BulldogTom

What Max said. Tom Modesto, CA

In the same file. Is that the reason you are having efile problems? You are creating a return with just the 568 in it? Tom Modesto, CA

I I got it done yesterday. Efiled no problem. 568 was held automatically by the software. I released it after I sent the 1040/540 and it sailed right through. Accepted before the 1040 and 540. It was just weird seeing 2 CA signature forms in the same return. Something in my brain just revolted at the idea that I could put them both in with the 1040. I was also struggling with flow through. It seems that I should not have to do double entry, but I did not know if I should do the 568 or the Sch. C first. I did the C first and then filled in the 568. This is going to take some time to master. I need a few more of them to practice on. Tom Modesto, CA

Rita, do you include the LLC return with the personal return, or do you create another file? So for example, do you open just one return in ATX and have the 1040 and the TN FAE 170 in that same ATX return? This just looks really weird to me to have a 1040, CA 540 and a CA 568 in the same return in ATX. Am I doing this right? Thanks Tom Modesto, CA

I have my first SMLLC Disregarded. Amazing that this is the first time I have to do this. I have questions on how to do the ATX entry? Here is what I know: It has to be included on a Sch C on the Federal return. It has to include a CA 568 for CA. Here is what I don't know. 1. Do I enter the revenue and expense on the Sch C and it will flow to the CA 568? Or enter it on the CA 568 and it flows to the Sch C? Or do I have to enter on both? 2. Is the software going to allow me to e-file the 3 signature returns all at once? Thanks in advance. I really don't want to put this one on extension. I can get it all done today. But I don't know how to do the entry. Tom Modesto, CA

Don't close the LLC until the assets are sold. Problem solved. They still belong to the LLC until is closes, and it should not close until the assets are sold anyway. Sales of company assets is as good a reason as any to hold the company open. It is obvious that the owner of the LLC does not want them, so why distribute to him? JMHO Tom Modesto, CA

Thanks. That made my day. Tom Modesto, CA

I think you are correct.... but ....this is where it gets murky for me. If (BIG IF) the son is under 26 and the coverage offered by the son's employer is not affordable, then I think the parents have the "right" to put him on their policy. But then I think his income needs to be included in the PTC calculation. How does that play with him not being on the return? Not sure. Like I said, it is murky. Just like a child who is graduating college this year, but was not a full time student for the spring semester because he only needed two classes to graduate. So he was not a full time student for the parents to claim on the tax return, but they want to put him on the insurance plan until he graduates, but they qualify for the subsidy and they don't have a clue how much junior, who is technically their dependent, will make when he graduates and gets a job, if he gets a job, and if that job offers coverage. Because it is a full year calculation, I don't have a clue how to answer that client. I bet this does not help a bit....sorry. Tom Modesto, CA

Thanks to you all for allowing me to have a personal pity party at your expense. I appreciate you all. On to the next return. Tom Modesto, CA

Yeah, she used to live in Modesto. But by the time I moved here, she had moved to Southern Calif. (I think). @kcjenkins Please pop into the board and say hi sometimes. Tom Modesto, CA

I feel awful today. Client sends me a notice he got from the IRS asking for taxes of 100K and penalties and interest of 25K on the 2016 return I prepared for his trust. So I go through the letter, and there is a 1099B that was not included in the return that I filed for the client. Had a quarter million in trades on it. So I go looking through the documents the client provided to me. And sure enough, it is in the file. I totally missed the form when I prepared the return. How in the F do you miss a quarter million dollars in trades! The client should fire me. This is totally unacceptable behavior from a supposed professional preparer. I suck. Of course, I have prepared the amended returns and the IRS did not take the basis into consideration, nor did they see the two other trades on the 1099B that produced a loss, so the impact is no where near the bill they sent. But it still does not excuse me for my crappy work. I have no idea how I missed that trade when I filed the return. This is one of the pitfalls of not being in a firm where you have someone checking your work. I don't make a lot of mistakes, but damn, this is a doosy. A QUARTER MILLION DOLLARS! Rita, I give you permission to hug me and put me in the back 40. Tom Modesto, CA

Where is KC? I miss her. Tom (April 13th, 2017, day 4 of the forum) Modesto, CA

Finished a return for a client with Advance PTC this morning, Filled in all the boxes on the 8962 showing they had insurance every month. The return rejected because I did not check the box on page 2 for full year coverage. Couldn't ATX/IRS see that every month was filled out on the form? This is a minor annoyance, but just something I don't think we should have to deal with. Just like the box on the CA 540 that I have to check that asks if there are any schedules other than A or B attached to the federal return. Duh, the software should know what federal schedules are in the return and check the box one way or another for me..... I feel better now that I got that off my chest. Tom Modesto, CA

Hey Rich...I hear you on the stability this year. I have been with this software a long time, and I am finally getting comfortable with it being reliable. They may have finally recovered from the 2012 launch disaster. The next step is to make it more efficient for me to work with. I need to spend some time learning to set the defaults and preferences to make it work better for me. It seems that my clientele is getting more complicated every year, and I am spending more time on the returns, so any clicks I can remove from the process is going to free up my time. I think I am going to get new computers this year. Both the desktop in the office and the laptop I take to our seasonal office. I have been running 2 stand alone installs of ATX and just keeping them in sync. It is getting harder to do. How much is GoToMyPC and do you think it is worth it? Thanks Tom Modesto, CA

Me too. Tom Modesto, CA

Is attaching something to a return one of the subjects Abby is going to teach us at Rita's bbq? But I think I need the instructions before June 23rd. Any help is appreciated. Tom Modesto, CA

This one is pretty big. Home appraised at over 350K. Client is elderly. I just want to make sure that it is done properly. Thanks Tom Modesto, CA

I have not done one of these in a long time. TP donated a home. I have the appraisal. Please confirm that I need to send in the 8453 with the appraisal and the 8283 after I efile? Thanks for your help. Tom Modesto, CA

I am in, but only for $25. I am a cheap skate. That is the early sign up period discount - just like ATX. Tom Modesto, CA

Any Time. It is very rare that you even ask for help, and I am floored that I could give you some help you can use. Tom Modesto, CA

Awesome. This is why you do this crazy job? For when you can really help a client - LEGALLY! Tom Modesto, CA

Three thoughts: 1. §267 ( b ) clearly states that a fiduciary of a trust and a beneficiary of that trust are related parties. If the Property is rented (and the funds actually paid) at Fair Market Value, then there is no issue with deducting losses. If the rent charged is not FMV, then the expenses, other than that which would be generally deductible on Schedule A, would not be allowed. This is the same general rules for a rental between a parent/child or a child/parent situation. 2. I think you are being a little quick to judge on the fiduciary duties. Real Estate is a generally sound investment. Since title is presumably not passed to the son, the corpus of the trust is still intact, except for normal losses of first year rental that will presumably be recovered in future years. Just because it threw a loss in year one due to an extraordinary item does not make it a breach of fiduciary duty IMHO. 3. I am guessing that the trust document gives wide latitude to the trustee to provide for health, welfare and general maintenance of the son as current beneficiary. I would also guess that it specifically allows for invading the corpus to do so. And it probably says on the death of the son, the remainder corpus goes to the grandchild. To sum it all up, you need to only determine that the rents paid by the beneficiary are at FMV. If not, I believe you have a related party loss that cannot be recognized for tax purposes. Then if gets interesting, to see if you have a distribution or not. But I don't think you would, unless the trustee was also paying for items that were personal in nature and not related to the preservation and maintenance of the home (electricity, water, etc) Hope this helps. Trust but verify. Tom Modesto, CA

What part of CA are you from Alex? Tom Modesto, CA

My Chains are gone I've been set free My God my Savior Has ransomed me And like a flood His Mercy reigns Unending Love Amazing Grace. Chris Tomlin is much better than me. Tom Modesto, CA

Thank you...Thank you...Thank you. Now I can say I am one of the cool kids 'cause I got a star to prove it. Tom Modesto, CA