efile

[ILLMAS]

Does anyone know when will the system be back up?  IRS website does not mention the day it will reopen.

[Jack from Ohio]

2 hours ago, ILLMAS said:

Does anyone know when will the system be back up?  IRS website does not mention the day it will reopen.

Sometime in late January, 2019.

[Gail in Virginia]

2 hours ago, Jack from Ohio said:

Sometime in late January, 2019.

We hope.  With all the changes, possibly early February if you feeling pessimistic.  Never thought I would be more pessimistic than Jack.

[Max W]

My guess is that we will have efiling earlier in Jan than last year and some other years where there were last minute changes to the tax code.  For TCJA they have had plenty of time to  make and test the necessary software changes, at least for the 1040.  

[Lee B]

Not so fast grasshopper. Let us remember the list of proposed technical corrections to the TCJA, on which Congress has shown no urgency to deal with.

Same Old Stuff !

[Max W]

The glitches won't affect most 1040's and those that might be affected would be a small number of Sch C filers , who are not usually early filers.

https://taxfoundation.org/technical-corrections-tax-law-lame-duck-session/

 

[Jack from Ohio]

2 hours ago, Max W said:

The glitches won't affect most 1040's and those that might be affected would be a small number of Sch C filers , who are not usually early filers.

https://taxfoundation.org/technical-corrections-tax-law-lame-duck-session/

 

We will see....

[Lee B]

On 11/21/2018 at 11:11 PM, Max W said:

The glitches won't affect most 1040's and those that might be affected would be a small number of Sch C filers , who are not usually early filers.

 

 

Just realized that we have the same scenario as last year, the Tuition and Fees Deduction was only extended thru 12/31/17.

An extender bill will have to pass for this deduction to be effective for the 2018 Tax Year.

[SaraEA]

And we still aren't sure whether rental income counts as QBI.  Or if improvements to retail and restaurant properties will have to be depreciated over 39 years, as the law now reads.

[Abby Normal]

Normal rental does not count for QBI. I remember reading that earlier this year.

[Gail in Virginia]

If I understood correctly from the NATP seminar this week it boils down to how involved in the rental you are as to whether it counts for QBI.  If you use a management company, you cannot claim the rental as QBI.  If you do not, and you act as the management company you probably can.  But then again, facts and circuses.

[NECPA in NEBRASKA]

I just went to a class where they said that their understanding is that a Mom and Pop that only have one or two rentals won't count for QBI and that anything that we try to use it on had better act like a business and and send out 1099s at the very least. They said that separate bank accounts would be helpful. I am sure that we are all going to hear different things based on interpretations. 

[SaraEA]

I have been to a couple of seminars on the QBI, read the NAEA journal article published before the regs were released, and read a lot of point and counterpoint.  Right now even the authors/presenters are saying we have to wait and see.  Some are leaning toward recognizing rental income of small landlords as QBI, others say probably not.  All are concluding "not sure yet."  At issue is that "trade or business" is defined differently in two parts of the code, and the TCJA and regs refer to both of them. Earlier this fall (after the regs were published) the national accountancy board responded to an IRS request about what areas of the new law most needed clarification.  At the top of their list was the issue of rental income for non-real estate professionals.  It is too early for any of us to know the answer.

[Abby Normal]

What do the Regulations say? This ain't good. They are sticking it to us. The regulations require that every business be able to separately establish that it rises to the level of a Section 162 trade or business, and that means big problems for landlords. There's not even a carve-out for real estate professionals under Section 469(c)(7), meaning even those who truly ply their trade in the rental real estate world will have to establish that the rentals satisfy the nebulous Section 162 standard.

The regulations provide only one exception, found at Reg. Section 1.199A-1(b)(13), which provides that if a taxpayer rents or leases tangible or intangible property to a commonly controlled trade or business (a self-rental), the self-rental activity is treated as a Section 162 trade or business.

https://www.forbes.com/sites/anthonynitti/2018/08/09/irs-provides-guidance-on-20-pass-through-deduction-but-questions-remain/#4e9cd1602ff8

[Lee B]

21 hours ago, SaraEA said:

 At the top of their list was the issue of rental income for non-real estate professionals. 

My understanding is being a "Real Estate Professional" is of no benefit as far as the determination of QBI.