MCremer
Returning Member

Tax return questions

Hi, I have more than a few questions with regards to things I encountered last weekend while trying to finish my tax return on Turbotax. I would much prefer an accountant answering these.

1.) I just closed an S-Corporation I had. There is an item on TT called "Describe S corporation Disposal." Do I answer "I disposed of it, but not by selling it" or "None of the Above?" I did not sell my S-corp by the way.

2.) The second one I need clarification on is this: "Did you materially participate in this S corporation's business activities during 2019? If you did, you may be able to avoid passive activity rules" I am actually a full time employee for a company and had zero activity in my S-corp for 2019. Did I still materially participate?

3.) My old CPA did $470 worth of tax prep work last year. Can I not use that as a deduction anymore?

4.) My next question is just easier by including a screen shot. What would be the correct way to answer? (I'm hoping you can click and expand this) IMG_7691 (2).jpg

Thank you for your help. It is much appreciated!

DavidS127
Expert Alumni

Get your taxes done using TurboTax

For the questions related to your 2019 S Corporation Form 1120S:

  1. Yes, when you permanently cease business operations for an S Corp, you have "disposed of it, but not by selling it. Note that the disposition of the S Corp stock can result in a gain or loss on your individual tax return.  See this IRS website for more information about the disposition of your S Corp.
  2. Yes, you are considered to have materially participated in your S Corp, even though it was "dormant" in 2019.
  3. For tax preparation fees, the portion of tax preparation fees related to the return of your S Corp tax return is deductible by the S Corp.  Tax preparation fees for your individual tax return are no longer deductible, starting with 2018 tax returns.
  4. On your Other Situations screen, your all your investment is at risk as long as you have more invested in the S Corp (capital contributions, shareholder loans, and other loans for which you are personally obligated to pay) that you have deducted in losses.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Get your taxes done using TurboTax

Hello,

 

I submitted my tax return on 4/11 and in the final steps several TurboTax fees were applied - 2 $50.00 state fees and 1 $100 Fed tax fee.    I specifically indicated when starting that I wanted the "Free" version of TurboTax since I don't have any deductions.  Can you check on this for me please?    [PII Removed]

DianeW777
Expert Alumni

Get your taxes done using TurboTax

We would be happy to check on it.  To begin the conversation please use this link: Contact us

  1. Select your product (CD/Download Mac or CD/Download Windows, or Online), your edition (Basic, Deluxe, etc.), ask your question, then select Continue.
  2. On the following screen, enter your contact info, then select Get the phone number.

The above is the best and most efficient way for you to connect with the right person so that you can get the help you need. But if you still require assistance, you can contact us on (800) 446-8848.

 

For more information please click the link: What is the TurboTax phone number?

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Get your taxes done using TurboTax

Hello,

 

What have you found out?   My SS #[social security number removed]

Thanks

LenaH
Employee Tax Expert

Get your taxes done using TurboTax

We'd love to help you complete your tax return, but need more information. Can you please clarify your question? This is a public forum and we cannot look up your information by your social security number (which has been removed for your safety). 

 

@ponderosa09

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Get your taxes done using TurboTax

Hello,

 

What clarification do you need?   You didn't provide any information.   Do you need a phone # so we can have a better conversation?   This is not very productive.

JotikaT2
Employee Tax Expert

Get your taxes done using TurboTax

As this is a public forum, we do not have access to your account information here.  Therefore, we cannot assist you with matters directly relating to your account in the community forum.

 

You will need to use the link below to contact us.  Let the agent know what your issue is and they will be able to assist you.

 

Contact TurboTax

 

@ponderosa09

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"