Recent content by Eli

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    USA Distilling business - need advise

    Hi All, I need professional courtesy from knowledgeable members. A family member started a distillery in New York State. Both licenses, Fed and NYS, have been obtained. I am looking for broad strokes guidance on excise/sales tax and label approvals. Any help will be greatly appreciated! Thank...
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    new tax law pass through deduction

    The tax reform pass through deduction has a W-2 Wages limit. In case of a partnership, guaranteed payments do not count as W-2 Wages. Can a salary paid to a partner's spouse, and properly reported as a W-2 wage, be counted towards the calculation of W-2 wages?
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    Transfer of property from S Corp to a wholly owned LLC

    Hello all, An S Corporation wishes to transfer real property to a newly formed WHOLLY OWNED LLC. Any thoughts as to the potential problems with recognition of gain upon distribution and disguised sale? To complicate the matter, the Corporation wishes to admit new shareholders. What if the...
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    Possible withholding requirements

    Greetings, A US partnership has a nonresident alien partner. The partner passes away, while his capital account is valued at 500K. The estate of the deceased partner will, unfortunately, be liable for a significant amount in the estate tax (500K total-60K exclusion=440K taxable estate). Is...
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    Conflict of Interest - Partnership tax preparation

    Hello all and happy season! After many years in public practice, a long-term client of my old firm made me an offer I couldn't refuse. In addition to all the other work, the principals in this business want me to prepare the business partnership tax return and also their personal returns. There...
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    In case of a PTP with a loss, nothing is reported to the IRS. The filing of a K-1 seems to be a sufficient establishment of loss, and the taxpayer keep the record until such time that he has income from that PTP or until the final disposition.
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    Colin, thank you for your practical suggestion. I think (hope) there is a fundamental difference between passive losses and the NOL. The NOL does not exist without a return reporting (creating) it. In contrast, passive losses were actually reported by an entity which files K-1s. The K-1s in...
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    It seems that the purpose of form 8582 is to calculate allowable losses, rather than keep track of unallowed losses. Losses from Publicly Traded PTNs, for instance, are not reported on form 8582, these losses are tracked on worksheets. So, again, it seems that failure to file returns with 8582...
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    A taxpayer had been accumulating passive losses over many years by virtue of being a limited partner. The partnership was issuing forms K-1 every year showing a loss. The taxpayer was not filing tax returns for all these years, as he was below filing requirements. Any ideas as to the source that...