LLC was a 1040 filer in 2020 and received ppp loan. Filing as an S Corp 2021 and received forgiveness in 2021. Can't decide does the ppp go on the s-corp as the untaxed income or is it totally left off since it was originally under his 1040. thx Michele

Married live together but this year looked at filing separate as her business made more money than she  expected leaving  them with a 15,000 tax liability. He will show about 20,000 less income than her this year. 2 children. If he claims the children it will save them $1500.00  Did not know if there was an exception this year that he could claim them and not the higher wage earner. No day care expenses or any of that to worry about.  Michele

New client has sba 504  loan and brought in statement.  She has right at 500.00 per month in borrower paid fees every month. These are added in addition to her principal and interest payment I was trying to find some information on the fees as far as deductibility with no luck. SBA fee -CSA fee- CDC fee.  I would think they would be deductible as she pays them every month. Any information greatly appreciated.   Michele

Had some one come in the office that already had their 1120-s and personal prepared  somewhere but did not feel like it was right. OH boy they had been a schedule c filer and were filing as a scorp for 2021 for the first time I saw they had 1 million in receipts and no 1125-E filed. it did show compensation to officer on front page of return. Then I looked at the balance sheet and they were showing beginning retained earnings. Big flag there probably should have been loan from shareholder or paid in capital  if they were going to complete a beginning and not just the ending balance sheet The assets and liabilities were being transferred from schedule c to the 1120-s  I did not see a statement stating 351 for personal return or 1120 stating they were making a transfer of assets The depreciation schedule  for the 1120-s show all the assets with the original placed in service date of when they were bought under the schedule c disregarded entity. I believe they just suppressed the asset depreciation on the personal side. Under the liabilities there was a grant. That was a grant not a loan. Income and expenses look ok.  Would you amend this to straighten out this mess of a balance sheet. and not completing a 1125. I hate to see a first year Scorp filing with a mess and inaccurate basis for their 7203.  thx Michele    

I have a new client that  has a commercial building. 2 loans thru 2 different banks. 1 is a standard commercial loan and the other is an SBA loan both were for the purchase of the building. After looking thru her records last several years the sba interest was not included on her tax return. She has been filing as a c corp . My clue was that this is not enough interest for a $1 million dollar loan. I know I can amend a few years . I have filed 3115 for depreciation but never for what is an error for this kind of expense. Is that even a possibility? I started looking thru dcn codes.  Any thoughts s greatly appreciated.  Yes these past returns were filed by a CPA firm but she stated she had never been asked any questions. How someone complete balance sheets by not having loan balances etc. Is beyond me. Backing numbers in to make it work. gives us all a bad name!!!!!!!!!!!!. The kind of year it has been correcting others mistakes, I guess I am waiting for the  client to walk in the door that ways I have 1 w-2  can you prepare my taxes.   LOL yeah

Do I have to make my own statement to attach  a section 351 statement to a partnership return. Want to have all my bases cover for a partnership becoming a scorp. had to do a short year 1065 and short year 1120-s thanks Michele

Is there a button to mark. Partnership becoming an 1120-S. Wanting to dispose of assets in partnership with no gain. I am taking their basis in the Scorp but need to get rid of the assets and close everything they are not selling just changing entity types.. There are a ton of assets with no basis and a some still have basis.   Thanks Michele

Have depreciable assets that are taking on a dual use. I want part to go to schedule C & part                         to schedule E. Wondered if I could get an asset to flow to more than one schedule without having to create the same asset for each schedule  using percentages.  I just think if they ever change business models it could create a headache checking the depreciation to bring it back together and it does not get over depreciated.  Really did not want to do just a direct input of depreciation on one schedule don't think that would look good. Any information would be a great help.   thx Michele

I really should be able to do these 3115 in my sleep by now!!!  This couple owns a commercial property I have been depreciating as 39 year property.  They have now started renting the property upstairs to an individual to live in as a residence. The lower is staying as commercial. Since I am changing  to 40% residential and  60 % commercial do I have to do a 3115?     thanks Michele

Prepared the 1065 for short year and they switched to and Scorp mid year. I got the partnership to calculate the correct depreciation. I have filled in the short year for the 1120S on the miscellaneous screen and also short year in the depreciation screen. It is still calculating full year depreciation. Business has way to many items to do all this by hand. I was at least able to import the depreciation schedule from the partnership to the 1120S and that was a chore checking all the items. I figure I must be missing something if the 1120S is not calculating.   thx Michele

What a year  every new client with rentals has wrong depreciation. partnership on page 8  of 3115 asks for type of account single asset , multiple asset and general asset. I really don't remember stating this before. Does anyone know if this is required to be answered. Double checking my answers and figures and saw it. You think I can just say Siri mark the boxes.  LOL   thx Michele

I need to amend an 1120-h for a home owners association. for 2021. Am I missing something ? on the amended return it does not show anywhere on the federal or state the reason for amending. I hate mailing these without an explaination   thx Michele

I have to prepare 3115 for property that was depreciated as commercial instead of  residential. And another  property that did not account for land. I am working on the spreadsheet that goes with the 3115.  Do I only put on the spreadsheet just the items that were wrong? There were some improvements and other items that have the correct depreciation for each property I don't want to make the spreadsheet confusing just want to keep it simple. Most 3115's I have prepared there was no depreciation taken on the property so this one is  a little different. Thanks Michele

In Lacerte do I need to figure the recapture of depreciation and show it on schedule d disposition. they are keeping the vehicle but need to recapture since they are now at 45%. Only way I could see to do it in the program was to do the d then show as other income. thx Michele

Real estate rental partnership k-1. Has rental loss but has income from 1250 gain and 1231 gain. The loss is being stopped by a qualified non recourse. Is there something I am missing to get this loss to go thru. I have completed the basis limitations and share of liabilities but did not complete a  6198   tx Michele