kathyc2

1231 property is used in a trade or business.

Why would this be 1231 property instead of 1250? I would think it would be reported on Part III and then carry to line 6 of Part I. Any passive loss released shouldn't show on 4797, but on Line 5 of Sch 1.

Thanks. I was afraid it was something like that. I should have come here first rather than spending time on hold and then talking with a person who was impossible to understand.

Non resident had small CA source income from 1065 K1. LLC reported withholding on 592B. I input the info from it including FEIN number before e-filing. I prepared 3 1040 returns for members of LLC and so far 2 have received a balance due notice which is the amount of withholding not being recognized. I told 1st client to send/fax them a copy of the 592B. Second client e-mailed their notice this morning. After thinking about it, I realized that they already have the info from 592B and sending a copy probably won't fix the matter. I called the number on notice this morning and after she verified my info as 3rd party designee, she said she couldn't help and transferred me to another department. Recording said about 10 minute hold time. After being on hold over 30 minutes I found the PPL number. This person had a very strong accent that I could barely understand, but I think she said they can't get to the information and that I should call back after 1.4.24. Any suggestion from CA people how I should proceed to clear up the notices?

Yes. Read the instructions for 8824 and follow the examples they lay out. Be aware that may cause only a portion of the gain to be deferred and a portion to be included in current income.

Yes. Remember you need to add the additional cash given of 80 (410 - 330) to the basis of old property on line 18. Line 16 & 17 410,000 Line 18 330,000 Lines 19 & 24 80,000 Line 25 330,000

Basis of new property is 330 (410 - 80), not 250.

Depends on what you are looking for. I'm sure there are a number of free websites that will calculate a schedule to print out. If you want something to account for early/late payment, payment different that exact amount you might want to look at Excel or a program such as TimeValue.

I have the subscription, but it appears you can still make a one time license purchase. https://www.microsoftkeys.net/microsoft-office-2021/microsoft-office-2021-home-and-student-for-windows-pc I don't know if this would be backward compatible if sheet was created in newer version or not.

I absolutely love Excel! Not a day goes by when I don't use it for something. I have some templates set up the significantly reduce time for longer term tax planning. You can use google sheets for free. I don't use them much as I find it frustrating that the command layout is different, but they are great if you need to collaborate with others. For anyone that wants to up their Excel game, I highly recommend Jeff Lenning. I've done webinars that he has led. He also has youtube videos and several no charge blogs on his website.

1120S is not exempt from 6694 penalties. You may want to review Rev Proc 2009-11

QBI income is calculated at the corporate level and reported on K1.

It understates payroll tax matching. Also, if QBI is involved it may cause an understatement of FIT.

If you go that route, remember that you will need to gross up pay to account for FICA withholding at a minimum.

IRS has on demand video of webinar: https://www.irsvideos.gov/Webinars/BeneficialOwnershipInformationpresentedbyFinancialCrimesEnforcementNetworkFinCEN

It's pretty easy reading. I got through it in around an hour. See chart on page 2. The form they file doesn't matter so much as if the C, E or F business is a LLC.

Click on English in link to download pdf guide. https://www.fincen.gov/boi/small-entity-compliance-guide

Does full late payment stop late filing penalty?

This is a few years old, so there may be some changes, but it does a good job of explaining preparer penalties. https://www.thetaxadviser.com/issues/2017/feb/preparer-penalties-sec-6694-6695.html When you prepare and sign a return you are stating that it is true and correct. If there is reasonable doubt, I wouldn't sign. If client can not provide financial statements that make sense, I will tell them: 1. Where I have issues for them to try to fix them or 2. That they need to hire a qualified bookkeeper or 3. They need to provide me with all documents to create accurate statements, or 4. Go somewhere else If they don't take any compensation and come to me after year end, I may or may not prepare one return based on that with a clear understanding that they immediately start taking compensation. If they appear to have a genuine interest in doing so, I'll likely prepare the return. If they want to argue with me, I'll decline the engagement. Same thing if they take what I believe is substantially lower than reasonable compensation. Remember that clients talk with other business owners. If they see that they can push you around to doing things the way they want rather than what you know to be an accurate return, they will tell others. Do you want your business built on a client list like that? I've walked away from quite a bit of fees over the years if the potential clients didn't live up to my expectations. I've also left jobs where I was the internal accountant and pressured by owners to provide misleading financials for bank or tax purposes. One of the main reasons I started my own firm was so that I am the one making the decisions that effect my integrity.

Been a while since I've had a C, but I think he has taxable income of 139,678, which is the 202,278 received less basis of 62,600.

Please tell me I'm not the only accountant geeky enough to plan out the meal prep timing on Excel!

Actually, my question was not if it is taxable or not. The question was what is the nature of the paperwork that preparers who have had this situation received from clients.

Client has been awarded a very large settlement for death of spouse in vehicle accident. Of course I get a call asking if it's going to be taxable. My response was it depends on how the settlement is worded, as to what payments were for. I've never had this before and curious as to what paperwork client will receive. Anything in addition to copy of court settlement? Tax forms? Statement from atty as to parts that are/may be taxable?

If I'm following this correctly, his basis at this point is 112K which is 33K from inherited and 79K from purchase. You will want to make sure depreciation was not taken in the 11 years since he inherited. That works out to a loss of 10K. However, it sounds like he expects to be refunded part of the 79K? If so, that would reduce his basis.

Unless there was tax withheld, I'd just take the 2021 amount times 1.059. It might be a couple dollars off due to rounding.