Talking with TaxSpeaker: Video 77
1. Have you prepared your Year End Client letter and will you be putting that in a newsletter?
2. Have a new client who is a farmer. Five years ago, his attorney set up an LLC and his land was transferred into LLC. He and his wife are only members. I assume attorney recommended he lease land back to him and deduct rent on Sch F. Client has never drafted a lease, set up a checking account and continues to deduct all land expenses on Sch F. What should we do? Client doesn't seem to have a clue.
3. How do you find out how many returns are filed under your PTIN? I checked for last year and wasn’t able to figure it out so I called the IRS. They told me a preparer could not find out how many returns were filed under their PTIN. So if you have a way ……?
4. In the 1040 seminar, I thought Bob suggested masking the EFIN on paperwork. Does his software do this or does he manually mask the EFIN?
5. Client is a partner in an LLC taxed as a partnership. The client wants out of the partnership and currently has a modest negative capital account created in 2018 with some losses on top of distributions. We have asked the partnership whether their agreement spells out remedies in these cases using either DRO (deficit restoration obligation, usually taking the form of a contribution by the partner to bring the capital account back up to zero), or QIO (qualified income offset in which partnership allocates an amount of income to the specific partner thus raising the capital account to zero). But what if they have none of those options spelled out? Do we then have cancellation of debt in the amount of the negative capital account and, if so, does that income then give the partner additional basis freeing up some losses suspended for lack of basis?
6. On a leased vehicle, when the std mileage rate is used, isn't the depreciation included in both the rate per mile and the lease payment. We can't find where the $.25 included in the std mileage rate is applied. When owned vehicle is sold there is usually a 1231 gain or loss, but not with a leased vehicle.
7. I have a client who applied to medicare in 2019. Employer keep withholding. HSA paid medical bills after the medicare date. How is corrected? What should the…Employer do? HSA organization do? Employee do? Please Help?
8. After listening to your webinar, you mentioned the use of Grunt Worx....knowing you use Lacerte, Why do you prefer Grunt Worx over Lacerte Tax Import?
9. Do the suspended losses from a sub s shareholder be transferred to a new shareholder upon sale of his S corp stock. Or put another way, can the suspended losses be sold to a new owner. Thank you.
10. I have reached out to some other organizations and was curious if you have seen may people effected by the Error in Sch D Worksheet that the IRS corrected back in May? I have a client that owes over 7k due to the correction. Was curious what if anything they should be doing.
11. I have a client that is a real pain. They are complaining about their bill and are threatening to not pay me. I want to fire them, however I want to get paid the more than $10,000 they owe me for services rendered. The tax return I prepared is high exposure for various reasons (gambling losses over $700,000 for one). If I determine I will not get paid, then I would no longer consider myself a “paid preparer” on this latest tax return. Is there anything I can do about that? I read in a forum that one could send a letter threatening to request the IRS change my status as a paid preparer on their return. I’m just not so sure about that or even if you can do that with the IRS. Any thoughts? I have your client termination letter and am ready to check “all of the above” at this point. haha
12. I have a question about the S Election… do you recommend doing a form 8832 election with the S election. Some were doing that stating that it would then qualify for C corp if S ever went bad, but the IRS says don’t do that on the SS4 or at least the last one I saw,