Talking with TaxSpeaker: Video 43
1. What remote access software do you use to access clients computers?
2. I heard Bob Jennings speack about Gruntworx at several seminars. I was curious how much time this has save your firm, and how this has worked out for you. My boss is retiring, and I am contemplating buying the business, but just can't imagine doing tax season on my own. I thought Gruntworx might be a viable option.
3. Do you have any arrangements with vendors for email encryption? (IE: such as Share File by Citrix) Thanks.
4. Question for you . . . we us UltraTax and I have attending 3 of your tax classes on QBI, NONE of which mentioned anything about subtracting ½ of the self employment tax from the business income, I can’t find anything on the IRS site about it BUT Ultra Tax in their recent update says that the 50% Self employment tax deduction before AGI reduces the business income to calculate QBI. Just wondering if you have seen this problem since you use UltraTax also.
5. I attended a seminar in December, 2018 and Bob Jennings discussed cyber insurance and mentioned a company that he trusted but I cannot find this in my notes.
6. Client lives in personal residence for 2 years then converts it to rental for 2 years and now is selling the property for a gain. Besides depreciation recapture do they pay a prorated share of the capital gain on the sale??
7. As the preparer of a 1040 we have received a K-1 from another preparer that has rental income on it as well as QBI information. Our client does not believe there should be QBI information with respect to this rental. As the 1040 preparer, do we have an obligation to make a determination with respect to the QBI for our client with regard to this entity or since this determination was supposed to be made at the entity level, do we use the information provided to us on the K-1?
8. What is your opinion on net section 1231 gains at the entity level? Are they included in QBI? I cannot find any guidance in the proposed and final regulations. I seem to remember in one of your seminars that you believed it would be included in QBI.
9. Regarding electing out of the partnership audit regime-- if all of the other qualifications are met and one partner John Smith, has living trust, is the partnership unable to elect out? If the partner is named John Smith rather than John Smith Living Trust does that make a difference and allow them to do the election?
10. Does the IRS require you to first elect to take the 179 deduction for any portion of the asset before you can take any remaining bonus depreciation? If so, that would mean that the amount taken for the 179 deduction would be subject to recapture if business use when below 50% in a subsequent year. (Whereas no recapture for bonus depreciation if business use falls below 50%). (To be more specific, are you allowed to not take any 179 deduction ( not make the election to take any 179 deduction) and only take bonus depreciation on the entire asset?
11. Would you be able to clarify if Self Rental income within a partnership qualifies for the QBI deduction?