BulldogTom

mircpa, The specified trades or businesses are outlined in the regs. Law, accounting financial services, etc. Everyone else who operates from a passthrough entity is qualified, unless you are a business that makes their income from the reputation of the owner (think sole proprietor hair dresser), then you get lumped in with the SSTB crowd. Example - I operate a house painting business as a S corp. No one knows I am the owner, I send crews out to do the work & I have a team of sales staff to recruit business. I am a qualified business. Example 2 - I operate "Tom's Best in Modesto House Painting". Everyone knows me because I do everything from the estimate to the painting to the invoicing to the back office work. I get almost all my work from referrals. I don't have employees. I live off my reputation. I get lumped in with the SSTB rules. The kicker is, under the thresholds, none of this matters. Everyone in a passthrough (leaving out rentals) gets the deduction if their income is under the thresholds. SSBTs get treated exactly like every other business until the threshold limits kick in. I think that is the point Terry was trying to make. Tom Modesto, CA

I don't think so. Gifts are not taxable income to the recipient. Tom Modesto, CA

I like the last option, unless dad has lots of other income. Keep the house. Hire the son to do the work (SE income to son). Pay the other subs directly (keep it out of the son's tax return and no need to 1099's). Gift 50% of profit (less cap gain taxes paid) to the son and daughter in law after the sale. If dad has substantial taxable income and son does not, then the dad should sell the house to the son (installment sale), who then sells, and then gift back 50% of the profits to the dad after clearing the installment note from the proceeds. Just thinking out loud here. Tom Modesto, CA

Doesn't the fact that he registered an LLC with the state provide de facto evidence that he has a business? Why else would you create an LLC if not to conduct business? Not arguing, just asking. Tom Modesto, CA

Welcome back KC. You have been missed. Don't leave again. Tom Modesto, CA

Nope, but I am very interested in what you find out. I have one coming next week that I will have to go through this on and I will be looking back at this thread to see what you figured out. Tom Modesto, CA

Hey DTA, You need to hire a tax professional to help you. Just by the nature of your question, you are in way over your head. And the fact that you are asking on a web board looking for free advice is even more concerning. What you get for free on the internet is worth exactly what you pay for it. In a few minutes, the moderator is going to read back to you the terms of this site, which you agreed to when signed up and tell you that this site does not give advice to non-professionals. We only work with professionals in the tax industry. Then she is going to lock this post. Get a tax advisor, someone who is reputable, and pay them to answer your questions. Tom Modesto, CA

OK...I get it. That makes perfect sense now. Tom Modesto, CA

@Gail in Virginia Why would you deduct the Standard Deduction? It is not attributable to the generation of the Income from the business. Tom Modesto, CA

I did one as an individual with a SS#. But I did not efile. Printed and mailed. No issues. Sorry I can't help. Tom Modesto, CA

No problem. We all need help with this new software. I spent 30 minutes screwing around with the form trying to figure out how to make it work. There are no silly questions related to QBI. Tom Modesto, CA

I was setting up my seasonal office last weekend. No client appointments, just making sure the new computer connected to the old printer, setting up the internet, that kind of stuff. One of the other tenants in the building stopped in for a quick question. Was sure that his CPA was working for the IRS and not for him. 20 minutes later, he was convinced we all work for the IRS, but he got his answer confirmed. The next tenant who dropped in to say hi was a general contractor. 20 minutes later I had the answer I was looking for from him about some work I want done on my home. What goes around comes around. I try to be generous with my free time. I know that if that first tenant ever decides to move his tax work, I will be on the short list. He may never do so, but I have planted the seeds of my knowledge and experience. Who knows if it will ever blossom into an invoice. And the guy I took 20 minutes from may be able to invoice me for some work I want done on my home. No guarantees, but he gave me some good information and for that I will give him a shot at the work I want done. Tom Modesto, CA

In simple terms a Qualified Business is a pass through entity that qualifies for the deduction. A service business is a Specified Service Trade or Business as defined in the TJCA. The first box means you can take the deduction, the second means that if you exceed the income limits, the deduction may be phased out or eliminated. Hope this helps. Tom Modesto, CA

I see the Sec 199 worksheet is now available. Working on a schedule C for a client and the deduction is not calculating or flowing. I played around with the worksheet, but I could not get the Sch. C profit to flow to the worksheet. When I entered the schedule C profit directly on the form, it calculates and flows tot he 1040. Am I doing this correctly? Shouldn't the amount of profit from the Schedule C populate the Sec 199 worksheet? Did I miss a step somewhere? Thanks Tom Modesto, CA

I ordered mine from TTB directly. It arrived yesterday. About 6 days from order to receipt. Tom Modesto, CA

Back to the thread. Yes, I have picked up 2 very substantial clients this year already. I have not even opened my seasonal office for business yet. Tom Modesto, CA

One of the best quotes I ever heard was at a training session for an accounting software we used at the company. The operations Manager started asking if the software could do this and that and all kinds of things. The trainer replied "There is no PFM button on the keyboard" We all looked a little perplexed until he explained "PFM = pure frikkin magic". I use that line all the time now. Tom Modesto, CA

I have rolled over 6 payers and I am not experiencing problems like you describe. Sorry I can't help. Tom Modesto, CA

I agree with you. But the evil side of me wants to say..."Now you know how we feel. You have been pushing us to do your audit work at the preparation end and not paying us. Now you can do your work without getting paid as well! Serves you right." But I do feel for them. It sucks to be the property of the government. They do live their lives just like the rest of us and it must be hard on their families. Tom Modesto, CA

Slacker. Anyone worth their salt should have a few warning points. We have to keep @jklcpa on her toes. If @kcjenkins was still moderating, we would see a boatload of warnings hitting the members. I think we should have a very nasty political fight on the board to get some points flowing. Just kidding Judy. Please don't shut me out from the board. I need you all this year. Tom Modesto, CA

Really....anyone who watched the process of this bill getting butchered by the Washington political process knew it was going to be a cluster fudge. SNAFU is a very appropriate acronym for the tax laws of the US. Tom Modesto, CA

I found a way to put it on the invoice, if the worksheet was listed. But it is not automatic. You have to go into the worksheets tab on the billing manager and pick the 1040. All the worksheets for each line should be listed. But right now, there is nothing listed for line 9, which is where the Section 199 worksheet should go. I assume that when they release the worksheet, it will pop in to the billing manager. If not, I am going to have to hand type it in for each client. I wish I could charge $500 for each client. Just does not work with my clients. Tom Modesto, CA

Which gets us to the Section 199 deduction. There will not be a form for it, only a worksheet. I don't see any way to price it and show it on the invoice. Anyone have a suggestion? Tom Modesto, CA

Thanks Paul. I think it has something to do with the "Save Selections" because when I was printing I checked that box and then it stopped working. I basically did the above by trial and error and it worked. Tom Modesto, CA

Good Morning, I know I should not be working on Sunday, but I thought I would knock out some 1099s before church this morning. I went in and printed the red copy 1096s, the pdf of the 1096s and the red 1099Misc forms. When I went to print the copy C of the 1099s, I can't get the print button to activate. I can't get it to print anything out of that return. It is like it locked up. Anyone else have this issue? Thanks Tom Modesto, CA