Tax Talk

The taxpayer passed away 08/15/19.  I am preparing a 1040 and 1041 for the year 2019.  Form 1099-INT was received for $80,000 with the taxpayer ID for the Estate.   Should the interest income be reported all to the Estate or be split between the 1040 and 1041?   If split, do we need to request new Form 1099-INT's be issued?

I'm preparing an individual tax return on ProSeries for husband/wife 50/50 owners of an S corp.  The husband is the 100% owner of two single-member LLCs, each of which owns a property that is rented to the S corp. Reg Sec 1.199A-1(b)(14) provides that a self-rental can be treated as a trade or business for Sec 199A.  Is there an election statement or some form of disclosure for this?  Should I include a statement like the one required by the aggregation regs (Reg Sec 1.199A-4(c)(2))?  Does ProSeries include an Aggregation disclosure statement?  Thank you.

A Self-employed Taxpayer  qualifies for foreign earned income exclusions. However,  a % of the schedule C income is sourced to USA  based on the days he performed services in the USA. Unlike for wages, ITO software has drop down box that you can choose " allocate the income between US and Foreign" , schedule C doesn't have that option . Schedule C input sheet just allows you to enter the % of foreign income. I override the amount of "income earned in US on business o form2555 part II line 14". then I received a critical diagnostic which prevents me from efiling the tax return.  It looks like that override doesn't affect the any numbers on the tax return.  However, if I remove the override, the tax return doesn't reflect the correct information. I called the agents with ITO. They couldn't find a solution. Does any one have experiences on this issue? 

i just file married fiiling joint  for non filers on friday and i checked wrong box your spouse as dependent and foreing country , and i alredy submitted so  how do i go back and fix them please help me with that thanks

A partner sold its interest in a partnership, and received his final k-1 with positive ending capital?Should ending capital be zero since the interest is sold?

Has the tax law been corrected in regards to 15 years versus 39 years?

Hello,I have a new client who is blind and owns a newly formed LLC (S-corp) in Illinois. The Illinois Department of Human Services' Division of Rehabilitation Services (DHS/DRS) is the state's lead agency serving persons with disabilities. My client is part of a program called The Business Enterprise Program for the Blind (BEPB), which offers experienced small business owners all start up costs associated with equipment, products and structural design are managed by the BEPB program. The Illinois Department of Human Services gave my client a no-interest loan for inventory and working capital, which is expected to be paid back. The company had net income of $10,589. Upon completing a DRAFT of her return, she ends up owing Illinois $683 . QUESTION: Wouldn't there be any business credits for a blind business owner operating a state program? Please advise.  Thanks,Katie

Spouse dies in 2020.  Can suriving spouse contribute to both Roth IRA's for 2019?

Is a 1099-R with a code 7 earned included on Schedule SP eligibility income line 6 nonresident income ?

If a client rolls over KPERS retirement into a traditional IRA, are the earnings tax free on the Kansas return just like Kpers or are the earnings after the direct rollover taxable?

Schedule C business received Stimulus and also discovered deducted Payment supposedly by IRS. On the same day, Stimulus received was $2,400 and, Payment deducted approximately $4,500. This client has/had no know delinquent outstanding anything with any relevant federal state or local government entities... Has anyone else gotten reports of similar happening?

I have a client that received a 1099-C  (Cancellation of Debt) for a credit card in her deceased spouse name and his social security number.  Does she have to claim it on her returned?  He died in 2016.

I live abroad. I have multiple employers I receive "wages" from. How do list them on form F2555?Should I put "see attached" on lines 3 and 4b. Then attach a list of my employers and their addresses?Any help is greatly apprciated!

Deadline to file 2016 Form 1040 for refund?

This week, two clients received small unexpected checks from the IRS.  Both were labeled as 'tax refund'.  Both clients had overpayments and requested zero refunds with small amounts applied ahead to 2020.  The amounts refunded did not correlate to the amounts applied to 2020 so we're baffled.Letters of explanation have not arrived from the IRS and the taxpayers can't get through over the phone.  Status of the returns per the IRS website says "still processing your return".The checks look legit but it could be a scam.  Has this happened to anyone else recently?  Any advice besides not depositing the checks yet? 

Are partnership ordinary losses deductible against self employment income taxes from guaranteed payments, if the partner has no more basis?  For example on a 1065 K-1, part 3, line 1 ordinary loss  shows -100 but on line 4 guaranteed payment shows 300, the software calculates line 14 self-employment earnings to 200.  Even if the partner has no basis.  But can a partner deduct ordinary loss of 100 from the 300 guaranteed payment when calculating SE tax on the 1040?  Even though the 100 ordinary loss is not deducted for income tax purposes.  Thank you

Taxpayer has 17 year old daughter and asks if he doesn't claim her can she get the full $1200.00 stimulus check.  Is this even legal?

As the due date for all tax returns has been changed can I wait until July 15thbefore filing an extension until October 15?

When there is no bill of sale outlining the sale price of each asset sold (refrigerator, washer , dryer, furniture etc).  Should you allocate those assets based on the sale price? Example: Total Sale price: $100,000, items sold: building , refrigerator. Refrigerator on depreciation schedule with a cost basis of $1,500, building on dep. schedule with cost basis of 75,000. So,1,500/76,500 for refrigerator and 75,000/76,500 forbuilding? Selling price of refrigerator is .020*100,000 = 2,000 and building .98*100,000=98,000?

Married filing jointly in 2018 qualify for full 2,400 payment. In 2019 income doubled and they do not qualify. Have not filed 2019 and will not file until after they receive the 2,400. Payments will have to be reconciled in 2020. The specific question? "Will they have to pay the 2,400 back based on not being qualified in 2019."

I cannot find a definitive answer...Can a 17 year old dependent claim themselves if they work a part time job and the parents not claim them to be eligible for the stimulus money?  

The IRS is not achieving the savings it projected through consolidation of processing centers and already is unable to fill all positions at the centers whose workloads will grow as they receive work from those being closed, an IG audit has said.The IRS is consolidating tax processing centers based on the continued decline in paper-filed returns, projecting five-year savings of $266 million from closing three centers, savings that management wants to use toward taxpayer service, enforcement and IT upgrades. A center in Cincinnati was closed last June; plans call for closing a center in Fresno, Calif., in 2021 and one in Austin, Texas in 2024.The IG found that the costs of closing the Cincinnati center “exceeded initial estimates by $56.5 million, reducing the potential five-year savings estimates to approximately $40.7 million.It added that the two centers to continue, in Kansas City and Ogden, Utah, have been failing to meet their filing season hiring goals in the last three years, ac

I have beneficiary distributions in 2019 over DNI for a certain complex non foreign trust.  This trust had undistributed income in 2018 (first trust year)  that was not distributed in 2018, but the trust did pay the tax on the trust income in 2018.  2019 is the first year distributions went to beneficiaries.  Do I need to file a Schedule J (throwback)??  As mentioned, it is not a foreign trust, and the trust was created in 2017 (year of death, but no 2017 income)

Single senior citizen lady can no longer afford the upkeep of her 3-family rental (she occupied one unit). The sale took place in January 2020, so will be reported on her 2020 taxes next year. She acquired the property from her father for $1 in 1998. Her father had owned the property and lived in one unit since 1964. The rental portion was fully depreciated by the time this lady took ownership in 1998. There has been no depreciation taken since the time she acquired the property from her father (nor do I believe there would be any being she would assume the cost basis from when her father purchased the property and which was fully depreciated by 1998). I am of the understanding that 2/3rds of the property is long term capital gains  (15%) assuming the capital gains rates for 2020 are the same as for 2019. This would amount to ~ $50k in taxes excluding the amount of taxes owed to the State of New Jersey. Question: Am I correct that 2/3rds of the total sale price (les

Dawn filed for 2019 and claimed her high-school aged daughter Olivia as her dependant. Olivia didn't work in 2019 and turned 18 August of 2019. The stimulus package says Dawn can't get the extra $500 since Olivia is older than 17.  Olivia can't get anything because she is Dawn's dependant.  Is this correct- some kind of catch 22?