Tax Talk

Jim, thanks for taking our comments.  I've met you on a few occassions with NCCPAP and I even let you know that I was switching to PTO before my sales rep.  I am in my 3rd year using PTO and really appreciate the program.  It allows me to be Cloud based and not have to deal with issues surrounding hosted software.there are several items that would certainly make PTO better.  I've placed them in feedback as well as providing them to programmers.  I understand that 2018 tax law changes affected some enhancements, but not 2019.  specifically,when entering addresses, the zip code should populate the city/statemany pull-down boxes require double & triple clicking to get the item.  This occurs when entering school codes, Schedule C business codes, etc.when entering W-2 info onto box 14, often the program takes you back to the top of the page, rather than keeping in the box 14 areaNOTES - the box should change color to let preparer know that there are no

Client leased vehicle for mostly business purposes.  At what point are the leased payments subject to income inclusion?  

I am trying to locate the Iowa version of the K-1 with distributive share of income to the beneficiaries within Pro Series.  Does anybody know if that is available?

Will there be an email containing a link to participate in Ask Me Anything?

A single member LLC for financial service. The business started in 2018 and used a cash basis.  In 2018, he had income and the expenses . However, In 2019, he made NO INCOME but had over $70,000 expenses. I had done some research and seems that it is deductible.All of a taxpayer's business expenses for a tax year are deductible, even if those expenses exceed the taxpayer's income from the trade or business for that year (Reg. Sec. 1.162-1).the expenses are mainly Meals, travels, supplies and phone. They are all qualified expenses.what do you think?

I converted from Lacerte to ProConnect Tax Online. This my third tax season using PTO. For the most part, it has been a great program. However, I absolutely HATE the fact that I cannot produce a paper tax organizer like I could with Lacerte. PTO has something it calls an organizer, but it's terrible and I would be embarrassed to send it my clients.Can we please, please, please have PTO create a Lacerte-like paper organizer next year? Not all clients use the organizer, but the ones that do, really miss the Lacerte ones I used to produce.

Mom received 1099-Q with her name social security number on it.Son has a 1098-T.  Mom claims son & education expenses on her return.We have her in ProSeries Pro as the 'recipient' and son as the 'designated beneficiary" on the 1099-Q worksheet.1098-T is linked to 1099-Q in Proseries Pro.Education expense is $8800.   Earnings (box 2) on 1099-Q is $9050.    Mom is being taxed on total amount of earnings.   There is also a 10% penalty on only a portion of the earnings which is calculating correctly.  Why is she being taxed on total earnings earnings. This doesn't seem to be correct. The education expense of $8800. are not being used to offset the earnings however, it does calculate correctly for the 10% penalty. Why is it not calculating correctly? 

Client has a foreign pension, but has not contributed to it, or received distributions from it.  Is this dormant pension reported on 1040? 

Husband and wife partnership. Capital account balances are about $12,000 each. Business owns a 2014 Toyota 4Runner, recorded at $44,031. Depreciation is $24,007, $11,160 of which is special depreciation allowance. On Jan 9, 2019 vehicle is retired. Wife transfers title in her name. FMV at date of transfer is $19,075. My question: Is there a taxable event in 2019? And if so how is it reported?

When will lacerte be calculating this limitation?  

Box D shows an error that is must match Line 15d, Schedule L after suspending the need for Schedule L.

Usually the 1099Q is reported on the parent's return when the student is a dependent on the parent's return.  However, does it matter who the recipient is.... or who the beneficiary is as to where to report the distribution? What if there is taxable earnings?  Does it now go on the student's individual return?

Are there any significant changes from last year to this year that we should know about?

HELLO, MY CLIENT BROUGHT IN FORM 1099K WITH PSE, 3RD PARTY CHECKED.  THE GROSS SALE ($) IS UNADJUSTED WITH CALCULATED ON THE BACK PAGE OF THE FORM 1099K. TO CONSIDERATION TO  CALCULATE THE COST OF GOOD SOLD ON SCHDULE. C, PROFIT OR LOSS FROM BUSINESS; AND/OR CAN BE CALCULATE THE SCHEDULE. D CAPITAL GAIN OR LOSSES.MY QUESTIONS:1- HOW TO IDENTIFY THESE CATEGORIES TO CALCULATE THE COGS OF THE PRODUCT SALES,  SHIPPING CREDIT,  GIFT WRAP CREDIT, PROMOTION REBATES, SALES TAX COLLECTED?                     2- THE CLIENT HAD PAID ATTORNEY FEES IN ORDER TO BECOME LEGAL US CITIZEN,  THE PAID FEES CAN BE ELIGIBLE TO EXPENSE DEDUCT OR NOT?I LOOK FORWARD TO HAVE SOME REFERENCES, THANK YOU!

does not workhas not workedProseries says there is no such thing as "encountered error number one" fidelity and schwab affected at a minimum.when will proseries admit that there is a problem??? 

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I can't get an EFIN because the IRS cannot verify my identity when I try to create an e-services account. Any suggestions?

I have a client who worked for Lyft and received 1099-Misc.  When filling Sch.C, do I have put Lyft's EIN above the business address?

I'm taking over a new client's return from a previous preparer. I'm trying to sort out what was done in previous years and trying to figure out the best way to approach it moving forward. The client has an S Corp. Income generated for this S Corp is only a result of the work of one individual (the client). Previously, income and expenses were distributed on the corporate and personal tax returns with a large majority allotted to the S Corp (e.g., 90 or 95%) and a much smaller proportion (5 or 10%) allocated to the Schedule C (for this same individual client). Then there were K-1's issued from the S Corp to the client each year. There are no other employees of the S Corp (although the spouse of the client is a co-owner of the S Corp) and the client only has this one business over the past couple of years. Revenue generated by the client has been issued in the name of the S Corp and deposited into the S Corp's bank account. A few times each year, funds are transferred from the S Corp acc

Taxpayer received a 1099-Misc. from the State of Nevada for other income representing reimbursement for cleaning up an oil spill (from heating oil tank leak) at his personal residence.The reimbursement came from a State Underground Storage Tank (UST) Fund.The reimbursement comes to the taxpayer who then pays the contractor. I will have to report the income, ($40k) but is there a deduction to offset?Thanks for any input

The NJ CBT-100 forms became available on 3/3.  Are they not final and when can this be e-filed?  When I do print preview, "Reference Only" is displayed across the pages.

The Sub S owns one rental property in Ma and the balance in NY.The MA property reflects a loss, however the Ma allocation seems to show anallocation reflecting a profit. Is this correct or is there a way to properly reflect a loss in Ma and flow to the K-1.  Also is the Ma minimum tax not pro-rated irrespective of days of doing business in Ma.

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2018 Rental real estate loss.  QBI loss unallowed, carried over to 2019.  Rental property sold 2019. Has gain.  Freed unallowed passive losses but not QBI carryover.Has QBI carryover from 2018 plus 2019.  Client will not have passive income in future years. What happens to QBI loss carryover

I'm new to doing 1120S returns, so excuse my ignorance on this. I have two co-owners of an S-Corp who are 50/50 shareholders. They only started taking W2 compensation in 2018, and I am helping them file 2018 taxes (yes, they're well aware that they are late). My question: do I report their W2 income from the business on line 8 of the 1120S (Salaries and Wages), or line 7 (Compensation of Officers), or somewhere else? Also, do I then report those same W2 payroll transactions to the principals as income on their 1040?