schirallicpa

This is for rental property. It is not passive - this guy rents on the big scale. This is for a refinance. Proceeds are used mostly for capital expenditures to upgrade property.

Deductible now? This loan is terminated in one year: Granted in Dec 2023 and terminates in Dec 2024 with new mortgage.

I don't know why things have to be so complicated. I shall proceed.............

"Since SMLLCs are ignored for tax purposes, why not just transfer one LLC into the other and just have one entity" How exactly do I do that?

Client and Lawyer and myself want to get this into corp return and off from his personal return to give some separation, and to set up payroll for him and his wife at the corp level. He has some other business on his personal return and I feel he needs this pulled out onto a corp return. However, the first business that he took over was already set up as an LLC. The second business that he just purchased the lawyer has already got set up as an LLC. I don't want 2 separate corp tax returns - woould like 1 corp tax return to report both businesses (they are similar restaurant businesses). I'm thinking I have one of the LLCs elect to be treated as corp and the other one report as owned by the new corporation.

The lawyer is asking me. I am all for a corporation instead of LLC. He's got a lot going on that he needs to get these 2 businesses under one roof.

My client recently had an LLC transferred to him as sole member. He also just bought another similar business and created an LLC for that. I want him to form a corporation. I want the corp to hold both LLC's. How best proceed? Create new corp and the corp owns the LLC's? (LLC's are already set up in sole member's name.) Can 2 LLC's simultaneously elect to be one corp? I feel like this is backwards planning - but you know how clients go.

Client was not able to obtain a birth certificate or SS# for child they adopted in late 2020. The only recently recieved it. Can I still go back? They filed 2020 in June 2021 on extension. I keep finding that the deadline would have been April 15, 2024. But thought if they filed extension they could file amended up until the extension date. TYIA

Thank you Abby Normal for telling us about that. Honestly, I had never seen the permanent data page before.

I have a new client. Not sure why I decided to take on this one. So far everything out of theor mouths has been questionable. But he has a W2 from a church (in Alabama) and claims that Alabama does not tax clergy. The w2 does not list state wages. I cannot find where clergy would be exempt from AL income tax. Can anybody confirm? (the spouse is a "spiritual leader" that deducts $2000 depreciation on her Sch C each year in lieu of a clergy allowance)()

I suppose they blow it off as immaterial when their balance sheet doesn't add up by $2045. But when I try to use it it kinda messes up my spreadsheet. Does my little heart good to show my client that they were way over-paying for inaccurate financials.

I printed everything I could. Wage and income doesn't have it listed.

So- I mentioned this in a response on another person's post. My client's refund was partially taken to pay for tax and penalty on a 2019 assessment. The TP had omitted income from withdrawal from an IRA retirement account. Per the CP notice, TP reported 0 and IRS shows 17000. However, the TP had not received a 1099R (that he's aware of). And the wage and income transcript does not list this income either. So how does the IRS come up with this? I asked the TP if he remembers taking a withdrawal and he thinks he did. Typical TP didn't know it was taxable and didn't think about it when tax time came and didn't think twice about not getting a 1099R. Do I have any leg to stand on with the transcript not showing a 1099R income? Meanwhile I have asked him to reach out to that bank and ask for a copy of the old 1099. So good luck with that, right?

I'm currently on the phone with PPL for a reduction in a 2023 refund for a 2019 additional assessment. My client never got the CP letter since his wife is in the army and they move quite frequently. His address on record was/is his dads and apparently his dad didn't take notice of any IRS letters. I'm not sure if I will be able to do anything for him. Learned a lesson though - I'm getting 2848 for all my clients in the military so I can get the correspondence.

This has been a long season. And not so much because of the tax work but because of LIFE kind of getting the best of me. My mother fell and went into nursing home in January. She basically got stuck in there too long and got worse. My daughter was quite sick and taking priority over my mother. My mother died in March. Had to take off time for that and dealing with my estranged brother. My daughter had a very traumatic break up in March and had to move out of her apartment and back in with us, and continues to have her other problems going on. Being at the office was a better choice half the time this year, but I'm telling you, these family things have got me worn out. And just for kicks - we added 2 puppies to the family in January. Frankie and Louie. (Shih-tzus. And anybody that has little dogs knows - they tend not to potty train too fast.) (I will have to update my avatar when I have a free moment. That was my little guy Vinny who passed last August.) I'm ready to do NOTHING for a few days. Hopeful anyway.

Started to set up a Sch C (single member LLC) and then thought - no he's got real estate rentals here. But he is also selling real estate. This combo cannot be too unusual. Do I just use both forms?

Kinda like ironing shirts ahead of time, I try to keep positive that I will hit the lottery and never need ATX nor ironed shirts again.

ahhhh Thank you thank you thank you

This is a first - I have a return that changed after the PDF attachment was attached. How do I remove it to attach the revised PDF?

I have quite a few clients that use direct debit. Never had any problems. They like better because they don't have to remember to do it.

I'm thankful for this forum. Sometimes you just need to talk things out. My dogs aren't very good at tax stuff. Although they do like to take the paper roll hanging to the floor from the calulator.

In the real world men make agreements to pay in round dollars. So - on a 2 million dollar sale of assets, my client is receiving 48000 per year for 4 years, and then will receive the remaining 1808000. The seller and buyer are both reducing the debt by the 48000. Then the IRS says - no - that includes some amount of interest. So - I feel like I need to reduce the principle being applied to the 6252 and report some interest. But is that common? I inherited this one, and the previous preparer did not recognize any interest. I'm in the woulda, shoulda, coulda mode.

I'm in a rural area. I get farmers coming in with their dirty boots and the place smells like manure for days. I used to have a client that smoked a lot but reading this post, I don't think I have anyone that smokes now. Maybe they all vape now so I don't smell so it.

I agree to some extent. It was not a partnership in legal terms and the second guy (now buyer) was on wage and was placed on checking account as any other business would have a second person on the account. So only in the first few months of 2023 did this idea of selling come into play. Bring in the lawyer, and we "sell the LLC". Which it is a sale of assets.