Industry Discussions

Hello I hope everyone is well. I was wondering if there are CPA firms that use the Lacerte Advanced module with unlimited business and state returns. Wondering how you like it and how the pricing is for the module? Thank You Steve 

I have been a ProSeries user for about 30 years.  I have decided to retire.  I see turbo tax will only (IRS actually) let you efile 5 returns.  Can I keep my EFIN and PTIN number and use maybe ProConnect as a non paid preparer to file these returns (probably pay per return in case they all don't use me)?  I will have 5 different states also.  OR...will Turbo tax let me efile more with an EFIN number if there is a place to enter it?  I also thought about using ProConnect  or ProSeries pay per return for my own to finish out my business taxes (sole proprietor) and using Turbo tax for the rest...I can maybe get my grandkids on a free file.  Sheesh!  this is complicated!  And then maybe after I get my final business sch c completed I will tell the rest of them to take a hike!  🙂  Any help and comments appreciated.  

Client sold home that was being used as a home office. Had a carryforward from 2024. Can the carryforward be used in 2025, when they no longer have a home office, against 2025 Sch C income? If so, do you just use a blank 8829 except for the carryforward?

A Schedule C business does not begin for tax purposes until it is functioning as a going concern and performing the activities for which it was organized.  IRC 195What is the public policy goal underlying this tax law?  Or is this simply a revenue raiser? It could tell entrepreneurs that your new business must be a viable one before you can take deductions for startup costs.

It looks like the Had Coverage code (Z) is returning an error at the bottom that says that they had a Penalty (X)Anyone experiencing the same situation?

If an infirm elderly person transfers her home into an irrevocable trust to protect it from Medicare, does the home get a stepped up basis? When the person dies and her home is sold, does the irrevocable trust get the $250,000 exclusion for the sale of her principle residence?

Client sent 1099 DA forms ,Coinbase numbers are evidently inflated, including proceeds and lossesQuestion is how do you report it?IRS sees the same 1099 DA from Coinbase and sends letters if it does not match please advise thank you 

From Bloomberg News: Santa Claus impersonators are the latest beneficiary of Donald Trump’s new tax break for tips. The Treasury Department and IRS clarified on Friday that celebrity and character impersonators — including holiday party Santas — can deduct up to $25,000 in tipped wages from their taxes. Republicans established the tip deduction in last year’s sweeping tax law but left the task of defining which professions qualify for the tax break to Treasury. The department has taken an expansive approach with a a final rule released Friday listing more than 70 occupations that can claim the deduction. In response to questions raised in public comments, the IRS cleared up that Santa and other impersonators fall under the category of “entertainers and performers” and so are eligible to deduct tips from their tax bills. The agency added visual artists to the list, specifically noting caricature artists and ice sculptors may deduct tipped income when they file their taxes this year. The

TP had rare profitable farm year in 2024.  NOL in 2025, but NOL from 2023 was carried forward to 2024 (waived carryback).  Has the carryback exception been eliminated entirely?

Hello,my name is Kassandra, can someone help me with Depreciation of a Rental PropertyIt is My first time and is for my personal Taxes, I Have a couple of properties for rent and i want to use depreciation   

I have a client who received short term disability in 2024 from MetLife. She received a W2 from them. She then qualified for SSDI so MetLife made her repay the disability. How do I treat that? The short term disability was taxable. I use ProSeries Basic addition. 

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I'm still not understanding so please opine. Is anything incorrect in the following?Taxpayer sets up a bypass trust (long ago)TP dies in 2025.Bypass trust becomes irrevocableand by definition the bypass trust is no longer a QRT (Qualified Revocable Trust)Therefore, Bypass trust can elect fiscal year when it files the initial 1041...and does NOT need to file Form 8855.

The individual tax return was filed and rejected due to someone claiming two of the dependents on another return.  My clients have always been the rightful parents that claim them.  My clients then immediately applied for a Identity Protection PIN.   I received the PIN for each dependent and checked the dependents names, social security numbers, and date of birth.  I entered the IP PIN in the dependent screen for each of the dependents and processed the return, then e-filed again. The return was still rejected and the diagnostic in Lacerte did not give me a new reason for the rejection.  The diagnostic in Lacerte indicated that an Identity Protection PIN would be required.  I may have to file a paper return but would rather not.  Can anyone tell me if they have ran across this same problem.  Is there another way to e-file?  Will this also be a problem for next tax season? Any comments would be appreciated.  Than

On a 2025 Schedule K-1, the amount on Line 11 code A show up on Form 1040 Schedule 1 Line 24 kThe amount on Line 11 code B  is not deductible.  On  2025 California Schedule K-1 Form 541, theamounts from the Federal K-1, Line 11 codes A & B are combined and appear on Line 11 code A.Where does the amount on the California Schedule K-1 Form 541 appear on California Form 540?  

Hello, I am filing for an extension for a NYC S Corp and the software is calculating 25% MFI on top of the current liability. If I'm not mistaken, this was discontinued beginning 2026. Client expects $0 tax liability in 2026 and is closing down so I don't want to make an estimated payment that isn't needed. How do I fix that in proseries? Thank you!https://content.govdelivery.com/accounts/NYTAX/bulletins/4092c4b 

Client had 3 months for Airbnb, then converted to personal property.  How do I get that reflected for depreciation without a gain or loss.  Not a full year deprec only 3 month.

Has anyone who had requested a paper refund check receive a notice from the IRS? The notice requests bank information be provided.

It seems the DCC isn't calculating if you have more than one dependent and only one dependent has qualified expenses without having to enter zero amounts for the other dependent.I have to enter a 0 (zero) amount for the other dependent with no expenses the credit to work.   

I am working on a complex trust with two beneficiaries. On the form 1041 schedule B line 9, the income required to be distributed currently (and the amount the beneficiaries actually received) is $6588. This is greater than the the line 7 distributable net income of $2386.  The income distribution deduction is the lessor of the two, and this is what flows through to the K-1s. My question is, shouldn't the actual amount that was distributed be reflected on the K-1s? Did I miss something? 

It would be very helpful if, when filing a company, that after the return is signed via DocuSign, that it lists the Company Name instead of the signers name in the listing as some clients sign multiple returns.

No 1099G received for a OR refund. TP did NOT itemize previous year and this isn't taxable but required for efiling

Down to the wire.... Sunday is the first day I will not be at the office at 6 am to see clients in many weeks.  I won't say how many returns I have prepared as I know it get some people mad. but my extension list is at about 275 add't  returns.. will keep me busy through May or June by stretching these out a bit to more reasonable hours in a day vs 14 my current daily working hours.. Happy Easter

Hi all, my client was the personal representative, and sole beneficiary, for her brother's estate.  The Final 1041 was filed for 2023 by the estate lawyer.  Form 1099INT for 2025 was received from the IRS for interest on the refund from that filing year.  The estate bank account is still open and the interest was directly deposited into that account.  No distribution was made to my client in 2025.  Question, do I now file another Final 1041/541 for 2025? If so, it will result in taxes owed of $19/$8.  Or can I just show it on the client's 1040 as nominee interest from the estate?  If so, is a 1099INT required from the estate to the client?  Thanks in advance.