Discussion:South Carolina Help Please
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| Revision as of 13:15, 24 September 2009 BRiggins (Talk | contribs) (Yes that would m) ← Previous diff |
Revision as of 14:03, 24 September 2009 FLAcct (Talk | contribs) (Normally she alw) Next diff → |
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| {{ForumReplyPost|UserID=BRiggins|Date=24 September 2009|Text=Yes that would make sense and I thought that maybe the case but just seemed like $112,000 was a big difference. Like you mentioned above though if they purchased a lot of fixed assets then there maybe a big swing. Just wandering though why you would take all that depreciation if it would throw you into a loss (that you would be unable to take).}} | {{ForumReplyPost|UserID=BRiggins|Date=24 September 2009|Text=Yes that would make sense and I thought that maybe the case but just seemed like $112,000 was a big difference. Like you mentioned above though if they purchased a lot of fixed assets then there maybe a big swing. Just wandering though why you would take all that depreciation if it would throw you into a loss (that you would be unable to take).}} | ||
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| + | {{ForumReplyPost|UserID=FLAcct|Date=24 September 2009|Text=Normally she always has a large income from this partnership so she will be able to use this loss against 2009 and, if anything left after that, 2010 income. That will work out well for her. Do you have any ideas about the possibility of deducting the Net Section 1231 Loss on the SC 1040 even though it must be carried forward on the federal 1040? Since she does have income from this partnership on the SC1040, it doesn't seem right to not let her deduct the Net Section 1231 Loss against that income. But I'm concerned because the Schedule NR would have a zero on line 8 in column A (federal), but Column B (SC) would have a -70,000. Your thoughts please...}} | ||
Revision as of 14:03, 24 September 2009
Discussion Forum Index --> Basic Tax Questions --> South Carolina Help Please
Discussion Forum Index --> Tax Questions --> South Carolina Help Please
| 23 September 2009 | |
| I am preparing a SC1040 for a nonresident. She received a K-1 from a partnership that is all passive income to her. The federal K-1 shows a 100,000 ordinary business loss and a net section 1231 loss of 70,000. Since these are passive losses and she has no passive income, none of these losses can be deducted in 2008 and will be carried forward. The SC K-1 shows ordinary business income of 42,000 and a net section 1231 loss of 70,000. On the Schedule NR I will have to show the 42,000 as income on Line 11, but can I show the net section 1231 loss on Line 8 of the Schedule NR even though this deduction is not allowed on the federal 1040? I have read the entire instructions to the SC1040 and can't find anything about passive losses so I am at a loss as to what to do here. I would really appreciate any help you can offer. | |
| 23 September 2009 | |
| FL - I am in South Carolina so I will try to help you out. First I am just curious as to why such a large difference in the federal ordinary income compared to the sc. I usually follow the federal law when I cant find an answer in the instructions for SC. I have never had this issue so really not sure how to answer. | |
| 23 September 2009 | |
| BRiggins, thanks for your response. I imagine the large difference has to do with either a difference in state vs federal 1) Sec 179 depreciation deduction or 2) the 50% bonus depreciation allowed on the federal return by the Stimulus Act. I do know this business bought a lot of fixed assets in 2008 so that is why I think it may have to do with the depreciation deduction. Would this make sense to you? | |
| 24 September 2009 | |
| Yes that would make sense and I thought that maybe the case but just seemed like $112,000 was a big difference. Like you mentioned above though if they purchased a lot of fixed assets then there maybe a big swing. Just wandering though why you would take all that depreciation if it would throw you into a loss (that you would be unable to take). | |
| 24 September 2009 | |
| Normally she always has a large income from this partnership so she will be able to use this loss against 2009 and, if anything left after that, 2010 income. That will work out well for her. Do you have any ideas about the possibility of deducting the Net Section 1231 Loss on the SC 1040 even though it must be carried forward on the federal 1040? Since she does have income from this partnership on the SC1040, it doesn't seem right to not let her deduct the Net Section 1231 Loss against that income. But I'm concerned because the Schedule NR would have a zero on line 8 in column A (federal), but Column B (SC) would have a -70,000. Your thoughts please... | |
