taxpayer surrendered his life insurance annuity with losses. Are these losses tax deductible? If yes, capital losses? Or under Sch A - misc deudctions subject to 2% AGI? How about tax treatment f...
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taxpayer surrendered his life insurance annuity with losses. Are these losses tax deductible? If yes, capital losses? Or under Sch A - misc deudctions subject to 2% AGI? How about tax treatment for CA? Thanks.
S-Corp shareholder (only shareholder) reported $100k excess distribution in 2020. He has $250k net incomes in 2021. So, his outside basis = $350k. In Lacerte's M-2 ending balance = $350k while B...
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S-Corp shareholder (only shareholder) reported $100k excess distribution in 2020. He has $250k net incomes in 2021. So, his outside basis = $350k. In Lacerte's M-2 ending balance = $350k while Balance Sheet, sch L is $100k less. Is this correct? Also, shareholders basis computation report does include this $100K excess distribution in stock basis at year end.
Yes, my Lacerte is updated. Taxpayer is in accrual basis. Did not pay PTEE before 12/31/2021. When checked “state accrual option 1”, unpaid PTEE due will carryover to form 1120S. When use “option...
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Yes, my Lacerte is updated. Taxpayer is in accrual basis. Did not pay PTEE before 12/31/2021. When checked “state accrual option 1”, unpaid PTEE due will carryover to form 1120S. When use “option 2” and enter state taxes in “deduction “, form 1120S is fine. But, Sch M-1 is off. Do we have to do everything manually for this?
S-Corp will elect CA PTEE for 2021. But, they did not pay any amount in 2021. So, federal tax return will not include this PTEE paid on 3/15/2022 to be included in 2021 form 1120S. But, when I che...
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S-Corp will elect CA PTEE for 2021. But, they did not pay any amount in 2021. So, federal tax return will not include this PTEE paid on 3/15/2022 to be included in 2021 form 1120S. But, when I check the "election" box for this S-Corp, form 1120S Line 12, taxes and licenses, automatically add the unpaid PTE. How can I adjust this error? Is there somewhere in the module that I can override it? Thanks.
Taxpayer received 1099-LTC that has $19,000 on box 1, and box 3 "reimbursement amount" is checked. this is a qualified contract. Total caregiver expenses paid by taxpayer are over $25,000. Should w...
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Taxpayer received 1099-LTC that has $19,000 on box 1, and box 3 "reimbursement amount" is checked. this is a qualified contract. Total caregiver expenses paid by taxpayer are over $25,000. Should we file form 8853 Sec C for this nontaxable reimbursement? From form 8853 instructions, sounds only if payments are made on a per diem or other periodic basis needs to complete Sec C. If we do not file this form, will IRS question taxpayer later? Thanks.
Taxpayer purchased rental property late Oct 2021. They did some improvement and had cleaning/utilities expenses. They found tenant and start renting on 1/15/2022. For 2021, can we report $0 rent, ...
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Taxpayer purchased rental property late Oct 2021. They did some improvement and had cleaning/utilities expenses. They found tenant and start renting on 1/15/2022. For 2021, can we report $0 rent, depreciation, and rental expenses on Sch E? Or, no Sch E in 2021? Thanks.
Taxpayers purchase tankless water heater for $950. They received $600 rebate from So Cal Gas Company. To calculate 10% credit, do I use $350 as their costs? Or, use original amount of $950?
Yes, it is a qualified nonrecourse loan for this LLC. But, is this type of mortgage interest expenses subject to Reg 1.861 allocation? (hence, report on line #40?)
Thank you for the information. Tried to read reg 1.861-9T, 1.861-10T, and 10(e)... But, still do not fully understand them. Can you help to see which Line (on Sch K-2) I should use to report mortga...
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Thank you for the information. Tried to read reg 1.861-9T, 1.861-10T, and 10(e)... But, still do not fully understand them. Can you help to see which Line (on Sch K-2) I should use to report mortgage interests paid (to an U.S. Bank) by this domestic LLC, whose only source incomes/expenses are domestic residential rentals? LLC has no foreign incomes/taxes/expenses, directly or indirectly. But, one partner has foreign investment incomes & foreign tax credit in his form 1040. Again, thanks.
Sorry, I do not understand the differences between Ln#39 - Reg1.861-10(e) and Ln#40 - Reg1.861-10(T). Does anyone have idea which Reg does mortgage interest expenses belong to?
A domestic LLC (leasing company) that has no foreign source incomes/expenses paid or taxes. Their only incomes are from rental activities. Have mortgage interests and other expenses on form 8825. ...
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A domestic LLC (leasing company) that has no foreign source incomes/expenses paid or taxes. Their only incomes are from rental activities. Have mortgage interests and other expenses on form 8825. Where do I report mortgage interests paid to US Bank on Sch K-2, part II, sec 2-Deductions? Should I report it under line #40 – other interest expenses under Reg 1.861-10T? Or, should I include in Line #34 – allocable rental expenses other than depreciation…?
Taxpayer owns a residential rental property. In 2021, they used personally from Jan to June (adult kids lived there) and rented from July to December (is still renting out right now.) How should we...
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Taxpayer owns a residential rental property. In 2021, they used personally from Jan to June (adult kids lived there) and rented from July to December (is still renting out right now.) How should we depreciate the property and report rental expenses? Should we prorate based on the % of personal usage vs tenant occupied?
client paid $14,200 on 12/30/2021 to FTB for 2021 PTE taxes. Does anyone know where can I input this number for this? when I enter in "#48 - state tax computation", it goes to form 100S line 35. c...
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client paid $14,200 on 12/30/2021 to FTB for 2021 PTE taxes. Does anyone know where can I input this number for this? when I enter in "#48 - state tax computation", it goes to form 100S line 35. client owe $972 S-corp taxes and have $2786 overpayment in PTE. Lacerte applied excess PTE payment to cover 2021 CA income taxes short. And applies remaining balance to 2022 min taxe ($800). Is this correct?
Thanks, see this Sch K-1 input section. But, if I also record this dividend incomes in Screen 13 (ordinary incomes), it will also be included in K-1's box 1. So, do I need to adjust ordinary income...
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Thanks, see this Sch K-1 input section. But, if I also record this dividend incomes in Screen 13 (ordinary incomes), it will also be included in K-1's box 1. So, do I need to adjust ordinary incomes in Screen 20, too?
S-corp client received 1099-Div from Fidelity. How do I report these dividends in S-corp's tax return so it will be shown in shareholder's K-1? Thanks.
this is what Lacerte said. "On April 30 the CA governor signed AB 80 into law. We are currently in the process of updating the program. These changes are scheduled to be released with the 41.0511 ...
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this is what Lacerte said. "On April 30 the CA governor signed AB 80 into law. We are currently in the process of updating the program. These changes are scheduled to be released with the 41.0511 release of the program."