All Posts

@freeliberty1980 wrote: I do not materially contribute so I shouldn't be paying self employment tax.    Where are you getting that idea?  I am not aware of any rule that exempts a sole proprietor from self-employment tax if they don't Materially Participate.

@kittysocks wrote: Hello, I have read your above post. I am confused about using the tax assessments for the value of the land. Do you not use the purchase price (from when I bought it) of the land?    You are correct that you use the purchase price of the land from when you bought it.   The comment about tax assessments are if you bought or are selling both land AND buildings and the price is not specifically mentioned for each of those; the tax assessment may show how the percentage to allocate the purchase or sale between the land and buildings.

material participation not required only active participation Active participation is the least-stringent test, in which the taxpayer does not need to have regular, continuous, and substantial involvement in the operations. Instead, a taxpayer is considered to actively participate if he or she makes management decisions in a significant and bona fide sense     if you don't actively participate either, it's difficult to understand what you do and the activity in general. Perhaps what you have is a partnership which would require filing form 1065. 

I did the same.  Very easy, all you need to do is either modify or add one line to the Registry.  Took me 10 minutes to set up the update for my first computer, then less than a minute for my next two computers.  The actual upgrade take 15-30 minutes depending on the speed of your desktop.

An IP PIN is for one person. The primary taxpayer, spouse, or any dependent on your tax return can have an IP PIN. One person having an IP PIN does not require the other people on the tax return to have an IP PIN. A person can have only one IP PIN. If someone on the tax return has an IP PIN, you must enter that person's IP PIN in TurboTax in order to e-file. For a tax return filed by mail you must enter the IP PIN for the primary taxpayer or spouse if they have one, but you do not have to enter an IP PIN for a dependent.  

Google KB5070773 - this fix to be included in November's MS updates. In the meatime, you may want to leave upgrading until November. Wasted so many hours trying to fix October's update! (KB5070773 does install with a clean Windows 11 installation now.)

@mmullen00 wrote: Yep. and I would have paid Intuit $30 to keep the service.  Short sighted for a company that makes its money on finance products. Simple solution; register for one of the new, paid services, such as Deductible Duck or Deductib.ly.

I missed it as well.  I called the support line and basically I was told tough luck.  She told me all the data was deleted and so they can't get it for me either.  (I find that hard to believe it is all deleted and they have no access!)  I then went to download the "valuation guide for 2025" and it is not there either.  

If you download it again directly from TurboTax it probably won't ask you to activate.  I upgraded my Windows 10 to 11 and had trouble updating my 2024 program (all the other years back to 2019 still worked fine).  So I had to uninstall and reinstall 2024 by downloading it again.   It never asked for my License Code or to download my state and I was good to go.   And if you reinstall from your online account it has all the updates.   And it's best if you reinstall programs instead of restoring them.  

@freeliberty1980 wrote: .....when I go to the self employment tax it still has be paying it. How do I fix this? If there is a figure is on Line 14 (A Code) of your K-1, that amount is subject to SE tax and the program will treat it as such.   If you are a sole proprietor, it would be highly unusual for you to NOT materially participate in your business. If that is the case, however, then you should be aware that your deductions will be limited by the passive loss rules and you may have to file Form 8582.

Are you in North Carolina?  There is a Bailey Settlement on retirement.   TP means Taxpayer, the primary person listed on your return.  Found this old post explains it https://ttlc.intuit.com/community/retirement/discussion/what-is-bailey-settlement-retirement-benefits-how-do-i-know-my-classification-of-retirement-if-it/00/1924485   

Someone must materially participate.  If there are more than one individual involved in the business and you are a silent partner, then it is not appropriate to file a schedule C using Home & Business.  You have some other kind of business that needs a different kind of return.   If you are the sole owner of the business, but you hand off all activities to a manger and do nothing but collect the profits, you probably need legal and/or tax advice to make sure your business is structured appropriately for that situation.  You are more like a S-corporation where you are the 100% shareholder but someone else literally does all the work and you are completely passive.  But is that really the case?  You don't talk to clients? Hire the workers who do the work?  You don't make calls or do bookkeeping or supervise the manager who directs the business activities?  We would need to know a lot more about the business, and you may need professional guidance. 

You have not asked a clear question.     Here is some information about six-digit IRS IP's.   If you have a 6 digit PIN issued to you by the IRS you need to enter it in order to e-file.  Go to Federal>Other Tax Situations>Other Return Info>Identity Protection PIN and enter the six-digit PIN.       https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin   If that is not enough information, please post a clearly worded complete question---and remember that we cannot see your screen or your tax return.