David

I am preparing a 2012 out of state tax return. Can CA 2012 personal tax returns still be e-filed in the ATX program? Thanks.

Are you suggesting that my client contact the compliance department to request the insurance company reimburse him for his loss?

Read the article ....and just want to mention that this happened about 2009...when you could actually get helpful help from the IRS and it was the IRS who told me how to deduct this. I also had a client who had $110,00 in a bank account that year...the bank went under...and she lost $10,000. I reported it the same way. The client filed an extension and we are revisiting this issue. When you say you reported the losses the same way, which way are you referring to - ordinary loss on line 14 or Sch A subject to the 2%?

I have a client whose financial review accrual basis statements are booked using the % completion method and accrual basis. The client's S Corp tax return reports cash basis. For those who have construction clients or clients who use % of completion - When I convert from accrual to cash should I only consider AR and AP and not adjust for the Billings in Excess of Costs or the Costs in Excess of Billings accounts? My thinking is that similar to a cash basis taxpayer who reports inventory, the cash basis tax return would still want to reflect matching of revenues and costs. Am I doing the accrual to cash conversion correctly for this? Thanks.

Client will not have final information for me to prepare his 1120 until next week. The corporation has a NOL carryforward and will have a loss for 2013 as well. Based on my research, there shouldn't be a penalty for late filing since the corporation doesn't owe. Is my understanding correct on this? I'd hate for the client to be assessed a penalty and I didn't warn them. Thanks.

I apologize for not being clear with my question. I prepared the financial review financial statements on the GAAP basis, which is % of completion and accrual basis. The client reports the TAX RETURN on a cash basis. That is why I asked the question about converting the GAAP accrual statements to cash basis for the tax return. Thanks for your help.

The TP had a Roth 401K with his previous employer. He started his own corporation and set up a self-directed 401K plan. He pulled out the funds from his 401K he had with his previous employer and recieved a check. He immediately deposited that check in his new corporation self-directed 401K plan. Since he deposited the funds in his new 401K, which includes a Roth, within 60 days, wouldn't this be considered a rollover? Thanks.

TP received a 1099-R for a Roth distribution with the full amount included in box 2a as taxable, yet box 2b is marked as taxable amount not determined. The distribution code in box 7 is 2 - early distribution - exception applies. The TP rolled over the distribution into a corporation 401K plan. The corporation was started by his wife and himself. It appears, from my research, a distribution from a Roth account cannot be rolled over into a designated Roth account - it has to be a direct rollover. Am I understanding the rules correctly? Therefore, the TP may have a tax impact from the rollover? Thanks.

I have a client whose financial review accrual basis statements are booked using the % completion method. The client's S Corp tax return reports cash basis. For those who have construction clients or clients who use % of completion - When I convert from accrual to cash should I only consider AR and AP and not adjust for the Billings in Excess of Costs or the Costs in Excess of Billings accounts? My thinking is that similar to a cash basis taxpayer who reports inventory, the cash basis tax return would still want to reflect matching of revenues and costs. Am I doing the accrual to cash conversion correctly for this? Thanks.

New client's prior year S Corp basis statement doesn't report shareholder loan basis and reports zero stock basis. However, client's (100% shareholder of the S Corp) prior year personal tax return reports shareholder loan basis on the basis worksheet which carries to Form 6198. The shareholder basis appears to be the 401K profit sharing payable balance at the end of the year. This doesn't seem to be the proper way to report this. I would think that if there is no shareholder loan basis reported on the S Corp's tax return, then there shouldn't be loan basis reported on the personal return. Has anyone seen this treatment and can explain it to me? If this has been handled incorrectly in the past, will it raise any flags if I don't carry forward the 2012 numbers on Form 6198? Thanks for your help with this.

I was wondering if the article was an old article but didn't see any dates anywhere. Foolish me assumed it was a current article. Judy, I appreciate you checking to see if the exclusion still applies. Thanks everyone. I guess I'll bite the bullet and let the client know.

Anyone ever had a situation like this and maybe can give me some suggestions as to how not to look too stupid when I tell the personal representative that the beneficiaries don't get the gain exclusion?

Oh great. The link that Michael sent says that after 2009 the beneficiaries get the exclusion. I already gave the return to the personal representative and e-filed it. Hopefully, it will get rejected because I can't e-file a 2014 return yet. Then I can re-do the return. This is going to be bad, having to go back to him and tell him the return is not correct because I am stupid. He was in a hurry to get the K-1s to the beneficiaries so they probably have them. I guess I shouldn't second guess myself.

Thanks, Michael. When I read the instructions and the regs it appeared to say that only if a decedent died in 2010 did the beneficiaries/estate get the principal residence gain exclusion.

Yes, but I need to know if the principal residence gain exclusion passes from the decedent to the estate and eventually to the beneficiaries for the sale of the principal residence. I thought it would but it appears from the my research that the exclusion doesn't pass to the estate or beneficiaries. I need to confirm this before I tell the personal representative that the beneficiaries will owe for the capital gain on both the principal residence and the second home. Thanks for your help.

Yes, that has usually been my experience as well. However, in this case there are gains from the sale of a principal residence and a second home even using the step up basis. DOD was 11/3/11 and the sale of both homes was in 2014. I was thinking the beneficiaries would get the principal residence gain exclusion - that the exclusion would carry from the decedent to the beneficiaries. However, it appears that that isn't the case. I just want to be sure I am not missing something and that the beneficiaries DO get the gain exclusion. The estate was closed 7/31/14 and the personal representative distributed all funds to the beneficiaries. In this case the gains from sale were distributed to the beneficiaries. Since it is the final tax return are the gains distributed to the beneficiaries and the tax paid by the beneficiaries? FYI - I am preparing a 1/1/14 - 7/31/14 final 1041. Thanks.

Decedent met the principal residence gain exclusion. I thought that the exclusion passes to the beneficiaries when reporting the sale on Form 1041. It appears from my research that the exclusion only applied to decedent's passing away in 2010. Did I miss something and the beneficiaries DO get the gain exclusion? If the 4 beneficiaries do get the exclusion do they split $250K or $500K exclusion? I would think they will split $250K. Thanks for your help.

Does anyone know if there is a free online tool for taxpayers to use to run what if scenarios and see the tax impact of those scenarios? Thanks.

Okay, I must have misread and misunderstood the instructions and the intent of the automatic approval issue. Is the automatic approval granted if the last 2 months of sales for the requested annual accounting period are 25% or more of the annual sales for the requested annual accounting period? So in your example automatic approval would be granted since the last 2 months of sales are 90%. Thanks for helping me with this.

Has anyone filed for automatic approval to change a client's accounting period? I am going over the instructions regarding the gross receipts test. The test doesn't make sense to me since the requirement is that 12 months of sales ending with the month the client would like to be his new year end must equal or exceed 25% of the sales in the last two month period of the requested new year. Of course 12 months of sales will equal or exceed 25% of the last 2 months of sales. It will usually equal more than 100%. What am I missing here? Thanks for your help.

New client's previous CPA did the bookkeeping and prepared the S Corp tax return. The cash basis QB financial statements were used and the balance sheet showed negatvie AR balance and no accumulated depreciation. Sec 179 deduction was always taken for all assets in prior years. The 2012 tax return actually reports the negative AR balance and no accumulated depreciation on the balance sheet. Will it raise a red flag with the IRS if I report the correct 2012 balance sheet balances? Or do I have to use the incorrect balances that was reported on the 2012 tax return? If the balances reported on the 2012 tax return has to be used as beginning balances in the 2013 tax return, how should I report the difference needed to correctly report the 2013 balances? The difference will be ~ $25K. Thanks.

TPs received a late 2012 K-1 and a 2013 K-1 that shows $50K + charitable contributions for each year. All of the charitable contributions for both years are carried forward and the TPs aren't able to take the actual deductions for either year. I entered the 2012 K-1 in the TPs 2012 tax return so the charitable contribution carryforward number would be correct for 2013. Since there aren't any changes to the 2012 itemized deductions or taxable income can I simply change the 2013 beginning carry forward number or is it necessary to amend the 2012 tax return? Thanks.

Thanks. Do you remember how you were able to access the board?

I haven't been on the "official" ATX community board in a while. I tried going on several times today and couldn't get access. Has ATX discontinued that board?

No help on this?