kathyc2

Age 55 and separated from service, amounts she cashes out of 401K will not be subject to penalty. I had a client try that several years ago and the plan was set up such that if she took any money out, she needed to take it all out. She needs to make sure she understands all the fine print of her plan.

When they run a remote deposit, they don't get confirmation that funds are available like they would with a debit/credit card. Guessing what they wanted you to sign was that you are liable for the fee in the event the check bounces. Since lawyer told them to do it, sounds like they have been burned in the past.

I've seen all kinds of things come out of this person's office to convince me he plays fast and loose. In this case, the LLC had already filed one year as a Sch C for 2022, yet he filed the 2023 as a S without requesting approval first and no payroll. I'm not aware or any late election relief if a return has already been filed for first year. S corp is not always the best answer. In this case business performs services, no employees and minimal investment in equipment. IMO vast majority should be wages and the added costs of an S return, payroll, SUTA/FUTA, lower QBI and lower future SS benefits outweigh any potential "savings".

This isn't a client, just someone I had a casual conversation with. He's a SMLLC organized in 2022. I haven't seen returns, but from what he's telling me he filed Sch C for 2022, which was probably very small. For 2023 return he went to a preparer that plays fast and loose with rules from what I've seen. Preparer told him he should be a S and filed 1120S for 2023. I know if 2553 is filed separately an acceptance letter will be generated. If election relief was filed with return, will the acceptance letter still be generated? He says he hasn't received anything from IRS if election was accepted or rejected.

Donor advised fund. Put's large chunk in at one time and takes the Sch A deduction. Then can have fund pay out over time to charities of choosing.

Are they all citizens? There are different rules for some of the refundable credits bases on status.

You are confusing S and C corps. Basis in a C does not change with non taxable or non deducible items. Nor does it change with profits or losses.

For an ongoing business, this would be true. If the company was liquidated, assets would be zero, liabilities would be zero and different equity accounts would need to net to zero, not a negative amount.

C corp dividends paid out are always taxable in the year where cash payment is made. If beginning equity is 13K, and company is liquidated where did the cash come from to pay out 7.5 dividends and have 9 loss?

1402(e)4 states: An exemption received pursuant to this subsection shall be irrevocable.

Sounds like it would be on 1098T then and not your problem.

Also guessing that because it was just a check and no tax form, majority of people would ignore it and not tell preparer. However, since you know about it, you can't ethically ignore it.

I've never seen a scholarship paid directly to the student rather than the college. If the kid could use it for anything, then I don't see how it's a scholarship just because the memo said it is. I also don't see how it's earned income. Sounds to me like prizes and awards subject to kiddie tax.

It's rounded to nearest $50.

Client received letter from USPS that his payment envelope was mangled by machine. Check was returned to him. No date on letter, and original envelope not returned. He doesn't like electronic payment, so please skip the lectures about that. Any other ideas than to mail check back along with letter from PO and a note asking to abate penalties?

If 1099LTC is only for reimbursed expenses, you don't file 8853.

He is not a qualifying child as he was not under age 19 or a full time student 5 months of the year. He is also not an other dependent as his income is above the 4,700 income limit for 2023.

It appears that is only available on some reports, not all. This article lists the applicable ones: https://quickbooks.intuit.com/learn-support/en-us/help-article/report-management/use-custom-fields-reports-quickbooks-online/L9kOaeiC2_US_en_US#:~:text=Add custom fields as columns to a report&text=Select the gear icon at,right side of the report.

None of the QB versions are great about customizing. Are you saying that if you start with one of the standard reports the customize bubble is not showing? You may need to scroll up from where the report loads to see it.

See instructions for 8853 Section C.

Half time student determines if AOC is available. To be a qualifying child she would need to be full time for 5 months. Parents can not claim her.

Since property is in KY, it is taxable there. Since it was only one month after they moved, I'd look to see if they were WI resident at the time of sale. When did they change such things as drivers license, car plates, etc.

I'm at a loss why someone would want to track this manually rather than on a spreadsheet, but some options: In Amazon search for trading log book for numerous options. If you use comb binding for tax returns, make your own. Google custom book binding for any number of companies that offer that service.

The loss on 8995 is NOT a deduction for FIT. It is strictly used to calculate QBI deduction. Any profit this year would need to be reduced by the 8995 loss before calculating any 199A deduction.

Solvency is calculated immediately before discharge. Only if the date of identifiable event is incorrect on form would solvency after the fact be considered.