Tax Talk

1065 instructions provide codes for partnerships.  For LTD engaged in real estate rental do I input code Z plus AA plus AB.   I know that the regulations allow for trade or business treatment for direct investment (assuming certain tests are met.   But at the partnership level, I do not think that code Z applies.  Rather, I think that the preparer need only input the AA and AB informationBox 20, new codes have been added for the qualified business income deduction: code Z, section 199A income; code AA,section 199A W-2 wages; code AB, section 199A unadjusted basis; code AC, section 199A qualified REIT dividends; code AD, section 199A qualified PTP income 

Is there are way to have the basis worksheets included in the partnership k-1 packages. They are included for S corps but apparently not for partnerships.

A spouse received a 1099-C a year after the death of her husband on debt that was forgiven.  Does she on her return have to claim that income?  It has his SSN on the form and she is currently in 2018 filing single.  We are a community property state.

Taxpayer has refinanced several times since original purchase in 2000.  I have three closing statements (2009, 2010, and 2016).  Practically speaking, I know some of this is equity loan (versus acquisition), but since I do not have the 2000 closing statement nor do I know how much they used to make improvements to the home, what questions should I be asking the client and then how do I determine how much of the interest expense to exclude?  This seems to be extrememly complicated (and if we can't figure it out, how will the IRS be able to)?  I can see how to do this on new loans, but on ones that are old, I'm just not sure how to go about this.  Would be interested to know how others are handling this.

Where do i input the final DPAD items under sec 199A ? 

I have several clients that own rental property that's reported on Schedule E.  They have not filed form 1099-misc's in previous years and I've checked the box that they aren't required to file 1099-Misc's with the mindset that they are not atrade or  business.  Now I'm wondering if they can take the section 199A (QBID) if the reasoning for them not filing 1099-misc's is because they aren't a trade or business.  I was at a tax seminar in December and the instructor said the regulations for being a business for the 1099-misc filing requirements is a different code section then the "being a business" for section 199A deduction.  I was at a webinar where the instructor said you couldn't take the deduction if that was your reasoning.  I know there has been further guidance issued on this since then.  My clients wouldn't qualify under the rental property safe harbor election since they don't spend at least 250 hours a year on each property.  I haven't

Client took early distributions from traditional IRA from various sources.  Some were rolled over within 60 days, others were not. On 1099-R Worksheet, I checked box B1 for those that were rolled over and left it blank for those that were not.  No penalty is being calculated on the early distributions not rolled over. What have I done wrong?

I have a client that has completed a 1031 exchange and he now wants to add an additional residence to the new property to use personally (occasionally). Would this have an adverse impact on the 1031 exchange? If so, as an alternate could he park a travel trailer on the property? Any input will be helpful!  

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I have a client that says her SS form is incorrect.  She says she recieved $15100.00  .  The SSA 1099 says she recived 11455.00. The difference is $3545.00 which is the amount they said she owed  because she received too much in benefits.  She wrote a check and stopped payment on  the check. She never paid the $3545.00.  What is the correct way to handle this issue?    

Do you think a computer programming consultant would be a SSTB?  They don't sell any software but customize existing sofware to each client's need for an hourly fee.

Why is LaCerte still not allowing the 60%-of-AGI limitation on charitable contributions?

I have a client claiming this credit for the 4th year.  Live in CA.  Have been able to deduct 20% of their mortgage interest.  This year they were sent a refund check minus the mortgage interest credit of $3,036.  The tax software rules allows for this, what am I missing or why would the IRS not honor this part of refund?  Has Tax Reform affected this?  I can't find anything to say it has and I would assume the software would be updated it did.

On business returns and/or Schedule C, is it true we cannot expense "tax preperation" as an item in the expenses?  Part of accounting is the tax preparation as well. 

Is there a worksheet that shows ELA calculation?

When will the program be able to properly handle the fact that charitable contributions can be deducted up to 60% of AGI on the Federal return?  I know there is an over-ride, but then there is a diagnostic that the California return will need to be paper filed if you use the over-ride.  The IRS has revised Pub 526, so that excuse for not having the program working is no longer valid.  I have two returns waiting for this to work; both are elderly individuals who would be confused if they have to mail the California tax return instead of being e-filed.VidaFree

If the QBI deduction is not used in 2018 because the taxpayer has no taxable income, can it be carried forward to the next year?

My client has both commercial and residential property. I'm grouping them into those two enterprises per Notice 2019-07.Why is ProSeries creating a statement for each individual property? It appears my client is attesting to 250 hour for each property. Is there any way to delete those individual statements from the return? I prefer to create a PDF statement for each enterprise and attach them to the return. 

does a taxpayer received a credit for installing efficient energy windows from the IRS or the State of California?

Does a schedule E rental property run solely by a husband and wife qualify for the 20% income reduction? They do all the accounting and repair/maint. scehduling.

Does SE tax deduction reduce QBI?

Hello,Is a county prison guard considered someone in the armed forces qualified to deduct EBE? Thanks

A trust 1041 has a charity listed as a 20% beneficiary, 80% to one other beneficiary. This year there is interest, dividend and IRA income (the IRA had trust named as beneficiary). Distributions were made to the beneficiaries.  Does the charity get a K-1? On the surface it does not seem as if this is a charitable deduction for the Trust as the charity is a named ongoing beneficiary but I am not certain if a charity can receive a K-1.

have a client who has $279 eic with $11600 gross.  why would irs reject this scenario?  have e-filed several times already & keep getting rejected?or is it the proseries software?thanks!

I generated the safe harbor statement that's required for the QBI deduction for rental real estate in accordance with Notice 2019-07.  However, Proseries Professional won't allow me to print it so that I can send to the taxpayer to sign and attach as a PDF for the electronic filing of the return.  When I do print preview, it's blank.  When I try to print to pdf and open the saved file, the page is blank.  I checked print settings and there's no problem there.  Is this a known issue that is currently being addressed?