi is smarter than she gives herself credit for, but this really is not as complicated as it looks at first glance. Like most IRS forms, take it one step at a time and read the directions (slowly, in my case, and sometimes two or three times!)

If you were traveling on 95, I think that you were probably in Rocky Mount, NC instead of Rocky Mount, VA. Our closest interstate is 81, unless and until they build 77, and it does not actually run through Rocky Mount.

I used Gleim when I took the EA exam in 1999, and like Catherine, I passed all four parts in the first attempt. I was part of a study group organized by the VASEA that was using Gleim and found it very helpful. I like the organized study group for forcing the pace and for having others to work with. However, some people are better at self-study than others, so the group might not matter to you. When I took the test, I think all of the study materials relied heavily on published copies of previous tests for the practice tests and to guide the materials used. In fact, when I actually sat for the exam I recognized some of the questions as being identical and there may have been more that were but that did not stand out as much. GOOD LUCK!

What beautiful pictures! And it looks like mother and daughter are both doing well, which has to make Grandma feel well too! Congratulations!

Maybe we have not met personally, but you know me on this board. I am in Rocky Mount, VA which is just south of Roanoke. A bit away from you but in the same state. The Virginia chapter of EA is fairly active, but unfortunately you are not terribly close to any of the local chapters. I am not sure if you would be closer to the Fredericksburg or Northern Virginia chapters of VASEA. But since most of us are meeting via ZOOM or just holding webinars right now, you can be participate with any of the chapters. Blue Ridge (the local chapter I belong to) is having a webinar at noon on Wednesday the 26th, with a short Zoom meeting afterwards if you would like to join us. The information should be on the VASEA website.

But do you actually refuse to take new clients whohave been through a divorce and are sharing custody of their children? I understand not keeping both clients when they split up, and even not wanting to keep either of them for a few years. But this is a potential problem forever after for some people now.

I used ATX until 2012, after which I switched to ProSeries. I like the number of forms available with ATX, especially the payroll module (which I still buy separately but without all the state functionality that I used to have.) ProSeries does a great job on multiple states - better than I remember ATX being. Somethings are not as intuitive as I would like. For example, I do a couple of FBAR forms and I find it hard to remember each year how to print them and how to efile them. On the whole, I have been satisfied but I would probably not have left ATX if I were not running in a multi-user server environment.

I really see this being a nightmare for divorced parents who take turns claiming the dependent. And for the tax preparers who need to know how much they got during the year.

If you like TN, you might like the area of Virginia I live in. This is a beautiful state to live in, and I especially like the views of the mountains that we have, plus I am close to Smith Mountain Lake. And after this past tax season, I will make you a good deal on my tax business.

For a plain donut, or even lemon-filled, I prefer Krispy Kreme. But Dunkin has the best cake donuts and reading Catherine's list I am really glad that i am a 45 minute drive from either.

Good question. If i am not mistaken, SSA will look at the amount reported on the Schedule SE for earnings from self-employment and therefore the recaptured gain/capital gain will not count against what he can earn for social security purposes. But I am not sure.

Just one more reason to retire and look for another line of work.

Good fireworks are illegal in VA. If we buy any, we usually get them in SC.

According to ProSeries, the IRS does not update e-file rules for disaster declarations therefore electronic funds withdrawal with electronic filing cannot be future dated for the federal 1040 beyond 5/17/21. Like Lynn suggested, they also suggest IRS Direct Pay. So it doesn't sound like this is something that software companies can fix, and the IRS isn't going to apparently.

I have a partnership that is converting to being taxed as an S-Corp. The Form 2553 will be filed by May 15, to make election effective March 1. Is the short year partnership return for January and February of 2021 also due by May 15? I don't think forms are available - can it be filed on 2020 forms? Any warnings from anyone who has done this?

Interesting point. I wonder if you could look at the general requirement for expenses to be in the same period that the income they are related to occurs, and argue that in this case the legal fees should be amortized over the period of time that the interest expense would have been taken had they not paid the loan early based on the court decision? I think, unless it is large amount for legal fees, that I would just expense it but I certainly see your point.

Yes, but some of us are holdovers who used to use ATX, now use something different, but still love the community at this board.