Tracy Lee

TP has received her first installment from the 'Paradise Fire' Federal Disaster in 2018. It came from the attorney representing the fire victims. Her portion is a fully Emotional Distress Claim. She lost no property, nor was physically injured in any way. She also has not received any other compensation or insurance payments. From my research this will be fully taxable, even the portion that the attorney retained for services. I called the attorney's office and they will not be issuing a 1099, so I should put this as 'other income' on the 1040? Has anyone else dealt with this issue and can you validate my research that it is fully taxable income? California Disasters.pdf

Does that actually lock the Tax Return so it can't be changed without a warning?

I opened the tax returns of several clients that were already completed, efiled and accepted, prior to the unemployment $10,200.00 exclusion, with the returns calculated with all the UC fully taxed. However ATX Max updated those returns with the exclusions, when I opened them recently, and changed my tax return. Grrrrr! Has anyone else had that problem? How did you adjust it back to the original tax return that was filed? Is there a way to lock a tax return after it has been efiled and accepted?

Bulldog Tom, I do have ATX Max and did the return. Seemed pretty straight forward, nothing due, just informational. I don't have any kind of a form popping up for me to eFile, does this return have to be paper filed?

It is a not licensed off road vehicle. Weighs about 1500 lbs. So what do you recommend? Thanks for the VIN website!

TP purchased a Utility Vehicle for his timber business. I do not want to take any bonus depreciation. He doesn't need it this year and the business will be generating more income in the next couple years. Is this considered a vehicle / other vehicle 5 years or equipment / general purpose 7 years or logging machinery and equipment 5 years?

Looks like it is it's own separate tax return from their 1040?

I believe I need to file Form 709 to report the $65,000.00 father gave to son to buy a house; especially since it was documented at the bank with a gift letter. This form will not come up in ATX, is it called something different or not exist at all and I have to get the form from the IRS website?

I have had several clients that have owed because of their PTC and it has seemed unreasonable. What am I missing? Has the IRS done something else stupid I'm unaware of in regards to the dreaded Marketplace Statements?

Not yet, I'm waiting for client to give me her P & L by the quarter to do the breakdown (if necessary). Checking the return shows the Form 2210 as an error that will not allow it to efile because there is no penalty right now. Hmmmm. Can I use Form 8275 or 8275-R as an explanation instead? Or is there another preparer explanation form available?

Client is realtor who makes the majority of her income 3rd and 4th quarter and also pays in the appropriate amount of estimated taxes for those quarters. She always over pays and always has a refund from federal and state. She does not chose to carry forward to the next year. Last year federal and state penalized her regardless and did not issue her all her refund amount. I would like to get ahead of this this year and put a statement in the tax return. Is there a place to do that other than the Form 2210 Part 2 Waiver of Penalty, and taking the time to figure out their quarterly AGI on the Schedule A1? It is a large return with a lot in it. And will the 2210 efile anyways if it shows 0 penalty because she has a refund coming?

So if she can't find any of this information, basis stands as it is on the depreciation schedule and she has to pay the large capital gains? I really 'picked her brain' and she was coming up with nothing. She's an elderly lady and I think her husband who passed away in 2020 took care of all that. There would be no other way to 'add' that extra basis?

Client sold her rental for $210,000.00, her purchase price was $110,000.00 in 2003. She also had $45,000.00 in improvements in 2010, she does not believe she ever expensed them out as repairs either. Her depreciation schedule shows basis as $24,420.00 and no improvements. She is positive that the land was not worth $85,580.00 (which also does not appear on the depreciation schedule). It is a single family dwelling. How do I go about increasing her basis and adding the improvements so she doesn't end up paying so much capital gain?

She won't get Earned Income Credit; you have to be between 25-65 to qualify for that, right?

I can't get the business name to show up on line 16, Sch 1 worksheet, even though I have imported my K1 from his corporation straight into his personal return. It won't let me take that deduction on that line. It wants to move it to my Schedule A. What do I need to do to get the business name to appear under Business 1 so the insurance amount will flow to line 16? I must be missing something?

Excellent. Thank you!

How do I set my ATX invoice so the template is the same for every client, so I do not have to keep selecting my options for each individual client?

I finally got through to ATX as well as finding the answer on the ATX support. I can file the 1040X straight from the original return; the only issue is that IRS has not opened that form up yet for efiling. Thanks for all the help, I'm going to wait until it opens and try again, because I really prefer to only have one client file.

I just added the 1040X to the existing file. I was trying to avoid calling ATX. I have already tried before and was on hold forever. I have efiled 1040X for 2019 without this problem in 2020 so I'm not sure why it's a problem this time, unless it has something to do with it being a new year? The 547 page ATX user guide is not helpful in this instance.

I need to file a 1040X for 2019 and I'm gettingan error that says "This e-file cannot be recreated while its status is 'Accepted'. How do I clear the accepted so I can efile the amendment?

Where do I format my invoicing choices to calculate in the program for every client, instead of having to do it each time for every client invoice? I had to adjust it last year, and thought when I did my rollover it would save my preferences but it did not, and I don't remember where I did it. This time I'm going to right it down.

ILLMAS is correct. I have worked in QB for 15 years and often have to backup and restore for clients.

Thank you

I have a client that has multiple personal mortgages and very high income and is subject to the limitation on his Schedule A. Does ATX have a Mortgage Limitation Worksheet? I can't find one. I did find the IRS Pub with the worksheet in it, but would rather work within the tax software if possible.

When I put his W2 box 1 income of $30,424.00 on line 4 of the Sch EIC worksheet that shows: 'Clergy: If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported in 'Wages' on Form 1040, enter that amount...... It gave me my EIC. That seemed to be the missing piece of the puzzle for me. Does that seem right to you? I called ATX twice with no help!