Lion EA

But, charge the client for that form!!

NY's been too busy voting on marijuana to vote on unemployment.

CCH's Scan & Flow

So, if the loan was not forgiven until 2021 or not yet forgiven, leave it as a loan on the books for 2020 CA biz returns and deduct expenses as usual. If/when the loan is forgiven in 2021, report it on the 2021 return after CA has finalized its guidance, postponing the potential income &/or nondeductible expenses a year.

I think Gail's on to something. This tax season with all that we've gone through now into 6Q2020 it's a wonder we haven't seen a tax office on the 11 pm news with police leading a preparer into a squad car! Maybe that's only because a lot of tax preparation is still virtual. And, this is a virtual safe place, outlet, with people who understand. I'm glad we have this place for our education and for our mental health. Thank you, Judy, for saving us all from what we really want to do right now!

Yep, they show their true colors sometimes, and it's not happy rainbow colors. Out the door is where they belong! Hope they took a lot of your stress with them. And, prayers for your husband and for you and for his whole medical team. Thank you for all you do, Judy, to keep the rest of us functioning during this never-ending tax season with ever-changing tax laws.

And, I often have to use IE (instead of my usual Chrome) for IRS-type sites.

Two bills in committee: https://www.nysenate.gov/legislation/bills/2021/a6584 https://www.nysenate.gov/legislation/bills/2021/s4819 Explain the options to your clients, and let them decide.

(You all know I meant "2021 or beyond" at the end of my post...) Randall has another reason to leave it as a loan on the books and on the tax return.

My TN clients cowering in their storm cellars and my clients in the housing projects of Bridgeport really could use an extra $600 in their refunds. And, my Westport, CT, clients afford their houses on the Sound because they search for every $600 to lower their tax liabilities. If knowing that their brokerage adjusts basis on the purchase end of a wash sale (or does not) helps me help them pay no more tax than they should, then I'm doing my job and earning my fees.

I haven't heard of NY approving any software yet for this issue. (Too busy sampling re their new law?!)

One phone call to ask if the disallowed loss was added to the basis of the stock purchased? Minutes. Yes, you go with the 1099-B for the stocks SOLD if the math works on the 1099-B. I just make a call (only once, unless I see evidence of a brokerage changing its methods) to make sure they are tracking the basis of the PURCHASED stock that I won't see on a 1099-B until it's sold. I do NOT take the time to track it back to the year purchased when its sold. Except for those super-organized, keep-every-slip-of-paper clients who bring me their matched-up purchase and sale confirmations because they're just that detailed oriented or because they're identifying each stock sold (instead of FIFO). Then I randomly compare ONE purchase confirmation to the 1099-B basis for a stock where they've had lots of disallowed wash sales in prior years (you remember those when it's pages of the same stock listed on prior 1099-Bs) to make sure the brokerage adjusted the basis. Seconds to compare one piece of paper to one trade. Less time than the phone call, so this is what I do when the client brings his purchase confirmation that corresponds to a sale. Seconds to satisfy myself that my client is getting the benefit of his prior-year disallowed loss due to timing or due to disposing of his entire holding in that stock. And, not paying tax on more profit than he made. Seconds.

Wouldn't that be a reason NOT to report forgiveness before it actually happens, leave the PPP loans on the books for 2020 when they were NOT forgiven yet? Wait for the actual forgiveness amount in 20201 or beyond?

Add back on Form IT-558 using code A-011. NY has been too busy legalizing marijuana to vote on any tax de-decoupling.

Did she make much acting income in 2020? Not much waitressing during 2020 either. How did she support herself?

The IRS has said they will continue to issue EIP3 as returns are filed until about September.

Now, I understand your/Eric's reasoning behind the 5 minutes. Thank you for that explanation. It does make sense, especially during the heat of the season when we're all reading/posting/asking/answering hopefully quickly to help or be helped. And, I'd not thought about copy/paste as an option instead of quote prior to hiding. That will be a handy technique to use. Thank you, Judy. It's been particularly frustrating to edit away and then when rushing to click on Save getting the message that my edits are not accepted. Now that I know an alternative to editing, I won't rush as much.

Like most people, I can't proofread until I've looked away/thought about something else for a few minutes. By the time I read another post/answer that phone call/whatever and realize I left out a "not" that changes the whole thing (or whatever my error was) and return to this message board, 5 minutes have usually elapsed. Sometimes I realize as soon as I click Submit Reply. Sometimes it takes stepping away from the topic before what I typed vs what I meant to type sinks in thoroughly. But I do catch most of my misstatements within 15 minutes, or 10 or 20 minutes.

I've called each brokerage's tax department or asked brokers I know, if I know that they understand wash sales. I also have clients that include every piece of paper when they give me their tax information, so I have their purchase confirmations and can see their purchase cost and compare to the adjusted cost basis on their 1099-B. I once had a broker client who did not get the comprehensive reporting package that his clients got and did a LOT of trading with a LOT of wash sales. I told him what I needed from him. He chose to pay me thousands for a few years to take his spreadsheets and adjust the disallowed wash sale losses into the adjusted basis of each respective purchase. It was a great income stream for me for about three years until he was fired and no longer trading.

If she does not qualify to be the dependent of someone else during 2020, she can have RRC1 and RRC 2 on her 2020 return. Those are 2020 credits available to her if she herself did not receive EIP1 and EIP2. She'll get EIP3 sometime after she files; that will be a 2021 credit that she gets in advance. Make sure she's not a dependent, not a student, income, etc.

The disallowed wash sale is added to the basis of the purchased stock that created the wash sale event, the timing. He might still own that stock. When he sells it with its higher basis (from the previously disallowed wash sale amount from the stock that sold that was paired with the stock purchased to create the wash sale) he will have a larger loss/smaller gain and essentially be able to use that disallowed loss finally. It's disallowed until the last stock in the chain is sold, which might be in a future year. So, what you have to watch for is -- Is the disallowed loss from this stock added to the basis of the stock purchased, so that you have an accurate basis when that stock is sold?

RRC1 and RRC2 are 2020 credits on the 2020 income tax return.

I met a woman at a Mensa meeting who was on full disability for a mental disease. She was very clear about never going back to work, because then she wouldn't get free health/dental/vision, free daycare, and maybe even free public transportation and a few other goodies that made me tune her out.

Charge her a bundle for the IL return each year!

CT does that too. If a taxpayer is on CT unemployment when they move, they have to continue filing a CT return while they're on CT unemployment. It's CT-sourced income.