ILLMAS

I am going to say an a yearly election was never made, plus the house was never a rental, don't know if that makes a difference now? Thanks

“the attorney has provided the setup basis from 10yrs ago, and also has kept records of all the cost of maintaining the property over the years (will be capitalized and added to the basis). “ There was no expense deductions at all, everything will be reported in 2019.

Let’s say I put the house as an asset in 2019, it was sold in 2019, so the asset information disappears from the balance sheet: stepup basis: 200,000 2009 to 2019 expenses: 100,000 Adjusted Basis: 300,000 Sales Price: 290,000 Loss -10,000 cash in bank 5,000 Difference 15,000 Where do you plug the 15,000 difference to balance?

One more question, would it be okay just to prepare a short year 2020 final tax return (paper file) and/or do I have fill out form 3115 to request the short year? Thanks

As the above title says, would I have to prepare a balance sheet for this scenario: Multiple family members inherited a property, the estate attorney created a partnership about 10 yrs ago, the housing market in 2019 was great and they decided to sell, the attorney has provided the setup basis from 10yrs ago, and also has kept records of all the cost of maintaining the property over the years (will be capitalized and added to the basis). So in 2019 it will be an initial return just showing the sale, however the revenue/asset exceeds the $250,000, is it necessary to prepare the Sch L? Since they didn't close the bank account until 2020 and there was a small amount of interest, the final return will be in 2020. Yes or No on this BS scenario. Thanks

Has the IRS or government made any mention if they still don't have money when the payroll taxes are due, that there is no penalty and not to worry about not having the money when the time comes?

Update, I was able to get the penalty removed for reasonable cause.

Back in early March there was some back and forth in the office building as wether to stay open or work from home and they were asking people to stay home if they felt sick. I had a sore throat and started to loss my voice because many clients started working from home and had plenty of time to call me , due to fact I had a sore throat I was sent home and I missed filing an extension, does anybody know if they are being a little more soft due the pendamic? I did get my throat checked out but until late June when they started taking appointments.

Why not kill (no pun intended) two birds with one stone Is this our friend Rita’s business?

I just looked up the software they are using and it seem it's build for facilities, so the only software I can recommend is called Fund-EZ, it has a feature for medical billing, and they are based in NY. I've been using their software since about 1996 for non profit clients.

What would be a reason (pros/cons) of delaying RMD to 2021? In the case I am seeing, maybe it would be paying less taxes on social security, that's about it.

Check your local laws, our state and city has something: https://www.chicagotribune.com/coronavirus/ct-cb-worker-protections-coronavirus-20200327-gm4b6vf3cbearh5yqn5jhc646y-story.html

Do a mental note and under other income "Loss on disposition of asset" write down the amount in negative.

Just in this past IRS nationwide tax forum, a tax preparer shared her experience on the attack her business went through, scary thats all i can say.

It seems a good percentage of people didn't watch the news or forgot when their preparer told them "your tax situation from 2017 to 2018 will be different and you are slowing getting your refund in your payroll etc...") Now as for technology, as we get older we will continue to keep the clients that are not computer savvy, but I can picture the young whipper snappers doing their own returns using their smartphones.

This is the only thing I found regarding code W, to simply not to include it on the tax return, has anybody encountered this before? ATX gives me an error if put zero on box 2a. https://ttlc.intuit.com/community/retirement/discussion/re-a-1099-r-that-you-receive-with-code-w-in-box-7-should-not/01/1615218#M106396

Just this past Friday I tried using the SOR from the IRS and it was quick receiving the information. Here is what I did, I faxed in my POA after calling in to the tax practitioners hotline and within minutes my clients transcripts were transferred into my account. Also, this very important, you need to use internet explorer when logging into your account, learned this from another member here after having no luck logging in.

A used to operate a business and a acquired a loan from a family member, A closed down the business and let B (daughter) open up her own business and pretty much continued operations. The family member still wanted to get repaid and they started paying from business B, the loan was never accounted for in business B, how Would you account for it?

I mailed out my extension on the 15th of July and they didn’t cash the check until the 28th. Usually within a week they cashed it.

I once missed the darn form too, however the IRS was holding off on releasing the refund until we filed out the form and submitted it, no problem since the income they said they were going to make when they applied matched. Now another TP didn't take into account side jobs and the spouses' part-time job that turned into full-time when they applied, that was a bummer. Now to your case, when you combine their income is that going to affect it?

Seems the state of CA is cracking down on companies: https://www.chicagotribune.com/business/ct-biz-uber-lyft-driver-employees-20200811-kgqv2yiirvdbdh7tk3qqrmeoey-story.html

Just a random thought, but what happens to the profit for the months PPP covered the whole payroll and will not have to be repaid back? Let’s say a business had zero interruptions from the pandemic and chugged along as before and used up the PPP loan appropriately and the profit per month is as follows: Average sales $100,000, payroll cost $50,000, operating expenses $25,000 (per month) Jan $25,00 Feb $25,000 Mar $25,000 + $50,000 (PPP loan forgiven) Apr same as March May same as March The rest of the months, the profit is $25,000, so if the PPP loan is not forgiven it would be a liability, but how are business going to account for the freebie? Are business not subject to income tax if the PPP covered 100% of the payroll cost? This is a topic I have heard no one discussed and just want to see it’s really beneficial to a business.

Seem like it’s a big about but it actually about .001% of the gross income and the auto expense exceeds $100K

Thank you

IRS disallowed $15,000 (1/2 of meals) in meals on the tax return, do I make an adjustment for the $15K or the $30K, to remove the whole amount from tax return and books to match the retained earnings calculated by the IRS?