Tax Talk

Hoping there is someone out there smarter than me in this area, becasue this is my first AirBNB business.I have a client that bought a small home with acreage attached to it 2 years ago.  The house was in sad shape - no real floor for example.  They began to renovate it, then once they had it completed, they began to build their dream home on the acreage next to it, and completed the new home last year.  They finally decided to turn the original home into an AirBNB. So here is the nitty gritty.  They purchased the home for $190 (deleting zeros for expediency).  The improvements they added before they moved in and while they were living in it BEFORE they decided what they were going to do with it total $237.  When they did an appraisal last year, the property appraised for $290, with the land being $35 of that value.  Once they decided it would be an AirBNB, they also made improvements and purchases for which I’ve accounted for on the return.  But what do I do with the improvements that

From the Washington Sun:Trump administration officials are preparing to launch an AI-driven website as a clearinghouse for Americans to get services from the federal government. The functions being discussed for the new website include allowing Americans to obtain and renew their passports and file taxes for free on a simple digital portal.The website, dubbed America.gov, is still in planning stages, according to six current and former U.S. officials familiar with the matter. A multi-agency launch is tentatively planned for the end of September, one current official said, cautioning the timing could slide. Several prominent former members of Elon Musk’s Department of Government Efficiency, installed in key roles across government, are involved with the effort.Some of the features under deliberation would mark a dramatic reversal for the Trump White House.  The Trump administration last year killed a program launched by the Biden administration that allowed some Americans to file their

In 2025 the estate had expenses for Property taxes of $3,000 and some postage expense.  No income was received and in 2025 there were no distributions.  Is a 1041 required to be filed?  If not required to be filed, should I file one anyway?

S Corp installment sale - for part of the sale.  I allocated the selling price to the different classes of assets do I have to do the 6252 for each asset class or is there a way to bulk the SP and the principal payments received to 1 asset class?

Client uses a cabin for 20 days in the year and lets caretaker use it all other days in return for some maintence work valued at $2800. She says days rented are 345. In this case all losses are allowed because personal use is less than 10% of days rented. But since the ‘rent’' is below market, the limitation should apply. I can't seem to force the loss limitation and don't want to change the usage days client gave me or claim the activity has no risk, the only two ways I can see to force the loss limitation. Any ideas??

Hi EveryoneMy client sold her rental property it has four units. She lives in one unit and has for the last 30 years.Not sure where to enter the exclusion in ProSeries for her unit this is her personal residence.Please Advise. Thank YouBarbara 

does anyone have step by step instructions on how to input the data correctly so that NY state info flows into CA sch S?  I’m not getting the correct info on ‘Sch S Thank you  Eileen

Client purchased a new  qualifying electric vehicle on 9/3/2025 from a large GM auto dealership.    Auto dealership failed to file a “time of sale report” or “clean vehicle seller report” with the IRS.  Could the seller still file the required report today?  If not, is there anything that can be done to claim the Clean vehicle credit for the qualifying vehicle purchase?  

Case: The taxpayer formed a single-member LLC (SMLLC) in Delaware and previously lived in Delaware. In early 2026, he moved to California and became a California resident. He does not want to close the Delaware SMLLC and intends to continue operating the online business and selling products through the Delaware LLC while living and working in California.My question is: What steps does the taxpayer need to take in California with respect to the Delaware SMLLC? Specifically, does the Delaware SMLLC need to register as a foreign LLC in California, and would it be subject to California's $800 annual LLC tax and any other California filing or tax requirements?Thank you so much!

2018 is no longer available in Proconnect.  Is anyone aware of any software's that will produce a 2018 return that can be paper filed?

I have a number of clients which are due large refunds.They have received NOTICE CP 05 from the IRS. They have provided their identification informat. It has been well over 60 Days but still no refund.Any idea whom I could contact ? Has anyone else experienced this issue ? Thanks,

I have a partnership business who received an ERC in the amount of $27K less fees they paid to a third party of $4K to obtain the credit. Net taxable income of $23K Here are the facts:ERC related to Qtr. 1 2021Date ERC award received September 2025Partnership sold 10/31/24 Sold book of business and telephone number to another law firm .Another fact the Partnership had a business loss in 2021 so amending would not create additional tax liability and carryforward losses through 2024 filingsThe original IRS direction was to amend the return that the ERC relates to but I am not thinking that makes much sense since the business is no longer operational and that would impact several returns to be amended for all the partners not to mention the tax year 2021 is closed for amendments. What I think is the best course of action is that the partners report on Schedule 1 of their 1040 their respective share of the ERC award offset by the expense incurred to receive the credit. I cannot find any IR

I filed a 2025 return for a married couple filing each as married filing separatelyI filed the wife with itemized deductions. I then completed the husbands with itemized  deduction information .But accidentally on April 15th I filed it with .a standard deduction.After receiving a letter disallowing from New York disallowing the inconsistency in claiming different deductions.I filed an amended Federal and New York return for the husband with the additional payment required.New York continues to claim both both husband and wife must file with the standard deduction.The wife has significant deductions and the net tax is less if they file MFS.Should I re file ?  

Fact pattern — individual taxpayer, calendar year 2025:• Sole proprietor developing a patented consumer product. Pre-revenue, no gross receipts.• Domestic R&E expenditures in 2025 (patent prosecution fees, outside CAD/design work, prototype fabrication).• The 2025 Form 1040 was timely filed by 4/15/26. No extension. The activity was not reported at all — no Schedule C, no deduction claimed.• Taxpayer now wants to elect under §174A(c) to capitalize and amortize rather than take the §174A(a) current deduction.1. Is Reg. §301.9100-2(b) relief available on these facts? The return was timely filed, but the trade or business was never reported on it. Does "timely filed its return for the year the election should have been made" carry, or does omitting the activity itself create a problem? Plan is a 1040-X adding Schedule C plus the election statement per Rev. Proc. 2025-28 §6.02, with "Filed pursuant to §301.9100-2" on the filing.2. Is §174A(c) a statutory election? §174A(c)(2) fixes the

In tax year 2023 we did a Roth IRA rollover from one brokerage to another. In 2026 we finally determined that the rollover was mis-characterized as regular IRA. I can see this on the 2023 1099-R, but it didn't occur as an issue because we have not taken any distributions from the IRA account. The current brokerage is no help sorting it out. the original rollover distribution checks also do not specify that the source was a Roth IRA account. One suggestion has been IRS form 8606 to describe any distribution as not income, but i believe the year-end 1099-R  would describe it a taxable income. Does anyone have a similar experionce? I believe the time lapse of the 3 years (2023 tax year) puts us in a bind.

TP received CP59 Notice for 2024 tax return but we have acceptance from IRS inside Lacert along with submission ID.  Do I need to call Lacert support first? 

When a Taxpayer buys a new principal residence and the closing statement reflects a $6,120 Loan Origination Fee but the 1098 shows $0 for points paid on purchase of principal residence in Box 6, is that $6,120 deductible as interest expense on Schedule A?

I have a self-employed overseas client who is filing with his Foreign Tax Credit (not the 2555, which doesn’t allow the refundable CTC) so he should be entitled to the refundable portion of the child tax credit.When I exclude the Self employment tax on Form SE (due to Totalization Certificate of Coverage I am attaching) it wipes out the refundable Child Tax Credit refund. He only has $70k income, so is well below the threshold. How do I get it to allow the refundable tax credit without a manual override, which would necessitate a paper file and possibly a review? Prior tax preparers for the last several years have gotten him this refund but ProSeries is not allowing it.Is there anything I can do to restore the refund?Thanks for any advice!

Continued from https://accountants.intuit.com/community/tax-talk/discussion/toon-d-jour/00/260300

I’m a sole proprietor 

My client is in the entertainment business and been hired to complete a commercial project for a client. The client received a 1099-NEC for revenue not earned yet; the deposit is for expenses, earnings and costs associated with the commercial project that client is hired to complete. The client is starting this project, and the money provided is seed money for project. This is a first-year Partnership, has elected accrual accounting for reporting, small amount of expenses allocated toward project. I am asking the community the best way to report 1099-NEC on partnership return to show the 1099-NEC amount and backing out the amount, then explaining the client is an accrual basis partnership and the deposit is unearned revenue. What documents or attachments would the community suggest sending with return not have any issues with the IRS reporting, along with showing the 1099-NEC amount for matching to the pre-payment. The revenues and expenses for the project would be coming in the next y

USMNT players can earn between $330,000 to nearly $1 million from the World Cup, depending on how far the team progresses in the tournament.FIFA does not pay players directly. Instead, they pay tournament prize money to the national federations. Thanks to a landmark 2022 collective bargaining agreement, U.S. Soccer pools 80% of the FIFA World Cup prize money and splits it equally between both the men’s and women’s national teams. The per-player payout breakdown scales as follows: Group Stage: ~$330,000 eachRound of 32: ~$361,000 eachRound of 16: ~$423,000 eachQuarterfinals: ~$484,000 eachChampions: ~$800,000 to ~$961,000 each All of the team members are US citizens.  One of them, who has been in the news lately, was born in Brooklyn to Nigerian parents who were living in London but visiting the US when his mother was seven months pregnant.  Airline staff did not allow her to board the family's return flight to London due to safety concerns over the advanced state of her pregnancy.  The

I just wanted to give everyone a "Heads Up" regarding Intuit live online courses which promise you an hour of CPE. The IRS will NOT accept these courses as part of your required education for Enrolled Agent, because they lack a 14-character IRS program number.I took six online courses from Intuit in 2025 which was the last year of my 3-year enrollment, and I recently discovered that I am lacking six courses for my enrollment renewal.Here is a the e-mail that I received from the IRS on the subject:Thank you for your response. Please reply to this email with the certificates that are not in your PTIN account. The certificate has the 14-character IRS program number to be accepted. After reviewing the certificate, we will continue to process your renewal or notify you in additional information is needed. Regards, Office of Enrolled Agent Policy and Management/vmmThe certificates that I received in 2023 did include what appeared to be a program number and they were accepted b

I am quite pissed about the new way Intuit has found to further enrich itself from customers from the new $100 advanced users fee. The cost of each return was high enough, and increasing each year enough to cover their costs. The supposed additional services that are given are not things that I ever needed or used in my small service. This should only have been for firms with multiple users who really benefit. If I have only a few returns, mostly less than five then this is a bad move. They need to re-consider the plan.

I have an individual who made a 2026 estimated tax payment online with the IRS in the amount of $6500 for an IRA distribution they withdrew in June 2026. The broker also paid the $6500 estimated tax payment from their distribution which they cannot correct at this time. The individual would like to request a refund NOW vs waiting until their 2026 Tax Return is filed next year. The individual is asking if IRS Form 843 Claim for Refund and Request for Abatement can be used for 2026 refund requests? I have only completed this form when requesting the abatement of penalties and interest due to reasonable cause on returns already filed. I have never used this form for future tax years. Does anyone know how to request a refund of an estimated payment for 2026 or is it even possible? I have tried to reach the IRS office but been put on hold for hours and then disconnected. Feedback is welcome. Thanks!