Talking with TaxSpeaker :Video 82
1. Client is considering renting out their basement as an Airbnb. Do you have any thoughts on as to whether or not they should create an LLC for this activity?
2. Does the Failure to File Penalty apply to the tax return if there is a refund? Or is it still just if the taxpayers owes and just an increase in penalty?
3. (Secure Act) When IRA has withdrawn for birth redeposited, is it tax deductible? Since it is taxable when withdrawn.
4. Does a husband and wife who formed an LLC for rental residential real estate (got a tax ID number) have to file a partnership return? Can they file Schedule E instead?. I thought they could file a Schedule E. Please let me know. Thank you.
5. Client owns two S Corps (he is the sole owner of both) S Corp A is primarily held for house flips. S Corp B is real estate business. He purchased a box truck at the end of the year as a benefit to his clients that buy houses through him. His lawyer advised him to title the vehicle in Company A’s name because if something were to happen, the liability would be lower. However, he wants to take the tax write off for Company B since that is the real estate business. He doesn’t have any business activity this year for Co A. Is there any way for him to get a tax write off for this vehicle?
6. I am listening to the above referenced webinar (Federal Webinar). Mr. Jennings talked about coffee pots and a bowl in the bottom. Could he come up with an example of how the pro-rata works?
7. I have a question regarding Net Investment Tax (NIIT). I have a client that sold farmland that he has been renting to his farming son & grandson. Could we avoid the NIIT surtax on the capital gain because family members are actively farming the farmland?
8. Does Bob recommend a specific software for electronic signatures?
9. We have a new client that was formerly with a national firm. Their 2015 federal tax return was extended and filed on October 17, 2016 and the national firm filed an amended 2015 return by certified mail on October 16, 2019. The IRS rejected the amended return and noted that they needed to RECEIVE the amended return by October 16, but in fact did not receive it until October 21, 2019. Is this correct? So for an amended return the filing date does not matter but the date RECEIVED by the IRS does? Does our client have any procedural recourse that you are aware of? The amended return was our suggestion and $ 21,000 is at stake.
10. I picked up a new C corporation client and the corresponding personal return. For at least the prior two years, the previous tax preparer was recording $25K of dividends on Schedule B of the 1040 without issuing a 1099-DIV. I believe those dividends should have been qualified, giving the taxpayer the 15% tax rate (and potentially the 0% tax rate). Can the prior years be corrected if a 1099-DIV was never issued? Can I prepare corrected Forms 1099-DIV or will it bring into question the absence of the original forms?
11. Client 73 has earned income - in addition to IRA can they also put money into a spousal IRA?
12. My question is, for the year 2020, if I am age 62 and still working full time and my spouse is age 72 and retired, can I contribute to my spouse’s IRA and deduct it?