James

[James @taxtwit704]

@GlenBirnbaum “The revenue proposals are estimated relative to a baseline that incorporates all revenue provisions of Title XIII of H.R. 5376 (as passed by the House of Representatives on November 19, 2021), except Sec. 137601”.

All on top of BBB - Assumes BBB passed.

[James @taxtwit704]

@JWellsCFO Yes - but sometimes the payee is a state for a withholding. Or it was a reclassified personal expense. Regardless, it should be closed out and not left with hanging balance at year end - which I believe is your point.

[James @taxtwit704]

@ForemanTaxLaw @taxgirl @EmDeeEm @fintaxdude Then you get no SE as an S AND you can issue profits interests (which are always capital gains) as an LLC. It’s really the best of both worlds!

[James @taxtwit704]

@SmithMatthewC @DailyTaxMemes Not only that - 8832 can be problematic if S election is faulty. Now you have a C Corp. If 2553 fails alone, no corp.

[James @taxtwit704]

@SmithMatthewC Yes, but it would seem to me I have a decent argument - as with other credits - that my refund came first from estimates and withholding? I would really only have a potential pick up of schedule E income if I start to get a refund of that credit?

[James @taxtwit704]

@ForemanTaxLaw @TaxManCometh9 @JamisonShipman And 1239 to make the 311(b) sting that much worse.

[James @taxtwit704]

@taxgirl I may need to get off the work Wi-Fi before I start googling for a good GIF for 751.

[James @taxtwit704]

@ForemanTaxLaw Yep. Going to need to push for the remedial method on that one.

[James @taxtwit704]

@taxchic_k Really only seems necessary if you would have otherwise had an E&P dividend or if not in income at all - a distribution in excess of basis.

[James @taxtwit704]

@ForemanTaxLaw As a CPA reader of too many (sometimes year later) - please know you are appreciated.

[James @taxtwit704]

@CPAPlanner E. Mid January

[James @taxtwit704]

@ForemanTaxLaw @AccountingAsArt If you are referring to what I think you are - NY setting a 10/15 due date for that election is just plain cruel though.

[James @taxtwit704]

@LindseyStarrett @fintaxdude @CPAPlanner I assume they did it this way because tax is on MAGI amount, not taxable income amount.

[James @taxtwit704]

@ForemanTaxLaw @cbriancpa Not to mention the arguments I get into with estate planners about grantor trusts….

[James @taxtwit704]

@cbriancpa @ForemanTaxLaw Yeah, but on the other hand - my experience is the that problem just the opposite in Texas - ‘it is a partnership, my single member LLC is the GP and I’m the LP!’

[James @taxtwit704]

@ForemanTaxLaw @cbriancpa I always hold out hope they live in Texas, but they rarely do….

[James @taxtwit704]

@GlenBirnbaum @doutaxsolutions @LearnLikeaCPA And - debt financed distributions.

[James @taxtwit704]

@davidsgamage @RichardRubinDC TBH - just got myself down a rabbit hole here after a long day and should have called it myself a while ago. Intent was just to note some weird results that may not be anticipated. I’ll bet good money that examples will be abundant next week. If not, I will.

[James @taxtwit704]

@davidsgamage @RichardRubinDC As for the other partner, bigger problem is old losses. Assuming losses were fully taken against recourse debt, debt shift in current year under proposed rules may spring a gain. 2/2

[James @taxtwit704]

@davidsgamage @RichardRubinDC At least under our current regime, once capital is depleted losses follow debt allocations. (Sometimes debt follows losses, but that method appears to disappear here). Didn’t see any suggestion that would change. 1/