Discussion:Critical Diagnostic in Lacerte re Sch F vs 1065
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Discussion Forum Index --> Advanced Tax Questions --> Critical Diagnostic in Lacerte re Sch F vs 1065
Discussion Forum Index --> Tax Questions --> Critical Diagnostic in Lacerte re Sch F vs 1065
| 13 February 2008 | |
| This year we are receiving a "critical diagnostic" in Lacerte on our tax returns when there is a Form 4835 that is coded as "joint". The diagnostic says "According to federal Sch F instructions, if the taxpayer and spouse jointly own and operate a farm, they are considered partners in a partnership and should file a partnership return. However, an election may be made under IRC Sec. 761(f) to file two seperate Schedule F's instead of a Partnership return. All items of income and expense must be allocated to each taxpayer according to the ratio of ownership. If you wish to make this election, a second Sch F and related forms must be created in the program to follow the reporting guidelines. Taxpayers that wholly own a farm as community property under the community property laws of a state, foreign country, etc., may treat the farm as a single farm or as a partnership. Refer to Sch F and/or IRS Pub. 541(Partnerships) for more info."
We have filed these tax returns this way for years and this is the first year we have ever had these "critical diagnostics". Has there been a law change or does anyone know why we would be getting this critical diagnostic. We are also getting a similar diagnostic when it is on a Sch E and coded "joint". Thanks. | |
| 13 February 2008 | |
| I started a discussion on the Schedule E issue over the weekend, see discussion "Husband/Wife Schedule E Rental", sorry can't figure out how to link it for you. | |
| 14 February 2008 | |
| Remember Intuit paid Larry Lacert 400 Mill for the company and it has been going down hill since. You can file joint Cs and Fs. Irs at one time said partnership on husband and wife and have changed that. Be sure and call Lacerte support and gripe. I did. The more we speak up the better. There has been many program changes for the worse and support told me a programer in California was responsible for a lot of it. I have been looking for him for a few years now....he ain't no tax preparer and does'nt have a clue of hte tax season work flow. I file those with critical diagnostics by paper cause Lacerte is out to lunch. | |
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