Lion EA

Are extended trust returns due 30 September? 15/16 September? Why not the same as PEs. Or, the same as personal returns? I'm sleep-deprived and confused !!

You don't know what could be attached to that LLC, even if inaccurate, especially with missing partners. Person A can ask his colleague to dissolve it with the state -- if in your state that would free up the name. Then Person A can form a brand new LLC, choosing the now open name.

I've lost clients, too. Whole families. But, I gain clients. Whole families. I have more work than I can handle and would prefer to be losing clients by attrition to ease into retirement. I have enough trouble sleeping with an achy knee and those sit-bolt-upright-asking-myself-if-I-remembered-to-do-X-on-a-tax-return moments. I'm not going to add I-wish-I-hadn't-given-in-to-that-client moments. They can trust my expertise or I WANT them to leave.

Does he have prior returns? Prior medical claims when SSNs were used? Working with a lawyer? Anything he can offer her in exchange? Does she need to file MFS, or does she qualify for HOH? Paper is not so horrible!

Send the 1099-K processor a new Form W-9 immediately.

Nope. Very frustrating. How does Congress &/or the IRS expect taxpayers to handle this themselves?! Confirm how many times you have to circle back before you're allowed to stop; it's something like 3. Then, just do that and stop. You'll know when you're stuck in that kind of loop, because you won't be getting closer each step, you'll be bouncing back and forth. So do the required number of loops and then stop and sleep well at night.

That's why you can use the alternate method that lets you stop at three (?) iterations if you're not getting closer. Or continue with the iterations until within a dollar and then stop. Or, depending on your software, tell it which method to use if you don't like its default. If Drake does the calculation for you, that's wonderful. If ATX does not, then complain to ATX. If I had a lot of those cases, I wouldn't have the time or be able to charge enough for my time. With just one or two and not even every year, I would have to relearn each time, spend time looking it up. Someplace in the middle might be cost effective for me to do the calculations myself. However, I don't have the type of clientele that qualifies for Premium Tax Credits very often. If I did and if I used ATX, I would be writing to them about now!

My time is worth money. I'm glad I pay more and get more. I have only a couple clients that would have both SEHI and Premium Tax Credit, so I'd never pick up speed at that calculation.

UPDATE. I think I have it all in place, now. I'll sleep on it and proofread tomorrow. I did have the 1250 gain flowing correctly. It flowed from the K-1 to a "statement" that is numbered sequentially depending on what's on each return, but is clearly labeled as Schedule D Unrecaptured Section 1250 Gain. The number I was afraid I was missing is indeed on Line 5. It gets reduced by a small loss, so by the time it shows up on Schedule D Line 19, it's a lower number than I was looking for. And, I was shaky enough on the flow to really doubt myself, so I really benefited from the detailed explanations you provided. I know I'd probably make some refinements if I had the corporate tax returns, but I think the wife won't deal with that firm any more. (I did find a revision on the redone CT corporate return that changed the taxpayer's PE payment for their joint CT return from what the CPA had on the original CT-K1.) I did track ALL the K-1s from the father's gift/father's basis to the dissolution of the company. Thank you, thank you, thank you.

You helped with all of it. I was overwhelmed and needed your help and guidance. Thank you. And, thank you to this forum and all participants for providing a safety net and my virtual water cooler.

Thank you! You are my new best friend. Your detailed and thorough explanations are a big help, as are you links. (Actually most of my best friends are on this site, including some no longer posting.) The wife does have a great POA in place that specifically discusses tax matters and signing returns and other good stuff and used to have a comfortable relationship with the CPA firm. And, luckily, she did have the K-1s from before my time. Now, the CPA firm seems to be ignoring her questions, requests for copies of the S-corp returns, etc. MIL seems to be having similar problems now that her husband passed away.

Well, THAT was a typo I missed. Yes, Sch 8979/D was where I showed his 2018 distributions (no detail on if it was all in September with the company dissolved) and his basis in his 200 shares. It ends up a loss, which is a help. (The spouse thought the company's CPA told her that the company paid ES payments to both CT and the IRS, so the clients would owe nothing on the building sale passed through on the K-1. What he probably said was that the company paid ES to CT only because it is required for PEs as of 2018.) Thank you for the explanations and the links. I'm not sure I have all the details that would help me report this correctly. The CPA prepared the 2018 final return on 2017 forms due to it being a short year. He gave no 199A information for the business. CT did NOT accept the company return on prior year forms, but CPA would not redo. (CT actually assigned a person to walk the spouse through writing the company return on 2018 forms, including the CT-K1.) My taxpayer/shareholder has early-onset Alzheimer's and his father who gifted him the shares in 2012 and ran the company and dealt with that CPA has since passed away. The CPA went to Bermuda during tax season, but really can't talk to the spouse/non-shareholder, I guess. Spouse worked with her mother-in-law to get me what she could, redo CT, etc. There are two other sibling shareholders, but spouse is not comfortable asking them questions and has not given me permission to talk to anyone except the CPA who does not respond to me. (Nor, to her, apparently.) I don't think the spouse has access to the S-corporation federal return. CT sent her (her husband, actually) the CT return when they rejected it because their address still was listed as the location of the books. I think the CPA was in Bermuda at that time, and no one in his company could talk to spouse/non-shareholder instead of taxpayer/shareholder whose communication skills were lacking by this spring. The K-1s have never included basis, capital account, etc. But the company always had positive rental income, so I postponed tracking basis. This couple became my clients in 2014, so I had the information since then. Spouse worked with MIL to find the gift tax return from 2012 when father gifted 200 shares to son with about a $50,000 basis and $150,000 FMV. Spouse found hubby's K-1s for 2012 and 2013. With only that, I filled out outside basis worksheets starting with 2012 with the ~$50,000 basis and adding rental income and interest and net 1231 gain (please tell me I CAN add that to his basis) and subtracting annual distributions to arrive at a basis about $350,000. 2018 Distribution was about $300,000. He must've had over $300,000 in basis to get a distribution of over $300,000, right? But, I need to deal with the about $50,000 unrecaptured 1250 gain. (I hate following the flow of anything through the new forms, and the IRS is changing them again for next season.) I entered in on the K-1 entry screen. Where would it go next. Schedule D worksheets, right? If I can get this piece to look reasonable, I'll let it go. I think "reasonable" is the best I can do with the information I have. Thank you, Judy.

I have a final K-1 from an S-corporation (that I did not prepare) to enter on a joint 1040. The corporation sold a commercial rental building and then dissolved. The K-1 has its usual Box 2 Net rental real estate income and Box 4 Interest income. Then it has Box 9 Net section 1231 gain which flows to 4797 Part I as a gain, which I think is correct. Only that one number, the net gain on 4797, right? The K-1 also has Box 8c Unrecaptured section 1250 gain. Isn't that the depreciation component of the gain that gets taxed as ordinary income at a maximum 25%? Where should that flow? And, the fact that the company was dissolved: client received a distribution but still had a larger basis. I put the distribution on Form F as his Proceeds from his 200 shares in the company with a Date acquired in 2012 when he was gifted the shares and Date sold in 2018 when the company was dissolved. I put his final basis as the Cost. Is that correct? Thank you for any direction you can give me.

The virtual receptionist companies use real people. They're just not at my client's site.

One of my business clients used a couple of different virtual receptionist companies, both in CT. He liked them both, and only moved back and forth to combat price increases. Eventually, they both raised prices to a level that he no longer found valuable. He now uses RingCentral to take messages, route calls, etc., and finds them worth the price.

https://www.forbes.com/sites/peterjreilly/2019/08/23/what-happens-when-you-are-a-full-year-resident-of-more-than-one-state/#2f83b52b399c

Our group has been in McDowell County, WV; but I don't think I was there. My daughter (who started me doing ASP) has been in McDowell County. I've been repairing homes for ASP in TN, KY, VA, and WV. I was in Sullivan County, TN, a couple of years ago when hubby went along. This year, part of our group was in Johnson County, TN. The counties we serve have lots of churches and some of the finest people I have met. We always have a picnic, usually in a national or state park with great views, and invite the families we serve. And, a culture night that is frequently a local bluegrass band that gets us all up dancing. Part of this summer's group visited the Appalachian Folk School, Mountain City, TN, and danced to "Twist and Shout" performed by Toss the Possum. Jesse Lee ASP Group out of Ridgefield, CT, is the second largest ASP group in the country with nearly 300 volunteers each summer; so we're usually in 3-5 five different centers. This year we were in Washington and Johnson Counties in TN and Knox and Breathitt Counties KY.

Your software probably does the math for you, for at least one of the two methods; you might need to specify which method. Your software might produce a worksheet "showing its work," as they required of us in math classes. The first method is to continue the iterations until no more than a dollar apart. The second is to stop at three (?) iterations. It's a pain to proofread and a huge pain to explain to clients. Charge enough for this!

Most states are reluctant to give up residents until they sever all ties and "stick the landing" in a new state as residents. If the boat is sailing around, IL might try to claim they are still IL residents, that they have not established residency in a different state. Document, document, document where they are, for how long, what ties they have to each state, where are their "treasures" stored/ photos, heirlooms, etc., where do they worship/go to doctors/vote. Read the residency requirements for each state they dock in. States do not coordinate their requirements. You may find that they can be residents of two states during overlapping time periods. This can be a big deal if taxation of retirement income is an issue for them.

Hey, Edsel, I do get to TN from time to time with Appalachia Service Project (as well as KY, NC, VA, and WV). We drive in "caravans" so don't get to deviate from our route, unfortunately. Beautiful state. But, appalling living conditions in Appalachia. I even have three TN clients, not in Appalachia.

You are not going to find many tax preparers that are familiar enough with GAAP to answer questions/explain something that's not tax basis. You're looking for love in all the wrong places. Go to a forum full of experts or work with a local mentor. PS: Please don't insult us because we don't know everything about everything. I don't attempt to answer QB questions or computer questions, either. And, it's a holiday weekend so don't expect all of us to be around.

I'm an EA, not a CPA. When I do bookkeeping for entity clients, I keep the books on the tax basis. Then, when preparing the tax returns, I have NO book-to-tax differences. I can't help you. And, the only things I want to learn about GAAP is when it might be required for a client, when it might come into play when preparing tax returns, if ever. I do think you need an accounting forum. If enough accountants are here and keep GAAP books for their clients, perhaps you could request a separate forum here. But, in the meantime, do look for a GAAP forum under CPA-specific sites, maybe AICPA.

When I was in college, I shopped in the boys department for things like tank tops and tees and in the girl's department for dresses. I'm mid-to-tall, but was very skinny and that was in the sixties with mini dresses in style. The clothes were much better made for the rough and tumble of kids, so they were great for this bicycle-riding coed. I saved a bundle of money. Wish I could still do that, but no longer skinny.

I've had that message. I think when just going back to the main screen and expecting to see the list of threads.

If the checks are written in a way to keep each gift by each giver to each recipient under the limit ($15,000 for 2019?), then no gift tax return is necessary. But, if your client is giving all the gifts, $35k and $35k and $30k, (or even $17.5k four times, etc.) and his wife is willing to gift split with him, then you need to file a gift tax return from each of them to report the agreed-upon splits.