JackieCPA

I'm in such a big agreement here with you. I wish whoever told them to do this at the beginning thought about the future more.

I have a new S-Corporation client that owned a building that was a bar/restaurant. They have now sold the business portion (bar/restaurant) and currently still own the building and are renting it out to the new bar/restaurant owners. I am finding with IRS PLR 201229007 that rent income maybe not passive income depending on facts/circumstances. They pay the property taxes and some of the repairs on the building, but they pay no wages (to themselves or others) and sounds like they don't provide any substantive services on the property. Which makes me think that the rent is going to be considered passive, and they would need to revert back to a C-Corporation. My thoughts are they should probably dissolve the corporation and "sell" the property to a new LLC they created so they don't have the double taxation of the corporation. It also does look like they would have just enough basis for them to take a property distribution from the S-Corporation and then contribute the building to the new LLC. Any thoughts or am I thinking too much into this?

I use ATX and have quite a bit of farmers - depending on what you are asking this may or may not be helpful (depending on exactly what you are asking). On a 1099-PATR - Box 1: Patronage Dividends go straight to the Sch F Box 8: Section 199A(a) qual. items get entered on the activities tab of the 8995 under "payments from cooperative" Box 6: Section 199A(g) deduction (which is the old DPAD) gets entered on the 8995-A, page 2, line 38 "DPAD under section 199(g) allocated from an agricultural or horticultural coop" - this increases their QBI deduction. If they have a loss or their income is over the threshold, the fact that they don't pay wages won't give them any deduction. I don't often see anything else on a 1099-PATR so I am hoping I am being helpful!

Just got a response from ATX. Hopefully this will help.

I have a couple of clients returns that rejected because it wants the Form 1116 Sch B to be electronically attached. There is not spot for it in the e-file attachments. Anyone else having this problem?

For the MN working family credit and child tax credit, I have a client who has wages of $101,000 (MFJ) and farm income loss of $80,000. Combined earned income of $20,000. They are receiving the federal EIC but the child tax credit and working family credit is not calculating. I have on the MNDQC that the children are qualifying children and on the MNWFC form the earned income is flowing. Am I missing something else as to why those credits aren't working?

I also might be kind of dumb - mine has 118 in front - which 1 do I change to a 2?

Client gets a K-1 from a company that is from South Dakota. Because it is a SD company, there is obviously no MN K1 that is attached to it. The client is a MN resident. The South Dakota company takes bonus depreciation during the year - but the federal K1 does not show it broken down it all goes in with ordinary income. How does the MN preparer for the MN return for the client know that there was bonus depreciation taken to be added back in?

Hello! I have a client who purchased a house - he put it into an LLC because the plan was to improve it enough to rent it out. However, he has decided a few years later to just sell it and not rent it out now that the improvements are done. I had originally set it up on the Schedule E with expenses as passive and had the loss carried forward (as there was no rental income). Now that he is selling it without it being rented at all, does he still qualify to take the passive loss that was carried with the sale or is that void since he decided not to rent it at all? The original plan was to have it rented - not sure if that matters or not.

Since the Main Info tab cannot be customized in the master forms - is there a way to get this box to be automatically checked for everyone or is it something that has to be looked at per client?

We are getting multiple clients getting extra underpayment penalties in the mail. Seems as though the IRS is calculating it differently than the software is. Anyone else having this issue?

I had to call ATX and they gave me a file call "Large address aware" to put on the computer and they walk you through making sure it is working properly - haven't had an error since.

ALl the income from the K1 is ordinary income - new client for me this year, looks like prior year return had it be minused off the oridinary income.

What I decided to do was add a separate K1 with the business name depletion and used the same EIN as the company and put the depletion amount as a negative ordinary income. Hoping for the best.

Yes - but in ATX that line does not flow anywhere and is a "non-linked" item.

Anyone know where I can input depletion deduction information in ATX flowing from a K1?

K1 from LA shows these items: 1. Distributable Income/Loss: $9,899 2. Mineral Interest Income: $34,402 3. Intangible Drilling Costs: $-1 4. Depletion from Oil and Gas: $7,568 Composite tax paid on behalf: $421 Where on the LA individual return do I show the composite tax that was paid already on their behalf? Is just the income to show on the LA return the Distributable income of $9,899? The mineral interest income of $34,402 shows on the federal K1 as the gross income amount, so I'd assume that I would not include that as additional LA income just the distributable portion.

So, when someone receives CRP Ag Prog Payments it isn't self-employment taxable as long as they are on social security. If that CRP is flowed in from a partnership on a K1 it shows as self-employment taxable because the business return preparer wouldn't know if the recipient is on social security or not. Is there a way to add on the K1 (ATX) that it is CRP payments and not just farm income and to be deducted on the Sch SE on their personal return? Or, should the business return preparer know if they are on social security and show it on the K1 as not self-employment income?

Cannot they just file 8832 change in entity clasification?

Is anyone else having problems with ATX this year encountering an error and needing to close multiple times a day?

I agree - I do not think this company took PPP loans into consideration.

I had a client have the employee retention credit completed by one of those "ERC" companies that charge a % of the credit as their fee. They are recommending that my client doesn't amend their prior year tax return because the IRS is absolutely going to change their mind and make it tax free. Reading everything I have read; I really don't think they are going to make it tax free (not reducing the expense). What is everyone's stance on this. I would rather amend the return now before I do the 2022 return.

I know that for W-2s, the software creates the file that you then upload to SSA. Does 1099 do the same thing or does it transmit it like a tax return and show accepted/rejected?

Can I create my own authorization letter or is there a specific form I should be having the clients sign?

Hello, We just recently started e-filing all of our clients 1099's vs having them sign/send the red copy. Is there a signature page that the client should be signing (like the 8879 or 8655 type of thing)?