Industry Discussions

Single S Corp shareholder has a consulting business and moved from CO to FL during 2024.PS automatically checks the nonresident box and shows errors in the K-1 worksheet for nonresident form DR 0107 or a composite filing.The CO instructions say to mark a part-year resident as a resident and follow the resident instructions. Evidently, the CO portion of the K-1 income will be allocated on the shareholder's CO personal tax return. Even if I override the shareholder information to mark the SH as a resident, PS still shows errors on the Sch K-1 worksheet for the composite filing and nonresident boxes.How do I get rid of the errors and correctly prepare the CO S Corp tax return?I am using PS Professional.

Now that Quickbooks desktop is no longer supported, what is everyone recommending?  What are good options for the ones who do not want to, or are not able to, go to the cloud.  In our rural area reliable high speed internet is not widely available.What do you use in your practice for your books?

Client received notice that they did not qualify for their 2021 property tax refund. The difference is that they are not allowing the rental loss in household income. Sent MN a letter protesting and they received further correspondence that their appeal was denied. (The letter actually says "You must include in household income Schedule E passive rental losses on your federal income tax return.") It was included on the federal return. That loss carried over to household income. They seem to be adding it back.Any suggestions on where to go from here?

Former Rep. Billy Long (R-Mo.) is being replaced as commissioner of the IRS less than two months after he was confirmed by the Senate.  Treasury Secretary Scott Bessent will lead the agency on an acting basis, the official confirmed. Long is expected to be nominated to an ambassadorship. IRS has had six different people in charge this year. Long has repeatedly sent emails to all I.R.S. employees allowing them to leave work early on Friday afternoon.  “Please enjoy a 70-minute early exit tomorrow. That way you’ll be rested for my 70th birthday on Monday!”  Long wrote to staff on Thursday.

My column A is only picking up the Federal wages from box 1 on the W-2 instead of the state wages in box 16 on the W-2. 

Client received Condo in Florida with rules by the association they could not rent it for 1 year. They are not doing a vacation rental and want it to be a full time rental after the 1 year mark. Yes the intent is for it to be investment. Then throw in the kicker of renting to family member for a month and then just going to let it set. did they negate the 1031 with the 1 year clause. I have had some wonky ones. that the 1031 typically is giving bad advice. I always say I can not unhear what I hear. I am sure they don't want to see it as a rental because of rule from association but you already told me you got 3,000.00 thx.

Difficult to say no and turn down work, even though I don't need it really but this is a sales tax issue in Ohio.. Client behind many years in sales tax. pizza shop.. I asked for $ 5,000 retainer to make it worth my trouble and they agreed.. only thing is they want to drop off a quicksbook file so i can dig through it.. I don't have that program though and I know there are muliple versions of QB desktop.  I woudl rather remote into their computer using my TeamViewer program and work on it that way.. That is how I work on clients all over the area withhout having to travel or have multple programs on my computer. If they tell me their computer died or for some reason is not available to remote into, what do I do if I still want to do this about getting a version of QB.

Again with the reconciliations?  In the same vein as covid era advance child tax credits, EIP stimulus # 1, EIP stimulus # 2, EIP stimulus # 3.. We may have to have another round of clients claiming they did not receive theirs new 2025 potential rebate checks and returns get rejected or changed.(nothing political here.. just commenting on how this impacts tax prep)  https://www.dailymail.co.uk/news/article-14954873/american-families-rebate-trump-tariffs.html yes, from dailymail.. they beat many other news sites to the punch and have become a juggenaut in online news

August 2016: Client, a widow in her 80s, gets a CP01H notice from IRS that “we are unable to process your [2015] tax return as filed. Our records indicate that the person identified as the primary taxpayer or spouse on the tax return was deceased prior to the tax year shown on the tax form. Our records are based on information received from the Social Security Administration.” Her filing status was single. Her husband died in 2014. The 2015 return had her correct SSN. It took until 2017 to convince IRS that she was still alive. They sent her to the Social Security office, which sent her back to IRS. April 2021: Same client again receives a CP01H for 2019. (This was during Covid.) Same problem: They think she is deceased. It advises her to contact Social Security Administration to correct this situation. (SSA continues to send her monthly checks.) For 2019 IRS cashed her check, but did not send her rebate checks. A letter to the Service Center with copies of 2016 and 2017 correspondence

Mid February opening date being called for.. looks like a lot of stockpiled returns or maybe Intuit will let us efile late january and they stockpile the returns https://www.journalofaccountancy.com/news/2025/jul/new-commissioner-confident-irs-can-implement-obbbas-tax-provisions/  

IRS Commissioner confirms ends of Direct File initiative Billy Long, the newly confirmed IRS commissioner, announced the termination of the Direct File program during the National Association of Enrolled Agents Tax Summit in Salt Lake City on Monday, stating that it "is gone,” marking a significant shift in the IRS' approach to tax filing.    And.. $ 804.90

have a business vehicle using the mileage method.  receiving an error message where the tax package wants me to enter the cost basis of the vehicle 

Picked up a new client.. they brought in 2024 return and I started to onboard the return into my program so I am set to go early next year  I never saw a 1065 like this..  No cash on balance sheet,, nothing.. not a zero or negative (overdraft maybe) but totally blank. Only one line of the Balance sheet has a figure.. a negative $ 995,000 on the other asset line.. the bakup schedule for the other asset line says something like "INVESTMENT IN  ABC LLC" (A different LLC)  The Liablities and Capital secion totals negative $ 995,000 with like $ 2,000,000 in debit and a negative capital accouint line of about negative $ 3,000,000 The capital accounts from the four K-1s only equal negative that same $ 995,000 but the balance sheet capital shows negative $ 3,000,000 The clent said something how this LLC, my new client only 75% of another LLC and he will give me a P & L and a Balance sheet and I am supposed to multiply all the figures by 75% for the return I need to comp

Until this year, I added the Form 2210 penalty to the return if it was over $100, because I knew IRS would assess it. But this year, for most clients with a penalty of less than $250, I didn’t include it.  Instead, I just warned them that they might get a bill. I figured once Elon Musk got through IRS staffing with his chainsaw, there might not be enough people left to collect the Franklin-plus-change. Well, the cutoff still is only $100. But there is good news for my clients who were just charged $117. One of the benefits of filing paper returns is that IRS doesn’t notice all the numbers on a 1040. The tax-exempt interest on Line 2a of their return was not picked up, lowering the amount of Social Security taxable, so clients are getting a $100 refund anyway even after the $117 penalty

The existence of a thousand white swans does not prove there are no black swans. But the existence of one black swan (many are found in Australia) proves that not all swans are white. I am not looking for a black swan, I’m looking for an example, preferably not hypothetical, of when a Roth conversion is a good idea. I asked this in another thread, to which someone replied astutely, “To do this, wouldn't you need to calculate tax savings and tax costs and indirect financial costs (from the Roth conversion tax) and savings related to differing uses of tax savings over a very long period of time? I'm not being sarcastic or facetious.” Exactly. And that suggests one example. Say a resident of Florida plans to retire to New York, because they miss snowy winters and flooded subway trains in summer. They know that their state tax rate will be higher, so they act now to avoid it. But how often does that happen? Likewise, someone expecting a higher federal tax bracket next year – perhaps a

I have a f1099-Int with $5100 on Box 1 and 1250 in box 3- US obligation. Is it correct to assume that the 1250 is included in f1099-Int box 1 $5100? Pro connect is adding the 1250 to $5100 on the Sch B. I am not sure if this is correct or if it is overstating the interest income. 

I was directed to this form when my client received a non-cash distribution on his K-1.  He does not recall what he received so it is difficult to determine the FMV of his distribution.  We have contacted the issuer of the K-1 with no reply and it's been months.  We may have to estimate since no one can inform us of what he received...UGH!

Is Proseries planning on updates to 2024 software to include the OBBB changes for 2025 planning?

Statement of activity and statement of financial position from entity quickbooks was used for the revenues and expenses. Everything seems to be carried over from 2023 correctly, however the reconciliation of net assets is out of balance. Any ideas on what might be causing this?  Last year's return was in balance.......

I am not sure where to put license plate registration cost when on Schedule A when itemizing for a client? 

I am a solo practitioner and this is my first time ever dealing with this situation. One member of a 50-50 partnership died July 2024. His wife inherited his partnership interest. The partnership owns a commercial rental property so I'm making a 754 election to step up her basis in the building and land to FMV at date of death.I created two new fixed assets called "754 - Land" and "754 - Building" since the wife will get additional depreciation on the stepped up value of the building. I allocated the 743(b) adjustment to the wife using the Special Allocations screen. However, this throws off the profit allocated to each partner on the K-1 and I can't figure out why. It decreases her profit and increases the profit of the other two partners. Schedule L is also off by the total increase in the basis of the assets. I'm also trying to figure out how to properly show the 743(b) adjustment on the wife's K-1 (I believe it's box 13 code V or U). Apologies that this is kind of al

MFJ clients asked me if they will qualify for the senior deduction, with an AGI of $200K. It is phased out for (modified) AGI starting at 150K. However, it’s a slow phaseout – only 6% of the amount over the limit. So 6% of 50K excess is $3K, and they still get a $9K deduction. For single and HoH, the limit is 75K for the $6,000 deduction, with the same 6% phaseout rule. Tips and Overtime: the phaseout for both is $100 for every $1,000 above the limit, so 10%.  It starts at 150K/300K for both of them.  SALT: Phaseout is 30% of amount over $500K (regardless of filing status), but not below $10K.

I have exactly two clients whose income includes tips, and both are self-employed.  Under the new tax and budget law, one of them qualifies for the new deduction.  (The other doesn't because her husband puts them over the AGI limit.)  But there is nothing that excludes tips from SE tax.  And I think employees get the same treatment, because the deduction only applies to tips reported to the employer, and shown on the W-2 with FICA tax paid by the employee.   I predict this won't go over well with many tip recipients, especially those who aren't paying any income tax because of other deductions and credits.  They will still receive wage statements showing FICA tax withheld, same as usual.  

From the Senate version of the Brigitte Bardot Bill introduced at midnight Friday: "(a) IN GENERAL.—Section 165 is amended by striking subsection (d) and inserting the following:‘‘(d) WAGERING LOSSES.—‘‘(1) IN GENERAL.—For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year—‘‘(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and‘‘(B) shall be allowed only to the extent of the gains from such transactions during such taxable year." Don't ask me what this means.  If a client has $1,000 of winnings and $1,000 of losses, (1)(A) limits the deduction to $900.  But if the client has $2,000 of losses, (1)(A) limits the deduction to $1,800, but (1)(B) limits it to $1,000. Ask me at midnight and maybe I will have figured it out.  

I just love these little surprises that pop up at the last minute in major tax legislation.  Even if I'm not sure what they mean.  Sounds to me like you only get medical above 7.5% of AGI, and you only get charitable above 0.5% of "contribution base" (not defined that I can find, although a similar rule for corporations says 1% of taxable income, but no more than 10%).  But I might be wrong.  That would not go over well with people who go to church.  SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS.(a) IN GENERAL.—(1) IN GENERAL.—Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph:‘‘(I) 0.5-PERCENT FLOOR.—Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year.