1. What are you telling individuals who rent out farm ground for cash only and do not meet the safe harbor?
2. Can you ask Bob if he gives or can recommend a course to bring us up to speed on the R&D credit? I am running into this issue more and more and don’t feel comfortable with the knowledge needed. Does he recommend that we take the credit or use an outside firm to prepare the calculation and audit protection.
3. If you have Bitdefender mobile security VPN, is it safe to use free wi-fi at a hotel/restaurant, etc? How difficult is it for an average user to install Bitdefender Box? Would you recommend it for a small office as well if all computers are protected by Bitdefender?
4. S Corp owns multiple LLC’s that own rent commercial buildings. The LLC’s are Q-Subs and the only owner is the S Corp. The S Corp also rents some commercial buildings where the S Corp has direct ownership. The S Corp uses it’s office space to conduct business for all of the properties and has a controller to handle all of the accounting functions for all of the buildings. Each Q-Sub has it’s own bank account and books and records but the accounting is done by the controller hired by the S Corp. All of the income is reported by the S-Corp. When the S Corp tax return is prepared, each property is listed separately, mainly due to properties being located in different states. Would you consider this to be one trade or business or multiple trades or businesses requiring the filing of an election by the S Corp or the shareholders of the S Corp to treat them as a single trade of business?
5. We have an LLC (1065) that has a research credit. The members of the LLC are 3 individuals and an 1120S. The 3 individuals in the LLC are also shareholders in the S Corp and take substantial salaries from the S Corp. The LLC has modest income compared to the research credit and the use of the research credit is limited at the individual level. The S Corp has losses but when net with the W-2 income from the S Corp it generates enough income that the credit from the LLC is being allowed in full on the respective 1040's in UltraTax. It seems as if the use of the research credit at the individual level flowing the S Corp should still be limited to the income that passed to the S corp from the LLC and that the activities of the S Corp itself should not have any bearing on how much of the LLC research credit can be used by the S corp shareholders. Am I correct in thinking we need to limit the research credit flowing through on the S corp K-1 to the tax on the income that originally flowed into the S Corp from the LLC? If so, any idea how to get ultratax to do this.
6. If my client is under audit for a prior year can I change accounting method for current year (not filed yet and not under audit)?
Opportunity Zone Questions
7. What happens to the capital gain deferred in an installment sale?
8. What happens if after the first year of the installment sale, the sale ends and reverts to the seller?
9. How are related parties affect the QOZ GAIN, AND THE QOF INVESTMENT?