mircpa

All real estate properties are owned by S corporation under its name. Each property has separate entry onto form 8825 and all its cumulative losses/income gets shown on shareholder K1. I made separate entries onto K1 input screen in individual tax return for each respective property with its respective share of rental loss or income matching cumulative K1 total, clearly marking as passive activities and it is shown as separate entries for each property in 8582. Basis limitation 7203 is also being done.

If PALs are not moved they continue to show on relinquished property in future years. Relinquished property ceases to exist when exchange takes place. At corporate level that property showed losses for until time it was owned and it also has previous year losses too.

One S corporation owning multiple properties. Relinquished and replacement property both are owned by S corporation.

Thanks Yes I do have choice of leaving those suspended losses in 8582 to recaptured in future against any rental income. I am talking to ATX to find out a way out to transfer losses to new property.

OK I can have those suspended losses from relinquished property continue in 8582 to be recaptured from any future rental incomes or capital gain. But if IRS instructions says to transfer losses I am thinking there should be some way out.

@DANRVAN I am able to show/carry suspended losses from relinquished property to input screen of replacement property. How do I knock/take off suspended losses from relinquished property? Is there any place in K1 Input screen for S corporation. Suspended gets released only in case of sale or boot. This is neither sale nor boot involved. This is exchange. These losses are coming from an S corporation owning real estate so Sch E does not apply I have to go through K1 Input screen for S corporation.

Thanks to all Boot option is ruled since this transaction happened in 2021. I need to talk to ATX to find out. I am sure I am not the first person facing this situation. They should be having some way out of this. @Abby Normal This is not sale so therefore you cannot recapture losses, it has to pass on to replacement property, and recapture when it is finally sold.

Does anyone knows how do I move suspended losses in Form 8582 for given up property to replacement property. I am able to include for replacement property as previous year real estate losses, but unable to figure out how to knock off from relinquished property in ATX. I believe I had to do this in K1 Input screen.

Does he have option of returning excess money back to them or subject to excise tax

Ordinary losses arises on account of active or material participation right ? Deductibility should be subject to basis limitation

If they have filed immigration documents they also might requested social security number for foreign spouse on work authorization document. You should file joint 1040 manually leaving spouse's SS blank. Now when foreign spouse's work authorization gets approved he/she will be assigned SS number, Obviously IRS will withheld some portion of their refund or they might pay whichever case may be, you then have them go to IRS & provide SS number to apply payment or issue refund. If they are married in 2021 you have only 2 options married filing jointly or separately. Do not file single. Don't file W7 ITIN.

I too had printing problem with K1's. I shut down software & restarted. Now I am able to print to printer or PDF.

You need attach a PDF of the signed 2553 to the efile

IT 1140 for business, you will have OH IT K1. File OH IT 1040 for shareholder marking as NR & reporting OH's share of income

@BulldogTom I read through this thread. If I would have been in your place I would have addressed root cause of the problem which is dug more further backwards to figure out where 4797 amounts are coming from. It could be that previous preparer might have incorrectly included those forms in filing. You might as well have to amend previous years if need be.

8K

Hello Have a question regarding form 1116. Foreign stock sales transaction reported on Sch D, sales proceeds 129K, cost 59K. Do I show gross stock sales proceeds income 129K on line 1a & cost 59K on line 2 of form 1116 OR net capital gain 70K goes on line 1 ? Tax refund or payable amount is different in both situations. There is less tax of 2,500 in approach 2. Can someone guide for correct approach.

Yes 3 years. I believe they might also be looking for due diligence.

Hello I am a looking for auditor in NJ for a client friend of mine. Needs 3 years audited financial statements for a business that my client intends to buy. You can email me.

@Eric How do I contribute ? I believe we all should chip in whatever we can. Eric is providing such a wonderful service to our community Thanks Eric

1,000,000.00 sales proceeds from property A used to buy property B for same amount How 150,000.00 borrowed money becomes taxable ?

Looks like employee's portion of healthcare contributions & union dues are deducted but since this is post tax I believe wages amount should be present in W2 & post tax deductions should be shown in column 14

You don't have to include 10,000.00 in income, BUT allowed to take deduction of 10,000 so it is double DIP. Please see @Lion EA comment "PPP funds are non-taxable income, so M-1 adjustment. Expenses paid with PPP funds ARE DEDUCTIBLE"

$ 10,000 PPP money received but not included in income that means taxable income understated by 10,000 AND 10,000 expenses charged to income therefore total net effect of 20,000 of less taxable income. This is what I was talking about double dip.

This will be double dip -- the DEDUCTION