cpabsd

Child is 10... received a Form 1099B that reflects $2503 in sales and basis of $2503. Is a return required to be filed? I'm tired and blanking on is the determination of exceeding $1100 investment income is gross sales, or net allowed if basis is reported to the IRS.

Does anyone know where in ATX to check a box for the Section 454 election? It is the election to allow a deceased taxpayer to report income from the redemption of savings bonds after death to be taxed on the taxpayer's final return as opposed to the estate return.

Adorable!! Grandchildren are truly a blessing!!

It was recommended to me, if the client does not have a copy of the letter from the IRS, file another F2553. If they have current S corp status, the IRS will send a letter saying that you are already and S corp so no need to file. That letter will serve as your verification of S corp status. Of course, that was before 2020 and I did that for a client and it worked exactly like it was supposed to. Who knows now if that would work.

I had several clients that opted to pay all the tax on the retirement plan distributions during 2020. The Form 8915 E was correctly marked to reflect this and they paid the tax on the full early distribution. However, when the return is rolled over, the software is defaulting to making the full amount taxable again. Anyone else experience this? By deleting the Form 8915 F that is added during the rollover, the issue goes away. But is this the correct treatment? The tax was paid on the full amount during 2020 so there should be no carryover amounts.

A client purchased a set of 5 townhomes as one purchase. For real estate tax purposes, it is treated as one property ( although listed as 5 houses). For insurance purposes, there are 5 separate policies. The purchase documents list all 5 addresses. Would you set up as 5 different rentals or one? If it matters, the entity files a partnership return.

No I'm not referring to timing issues relating to cash basis or accrual basis transactions. Problem is with a taxpayer that started a 1031 exchange on 9/1/2021. The property they replaced it with needed significant repairs which can be incorporated into the amounts for the replacement property. However, all transactions are to be completed by 2/28/2022. They have a contract to have all the improvements done and have paid for all supplies. However, due to supply issues, the hurricane windows are not arriving until April. Are there any general principals that would allow those expenses to be counted as part of the replacement cost or since it is actually being paid after 2/28/2022... is the taxpayer out of luck. Replacement property is not going to be enough to cover the full cost of the sale, but also not wanting to pay tax on more than required. Possibly could pay the contractor before 2/28/2022 but that involves a lot of trust as they could run off with funds and client is out of luck then. Suggestions welcome along with any sites so I can look at the authoritative documents.

Needing to do some research and hoping to get pointed in the right direction. I was told by a retired CPA that there is a general IRS tax principle that if you have a contractual obligation for an expense, and due to no fault of your own it was delayed beyond the IRS timing for a transaction, the transaction would be considered timely because you would have to break the contract otherwise. Not sure if this makes sense but would appreciate any guidance or pointing in right direction.

Client's mother in law passed away on 3/17/2021. Today they received her stimulus check for $1400. Does it need sent back or since she was alive when law was signed should it be deposited into the estate account?

I have them write down and initial what amount they received. The statement they are initialing says if they told me the wrong amount, and it involves correspondence or phone calls on my part there will be an additional charge for those services. It hopefully eliminates some of the discrepancies.

WV lawmakers finally passed the law granting the $10,200 exclusion of Unemployment benefits from state tax. This follows the Federal adjustment so there will be no state adjustment necessary. Just wanted to update everyone. It still needs the governor's signature but he will sign it.

Hope this gets updated soon. I have clients that owe large balances and want the extra month to pay. I'm now beyond the three days for the date on the e file forms. Ugh!!!

Taxpayer has not received 1099G from Florida DEO. They have the exact amount. Can anyone provide me with the EIN and address.

Virginia update relating to PPP After more than a month of back-and-forth debate, the Virginia General Assembly voted last weekend to allow businesses whose Paycheck Protection Program loans were forgiven last year, or who received one of the state’s Rebuild Virginia grants, to deduct up to $100,000 on their 2020 tax returns for eligible expenses paid for by the loans and grants. The standstill had risked holding up Virginian’s state tax returns and making it more difficult for tax preparers, who didn’t know what the law would be, to assist clients.

Client received following email regarding 1099 from MD and taxability of funds received. These are not PPP funds. These are a grant from the state of MD. Question is how specifically is this to be reflected on MD Form 510? I cannot find a place for the subtraction. I emailed the address shown but so far.... no response. Dear COVID-19 relief recipient, We will soon be sending you a 1099 for the Maryland Small Business COVID-19 Relief Grant you received. We apologize for the delay. Please be aware that due to the passage of the Relief Act of 2021, your grant is not taxable by the State of Maryland. However, it may be taxable at the federal level. The Internal Revenue Service has not issued any guidance deeming non-federal government COVID-related loans and grants to be exempted at the federal level. Please direct all questions concerning this to [email protected]. We apologize again for the inconvenience. Your 1099 will be mailed to you promptly. Maryland Department of Commerce

Thanks for the earlier responses!!

Site is back up now. I just submitted all of mine.

I cannot get into the SSA Business Services online. It appears to be down. Calling SSA national number and get cut off every time. Anyone else having issues?

Who do you use for malpractice insurance? I've never had a claim, but the rates keep going up each year. Because I am a PLLC, my state requires a million in coverage even though I would otherwise not need that large of coverage.

Thank you so much. Just faxes to Ogden number and it went through. Hope you all have a great day and stay well!!!

My fax to submit Form 2848 to IRS has failed multiple times. Is the line shut down temporarily? It's great the IRS wants us to use the online services, but we can't if no POA is already on record with them.

My printer was purchased in December 2015. It's a HP 401 laser printer that has performed perfectly to date... until ATX 2019

Thank you. I was able to figure it out.

Specs of my new computer are as follows: Intel Core i5-8500 CPU 16 GB Ram Running Windows 10 Pro 64 bit

I have a new computer and this year am having major issues with this. It's killing productivity when I have to restart every couple hours. Any suggestions as to how to correct? Haven't had much success with support actually solving the issue. Bonie