Talking with TaxSpeaker Video 44
1. Please give me your opinion re a Sub S corp whose stock is 100% owned by the dad but has 3 sons working as w-2 employees. Who gets to take the health insurance deduction that the Co pays for the father and the sons. the med payments are included on the sons w-2s but do they qualify for the self-employed insurance deduction or does the father take the entire amount paid for all three? Thanks!
2. I understood from the QBID classes that as a preparer I needed to allocate any QBID information to the appropriate individual. If one partner in a rental situation is the only partner putting in the hours relevant to the QBID, then only his/her K-1 should show the QBID information. I am having difficulty doing this in practice. Do you have any guidelines about this requirement and how you are handling it in your software?
3. Nonbusiness Energy Credits (Windows) This credit was not extended for 2018. Any chatter you are aware of that it may be extended for 2018? Have a 1040 that has windows – wondering if I should wait to file if this is something that may come out soon, or is it a moot point – and you expect no change?
4. Have a client who got married in 10/2018. His AGI is over 140k. His health insurance is covered by his employer-New wife has no income for 2018 – however, she was on the Health Insurance Exchange from 1/18 to 10/18 and received the Advance Premium Credit 100% to cover the monthly enrollment premium (she was on the plan from 1/18 to 10/18 – after they got married, she canceled the plan).- Ultra-tax has the client paying back the full PTC received from January to October-I have been trying in Ultra Tax to use the Alternative Calculation for year of marriage in Ultra Tax, but I cannot figure this out.- Seems to me she would only need to pay the PTC for October the month of marriage.
5. S Corp is a partner in a partnership and receives a k-1 showing a guaranteed payment. The guaranteed payment is used by the S Corp in a specified service to fund S Corp expenses and Officer/Shareholder salary. Is the excess(profit) QBI?
6. Would sitting on a board of directors and earning directors fees be considered “consulting” (and therefore a specified service trade or business) under the 199A QBID rules?
7. A client’s son attends college. He receives a scholarship that exceeds his qualified educational expenses. Can I report part of his scholarship as taxable on his return and non-taxable part on the parents return, so that the parents can claim the American Opportunity Credit on their return?
8. I attend the OAIA individual income tax update every December in Portland, Oregon. My client missed her RMD payment last year because she changed investment companies. I remember Bob talking about the steps to take to rectify this situation. i would appreciate help from Tax Speaker on where i might find this information. thank you for your time.
9. When you have a commercial building in an LLC (only asset) and it gets sold this year, is it true that you do not get to report the 2.5% of unadjusted basis for 199A purposes because the asset was not available for use at the close of the tax year? Does this differ from other depreciable assets sold during the year?
10. What happens to remaining shareholder (sub S) or member (LLC) basis when they sell or die? Can it be used as a Capital Loss on Sch D of the 1040?
11. If we have been claiming an employee business expense on an $80,000 car, and it has $20K of depreciation on it, but we are selling it now for $45K, are we still eligible to claim a loss on that vehicle? It is still used for business, we just do not get a deduction for it anymore. What about three or four years from now, after we have not claimed it as a business vehicle for several years, can we then claim a loss and how do we account for the mileage and usage? Is it still a business vehicle or is it not when we are not claiming any deductions for it. The same questions go the other direction, if we sell that vehicle and we had a zero basis, do we have to report the gain?
12. When preparing an 1120S, do I always need to put the Sec. 199A income, wages, and unadjusted basis on every K-1? I am confused on what and when these need to be reported.