Talking with TaxSpeaker: Video 85
1. Single shareholder S corporation owner passed away during 2019. Prior S corporation returns indicate commercial buildings on depreciation schedules. Three surviving adult children indicate they took title to the commercial buildings via a beneficiary deed to them as individuals from their Dad in his individual name. This would indicate the buildings were never transferred into the name of the corporation even though shown as such on the corporate returns. I believe the children now have a partnership by default. Would they receive a step up in basis even though assets were shown incorrectly on corporate return? How would we proceed with the S corporation and what (if anything) to do about the prior years since shareholder is deceased?
2. In the October 29 video, you answered a question regarding charitable contribution substantiation. You said that for gifts over $250 you are required to have BOTH a letter from the charity and a receipt. I can’t find that rule anywhere. Everything I read indicates that a properly written letter can constitute a receipt. Can you point me to your source?
3. Does an embryo that is adopted to be implanted qualify for the adoption credit?
4. I have consulted legal counsel, but I am looking for another accountant opinion on this one. A couple owned an S corporation 50/50. They divorced and the husband bought the wife out as of September 2019. Is the wife entitle to receive her W-2 and 1099 directly from our office or does she have to wait for him to mail it to her? Also is she entitled to a copy of the 2019 S corporation return?
5. Quick Question! LOL. With all the info on Ira’s I think I may have missed something. Are Back door IRA’s Still Legal? Book indicates yes but I think I remember you saying No in class. Or maybe it was just the cautions I remember.
6. We have a question regarding File Notice 2019-20. Do you have an option on whether this pertain only to partners receiving a K-1 from a 1065, or will this also include disregarded entities reporting on Schedules C, E, and/or F?
7. My client worked until age 69 and was covered by his employer's health insurance until retirement. He signed up for social security to begin October 2019 and asked that it not be made retroactive 6 months. If you don't ask otherwise, they back up social security start date 6 months. He received a letter that his medicare start date is April 2019. He contributed to his HSA account until September. Now he must withdraw those extra contributions. Why did his medicare go back 6 months before his retirement? Does he have any recourse with social security?
8. I have a partnership that leases a building. The partnership sub leases booth space to other cosmetologists. Is this Rental income subject to SE tax?
9. Is there a percentage the S corp has to pay for an employees health insurance to qualify for the ss/medicare exemption? or does the S corp just have to offer health insurance and not pay any portion.
10. When trying to determine if health insurance coverage for a company’s employees is discriminatory, how exactly is this done?
11. I have a client who is well past FRA and gets Social Security. He asked about whether or not having been a Veteran could add to his benefits. He served during the 40’s and early 50’s. Not career military, though. I have not been able to come up with any definitive answer to give him. Can you tell me the mechanics of how that works or steer me to some resource so that I can give him some satisfaction
12. On the 941 form line 7 where you can adjust for fractions is there an unspoken MAX adj (ie say 50 cents) ?