mircpa

From what I understood I believe we have to exclude PPP money from line 1 gross income & no deduction for corresponding expense. So why would M-1 adjustment come into picture ?

I am surprised at guts of this pro bono client. Have this client call IRS directly & find out more details.

Try to get actual facts before you go amend or not. What is marital status, support, dependents etc & take action accordingly. I believe this is what sustains should they get audited.

I had situation like yours for my client I check non resident on MI 1040 and on MI Sch NR. It flows through & shows correct amount on line 14 of MI 1040.

Are you not suppose to have same employee/payroll as you had on 02/15 or at least good faith effort should be made to retain them. Is hiring new employee OK after getting PPP loan ?

Thanks @DANRVAN

Hello all Client withdraw all money from plan to use for non education purpose due to bad financial situation & utilized for personal purpose. Received 2019 1099-Q. I am reporting 19K earning from line 2 of 1099-Q in 1040 other income & including form 5329 for 10% penalty on earnings portion. 1099-Q line 1 reads 213K, line 2 reads 19K & line 3 reads 193K. Started contributing to this plan from 2014 until 2018. I went back added up all amount claimed as deduction in previous years IL tax returns & included in current year 2019 Sch M as addition to income in IL 1040. Can someone confirm my position. Thanks for your help.

File married filing jointly & include W7 for his wife & kids & in 1040 dependent info clearly indicate kids are not present in US & go from there. You would have to get 1040 signed from his wife & W7. W7 for kids can be signed by taxpayer. You might have to enclose certified copy of some identification documents like passport, etc. I don't know in these circumstances how will they be able to manage to get it from home country.

Hello Does anyone know how much money forms preparer/accountants are entitled to charge helping clients fill up application ?

Advance on credit ? Is this not one time payment from federal government. I believe this is not taxable income.

You need to first find out what % of original property is being sold then split asset, create separate asset entry in 4562 & you can do 8824.

Either you keep hand sanitizer at your office or make every client who walk in to your office come along with hand sanitizer & start job after sanitizing.

I would say running payroll late & paying penalty is much better then letting IRS come and re-characterize some K1 income & make him pay SS & medicare taxes. At least now he will learn lesson and start periodic payroll going forward. And payroll has to get start at some point why not now.

On form 4562 go with asset entry route pick sales input sales amount it automatically takes care from there flows through wherever it is required.

Hello friends client K1 income 60K I punched in 1120S K1 input error and on the same page where it says Non-SSTB I reenter same 60K income amount & under 199A wages amount 30K. I put check mark in qualified business & 2% shareholder. ATX shows red error "Enter each section 199A type (Non-SSTB/SSTB) from X Inc in different columns as if separate K1" Do I need to create 2 separate K1 Inputs ?

I believe it is not approved yet to efile

I believe if property has not changed hands why not move property to 8825 under 1120S, rental income/losses will get automatically taken care of.

Thansk @ILLMAS Should I just continue reporting out of state sales as deduction interstate commerce on page 2 of IL ST-1 and treat taxes collected by Ebay as business expense.

Correct. Ebay is holding on sales tax amount. Funny part is client is not saying anything regarding sales tax % on listing, but Ebay is deducting XX amount toward sales tax & remitting difference to retailer.

Hello all I have this question regarding sales tax reporting. Client of mine is online retailer based in IL. He sells stuff on Ebay. Before remitting payment for sales to client, Ebay is deducting their fee & sales taxes & remitting money net of these two amounts. Until now the rule was IL retailer was not suppose to charge sales taxes & take deduction for interstate commerce for sales to buyers of out of state. I am little confused how to report this sales on IL sales tax return. Does this online companies been directed by sales agencies to remit sales taxes recently I am unaware of this. Is anybody aware of any recent changes.

Thanks jklcpa I was able to buy ATX Max at price stated. Total amount was $ 1,615.00 incl processing, tax.

Losses shown on Line 1 of K1 gets entered on K1 input screen of individual tax return & put check mark on calculate basis limitation & if you go further down on same input screen you would see basis limitation worksheet. For example if it has 10K of losses & if during the year taxpayer has pumped 10K as capital or loan this money into corporation then you would punch this amount on shareholder stock basis or loan basis then it carries this 10K losses on page 2 of Sch E. If you have losses greater than stock or loan basis these losses would not show on page 2 of Sch E but simply carries to future years to offset any future income. Remember whole premise is losses are deductible only to the extent of basis.

OK. Its clear I will go with basis limitation worksheet not 6198. My question is since it is showing 50K ordinary loss in current year which cannot be deducted because 0 basis. Does taxpayer gets to offset 50K losses with next year's ordinary income (in case it has ordinary income greater than 50K) ? My worry is if this business is sold next year whole amount 50K would show up in ordinary income (depreciation recapture) from capital gain. Thanks to all who responded.

Bank loaned money to corporation & owner shareholder is not personally liable for repayment.

Hello all S corp tax client purchased business assets work 50K with bank loan. Due to special depreciation rules all 50K is depreciated & shows up as ordinary loss. Stock & debt basis is 0. All 50K is ordinary loss but cannot claim due to 0 basis. He is planning to sell business next year. I was wondering how to handle 50K b'coz next year it might turn back & depreciation recapture will become ordinary income. Losses on form 6198 carryover this amount to 2019. Does next year's positive ordinary income knocks off this ordinary loss from prior year or do taxpayer gets to knock off this amount on Sch D as adjustment if in case assets sold ? Thanks