Abby Normal

My #1 rule is: always take the cash.

I had two returns rejected, so now I can take advantage of the 5 extra days to give them a more thorough review before resubmitting.

It does belong on the balance sheet as a liability. The question here is what is the effect of passing that liability out to the shareholder. I think, as the shareholder pays it, it increases the stock basis allowing any suspended losses to be claimed.

But in this case, the stock basis was already increased by virtue of the sales tax being included in revenue. Which actually makes it simpler. No deduction for the shareholder when the sales tax is paid personally.

Would like to see this added too, but I always have a pdf of last year's return open to compare it with what's on the screen. Organizer is also useful for this.

That's also why we use computers!!!

That's what you get for choosing big numbers and not making the math easy on yourself.

Not in service. Don't worry about these assets until they are on the market to be rented. #fagettaboutit

jklcpa is correct. Going back to last year's tax return and reducing Sch A taxes by amount of refund is the way to go. You can print the resulting 1040 & Sch A as proof of amount taxable. Just don't save last year's return when you exit.

jklcpa, in your example the taxable amount should be $18 not $18k.

ATX does not limit taxable refunds to the tax benefit in AMT cases, you have to calculate manually as you have, and override on line 8 of the Ln 10 worksheet. I agree with your 5,000 limit.

If the stock has been held more than 1 year it's long term.

Just enter those taxes withheld on Sch A. It's not worth any more effort.

I just did one with inactive rental and the prior unallowed loss is showing on the 8582.

Go read the thread on Life Estates that was on here recently:

If there are no 2014 8582 losses or income, the 8582 might not be needed. The loss is associated with the property, and that's all that really matters.

No. The loss becomes non-passive upon sale of the property.

It is return of capital even if E&P is negative. You have been calculating E&P every year, haven't you?

It is dividends up to the extent of current E&P.

Edit: If it exceeds his basis, it becomes a capital gain.

http://thismatter.com/money/tax/corporate-distributions.htm

Yes, she has to pay back all the PTC advanced payments.

You do the 8962 monthly so the period she was covered by employer doesn't come into play for the PTC. It does come into play about being covered all year on the 8965, which probably doesn't need to be filed in this case.

Besides, do you really know you have "all" the paperwork? Sounds like a disorganized client.

Yes, withdrawals and non-business expenditures are most often distributions. Make sure to calculate basis on the K1.

I don't know but I've been seeing that error message all year and wondering what it was about. I wonder if it's a PTP and the losses are suspended, does it really matter?

You might be better off using calendar year because the 1099s are calendar year. I always default to calendar year at first and switch to fiscal year if it works out better.

She needs to roll it over to a traditional ira and keep it separate. It's going to be taxable either way, but you can avoid the penalty on 10k for 1st time home buyers. (5329 exception 9)

No reason to run it through a Roth.

You shouldn't override the depreciation method. 27.5 real estate is SL/GDS MM, and yes, the depreciation is the same for AMT and state.

No special rule that I know of. The incidentals part of per diem is only $5 and that's for tips to maids, porters, etc. If your client is not buying any meals, because friends are feeding him, then he shouldn't be claiming per diem at all.

http://www.gsa.gov/portal/content/101518

I forgot to add the another nice feature is converting any pdf to searchable. So if you have a lease document or articles of organization or anything else you like to search or copy/paste, just open it in Nuance and click Make PDF Searchable on the home tab. It actually does a better job than using our Fujitsu scanners to scan a document as searchable.

Plus there are tons of other features like adding Sign Here flags to documents.