Abby Normal

If a shareholder has no basis, then he can't deduct the carryover losses. Usually, I'm dealing with sole shareholders and the basis comes from cancellation of debt income, selling of assets or putting in personal funds, as happened here.

If MFS doesn't result in very much additional tax, then it's not a huge concern. Besides, our job is only to advise. It's up to the client to decide to amend or not. In some cases, deciding not to amend might make the client too unethical to keep, but in this case, maybe not.

I'm still waiting for the form revision because those over 400% might well be entitled to additional credit, especially if they didn't take the full advanced credit they were entitled to.

The problem is, they might be entitled to additional PTC and without the 8962, they'll lose out.

That's what I do, unless the business doesn't have enough income to cover it.

The IRS will check and adjust Recovery Rebate, so I'm not spending any time chasing the amounts down from clients. If they're in the phaseout range, I'll call them, but if they're below or above the phaseout range, I make entries accordingly.

And she already paid you to open the envelopes and unfold the records. I love my far away clients who download most of the records as PDFs and scan the ones they receive in paper form, and just upload them to our portal. We don't have to store their records and we don't have to send anything back to them.

That's not a 'filing system,' that's a 'piling system.'

The dirty little secret of 1116 is that even when it's not required to be filed, the calculation must still be done. Many of us, including me, choose to ignore that when we're under the 1116 filing requirement limits. ATX has a checkbox to facilitate using the 1116 for the calculation but not including it in the return.

Sounds right. Also, check the K1 to make sure that if any FTC is passed to the beneficiary, it doesn't exceed the total FTC. I've had problems with this in prior years.

It's looking like I'm going to either fire you, or hurt you badly!

My only comment is that K1 forms are often prepared wrong.

In the past, I've been able to discard a form I didn't want in the efile and create the efile immediately after deleting, before ATX added it back. Haven't needed to do that in a few years.

State returns are always a lower priority, and the best you can hope for is submitting a case and an enhancement request.

Crazy option: understate the withholdings or estimated payments so the return shows no balance due or refund, then let the IRS sort it out.

We enjoyed our stay in TN and plan on returning someday. Not sure I'd want to live there full time, but it is a low cost of living state, so if I'm ever low on funds later in life, who knows!

The other side of a client getting a notice is that you get to be the hero by solving it quickly and easily, usually at no charge but sometimes there is a charge. Clients remember the panic and how we rescued them and made the big bad IRS go away. Then they send us referrals.

I think I'd recalculate the gain from the start until 12/31/20, using the corrected profit %, then subtract the amount of gain already reported in earlier years, and "force" the gain on the 2020 return to be the amount needed to make the cumulative gain correct. A "catch up," if you will. Then leave yourself a note to change the profit % on the 2021 return.

I don't consider version 0 viable so I wait for version 1 to install every year in early January. I've only been with ATX since the 2013 tax year, and some years have had 6 program updates. I think the fewest I remember is 2 program updates, but 0 is hard to believe. Maybe they've got in all figured out now!

I use IE by default for eservices, but when I'm having issues I fire up Chrome or Firefox. Firefox is my main browser as well. I just had to switch to Chrome for my online banking because it's not working with Firefox on my work computer, even though it still works fine with Firefox on my home computer. Go figure. As long as one of my browsers works, I'm good.

Yeah those things can explode in your face. I had one high roller with a bunch she finally sold. She had large cap loss carryovers and sold most of these at a loss, BUT the ordinary income portion that goes on 4797 was about 40k, so she had to pay tax on that. It was partly offset by deducting the suspended PTP losses on E2, but she still paid tax on the sales. I had one of these once and it seemed like they were sending me my principal back since the K1's kept showing losses. Never again. I tell my clients that the reason they're being invited into the partnership is because the business is so risky the banks won't lend them the money.

I never check before 3 weeks and that is today for my last fax. It was not processed yet, so I'll check again in a week. We used to be able to do these online, instantaneously, and that was so nice, but not enough tax pros used it so the IRS shut it down. Too many tax pros are Luddites and they ruin it for the rest of us.

The fax queue and the upload queue are supposedly one. The ones we've faxed this year are taking about 3 weeks. Just checked one we faxed on 3/9 and it is not yet been processed.

I'll tell you what I find amusing over at reddit.com/r/tax/. All the Robinhood folks who bought investments that give them K1's. They had no idea what they were getting themselves into! And many of them have not had the pleasure of selling these investments yet.

This is a good assumption. And, ultimately, it's the broker's job to provide the correct basis and the client's job to tell us if they think it's incorrect. It's our job to input the 1099B as it was given to us. Even if basis is missing, it falls to others to provide the basis to us.