ProConnect Tax

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I have a new corporation client that incorporated in Delaware with a $1M valuation. It is a software company.  the founder has 270000 shares at $2 per share.  The founder contributed $90000 in cash and the remainder $450,000 is sweat equity.  How do I account for this  sweat equity?  Can it be capitalized as a startup expense in which case it won't be taxable to the client or shareholder loan as the debit balance?  It does not qualify under section 351 because 70% of ownership in the corporation came from sweat equity of other shareholders.

LLC in question is not ceased, it files final because it became disregarded for tax purposes and now consolidates books with single member; however, assets on 1065 are not used by single member due to changes in operations. 

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Hello, I have a client who is an OTR driver. He is leasing the truck and only pays for his lease and Gas.How and where to enter these expenses in his return?can we deduct the per diem amount on top of the gas lease payments ?Thanks 

Receiving a critical diagnostic error asking for the preparer's 10-digit phone number in order to efile.  See the attached form.I am using the ProConnect Online Software. The information was setup properly in the preparers information in the software and the phone number of the preparer is on the tax return form. 

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Do I need a security plan if clients prefer hard copy check.  Pub 1345 talks about filing.  Following pub 4557 and at a standstill.  Please give some opinions.  Is there a draft  program security plan guide out there as a model.  I am a lone preparer.Thank you, Mike

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Should my client who is a single member LLC, (but has an investor who's loan is repaid when the business is sold for a portion of the sales proceeds)  file a 1040 or a Partnership return? Can the investor who gets zero share of profits and losses until sale have a basis on the K1s?

I have a client who has a nonresident, alien spouse and they elected to file with him as a resident alien and applied for an ITIN in conjunction with their filing.  All good so far. Now we have the ITIN and it´s time to file the state returns.The taxpayer is filing in two ¨states,¨ Arizona and the District of Columbia.  The couple was not married during the period that corresponds with the Arizona residency.  The taxpayer is a foreign service officer who was assigned to Canada during that time but Arizona taxes all domiciliaries on worldwide income regardless of location as residents.  Arizona allows married filing separately even for taxpayers who file jointly on their federal returns. DC allows the same.The taxpayer´s spouse earned income in Canada, paid taxes in Canada, filed his Canadian tax return.  He also has a first year, loss generating Schedule C business in Canada, and has a Schedule E rental property which had positive net income.  The couple

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I'm Amending 2016 tax return. I filled out the Column A original amount. When I review the 1040X on the original amount for line 2 itemized deductions or standard deduction shows 21,501 which is the original itemized deduction showed on the original return, however, column C (corrected amount) shows 12,600 which is the standard deduction and in column B the net change of 8,901. How do I change this to show the correct itemized deduction in column C line 2?How do I correct this? please help, thank you!.

Client apparently didn't see invitation and wants me to resend. I can't figure out how to resend a second copy? 

John and Mary are married nonresident living abroad. John has a rental house in the U.S. has ITIN but Mary does not to file return and has no ITIN. I have the following questions:[1] Why state E-file with MFS status requires spouse tax ID? John file 1040-NR with the filing status "other married nonresident". Since John is married, he has to file MFS on state, no?[2] Is there a workaround for the E-file restriction besides paper filing?[3] If answer is no for [2], is it possible to apply for ITIN for Mary just for state E-filing? Mary has no other reason to obtain ITIN since she does not need to file and nonresidents cannot file jointed.[4] If I have to file on paper, what is the best way to get confirmation that they have received and accepted the return when there is no tax owed and no refund. I am thinking to add a donation, but want to know if this is a good idea. If the return filed late, and donation is considered tax owed and will be charged penalty and interest?

The trust is a brokerage account with dividends, interest and capital gains.

Please see attachment for my example of what it would look like.  We often send a draft to a client and then don't get the efile authorization for a few days.  Before efiling we always pull up the return and then click thru the actual return pages in the CHECK RETURN screen to verify the final numbers are the same.  This would eliminate the need to click back and forth when efiling the return.

I went to General>Letter>Client letter>IRS Centerbut whenever I try to change the IRS Center, the old one keeps appearing, I cannot override it. I dont know what to do. Thanks 

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I understood PTO was built on Lacerte's chassis (I would imagine Lacerte does calculate the interest).  It seems more like it is built on the Turbo Tax chassis!!

Can't separate the incomes between the 2 states cause I can't add a Nevada State Return. Client's IRA, Interest and Dividend income is included in the Federal Adjusted Gross Income on Schedule CA NR. Will I have to subtract all other income as an over-ride to show only the CA Rental income to CA?