Abby Normal

I too have uttered, "What the hell was I thinking?" when reviewing a prior year return I did in the heat of battle. It's always a wake up call.

You get to be the hero by amending and removing those K1s from the return. The only time a K1 can impact an IRA is when there's unrelated business income, and it has to exceed a certain amount before it creates taxable income. It's usually recommended to NOT buy these K1 investments in an IRA. https://www.fidelity.com/tax-information/tax-topics/ubti

There are blank lines at the bottom.

Maybe you meant type C for short term with no 1099B.

Back in the early days, the IRS said crypto would be considered collectibles, and I thought they dropped that, but when code C popped into this thread, I thought I'd ask if it still applied, because I haven't been using code C for crypto sales.

Is crypto still considered collectibles? I couldn't find anything definite on the IRS site, pubs, or instructions (as usual).

Rules for individuals may not be the same for trusts, but if the income was passed out the actual beneficiaries (not designated gifts) on a K1, they might be able to exclude it. This is why you normally want individuals as bene's for any retirement accounts. Why run it through an estate or a trust?

Does the series of substantially equal distributions exception to the 10% penalty apply here?

The installment debt will become part of the estate. The estate is responsible for liquidating the assets and paying off the debts.

You also have to reduce the tuition expenses by the amount of tax free income on the 1099Q before calculating any education credits.

Or, and hear me out, the IRS could provide an easy way for people to file simple returns online. I'd bet most people never heard of the free fillable forms system the IRS has. And for those doing the old pencil and paper, how about a fax number to send it to the IRS? Or maybe make the chain tax services offer a free 'fax your own prepared return' service where you have to present some ID and the return will be high quality faxed to the IRS.

One page of a Sch C or one page of a C-EZ is all the same to me. I never liked the EZ form.

The IRS will adjust stimulus payments the same as they do estimated tax payments, so no need to amend and no need to worry. Pull an account transcript so you can prove to the client that they got what they were supposed to. And if the transcripts show they somehow did not get all they were entitled to, then you can amend.

Code M = enter no dates and just totals Code MW = ditto with wash sales Code BOMW = ditto with sale of K1 PTP investment. I used to break these out, but now I just aggregate. Codes are entered alphabetically.

I'm glad ATX lets you enter the Name Control and doesn't try to guess what it is or make you rename the trust to make it work. Did you check the name change box?

Why?

So you could send in a buck and choose extension. That might come in handy for some.

When are they going to make extensions truly automatic. If the IRS doesn't receive your return by 4/15 (or whatever date it is) then they extend you automatically. If you don't want an extension, then you have to file.

Nothing in the news.

The 'fix' is to install and configure Large Address Aware and to close ATX after every large return or 2-3 small returns. If I'm working on a very large return, I'll close ATX and reopen the return several times, including just before printing. ATX is like an old car you want to keep working. You have to baby it. Also, decrappify your computer, even if it's not a brand name computer. Brand name computers come loaded with crap. I saw this article yesterday on bloatware in Windows itself. https://lifehacker.com/you-can-get-rid-of-windows-bloatware-with-one-command-1848707156/amp

Not being psychic, I find everything to be 'unforeseen.' but seriously, the IRS will accept almost anything for this 'loophole.'

I played around with Encyro and was not a fan of the interface, but I'm sure I could get used to it.

I wouldn't use other income. Use the worksheet for wages because that's where it belongs, and wages are used for some calculations.

I had an app on my phone that taking a photo of a document converts it to a very nice PDF. I just tried it out and later uninstalled because I have a scanner. It may have been recommended on this forum, but searching will surely find several such apps.

Similar quote. The fundamental cause of the trouble is that, in the modern world, the stupid are cocksure while the intelligent are full of doubt. Bertrand Russell I would add that the stupid often think they are smart and don't need any additional facts to conflict with their beliefs. Another favorite quote of mine is, "Truth is a compliment we pay our beliefs." Not sure who said that.