Abby Normal

One of the situations I hate with decoupling is when it's an S corp with no basis to deduct the loss and the software wants to have an add back on MD. If it was big enough, I'd override it and keep a cumulative schedule until there depreciation is actually deducted on the federal 1040. Problem would be if only part of the losses were allowed. Hopefully, most decoupling differences will go away in a few years and we won't be creating new ones.

It should create a MD NOL to carryback/forward.

Some ATX insider replied on the official ATX form: jmdaviscpa, You can change the state by doing the following: Go to Fixed Assets/Asset Global Settings/State Calcs then select the State Situs from the drop down menu. Please note that if you have assets in multiple states only one state may be selected. So this will work in my case where the client only has assets in one state. Still screwed on any multi-state clients.

No. A few fraudulent people have nowhere near the impact of thousands of MD business deducting, millions in depreciation in one year as opposed to spreading it over 5 years. MD was just trying to responsibly smooth out their revenues.

You can split the losses and deductions in any reasonable manner. You may need to make two duplicate data files and have at it!

I already the PA return added. I was just expecting the state depreciation schedule to say PA and not MD. Even TaxWorks had that right! I'll just edit the PDF to say PA. PA returns are a pain in the ass! I have a PA CPA contact I can email, thankfully. MD used to follow federal law exactly until the Bush tax cuts were going to blow up the state budget so they decoupled. With bonus gone (for good I hope) the only diff will be 179 over 25K and that doesn't happen much.

Thanks! This reminds of the Intuit approach where you make the basic product deliberately flawed but offer you an addon that does things right. Many states have decoupled from the federal over 179 and bonus depreciation. I haven't seen any states lately that accept federal depreciation.

Hmmm. I just did an update and no forms updated.

Let me get this straight. If I have a client with rentals in 4 different states, ATX is going to just give me one state Tax Classification report for the home state? Wow.

Yes. Actually I just need the PA one because all depreciable assets are in PA.

I don't see a place on the Sch E (other than the address) or in fixed assets to designate which state the rental is in. The problem is the tax classification report says Maryland and I need it to say Pennsylvania. Thanks!

You only have to report the part of the 1099Q that is taxable, if any.

This isn't like a corporate dissolution where items are deemed sold. Just show the items as being distributed to each partner. It's probably at FMV but you should look it up.

Delete 1120S and re-add. Grrr. You may want to check line 7 on all 1120S before you make any entries.

Goes on Sch E pg 1 Ln 22 Loss Limitations I think.

On hold with support now. It's not displaying any blue input fields and can't add any.

Just had my federal estimated letter totally change to some default text. Thankfully I had a prior client with federal estimates so I could re-save it. But I have sections of my letters move, wording changes, etc. Perhaps I'm making some noob mistakes but I don't know what they are. Also, why I can't we default the letter options? Grrrr.

No issues for me either.

Can't take a rental loss under MFS.

Would you mind sharing the problem? It might save the rest of us some grief.

Jeez. RTFQ, right?

You're right that the inventory loophole doesn't make the mileage deductible, but he should advise the client to establish a home office immediately, because it will qualify as a principal place of business under the administrative rules. From the link you posted: Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business I think he would qualify under these rules. Maybe not last year but it can be done for this year.

When I built my last computer, I told them I wanted the fastest processor, hard drive, graphics, network, etc with a shit load of RAM. I spent 1,200 just on the parts. No regrets. That was in 2012.

Tell him to get a home office. Problem solved. He may already have a home office if he stores inventory at home. Edit: http://www.irs.gov/publications/p587/ar02.html#en_US_2013_publink1000226297 I'd bet he has some inventory or samples at home. Go for it!

You obviously don't understand the way my mind works.