My client is a 100% owner of an S Corp. The S Corp established a health insurance plan for the shareholder. We added the $10,000 in health insurance premiums to Box 1 of his W-2. The net income from the S Corp BEFORE deducting the $10,000 health premiums was $65,000. After deducting the $10,000 in health premiums, the net income was $55,000 - which was reported on his personal tax return as pass through income.  When the 2022 tax return was prepared, we claimed a $10,000 deduction on line 17 of Schd 1 (Self-Employed Heath Premiums) which was manually entered on the Health Heath LTC Wksht. When I reviewed the QBI computation I noticed it started with the $55,000. Then there was also a deduction for the Section 179 expense ($1,000) that I appropriately entered on the S Corp K-1 Wksht. in the QBI Deduction area (Section D1). So now the net QBI was $54,000. Was I supposed to also MANUALLY enter the $10,000 of health insurance premiums on the S Corp K-1 Wksht (in Section "D1 - QBI Deduction Statement A Information)? I sure hope not! Not sure why that wouldn't just automatically transfer to that area of the S Corp K-1 Wksht if that was supposed to be entered.  Any help would be appreciated. 

My mother-in-law passed away this week. Her grantor trust holds title to her 4-flat (full depreciated) building. That's the only asset in the trust. The building is worth probably $500,000 right now. Her taxable estate is just the building - she has no other assets. Does the trust get a step up to FMV? Can the trust begin depreciating the stepped-up basis effective with the date of death?  

I am preparing the Massachusetts individual tax return for a 25 yr old client who is covered under his parent's health insurance policy. It's not clear how to fill our the MA Schedule HC Worksheet in this situation. He was covered all year and I'm sure the plan met the MCC coverage requirements because the dad's policy is via his employer (Microsoft). I just can't figure out how to report that though on the MA Schedule HC Worksheet. Any help would be appreciated!

I have a lot of S Corp clients receiving notices from the IL Dept of Revenue because apparently when making the estimated tax payments in 2022 for the new PTE tax credit I should have also included the IL replacement tax as well. So when making the payments if you didn't pay in BOTH the expected PTE tax AND the IL replacement tax, then you will be getting a pretty sizeable penalty. I thought we only had to pay in the expected PTE amount because you were never required to make estimated tax payments for the IL replacement tax. Did not know that! Anyone else seeing these penalties from their clients? The curious thing is that the ProSeries software is NOT assessing the correct amount of penalty.