Hi @Anonymous_! To answer your questions:
* Did you pay any tax liability due for the 2021 tax year (it is understood that the return was not accepted)? No.
** Is it the case that you did not include any payments on your 2022 return? Not for the federal, but for one state (new for 2022) I paid in full the small amount due, and I got on a payment plan for the other state where I reside (1st payment is coming up in Aug).
Also I'm looking in the background forms of TurboTax and it looks like now I can see there is a Form 8949 and Schedule D, however the adjustment field (and adjustment code field) is blank, and TurboTax doesn't allow you to edit those fields. Only reason I'd edit those fields is to add code "L", followed by the adjustment amount that would make the final Gain or Loss = "0" (per the Schedule D instructions saying that, because I sold my membership interest to my relative, I have to use code "L" and zero out the loss).
In the Personal -> Personal Income section of my 2021 TurboTax, in Investment Income, the Capital Loss Carryover shows $-275. When I click on that (to show more info), a window pops up that says:
"Capital Loss Carryover.
This summary shows how your capital losses will be used to reduce your income this year. It also shows any remaining loss that will be carried forward to next year.
Capital Loss Carryover from 2020 = $0
Net Capital Gain/(Loss) in 2021 = $0
Capital Loss Applied in 2021 = $-275
Capital Loss Carried to 2022 = $-275 "
I see that that's because the difference between the sale price $50,000 and the amount in my capital account at moment of sale Dec 11, 2021 $53,275 was $-3,275, and (per another info window that popped up in TurboTax) "you can have a capital loss carryover if your net capital loss is more than $3,000. That means you can carry over any net losses that are greater than $3,000 to future tax returns, until the loss is completely written off."
My lawyer said in Dec 2021 I should contact him because I'd get a good tax break from this separation, but from the looks of the IRS rules that that isn't possible, and I don't want to pay him $1,000 just to find out I might be able to get $275 off my taxes (and then find out that's not even correct), you know what I mean? I already paid $7,350 for that lawyer's help to separate myself from my brother's business, and earlier in the year another $4,568 to another lawyer to try and protect myself from some shady business stuff my own brother was trying to do against me. Any benefit to including that total of $10,938 in legal expenses to the field "Selling Expense" in the "Enter Sale Information" section?
