Tracy Lee

I found the place to enter all the data, thank you, I'm grateful; however I can't seem to find the right worksheet to print that shows the data. I chose 1116 under Federal Worksheets and check marked the Sch B-Cred Carry and AMT Sch B - Credit Carry but neither are populating. What am I missing or is there a different line item I should be checking to get this? This is the form I'm trying to create (in attachment). I also, always, include the tax summary with my clients tax return. I find it very useful! Tax Return Carryovers to 2024.pdf

New TP has a worksheet that says ' Tax Return Carryovers to 2024' The first column shows Disallowing Form, and it shows 1116 amt. the description shows Passive inc C/O form 2014-2022 with all the individual amounts. I can not find this form in ATX to put those amounts in there to continue to carry forward, anyone know where this form is?

TP is 35 years old and got a 1099R code 4. He inherited the remaining balance of his fathers pension. He kept the money and did not put it anywhere. Is this subject to the 10% penalty? He was clear that this was not an IRA of any kind.

My notes show wife pulled back out the $2434.00 on 1-15-2025 is there somewhere in ATX I should put this?

Taxpayer husband's W2 shows Box 12 Code W $8300.00 paid into for family HSA. Taxpayers wife's W2 shows Box 12 Code W $2463.92 and Box 14 HSA $ 1572.00. I have read Pub 969 but still feel confused about whether the wife can have employer and her own contributions to an HSA when the husband has a family HSA. Both Employers also pay health insurance as well. They have 4 children. Can the wife still have her own HSA for a single person and a contribution of $4150.00?

Client has a guest home 'on the beach' which he donates weekend stays to be auctioned off for a school booster club. It would appear that they are a 501c3, and he does have donation slips from them with a value of $500.00 a night. He has donation slips for $4400.00. Can these be deducted as a cash or item donation?

I have a laptop that I take home with me each night from my office. I am the only one that works on this laptop. I have all my protection, including encryption. My laptop requires my fingerprint or PIN or password. I always use my fingerprint. My understanding is that under this new law I won't be able to use my fingerprint; a password will be required then I will get a text message to accept in order to get into my computer. Has anyone found a way to get this authentication and still be able to use their finger print? Is there anyone who has decided not to do this because they already have great protection (like I do)? I totally protest this!

I am working on a new client with 6+ rental properties. The previous CPA did a lousy job (named each property on depreciation schedule as 'building'...) so I'm trying to add more detail and 'clean' up the many shortcuts he took. Two of these properties are Townhomes and one is a Condo. Old CPA listed the Townhomes as Property Type 1 (single family residence) and the Condo as Property Type 8 (other), it seems to me they would all be the same property type as stated in the PUB 527. Will the IRS allow me to make all the types the same without their approval and what Property Type would you show it as, 1 or 8?

New client received a Form 3922 Transfer of Stock acquired through an employee stock purchase plan. I have never seen one of these. I have read the instructions for it but am still confused. It would seem that this is informational only and not taxable at this time; until he actually withdraws money? Is this a correct assumption?

New TP was told by a friend that he donates his rental to charities and is able to expense that out as a charitable contribution and get a 'HUGE' tax break. My research shows that he can only claim the contribution, on his Schedule A, if he claims the FMV of the rental as income. Where might I find the facts on this? Is there a PUB that spells this out so I can show him in black and white how this works? I have never had this situation before.

I was reading through the QBI rules again because I have so many that get this credit. I had missed the part where realtors and property managers are not eligible. WOW that is going to hurt? I was wondering about clients who have Sch E rental property? I thought I read the first year QBI was allowed but after that they were no longer allowed the QBI deduction either, but now going through the instructions it looks like clients with rental property CAN take the QBI credit? I am only talking about the passive income types, not Sch C. What do you all do?

I feel the same as Bulldog, but I do not take any new clients that are behind in tax returns until after April 15th, they have to go on extension. If they are not willing to do that then they are not the client for me. I feel like the clients that keep up on their returns in a timely manner deserve to be taken care during the regular tax season. For the most part that has worked out well for me, however there is ALWAYS exceptions.

Client should be. They are the one tracking the invoices. I have been working in QB (desktop) since 2006. I also use QB payments to pay vendors, but I have always had to issue the 1099 NEC. I don't believe there is a way for QB to track every invoice for the year that has been paid, unlike Venmo or Paypal. However, with that said QB Online works very differently and I won't have anything to do with it. It allows income and expenses to be overstated all the time, but with that said they might issue the 1099s because QB Online takes more control of the books.

Excellent! I found that box! thank you!

T.P. received a 1099R for gross and taxable amount of $10,731.32 RMD that he had transferred directly to church for his contribution; he provided the proof so I know it is correct. I know I can deduct that amount on his 1040 and put QCD as qualified charitable distribution to offset it. I have conflicting information. One website says I can offset 100% straight on the 1040 line 15b (huh?) tax book says I have to deduct it off his Sch A on his gifts to charity at 100% there. Which is it?

TP sold home he bought 11-2021 specifically for girlfriends son to enable to have a home of his own for $325,000.00 (nice guy!) Then sold it to him 5-2023 for $376,000.00 and gifted him $45,120.00 in equity to help with the 20% down (the son had saved the rest of the down payment). After proceeds, cost, improvements and sellers fees.... he has a gain of $44,886.00 even though he never actually got any money from the buyer other than the amount he purchased it for. He wants to be able to add the $45,120.00 to his sellers expenses, which I know he can't but sadly he is going to owe IRS $12,000+ and Oregon $5000. + in taxes because it made most of his social security income taxable. This is a phone call I am dreading! He does not see this coming! He should have consulted me (or another CPA) before he sold, perhaps we could have advised him to sell the house at a loss to offset the gain of the gift. Any advise or thoughts or even a work around on this gain I am unaware of?

I was puzzled by this also. I use ATX Max. There was no other passive income to offset. After research and talking to my CPA friend I decided to leave the Sch E in place with no income and let it carry forward until they sell it. Then they can take the loss.

TP bought rental property in 2022 and took a $20,000.00 loss on it because of the amount of repairs....however they could not take their loss because their AGI was so high they phased out. They were frustrated by that and stopped renting it, effective early 2023 after they got there tax return back. They have no rental income for 2023 because they let a single mom struggling live there for free for a couple months. It is standing empty right now with plans to sell it. When I converted it to personal use in fixed assets it brought forward the entire loss and offset their income. This is great for them , but what do I do when they come back to me next year and tell me they sold it in 2024? The Schedule E and the fixed asset list will not roll forward. Does this just become a regular sale of asset and I use the original basis of the house , minus the depreciation they took and put it on Form 8949? I'm leaning towards leaving the Sch E there, taking out the 2023 depreciation and letting it show as 0 so it will carry forward. What do you suggest? I'm afraid they are going to come back next year and change their mind and turn it back into a rental.

I also read those rules, so am I correct in my understanding that 'that ship has sailed' and he can NOT fund his Simple IRA at this point?

TP owns 100% S Corp. He is his only employee. He opened a Simple IRA but did not fund it through payroll, now he owes a chunk of money to IRS and wants to fund that Simple IRA. I have no experience with Simple IRAs, but it would appear in my research, that he does not have that option at this point to fund it through the 1040, it had to go through payroll and show on his W2. I put $5000.00 on Line 16 Sch 1 under Simple401K contribution but nothing flows through to the 1040, which is understandable because he is not considered self employed. Is there any other way to contribute to a Simple IRA to reduce his tax liability on his 1040 without going back and amending his payroll for 2023?

I have been working in Quickbooks since 2006 and I am currently still using the desktop version and like it, but it has become to expensive for my small business clients and Quickbook online is nothing but a problem! Does anyone have a downloadable software program that does double entry, invoicing... and is affordable and is NOT cloud based they can recommend?

Disregard. I found the sale of primary Residence tab under the Bulk Disposition Setup and filled that out and it gave me my maximum exclusion. I am confirming that this is reported on the Form 4797? They will owe some tax because of some rental income and depreciation recapture?

New (married) client sold primary home with rental suites inside of the primary home. Their only other income is social security. Schedule E shows deprecation of assets. I put in Bulk Sale and attached all the assets to it. Sold for $1,042,000.00 property basis with improvements and seller fees $509,478.00 with $500,000.00 primary home exclusion that would leave $33,022.00 gain. ATX is only giving me $250,000.00 (why?) exclusion on Form 4797 and it is flowing over to the Form 8949 and Schedule D line 11 but showing they owe $35,245.00 in tax. Other than information on the sale of principal residence I did not fill in any other data because it shows it's flowing from the Schedule E. I did not Force 4797 section in the bulk sales because my understanding is that this would not be reported on Form 4797 because it was primary and rental home. I'm clearly missing something because they shouldn't owe this much money, if any? Help and guidance would be most appreciated! This is my first tax return with this kind of senerio.

TP sold a home that was a primary home from 2003 to 2014, then married and moved in with (now deceased) husband into his home and let her kids live in it from 2015 to 2020. She then turned it into a rental from 2020 until in sold in 2022 at a substantial gain. Is there any way I can reduce that gain because it was a primary home for 11 years? If so, where would I acknowledge that? Right now it is being reported as a bulk sale on the Schedule E fixed assets form and flowing to a 4797.

TP (90 years old, bless his heart) received 1099R for gross distribution of $227,701.42 with Box 2 showing all of it taxable; he said that was incorrect so I told him (many times) he had to go back to the company and get a corrected 1099R with the correct taxable amount. With his permission we went ahead and filed his tax return and he paid ALOT of taxes, not knowing how long it would take to get the corrected 1099R or even if the company would do a corrected. He received another replacement 1099R with the correct taxable amount this time but this company failed to mark the corrected box so it appears to be another distribution, although both 1099R's show as total distributions. I believe he needs to go back, again, and request they mark the corrected box so he doesn't get a letter from the IRS later on showing he failed to report more income. Am I correct in thinking this? I do not want to send this man on another goose chase if I don't have to, but I also don't want to have to file multiple amendments later.