Abby Normal

Second, NCPE. Best classes I've ever taken.

What helps me sleep at night: nobody dies when I make a mistake.

Look at the balance sheet. Is total equity negative? When I don't have prior basis, I just use balance sheet equity or zero if total equity is negative. since all shareholders are supposed to take proportionate distributions, the only difference in shareholders will in their capital contributions.

I figured it out. This is just making permanent the reduction we got last year.

sorry for the bad link. That's a 2015 article.

You're right, Gail. I paid $50 last year, so the fee is exactly the same.

Neither link works for me. Here's the JOA article. I can't remember what I paid last year and I can't look it up right now, but it seems like a sweet gig to earn $17 per transaction to process $33 payments.

Also, ATX will calculate the correct short year depreciation for the 1065, but not for the 1040. You'll have to subtract the depreciation claimed for each asset on the 1065 from the amount calculated on the 1040, so the total depreciation for the year is correct.

Fortunately, the late filing penalty for partnerships can be automatically removed under Rev. Proc. 84-35 and code section 6698(a). Just file the 1065 with the correct short year dates and when the penalty notice comes, you get to be a hero by getting the penalty waved. Also, gives you the opportunity to chastise your client for not keeping you in the loop when anything substantial happens. Be sure to bill them for the penalty removal! Here's the wording I use: Please remove the penalty for late filing of a partnership return under Rev. Proc. 84-35 and code section 6698(a). The partnership is a domestic partnership with 10 or fewer partners, each partner is a natural person or an estate, each partner’s share of each partnership item is the same as such partner’s share of every other item, the partnership has not elected to be subject to the consolidated audit procedures under IRC 6221 through IRC 6233, and all partners reported their share of all pass through items on timely filed individual returns.

Tell the IRA company to not withhold any taxes in the future. Beneficiary receives carryover basis from decedent on IRAs.

The differences were tiny except for the one where less than 70% of ATX users needed to call support. ATX was the big winner there.

ATX did very well this year. http://www.journalofaccountancy.com/issues/2016/aug/2016-tax-software-survey.html

Sounds like it could be an improvement. https://myatx.blogspot.com/2016/08/atx-supports-new-customer-relationship.html

I would explain it to the IRS and do it right. You don't want to incur substantial understatement penalties for prior years.

In the 1120S system, you check the box on the K1 to print Shareholder basis statement on the Global Info tab, then enter it on the Input tab. Unfortunately there's no break down of what the carryover losses/deductions are. I made a suggestion to ATX to gives us the breakdown but they told me I didn't need it. And I told them not to tell me what I need or don't need. If you're asking about the 1040, there is a form called Basis Worksheet and you also have to check the box to calculate basis on the K1 input form.

He got to deduct 12k in losses. Probably used debt basis.

You don't usually get something for nothing.

Just put it on 8949 like the sale of any capital asset. 12K proceeds and zero basis.

"In an illustration of how multiple smart people can look at the same set of facts and reach a different conclusion, late last year the Ninth Circuit reversed the Tax Court’s holding" Laws are rarely clear.

If losses were deducted, she must have had debt basis at the time. Was there any debt relief at dissolution? If the other partners didn't ask her to put in cash to bring her capital account up to zero, then I'd say she probably does have a 12k capital gain.

Most distributions (both periodic and nonperiodic) from qualified retirement plans and nonqualified annuity contracts made to you before you reach age 59½ are subject to an additional tax of 10%. This tax applies to the part of the distribution that you must include in gross income. Additional exceptions for nonqualified annuity contracts. The tax does not apply to distributions from: A deferred annuity contract to the extent allocable to investment in the contract before August 14, 1982, A deferred annuity contract under a qualified personal injury settlement, A deferred annuity contract purchased by your employer upon termination of a qualified employee plan or qualified employee annuity plan and held by your employer until your separation from service, or An immediate annuity contract (a single premium contract providing substantially equal annuity payments that start within 1 year from the date of purchase and are paid at least annually).

Pretty sure the over 55 exception is only for 401k's so I think penalty applies.

http://s893.photobucket.com/user/Aglaiacallia/media/tumblr_loep3yHDhU1qb5odro1_500.gif.html

How could it ruin my day when I have no idea what you just said.

If the 2015 service isn't showing at all, you need to call support or try a reinstall.