As I explained in my post there is a loss this year, taking Sect. 179 will result in a carryover - no expectation it would be used for 2023. Same with Bonus. The difference is bonus is at the entit...
See more...
As I explained in my post there is a loss this year, taking Sect. 179 will result in a carryover - no expectation it would be used for 2023. Same with Bonus. The difference is bonus is at the entity level (included as part of the NOL) whereas 179 is not. The point is the Sect. 179 will, eventually, be used and will not be subject to the 80% limitation on NOL, which is what I prefer the client avoid. In addition, the taxpayer can amend for change to 179 with bonus he/she cannot. I've thought about MACRS but considering Sect. 179 carries indefinitely and without the NOL 80% limitation I'm inclined to use the 179. I believe this is a win win for the client, but not immediate. After the S Corp deadline the client told me he bought this franchise in 2023 and formed the S Corp. I am trying to limit his penalties. As I stated with 179 I can amend later if circumstances warrant. In the meantime I need to get this return filed. ProSeries should be showing the carryover on the 4562 but it is not.
Agree! But I don't think ProSeries is showing the Section 179 correctly. It's only showing up on the Asset entry sheet and the Depreciation list. Not flowing to the K-1 or showing on the summary.
Definitely a basis limitation. The bonus would create an NOL that can be carried forward and used @80%. The 179 can be carried forward and used to offset income (subj to basis limitation of course)...
See more...
Definitely a basis limitation. The bonus would create an NOL that can be carried forward and used @80%. The 179 can be carried forward and used to offset income (subj to basis limitation of course) 100% indefinitely.
First year S corp. Franchise operation with equipment purchases, franchise fees etc. Taxpayer has a rather large operating loss. Based on my reading it's likely more advantageous Sect 179 deprecia...
See more...
First year S corp. Franchise operation with equipment purchases, franchise fees etc. Taxpayer has a rather large operating loss. Based on my reading it's likely more advantageous Sect 179 depreciation rather than bonus. The problem is I enter the 179 on the asset entry screen. the amount of 179 shows up on the asset list. However the 179 doesn't show up on the K-1, M-1 screens. It's like there is no Sect 179 yet the asset basis is reduced. What am I missing?
Taxpayer is a MD Resident. He receives a K-1 with income and PTE tax paid from VA. K-1 has all the necessary info. to prepare the form 763. I've been processing his returns for the last 4 years wit...
See more...
Taxpayer is a MD Resident. He receives a K-1 with income and PTE tax paid from VA. K-1 has all the necessary info. to prepare the form 763. I've been processing his returns for the last 4 years with the S Corp info. attached. This year his wife has a schedule C, MD income only. For some reason VA wants the Sch FED completed. The wife's sch C income is on line 2. Line 5 First Schedule Locality box is giving me an error message that will not go away even when I delete the form - it just comes back. I searched through the drop down menu to see if I could find a selection for no entry, which I did but still I receive the error message. I need to efile this return and would appreciate any feedback regarding a work around etc. Thanks!
Would you like to send an email to the administrator(s) at your firm requesting online access? Just started getting this message in Professional PS 2023 a few moments ago. Have been getting this me...
See more...
Would you like to send an email to the administrator(s) at your firm requesting online access? Just started getting this message in Professional PS 2023 a few moments ago. Have been getting this message in Pro 2020 for ~a month. I am the administrator and the only user of the program. Please provide instructions to correct. I need to file extensions. BTW if I select "yes" to send Admin an email to authorize the email never arrives.
Thought I would give a quick update. After attempting to "fiddle" with this client's extension for 2 days - at a critical time when revenue stakes are high, I broke down and called tech support. I ...
See more...
Thought I would give a quick update. After attempting to "fiddle" with this client's extension for 2 days - at a critical time when revenue stakes are high, I broke down and called tech support. I actually got a wonderful tech who walked me through correcting. The tech mentioned right off this was a known problem and there was a work around. As IRonMaN mentioned I had to uncheck the file return electronically for both the federal and state. Then check the the efile extension for both returns leaving the efile return unchecked. A misc statement in the name of one of the prior shareholders and an "untitled" basis statement had transferred over. I had tried to remove them but they kept re-appearing. There was information on the basis statement, so I zeroed out all the populated boxes and was then able to delete both statements. Whew, feeling really good about the next step - efiling the extension! Was about to click on the box when I got a statement that I needed to pay for the return as I had exceeded my limit. Tech support lady said I'd need to get that straight with customer service because I knew that was incorrect. I paid for the returns - knowing I'd be playing Russian roulette to call and get decent tech support. Happy to report both extensions went through fine. Getting a credit for the duplicated pay per return charge wasn't as easy or as pleasant......
Well at least I'm not the first user who has experienced this phenomenon. When you say uncheck the efile extension box you mean I have to mail in the extension? I haven't had to do that since I don...
See more...
Well at least I'm not the first user who has experienced this phenomenon. When you say uncheck the efile extension box you mean I have to mail in the extension? I haven't had to do that since I don't even remember. I'll need to read the IRS instructions, LOL...
The error message is the shareholder's address must begin with a letter or number. There are 2 shareholder's, address is fine in ProSeries. The number of shareholders is not. Last year 2 of the sh...
See more...
The error message is the shareholder's address must begin with a letter or number. There are 2 shareholder's, address is fine in ProSeries. The number of shareholders is not. Last year 2 of the shareholders were bought out by the remaining 2. I have not been able to successfully change the number from 4 to 2. I checked the instructions which read any shareholders from the prior year will not transfer if the K-1's were marked "final". In this case both shareholders whose shares were bought in 2022 had the "final" box checked on their K-1. I tried deleting the share holder information, deleted the entire transferred file from 2022. Nothing works, not even overriding the number of shareholders. Please advise how to correct so that an extension can be filed timely..
Is there a way for Lucinda to Private Message. This community is a logical choice and I'm certain others would be willing to help. Proactive when you know what you don't know!.
Thank you TaxGuy. I did all the steps you mentioned - I've actually been doing the SE health for clients for years. This is the first time I've had so many issues. To make matters worse, MD put on...
See more...
Thank you TaxGuy. I did all the steps you mentioned - I've actually been doing the SE health for clients for years. This is the first time I've had so many issues. To make matters worse, MD put on the 1095-A the client was covered in MD during July. SC has them covered in July. SC is correct MD is not. I told the client he needs to have MD correct the 1095-A form.
Taxpayer was a 2% greater S Corp shareholder-employee. Insurance was purchased through the exchange in the state in which they were living at the time. There were 2 1095-A forms issued due to relo...
See more...
Taxpayer was a 2% greater S Corp shareholder-employee. Insurance was purchased through the exchange in the state in which they were living at the time. There were 2 1095-A forms issued due to relocation from MD to SC. I link to the K-1 with the dates coverage was provided at the bottom. On the K-1 under "Outside Expenses" line 1 I entered 0 since all premiums were reported on one of the 1095-A forms. Line 2 I enter the amount of Medicare wages on the W2 box 5. Then I QuickZoom to the SE HI deduction wksht. On the wksht the amount of SE HI paid is shown correctly as $13,717. Form 7206 shows the correct amount. When I get to the 1040 line 17 SE HI deduction is showing as $31934 (no idea how where that amount comes from). The only way I've been able to get the correct amount to show up on line 17 of the 1040 is to override and put the correct amount in. I've spent hours trying to straighten this out. Does anyone know how to get the correct amount of the premiums paid onto 1040 line 17 besides overriding? If so please respond. Thanks!!