Randall

There will be a 1099-R. Hopefully, they'll have the gross distribution and taxable amount shown. They should have tracked basis in contract. Hopefully client has kept all annual statements just in case. If the policy is old and has changed insurance companies thru mergers, etc, the insurance company may not be able to provide a good historical statement.

I agree with KC. If it's a real loan, ok. I see a lot of loans from shareholders to the corp. But from the corp to the shareholder? These things never go off the books.

I wonder why we track it too. Once it goes to zero, it becomes meaningless on the return and makes no sense.

Did you update to 13.5? I didn't get a chance to and they sent a notice they took it down because of some problems.

Distributions on K-1, no 1099. Basis tracked. Distributions in excess of basis, long term cap gains on 1040.

W8 is ok for latest QB. I have QB 2014 accountants version. QB 2013 worked fine with W8 for me too. Can't say about older versions of QB. As with all software, you need to update eventually. I recommend clients update QB at least every 3rd year. They don't.

Right joanmcq. But she said she started a new S Corp too. She needs a face to face with her CPA to sort this out.

As others have said, if you're an S Corp, the money received goes thru S Corp, then distributed to you. As old Jack said, see your CPA on how to handle this regarding the tax reporting. NOT just straight to 1040 line 21.

If I were the buyer (or advisor of the buyer), I wouldn't buy the corp, just business assets, name, goodwill, no liability (especially payroll), etc. Form my own corp or LLC.

Thanks. That was my first thought too.

I see the old TD F 90-22.1 form has been replaced by FinCen 114. ATX says this form must be filed online only and is not available in ATX. They did provide a link for instructions. That took me to a website called BSA E-Filing System. Has anyone done this? Should we as tax preparers enroll as filers on this system or just direct our clients to this site to do it themselves? Form 8938 is still required to be filed with 1040 but has a higher threshold requirement than the FinCen 114.

Thanks. I just saw that too.

Did they eliminate the age limit to claim EIC? I thought you had to be under 65. ATX is calculating EIC for my client, age 65 with a disabled child dependent.

Thanks. I thought it should just be additional rent. No installment sale, still collecting rent and sale isn't stated, just potentially. Aggreement states additional payments to reduce future sales price.

Client rents house. Tenant is paying additional payments toward potential purchase. Payments will lower future sales price. Payments are forfeited if tenant doesn't purchase home. My question: Are these payments reported by client (landlord) as additional rent, other income, or postponed and booked as deposits. I couldn't find something on point about this, general reference to conditional sales contract. It doesn't seem to fall into the category of installment sale. I don't think he can hold the money as deposits or whatever. It seems it would just be additional rental receipts or other income. Then in the future, the sales price would just be lower.

Just the usual for ATX. Slow.

Are you saying Jainen is going by Mr. Pencil now?

I think ATX 8949 input screen has a place to put the adjustment for the wash portion and the gain or loss should come out according to 1099B. Need to use code W.

See what the trust document says. But sometimes, these things are done inappropriately, cutting corners and are not very good documents. Trusts are supposed to be created for a purpose with a finite life. The Trust document should say for what the purpose of the assets, income from assets, who beneficiaries are, etc. Sounds like some quick fly by night. See if an attorney was involved with the trust creation.

Here's how I did it. Add Elections from forms. In Elections, click on tab for blank statements at bottom and create a Statement. I named it Sch E, Page 2, Line 28C, Such & Such Expense. You have to input the expense description and amounts on the statement and total it yourself, adding a line for Total. Enter the total amount manually in the K-1 input screen for partner unreimbursed expense. They don't link so you have to manually check that the numbers are the same. This way, I get a statement I can print and include with the return.

Did Trust become irrevocable at death of TP? Then wouldn't Trust get stepped up basis? Or was irrevocable trust created for TP as primary beneficiary (from rent) while still living? Are you saying Trustee is residual beneficiary and therefore received the house from Trust as a result of death of TP (primary beneficiary). Then would Trustee receive stepped up basis? Then Trustee's basis would pass to giftee (mother). Not sure about all this, just putting out some thoughts.

Margaret, I use profactory, sometimes then convert to Acrobat. joanmcq, I tried to attach a pdf document, not created from within the ATX program but something I already had scanned, but it would not attach to the return. Not sure why.

Create the pdf. Then within the return, at top menu, click on efile, option to attach pdf. This will take you to a window with a list of items Scroll to the one for depreciation schedule (they have both fed and state). There's a paper clip icon to click and go to where you saved your pdf. There's another icon to view it. Once attached, the same procedure will allow you to remove it.

Yes, it still takes a lot of space. Jack tells us the new program is better and requires the additional space. But I wonder about the program compared to other programs, why the need for more space in comparison to other programs. In the long run, I don't think a 256gb HD is sufficient.

Yes, Pacun. The endless talk, think tanks, round table discussions, conferences, retreats, symposiums and whatever. Right and left, doesn't matter. Chatter chatter, Swing Batter!