Welcome to the 2018 ExacTax workshop · Welcome to the 2018 Individual ExacTax workshop •The2018taxseasonwillbean“interestingyear”,thereareover50major provisionsintheTaxCutsandJobsAct(TCJA

2018

WORKSHOP

Welcome to the 2018 Individual ExacTax workshop

• The 2018 tax season will be an “interesting year”, there are over 50 majorprovisions in the Tax Cuts and Jobs Act (TCJA) impacting individual filers, includingchanges to itemized deductions, deleting the personal exemptions, addingQualified Business Income deduction (QBID), expanding the due diligence toinclude head of household and other dependent credit, removing most of thephase‐outs and many more changes.

• This workshop will assume that you've already attended an update seminar for2018 tax law changes and will concentrate on the input changes. In most cases,the input has remained the same as 2017, other than the new input for QBI. Eventhough the 2018 laws have changed for federal, the preparer must do the sameinput that you had to do in 2017 to complete state returns.

2018 WORKSHOP PRESENTATION

1

IRS Opening Date for 1040 Electronic Filing The IRS has announced that the opening date for Individual returns will be January28, 2019 (January 8, 2019 for business returns). Despite the government shutdown,the IRS is continuing to update its programming and processing systems for 2019. Inaddition, the IRS continues to closely monitor potential legislation that could affectthe 2019 tax season. The IRS will continue to work closely with the nation's taxprofessionals and software community as preparations continue for the 2019 taxfiling season.IRS provides penalty relief for underpayment of 2018 individual taxes The IRS has announced that it is waiving the estimated tax penalty for manytaxpayers whose 2018 federal income tax withholding and estimated tax paymentsfell short of their total tax liability for the year. The relief, announced in IR‐2019‐03,is prompted by changes in the Tax Cuts and Jobs Act (TCJA). This waiver coverstaxpayers whose total withholding and estimated tax payments are equal to orgreater than 85% of their taxes owed. For waiver purposes only, this new relieflowers the 90 percent threshold to 85 percent. This means that a taxpayer will notowe a penalty if they paid at least 85 percent of their total 2018 tax liability. If thetaxpayer paid less than 85 percent then they are not eligible for the waiver and thepenalty will be calculated as it normally would be using the 90 percent threshold.The waiver computation will be integrated into the revised Form 2210 oncereleased by the IRS.


2

Post‐card sized Form 1040

The IRS introduced a newly redesigned Form 1040 tax return for the2018 tax return filings (2019 processing year) that will replace thetraditional Form 1040, 1040A, and 1040EZ. The new 1040 consists oftwo pages and six supporting schedules.

• Schedule 1 – Additional Income and Adjustments to Income • Schedule 2 – Tax • Schedule 3 – Nonrefundable Credits • Schedule 4 – Other Taxes • Schedule 5 – Other Payments and Refundable Credits • Schedule 6 – Foreign Address and Third‐Party Designee

Note: only schedules with data on them will be printed.


3

Expired Tax Credits and Deductions Unless extended by legislation, the following credits and deductions expired onDecember 31, 2017. The tax credits that expired will not be calculated with thisversion of UltraTax/1040. Pending the outcome of future tax legislation, thesecredits may be available on a future update.• Above‐the‐line deduction for qualified tuition and fees and related expenses • Schedule A interest deduction for allocable mortgage insurance premiums • Form 5695, Nonbusiness Energy Property Credit (Solar/Fuel Cell is still allowed)• Form 8844, Empowerment Zone Credit • Form 8845, Indian Employment Credit • Form 8864, Biodiesel and Renewable Diesel Fuels Credit • Form 8900, Qualified Railroad Track Maintenance Credit • Form 8908, Energy Efficient Homes Credit • Form 8911, Alternative Fuel Vehicle Refueling Credit


4

This workshop presentation will be divided into 3 separate sections:

1. Qualified Business Income Deduction (QBID) input;2. Itemized deductions;3. The remaining input changes including:

• Expanded due diligence requirements.• TCJA modified the child tax credit (CTC) to provide for a $500 nonrefundable credit forqualifying dependents other than children who can be claimed for the CTC.

• Roth conversions can no longer be recharacterized.• Form 3903, Moving Expenses – allowed only when it’s an Armed forces move.• Kiddie tax is no longer affected by the tax situations of the parent and siblings.• Entertainment expenses are no longer allowed as an expense for Schedule C.• Form 461, Limitation on Business Losses. The excess business loss is not deducted in thecurrent year but instead becomes part of the net operating loss carryforward.

• Net operating loss carrybacks are now allowed only for farm losses. Losses in the current yearhave an unlimited carryover and are tracked separately.

• Employee business expenses only used as an adjustment from gross income for specificoccupations, certain states, and supplemental business expenses.

• And more…


5

Qualified Business Income DeductionThe biggest change for 2018 is going to be the QBI deduction. Additional input hasbeen added to the Schedule C (Form 28A), Schedule F (Form 36A), the rental (Form31A), Schedule K‐1(Form 32E and 34C), Form 4835(Form 38A), deprecation input(Form 53) and the dividends section (Form 21B). There are 3 components used tocompute the limitations for QBI deductions: 1; QBI income, 2; qualified wages and3; qualified property.1. Qualified Business Income: Is the net income from any trade or business that meets the section

199A requirements. This includes sole proprietorship (Schedule C), farms (Schedule F), rental(Schedule E), farm rental (Form 4835), REIT dividends, a partnership (Form 1065), an S‐Corporation (Form 1120S) and Trust (Form 1041) that may take advantage of this deduction.However, simply having your company organized as one of these entities for tax purposes doesnot necessarily mean you will be eligible for the deduction.

2. Qualified Wages: Includes all wages subject to wage withholding, plus any elective deferrals,plus any deferred compensation paid in the production of QBI.


6

Qualified Business Income Deduction (continued)

3. Qualified Property: If the activity qualifies for the QBI deduction, the depreciableassets are assumed to be qualified property. The term “qualified property” meanswith respect to any qualified trade or business for a taxable year, tangible property ofa character subject to the allowance for depreciation (therefore inventory, land oramortization can't be included) under section 167:

1. which is held by the business at the end of the taxable year,2. is used at any point in the year in the production of QBI, and3. “the depreciable period” could not have ended prior to the last day of the taxable

year.“The depreciable period” means that period beginning of the date the propertyis first placed in service by the taxpayer and ending on the later of:

1. the date 10 years after that day, or2. the last day of the last full year in the applicable recovery period that would apply to

the property under section 168.


7

Qualified Business Income Deduction(continued)

The system defaults for computing QBI deduction will be as follows:

Schedule C All businesses qualify for the QBIdeduction. If the business is a“Specified Service Trade orBusiness” (SSTB), check zip 5 atthe top right‐hand corner of Form28A.

Schedule FAll farms will qualify.


8

Qualified Business Income Deduction (continued)The system defaults for computing QBID income will be as follows:

Rental incomeNone, that is no rentals qualify. Ifthe rental is qualified for QBI, enter a“1” in zip 49 in the Rent‐2 section“Rental activity rises to the level ofsection 162 trade or business,otherwise enter “2”. (Note: Do notleave this field blank, if property typeis 1, 2 or 4).

Form 4835 None. If the farm rental is qualifiedfor QBI, enter a “1” in zip 38 in the4835‐2 section “Rental activity risesto the level of section 162 trade orbusiness, otherwise enter “2”. (Note:Do not leave this field blank).


9

Dividend IncomeAny REIT dividends will be included on the Form 21B in the dividend section in the column titled“Section 199A dividend”. Note: 199A dividends must be included in Ordinary dividend.

Qualified Business Income Deduction (continued)The system defaults for computing QBID income will be as follows:

Schedule K‐1Pass‐through entities will be passing through the QBID information. The QBI deduction section islocated on the Form 32E (1065/1120S) or Form 34C (1041).


10

Qualified Business Income Deduction (continued) Additional system defaults and override for components to be used in computing QBI

deduction (QBID) will be as follows:Schedule C overrides are located in the QBI section located on Form 28B

1. Qualified Business Income can be overridden in zip 6. 2. All wages entered in zip 29; to override the qualified W‐2 Wage, enter the

amount of qualified W‐2 wage in zip 7.3. If the activity qualifies for the QBI deduction, the assets are assumed to be

“qualified property” within the limits. To override the qualified property, enterthe amount of property in zip 8. (RDE: See RDE section, for additionalinformation).


11


deduction (QBID) will be as follows: Schedule F overrides are located in the QBI section located on Forms 36B

1. Qualified Business Income can be overridden in zip 6.

2. All wages entered “Labor hired” in zip 21, to override the qualified W‐2 Wage, enter the amount of qualified W‐2 wage in zip 7 on Form 36B.

3. All farms qualify for the QBI deduction, the assets are assumed to be “qualified property”within the limits. To override the qualified property, enter the amount of property in zip 8.(RDE: See RDE section, for additional information).

4. Enter any QBI allocable to qualified payments from a cooperative in zip 9.

5. Enter any qualified wages allocable to qualified cooperative payment in zip 37.

6. Cooperative QPAI deduction allocated to patron and in writing in zip 10.


12


deduction (QBID) will be as follows: Schedule E (rental income) overrides are located in the QBI section located on Form 31B

1. Qualified Business Income can be overridden in zip 20. 2. None, there is no wage field. If the rental has qualified W‐2 Wages,

enter amount of qualified W‐2 wages in zip 21 on Form 31B.3. If the activity qualifies for the QBI deduction, the assets are

assumed to be “qualified property” within the limits. To overridethe qualified property, enter the amount of property in zip 22.(RDE: See RDE section, for additional information).

4.


13

Qualified Business Income Deduction (continued)Additional system defaults and override for components to be used in computing QBI

deduction (QBID) will be as follows:Form 4835 (farm rental income) overrides are located in the QBI section located on Form 38B

1. Qualified Business Income can be overridden in zip 7.

2. None, there is no wage field. If the farm rental has qualified W‐2 Wages, enter amount of qualified W‐2 wages in zip 8 on Form 38B.

3. If the activity qualifies for the QBI deduction. The assets are assumed to be“qualified property” within the limits. To override the qualified property, enter theamount of property in zip 9. (RDE: See RDE section, for additional information).

4. Enter any QBI allocable to qualified payments from a cooperative in zip 10.5. Enter any qualified wages allocable from cooperative in zip 39.6. Cooperative QPAI deduction allocated to patron and in writing in zip 11.


14

Qualified Business Income Deduction (continued)

Depreciation override to be used in computing QBI deduction (QBID) will be as follows:

Individual asset qualified basis overrides are located on Form 53

If an asset was not used in theproduction of QBI, enter theasset number and check the boxto “Exclude asset from QBI”.

If an asset was not usedexclusively in the production ofQBI, enter the asset number andenter“199A Qualifying basis forQBID”.

3

4

25137

x

All assets are assumed to be “qualified property” within the limits.

Note: To override the total qualified basis, enter the amount in the QBI section on the appropriate activity input form.RDE: See RDE section, for additional information.


15

QBID worksheets There are 2 worksheets used to compute the QBI deduction.

• Simplified Worksheet 1. Have qualified business income, REIT dividend or PTP Income, and2. Not a SSTB or horticultural cooperative, and3. Have taxable income before deduction of $157,500 ($315,000 jointly) or less.

else use;• QBI component worksheet (separate worksheet for each activity).


16

QBID worksheet (Continued)QBI Component Worksheet (Example of return income over $315,000 with multiple QBI activities with both gain and loss). When using the QBI component worksheet – QBI loss must be allocated to offset gain.

Even through the Farm has QBI of $48,000, the component worksheet shows the Farm income of $41,302.


17

QBID worksheet (Continued) Other QBI worksheets include:

• Qualified Property report

• Schedule of Qualified Business Income and Losses


18

Example of a Component Worksheet (page 1)


19

Example of a Component Worksheet (page 2)


20

Itemized and Standard DeductionThere are quite a few changes to both the standard deduction and itemizeddeductions for 2018. The standard deduction increases to $24,000 for marriedtaxpayer and 12,000 single taxpayers. (California standard deduction is, marriedtaxpayer $8802, single taxpayers $4401). Because of the increase to the standarddeduction, the IRS estimated that the number of Americans claiming itemizeddeductions will drop from just over 26% in prior years, to less than 8% under thenew tax reform bill. In other words, 92% of all taxpayers will now be claiming thestandard deduction. However, because the standard deduction for California hasremained low, tax preparers will still have to complete the Schedule A input forstate purposes.Let’s look at itemized deductions for an example:

• Even though state and local taxes (SALT) will now be limited to $10,000 for federal purposes,there is no limitation on taxes in California, so the preparer must enter the same informationin 2018 as 2017. We must enter all the taxes data even though our SALT may be limited to$10,000 for federal return, they will still be allowed for California. Even though there are nomore miscellaneous deductions subject to 2% for federal purposes all those deductionsremain for California and the preparer will continue to do the exact same input for 2018 aswe did for 2017, including the Form 2106.


21

Itemized Deductions ‐ Taxes (continued)State and local taxes (SALT) (including real estate, property taxes and DMV fees)deductions will be limited to $10,000 ($5,000 married separate); Note: If you haveincluded DMV fees in “Other taxes”, DMV fees need to be moved to property taxes.“Other Taxes” includes income taxes you paid to a foreign country and generationskipping tax (GST) imposed on certain income distributions.

Included DMV Fee as Property Taxes


22

Itemized Deductions – Mortgage Interest (continued)Qualified mortgage interest is any type of home loan interest that was used to buy, build or improve(BBI) a main or qualified second home and the loan is secured by the home. Home mortgagesacquired after 12/15/17 are limited to $750,000 of acquisition debt (prior to 12/16/17 theacquisition debt is limited to $1,000,000); The additional $100,000, previously allowed deductionfor non‐BBI interest is disallowed. Any loan entered with a code 1, will be disallowed for federal andstate. This will also check the box on Schedule A, line 8 (See previous slide).

California: If the home mortgage interest was limited by the $750,000 cap or disallowed as non‐BBI,enter the total allowable home mortgage interest on Form CA2B, in zip 22, 23 and 24.


23

Itemized Deductions – Contribution/Casualty (continued)

The cash charitable contribution AGI percentagehas been increased to 60%. California remains at50%; as do non‐cash contributions.

Casualty and theft losses have been suspended except in areas that are designated as“presidential declared disaster area”. Check zip 9 and enter the FEMA disaster numberin zip 10. (California: All casualty losses remain deductible within the limits).

The non‐cash qualified conservation contributionAGI limitation percentage increased to 50%. Enterthe contribution type code 5 for this newlimitation (California remains at 30%);


24

Itemized Deductions – State (continued)Miscellaneous itemized deductions subject to the 2% limitation have been suspended.Enter any state miscellaneous deduction subject to 2% limitation on Form 70B. Enter anystate employee business expenses on Form 72 and check box 7. (The non‐conformingstates of AL, AR, CA, HI, IA, MN, NY and PA may still allow these deductions);


25

Other changes for 2018For 2018, TCJA modified the child tax credit (CTC) to provide for a $500nonrefundable credit for qualifying dependents, other than children who can beclaimed for the CTC. The system will automatically calculate the credit for otherdependents credit (ODC) for qualifying individuals. A new dependent code, 4 –Other dependents, do not qualify for ODC is available in the Dependents statementon Form 1 to indicate when the dependent does not qualify for the credit for otherdependents.


26

Other changes for 2018 (continued)Expanded due diligencerequirements underTCJA now require Form8867, Paid Preparer’sDue Diligence Checklist,to be completed forindividuals claiming thehead of household filingstatus and/or claimingthe new credit for otherdependents (ODC)(Form 79A continues onthe next slide.) TheExacTax defaults areshown on these slides.


27

Other changes for 2018 (continued)


28

Other changes for 2018 (continued)

Form 3903, Moving Expenses will nowcalculate for federal return purposesonly when the Armed forces movefield on Form 60C in the 1040Adjustments folder is marked. (If zip 7is blank, applies to the state only).

The Tuition and Fees deductionexpired on 12/31/17. Unless thededuction is extended by legislation,the Education Expense Optimizationutility will remain disabled. Only usecodes “1” or “2”.


29

Other changes for 2018 (continued)• Roth conversions can no longer be recharacterized. The recharacterized optionshave been removed from the input forms. Roth contributions can still berecharacterized.

• Kiddie tax is no longer affected by the tax situations of the parent and siblings.Net unearned income is now taxed using estate/trust brackets and rates. For2018, Form 86B (sibling information) has been removed and the Parent returnInformation section has been removed from Form 86A. (California: Parent andsibling information is still required on Form CA31A and CA31B).

• Entertainment expenses are no longer allowed as an expense for Schedule C. Forinput fields that had “Meals and entertainment” descriptions, the word“entertainment” was removed. Enter the allowable California entertainmentexpense of Form 28B in zip 15 of the state information section.

• Net operating loss carrybacks are now allowed only for farm losses. Losses in thecurrent year have an unlimited carryover and are tracked separately from pre‐TCJA losses on the Net Operating Loss Worksheet 4.


30

Other changes for 2018 (continued)Form 461, Limitation on Business Losses, has been added. This limits the deductionof losses from all trades or business to 250,000 (500,000 MFJ). Enter anyadjustment to the business loss limitation for regular or AMT on Form 60C. Theexcess business loss is not deducted in the current year but instead becomes partof the net operating loss carryforward.

Net operating loss carrybacks are now allowed only for farm losses. Losses in thecurrent year have an unlimited carryover and are tracked separately from pre‐TCJAlosses on the Net Operating Loss Worksheet 4.


31

Additional Information for RDE Users

Updating the RDE Client ListThe ExacTax RDE Communication Center builds the client list that allows UltraTaxclient files to be selected by name and transmitted to ExacTax for processing. Thelist is created by 'reading' the UltraTax client file data for the client name, SSN andother information. Due to the ongoing IRS requirements for more data security,UltraTax was required to encrypt each client data files. As such, they have becomedirectly unreadable. While ExacTax continues to work with UltraTax for a seamlesssolution to provide the RDE client list data, an additional step is currently requiredto export the 2018 UltraTax client list data to build the 2018 RDE client list.Note: Prior years are not affected in RDE.


32

Additional Information for RDE Users (continued)When the RDE Communications Center starts it will look for the new client list file. If the file is not found, the client list will only contain the Client ID for each return. A message will prompt you to build the client list using these steps once you have restored your 2018 proforma files or have created at least one return:

1. Open the 2018 UltraTax program and log in.2. On the Toolbar select Utilities / Client Listing Reports.


33

Additional Information for RDE Users (continued)3. Select General Client Information andpress Continue

4. At the Select Clients for Report dialog press Select All.

Note: Verify that all Focus boxes arechecked, and All Preparers is selected.


34

Additional Information for RDE Users (continued)5. When clients are selected, pressExport.

6. Browse to your 2018 data locationfolder to save the export file. If you usethe default installation location, yourclient data is located atC:\WINCSI\UT18DATA. (Note: If you donot use the default directory, See“Finding data Location” below).below).


35

Additional Information for RDE Users (continued)7. When you have selected your datalocation set the Save as type to DIF andpress Save. Do not save as type XLS.(Note: If you make a mistake just do itover using DIF).

8. When the file is saved you will beprompted to open the target folder.Press No and the export process iscomplete.


36

Additional Information for RDE Users (continued)9. Go to the RDE Communications Center and from the Toolbar select File / RebuildClient List. Your RDE client list should now be complete.


37

Finding data Location for RDE Users (continued)If you are using a data location other than the default, you can verify the location in UltraTax by selecting Open Client on the Toolbar. Note down the path in the Data Location field.


38

RDE: Overriding Qualified Property on an Individual AssetThe automatic computation of Qualified Property used in computing the QBID mayneed to be adjusted for assets that for some reason were not used or were onlypartly used in generating QBI. Rather than override the total qualified property,which will suppress the Qualified Property detail statement, you can adjustindividual assets on the asset's Other tab.


39

RDE: Overriding Qualified Property (continued)However, the fields for qualified property on the Other tab are initially disabled until the following steps are performed:

1. Open the Asset List containing the assets to be adjusted.


40

RDE: Overriding Qualified Property (continued)2. Click on the Setupmenu and selectActivity.

3. On the Activity dialog line, “Qualifies astrade or business for Section 199A”, selectYes from the drop‐down.


41

RDE: Overriding Qualified Property (continued)

4. Close the Activity dialog and edit theasset to be modified. Click on the Othertab.

5. On the Other tab there is a checkboxto exclude the asset's basis completelyor a field to enter a specific amount tobe used. Only one or the other can beused.

The excluded asset will beomitted from the QualifiedProperty detail statement.When an amount is enteredit will be used in theQualified Propertystatement.


42

RDE: Qualified Property OverrideIn the computation of the Section 199A Qualified Business Income Deduction(QBID), the system will automatically compute the amount of Qualified Property(discussed earlier) from the depreciable assets attached to each activity. This totalwill be displayed in the field for qualified property in the QBID input section of eachactivity, such as zip 22 on screen Rent‐2:

Note: That this field is not accessible because it's being filled from the depreciationmodule. In the case where you want to override the total qualified property ratherthan make overriding entries on each separate asset (as discussed earlier), thedepreciation module must be temporarily suspended. To do this:


43

RDE: Qualified Property Override (continued)1. Open the return.2. Click on the Client Properties buttonon the Toolbar:

3. On the Client Properties dialog pressthe Advanced Properties button in thelower left corner:


44

RDE: Qualified Property Override (continued)4. On the Advanced Properties dialogclick on the Enter Asset Detail tab anduncheck the Enter asset detailinformation box.

5. When you uncheck the box a dialogwill prompt you to confirm that youwant to proceed. Press Yes. Then pressOK until all dialogs are closed.


45

RDE: Qualified Property Override (continued)

• 6. You can now make an entry in the Qualified Property total field onany activity.

• 7. When the entry is completed, repeat steps 2 ‐ 5 to check the enterasset detail box on the Advanced Properties tab so that the individualasset detail will again be accessible.


46

General Information

Head ofHousehold

Married FilingSeparate

Dependent Codes

Spouse Information

1 = Single, 2 = Married filing joint,

Taxpayer Information

Residence Information ( a complete address is required )

First Name (12)

1040 1040 - General Information Overflow #

Filing (Marital) status code . . . . . .

Qualifying person (22) . .

Living apart all year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Social Security No . . . .

Social security number

First name (14) . . . . . . . . . .

Last name (20) . . . . . . . . .

Occupation (25) . . . . . . . .

Presidential fund? . . . . . . . .(1 = Yes, 2 = No, 3 = Blank w/CP reminder)Blind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date of death(e-file, see box 60 below) . . . . .(mm/dd/yy)

Daytime phone / extension

Allow 3rd party designee to discuss with the IRS

Salutation (42)

Dependent of another (1 = Diag > 18, 2 = No diag, 3 = No Proforma) . . . .

[1]

[7]

[6]

[5]

[3][4]

[10]

[11]

[21]

[24]

[18]

[20]

[12]

[13]

[22]

[27]

First (14)

Last (20)

Occ. (25)

Pres. fund? (1 = Yes, 2 = No, 3 = Blank w/CP reminder)Blind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date of birth . . . . . . . . (mm/dd/yy)

Date of death . . . . . . . . . .(mm/dd/yy)

Phone / extension

Dependent of another (code 1 , 2 or 3) . . . . . . . . . . .

[32]

[41]

[36]

[42]

SSN . . .

[33]

Address (35) [47]

City (20) . . . .[49]

Home/evening phone number [23]

Foreign province [54]

Foreign country code (Electronic filing only) . . . . . . . [52]

Special processing . .[58]

In care of addressee/name line 2 (35) (EF only) . . . . . [60]

Apartment number [48]

State Postal Code. . [50] Zip Code [51]

Foreign country . . . [53]

Address indicator . . [57] (1 = APO/FPO, 2 = Stateside, 3 = Foreign)

Combat zone . . . . . [59] (deployment date - mm/dd/yy)

TSJ Last Name (13) Date of Birth

(mm/dd/yyyy)Social Security

Number Relation ††Mos.inyour

home†

DepCodes

Care expspaid for

dependent

STUse

8I1040 05 12/18/18 ExacTax, Inc.

#

[§ 65] Dependents

2018

6 = Children who lived with you, but do not qualify for Earned Income Credit7 = Children who lived with you, but do not qualify for Child Tax Credit8 = Children who lived with you, but do not qualify for Child Tax Credit/ODC/EIC

*Basic1 = Child who lived with you2 = Child who did not live with you3 = Other dependent4 = Other dependent, do not qualify ODC5 = Qualifying child for EIC only

INDIVIDUAL

**Other1 = Student (Age 19-23)2 = Disabled dependent3 = Dep who is both a student & disabled

1

1

†† Relationship selections: Aunt, Brother, Daughter, Foster child, Grandchild, Grandparent, Half brother, Half sister, Nephew, Niece, None, Other, Parent,Sister, Son, Stepbrother, Stepchild, Stepsister, Uncle

* **

MUST also enter on Form CR {80A} in Care Provider information.

See instructions

General footnote (See Form Exp {90}). .Elect to file joint return with nonresident alien spouse code (See instructions) . . [2]

Invoices (For detailed entries use Form Letter {2})Letter

Prior year gross invoice amount (For proformaed amount only) . .Prior payments received . . . . . . . .[40]

Invoice amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [38]Client invoice number (9) . . . . . . . [45]Client number (8) . . . . . . . . . . . . . [47]

Force. . . . . . . . (1 = Standard, 2 = Itemized) [67]

[§ 69]

Include prior year tax preparation fee from invoice on Schedule A . . . [35]

Claiming spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Non-Dependent ONLY)

Earned income adjustmentfor dependent of another [68]

[39]

First time filing tax return . . . . . . . . . .

Child under 18 neither parent is alive .

[15]

[16]

[14]Meets conditions for children age 18 through 23 . . . (1 = Yes, 2 = No)

Date of birth . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

[Dear]

† Months in home codes: 77 = Report on odd years, 88 = Report on even years, 99 = Do not report

[34]

[37]

Bona fide resident of US possession (enter postal code). . . . . [25] Bona fide resident of US possession . . . . . . . . . .[45]

4 = Head of household, 5 = Qualifying widow(er)3 = Married filing separate,(MFS E-file requires Form {3C} )

Nonresident alien spouse without ITIN . . . . . . . . . . . . . . . . . . .

[17]

[35]

[38]

[43]

Foreign postal code [55]

Suppress Client Invoice . . . . [46]

[9]

[8]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)


47

RJOHNSON

Oval

= N/R- Intangibles- FL, KS= Bonds, Etc. - KS= Bank, S&L, CU - KS, MA, ND, OK, PHL= Non-Taxable - GA, HI, ME, NH, TN

**State UseCode:

(1 = Single category method, 2 = Double category method) (Election will print)

= Municipals purchased after 01/01/03 & subject to tax - UT= A/R - Intangibles - FL, KS

34

810

2

INDIVIDUAL

Dividend Income (See Form {21A} for Interest & Seller-Financed Mortgage.)DO not duplicate amounts

21B

ExacTax, Inc.

Check and enter amount for exempt credit limitation (Force)Foreign country code/name (Mandatory to claim credit) (12)

Interest/authority over foreign account?[13]

[20]Received distribution from, is a grantor of, or transferred to a foreign trust?

Amount [14] MUST box 13 if any amount entered in box 14.

If yes, enter foreign code/country (30) Print election to determine fund basis using average basis [21]Print election to recognize current income on noninterest-bearing discount bonds [22]

= Bonds - Intangibles-FL= Subj to Income Tax-TN

12

B&D

15-34 = IL(See instructions)

P/FForeignTax Paid

IfForeign

Foreign CapGain (If different)

XX

Payer (30)

Fed W/H Foreign OrdDiv (If different)

In-state Muni$Amount or % (xxx.xxx)

U.S. Oblig$Amount or % (xxx.xxx)

F/S TSJ Ord Dividends# Qual Dividends Capital Gain Sect 1250 1202 Exclus 28%Cap Gain

Type*Code

In-stateSource %

StateUse**State Foreign Qual

Div (If different)State W/H

1202Code

[§ 5] Dividend Detail (Blank = 50% exclusion (Default) 1 = 60% exclusion (within an empowerment zone)

Tax-Exempt

3 = Nominee distribution (subtracts from income)* Type Code:56

Foreign Dividends MUST be included in totals.

8IB&D2 01 10/26/18

Overflow # 2018T

his

end

up

(1 = Y, 2 = N)(1 = Y, 2 = N)[16](1 = Y, 2 = N)

[12]

[15]

Code [11]

[§19]Additional Country:Code/Name

State ID

[17] [18]If yes, is Form 114 required to be filed to report the interest or signature/authority

†

†

Form1116

[10]Foreign income/taxes from a mutual fund or RIC?

Sec. 199A Div Inv Exp

21B

AMTTax-Exempt

P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt

State IDSec. 199A Div Inv Exp

P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


P/FForeignTax Paid

IfForeign


XX

Payer (30)





Type*Code

In-stateSource %



1202Code Tax-Exempt


AMTTax-Exempt

AMTTax-Exempt

AMTTax-Exempt

AMTTax-Exempt

AMTTax-Exempt

AMTTax-Exempt

AMTTax-Exempt


48

RJOHNSON

Oval

Expenses

Amount [57]

Amount [46]

Description (29)

C Schedule C

8ISCHC 03 01/14/19

Activity unit number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxpayer/Spouse/Joint . . . . . . . . . . . . . . . . . . . . . . . .(T/S/J)Employer ID numberState Postal code (Required for state processing) . . . . . . . .State use code*City code/name

Principal business or profession (35)

Business code . . . . . . . . . . . . . . . . . . . . . . . .Business name (35)

Business address (If different from 1040)

City (20) . . . . . . . . .State/Zip code . . . .Accounting method (1 = Cash (Default), 2 = Accrual, 3 = Other)If other: (25)Inventory method . . . . . . . . (1 = Cost, 2 = LCM, 3 = Other)If other: (25)Changes in inventory (25)Material participation . . . . . . . . (1 = Yes (Default), 2 = No)Began/acquired business this year . . . . . . . . . . . . . . . .

SE code (Blank = FICA, 1 = Stat empl, 2 = Minister, 3 = Not taxable)Health insurance premiums (not elsewhere) . . . .

[§ 23]

General Information

Returns and allowances . . . . . . . . . . . . . . . . . . .

Description (29)#

Cost of Goods SoldBeginning inventory . . . . . . . . . . . . . . . . . . . . . . .Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Description (29)#

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Car and truck (Use form {51} or {72}) . . . . . . . . . . . . . . . . .Commissions/fees . . . . . . . . . . . . . . . . . . . . . . . .Contract labor . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion (Force) . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation

Employee benefits (include health insurance). . . .Insurance (other than health insurance). . . . . . . .Mortgage interest paid to financial institution . . .

Amount [14]Description (29)#

Legal/professional fees . . . . . . . . . . . . . . . . . . . .Office expenses . . . . . . . . . . . . . . . . . . . . . . . . .Pension/profit sharing . . . . . . . . . . . . . . . . . . . . .Rent - machinery . . . . . . . . . . . . . . . . . . . . . . . .Rent - other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Repairs/maintenance . . . . . . . . . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Meals (subject to 50% limit)* . . . . . . . . . . . . . . . . .Meals (subject to DOT 80% limit) . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Wages (less employment credit) . . . . . . . . . . . . . . .

Amount [30]Description (29)#

Memo only Total Income

Total Expenses

[§ 46] Other income

[§ 57] Other costs

[§ 14] Interest other

[§ 30] Other expenses

INDIVIDUAL

[§ 8]

Amount [33]# Code

1 = Taxpayer, 2 = Spouse, 3 = Dependent < 40, 4 = Dependent 41-50,5 = Dependent 51-60, 6 = Dependent 61-70, 7 = Dependent >70

[§ 33] Long-term care premiumsST

Overflow #

Home office

1 = Payroll taxes2 = Real estate taxes3 = Sales taxes4 = Use taxes5 = Personal property taxes

Meals (fully deductible) . . . . . . . . . . . . . . . . .

Memo only Total COGS

Total

Net Income

( )

Amortization

28A

28A2018

ExacTax, Inc.

Amount [23]Description (29)#[§ 23] Taxes/licenses

Code

† Single state allocation see StCO Form {28B}.

11121314

= CA LLC taxes= TN Excise taxes= DC UBT taxes= NY MTA taxes

6 = State income taxes7 = Licenses8 = Other taxes9 = NY UBT taxes

10= Local income taxes

[§ 11] † Multi-state allocation State% (xxx.xx)#Part-year / Non-resident

MUST complete.

Example:75.00 CA25.00 AZ

State No.

(Force)

Payment made that require filing Form(s) 1099 . .(1 = Y, 2 = N)

( )

( )

[9]

[4]

[1][2]

[3]

[6]

[5]

[15]

[16][17] [18]

[13]

[19]

[21]

[24][25][26]

[31]

[45]

[53][54][55]

[58]

[27][28]

[25][26]

[24]

[20][18]

[15][16][17]

[22][21]

[11][12][13]

[8][9]

[10]

[7]

[5]

[§ 22]

[20]

Minister, clergy or religious worker . . . . . . . . . . . . . . . . . . .[27]If yes, all Forms 1099 were or will be filed. . . (1 = Y, 2 = N)

[28]

Income

Description (29)#

C-2

[§ 42] Gross receipts and sales

Memo: Meals, zip 25 x 50%, zip 26 x 80%

[29]

* (CA entertainment: see{28B} zip 15)

TSJ

Amount [42]

[56]

[29]

Entire family covered for full year with minimum essentialhealth care coverage . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [32]Inactive activity for 2018 (Data entered for this activity willhave no impact on tax return) (Disposition see {28B} zip #40). . [39]

Qualified Business Income DeductionC-3Specified service business. . . . . . . . . . . . . . . . . [5]


49

RJOHNSON

Line

Schedule C - (Continued)

1 = Other passive activity3 = No limitation applied

Description (45)

C

8ISCHC2 06 01/12/19 INDIVIDUAL

Passive activity code . . . . . . . . . . . . . . . . . . . .

Section 179 - COGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Passive Activity Carryovers:

Short-term capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1231 loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ordinary bus gain/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regular AMT

Amount [16]#Preference items [§ 16] CodeSignificant participation hours . . . . . . . . . . . . . .

Activity unit number (one per activity)

St CO State Passive Activity and Other Information

Section 179 carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Carryovers:

State Passive Activity Carryovers: Regular AMT

[19]Commercial revitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow #

Percent of federal allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx) [9]Amount of net income allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28B

28B2018

ExacTax, Inc.

(Activity number must be the same as Form {28A}.)

Schedule C - QBID, Passive Activity and Other Information

Other income from recapture:Prior year Section 179 . . . . . . . . . . . . . . . . . Prior year Section 280F (Force) . . . . . . . . . .Recomputed Section 179 . . . . . . . . . . . . . . . Recomputed Section 280F (Force) . . . . . . . .

Elect to capitalize carrying charges(Election will auto print) . . . . . . . . . . . . . . . . . . . . . . [§ 31]

AmountDescription of Expense (29)# Date Paid/Incurred

ElectionsC-2 (Continued)

[10]

[18][17][16]

[14][15]

[21]

[25][24]

[27]

[19]

Aggregation group number (Passive code 1 only)

[49][50]

[51][52]

[20]

[28]

Form 2555 allocation code (See instructions) . . . . . . .

Net income for home office # 1 . . . . . . . . . . . . .Net income for home office # 2 . . . . . . . . . . . . .

Suppress carry of Form 8829 interest & taxes to Sch A

[37]

[34][35]

[33]

Community property designation (Community property, 1 = Tp's Business2 = Sp's Business, N = Non-community property) . . . . . . .[38]

FARMPATRDP87

= Tax shelter farm activities= Patron's adjustment= Depreciation on property-pre 1987

Excess farm loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [23]

[29]

[26]

Excess farm loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

{Form 20} unit # for statutory employee . . . . . . . . . . . . . .[34]

C-3

[26][36]

Group disclosure code . . . . . . . . . . . . . . . . . . . 1 = New Grouping2 = Addition to Existing Group3 = Regrouping

Short-term capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ordinary bus gain/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 1231 loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[31][33]

OtherCarryovers

Section 179 carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[32]

[25] [34]

Reg. 1.469-4(d)(1) group number . . . . . . . . . . .

[15]

[27][35]

[30]

Small taxpayer safe harbor election (Reg.1.263(a)(3(h))

Statutory employee wages (Force) . . . . .Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Entire disposition 2 = Entire disposition of passive activity on installment basis)

[35]

[40]Form 2555 allowable % of foreign income (xx.xx). . .[36]

[§ 32]

[21][20]

[22][23][24]

[31]

[28][29][30]

[33]

[14][13][12][11]Qualified business income (Force) . .

W-2 wages (Force) . . . . . . . . . . . . .[6][7]

Qualified property (Force) . . . . . . . . [8]Prop Reg Section 199A-4aggregation grouping number . . . . [9]

QBID Info Passive Activity Info

= Depletion adjustment= Depreciation on property-post 1986= Circulation costs

DEPLDEPRCIRC

CONTMINERESX

= Long-term contract= Mining costs= Research and experimental costs

CAC California Business

Expense adjustment (include 50% of entertainment not entered elsewhere) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]


50

RJOHNSON

Oval

RJOHNSON

Line

Amount [68]

Part-year / Non-residentMUST complete.


State postal code

31A

Federal Passive Information

Taxes * . . . . . . . . . [§ 68]

Advertising . . . . . . . . . . . . . . . . . . .

(1 = Single family, 2 = Multi-family, 3 = Vacation/Short-term, 4 = Commercial, 5 = Land, 6 = Royalties, 7 = Self-rental, 8 = Other (describe),

Activity unit number [1] [2]T/S/J Property description 20) [3]

[15]

Type

RENT Rent and Royalty Property - General Questions

8IRENT 04 12/18/18

Business use percentage, if not 100.00 . . (xxx.xx)Ownership percentage, if not 100.00 . . . . (xxx.xx)

Suppress carry of interest, mtg ins. and taxes to Sch A * City Code

Insurance . . . . . . . . . . . . . . . . . . . .

Auto (Force) (Efile must use Form 51) . . . . .

Cleaning and maintenance . . . . . . .Commissions . . . . . . . . . . . . . . . . .

[47][49][51][53]

[48]

AmountBus. Use

PCT (xxx.xx)

Legal and professional . . . . . . . . . .

[22]City name (20)[24]

[26]

Mortgage interest . . . . .

Other interest (not mortgage) . . . .Repairs . . . . . . . . . . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . .

[52]

[44]

[64]

[50]

[41]

Management fees . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) (No Amortization)Depletion . . . . . . . . . . . . . . . . . . . . . [75]

[71]

Rent-2

Description (29) Amount [76]Bus. Use

PCT (xxx.xx)

Passive activity code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [25]

Section 1231 loss . . . . .

Short-term capital . . . .Long-term capital . . . . .28% rate capital . . . . . .

Regular

Operating . . . . . . . . . .

Ordinary business loss[37]

Comm revitalization . . .

[41][42][43]

AMT

[44]

Other CarryoversSection 179 . . . . . . . . .

St CO State Passive/Other Information

Section 1231 loss . . . .

Short-term capital . . . .Long-term capital . . . . .28% rate capital . . . . . .

[14][15][16][17][18]

Regular

Operating . . . . . . . . . .

Ordinary business loss[20][19]

Comm revitalization . . .

[25][26]

AMT

[21]

[27]

Carryover Section 179

#

Memo only

[§ 76] Other

INDIVIDUAL

*Suppress carryover of home office int/taxes to Sch A. . [86]

Net income for home office #2 . . . . . . . . . . .[87][88]

Net income for home office #1 . . . . . . . . . . .

Refinancing points paid . . . . . . . . . . . . . . . . [77]

Overflow # 2018

ExacTax, Inc.

[21]

Passive Activity CarryoverCode* PCT (xxx.xx)#

Expenses

Rents and Royalties . . . . . . . . . . . . . . . . . . . . . [33]

31A

State use code . .[4]

Disposition of activity [30]1 = Complete disposition2 = Disposition on installment sale basis

[§ 31] Multi-state allocationState% (xxx.xx)#

State Number[§ 25]

* For Office-in-Homesee ZIP 86


2 = Rental real estate with active participation (Default)4 = Real estate professional

2 = Real estate5 = Personal Property8 = Other11 = CA LLC taxesAdditional codes see Inst.

[§ 81] Elect to capitalize carrying charges (W/Election)Date paidDescription of Expense (20)

Amount#

Mortgage insurance . . . . . . . . . . . .

[45]

(Form 1098)

[33][34][35][36]

Travel . . . . . . . . . . . . . . . . . . . . . . .

#[§ 58] Other mortgage interest (not on 1098)

Payee's Name (25) SSN Street Address (25)

[60] [61][59]

Explanation of mortgage interest exceeding Form 1098[§ 79]

City Amount Paid

Total ExpenseHome officeNet Income

Business use % of ZIP 58. . . . . . . . . . . . . . . . . (xxx.xx)

Passive Activity Carryover

[30][29]

[31]

Payments made that require filing Form(s) 1099 If yes, all required Forms 1099 were/will be filed(1 = Y, 2 = N) [17] (1 = Y, 2 = N)Address. . . . . . . . [7]

[18]

[23]Excess farm loss . . . . .

Qualified joint venture [20]

Description of Other rental type . .[16]

[46]

[62] [63]

[70]

Fair rental days (If not full year)(For type 1,2,4,5,7 & 8 only)(Use {31B} for type 3) . . . . . . . [19]

Community property designation . . .(N = Non-community prop.) [28]

[43][45]

[40]

[46]

[33]

City [8] State [9] Zip Code[10]

[40]

(Additional foreign address fields see Form {31B})

Zip CodeState

[54]

[72]

Trade or business to which net investment income taxapplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [23]

[28]

See Form {31B} for information of others receiving Form 1098 statement.

[38]

[48]


[73][74]

[66][65]

[55][56]

9 = Nonbusinesspersonal property)

Inactive activity for 2018(Data entered for this activity will have no impact on tax return) . . . [29]

For withholding, use - 1099 Misc {25A}. Do not duplicate.

Employer ID number . . . . . . . . [5]

[67]

[57]

[§ 82]

[24]

[39] [47]

Rental activity rises to the level of aSec 162 trade or bus. . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [49]


51

RJOHNSON

Line

# Amount [30]Code * Amount [30]Code *#[§ 30] Preference items

[28]Group disclosure code (1 = New Grouping, 2 = Addition to Existing Group, 3 = Regrouping) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[27]Reg. 1.469-4(d)(1) group (Enter group number). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Include rental with active participation in section 179 business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [29]

* Code:DP87 = Depreciation on property-pre 1987CIRC = Circulation costsDEPL = Depletion adjustmentCONT = Long-term contract

DEPR = Depreciation on property-post 1986MINE = Mining costsFARM = Tax shelter farm activitiesRESX = Research & expermimental costsPATR = Patron's adjustment

[26]Aggregation group number (For passive codes 1 and 2 only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[23]

31B

RENT Rent and Royalty Property (Continued)

8IRENT2 05 01/02/19

Vacation Home, Personal Use InformationAllocate interest, qualified MTG insurance & taxes using the tax court method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of days home used personally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6]

Personal use percentage (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xxxx)

Carryover of disallowed operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Rental portion of excess casualty and theft losses (Enter total amount before limitations) . . . . . . . . . . . . . . . . . . . . . . . . . [16]

[17][18]

Qualified Business Income Deduction

Excess mortgage interest and qualified mortgage insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Excess real estate taxes (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]

INDIVIDUAL

2018

ExacTax, Inc.

31BActivity unit number (one per Activity) (Activity number must be the same as Form {31A}

[8]Number of days home rented . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [9]

Number of days home owned (if not 365) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10][11]

Rental portion of casualty and theft losses (Enter total amount after limitations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Description (29) Amount [13]#[§ 13] Other direct rental expenses

[14]

Asset Setup - Activities - Vacation Home Percentage (Applies to depreciation)

Number of days home used personally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Number of days home rented . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If vacation home percentage should also be applied to depreciation on Forms {50}, {51}, and {52} complete the Asset section below.

ExacTax Data Entry: MUST uncheck asset detail information on Client Properties, Advanced Properties, Enter Asset Detail TAB.

- OR -If vacation home percentage should NOT be applied to depreciation on Forms {50}, {51}, and {52} complete zips 8 and 9 below.

Overflow #

RENT-2 Rent and Royalty Property - Vacation Home and Passive

Foreign postal code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[14]Foreign province/county . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[13]Foreign country code/name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Additional Foreign Address InformationEnter street address and city on Form {31A}, Zips 6 and 7. Enter a period (.) in the state, Zip 8 and leave Zip 9 blank.

RENT-2

Additional Vacation Home Information

#[§ 80] Other interest - information of others receiving Form 1098 statement

Payee's Name (25) SSN Street Address (25) City Zip CodeState

Expenses

[11]

Recomputed Section 280F (Force) . . . .Prior year Section 179 . . . . . . . . . . . . .[36]Recomputed Section 179 . . . . . . . . . . [37]

Prior year 280F (Force) . . . . . . . . . . . . . [38]OtherIncome [39]

Prop Reg Section 199A-4 aggregation group number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified property (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .W-2 wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified business income (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]

[21][22]

Passive Activity & Other Information

Carryover of disallowed depreciation expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


52

RJOHNSON

Oval

K1-5

Cash and marketable securities distributions . . . . . . . . . . . . . .

Items Affecting Basis

Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16D Property distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18B 16B18C 16C

16E19C19A

N/A

N/A

1065 1120S Federal State, if different

[46] [47]

[50] [51][53][52]

[48] [49]

[45][44]Tax-exempt interest income (Use Form K1-2 {32B})18A 16A

Repayment of loans from shareholders . . . . . . . . . . . . . . . . . . .

* Enter amount allowed as AMT expense.

1065 1120S

Specified service business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [7]

20Z 17V Section 199A income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8]20AA20AB20AC20AD

17W17X17Y17Z

Section 199A W-2 wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 199A unadjusted basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 199A REIT dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 199A PTP income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[9][10][11][12]

Portion of QBI allocable to qualified payments received from cooperative. . . . . . . . . . . . . . . . .[13]

Cooperative's QPAI deduction allocated to patron and identified by cooperative. . . . . . . . . . . .[14]Prop Reg Section 199A-4 aggregation group number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]

K1-7 Qualified Business Income Deduction

Forms 1065 & 1120S Schedule K-1 (Continued)

8IK1-5 04 01/03/19 INDIVIDUAL

32E2018

32EExacTax, Inc.

Entity unit number Name of entityOverflow #

Unrecaptured section 1250 gainadjustment . . . . . . . . . . . . . . . . . Amount [13]# Description (36)[§ 13]

Alternative Minimum Tax (AMT) Items

Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . .

[14]

Ordinary gain/loss adjustment . . . . . . . . . . . . . . . . . . . . . . . . . .

17A 15A

Oil, gas and geothermal properties - gross income . . . . . . . . . . [25][27]

17B 15B Short-term gain/loss adjustment (Business) . . . . . . . . . . . . . . . .

Collectibles (28%) gain/loss adjustment (Business) . . . . . . . . . .

Oil, gas and geothermal properties - deductions . . . . . . . . . . . .17E 15E[29]

Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . .17C 15C

1065 1120S

Adjusted gain or loss:[11] [12]Section 1231 gain/loss adjustment . . . . . . . . . . . . . . . . . . . . . .

[23]

Long-term gain/loss adjustment (Business). . . . . . . . . . . . . . . . .

[26][28]

[24]

17B 15B

17B 15B

[9] [10]

Code

Code: 1 = Unrecap 1250-Form 4797, 2 = Unrecap 1250-Sale Ptrship Int, 3 = Unrecap 1250-Trust, RIC, REIT

17B 15B17B 15B

17D 15D

N/AN/A Excess intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation pre '87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [31]

[33]Long-term contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17F 15F[35]

[32][34]

[30]17F 15F

15F17F Tax shelter farm activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[37]Circulation expenditures * . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[39]

[36][38]

Research & experimental *. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unrecaptured section 1250 gain adjustment (state if different) . . . . . . . .

[40]Mining exploration development * . . . . . . . . . . . . . . . . . . . . . . . [41] [42]

[18][20]

[16]

[22]

[17][19][21]

[15]

Name of activity(Entity number and name mustbe the same as Form K1 {32A})

W-2 wages allocable to qualified payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[47]


53

RJOHNSON

Oval

1 = Other passive 2 = RRE with active participant (Default)3 = No limitation 4 = Real estate professional

Passive Activity and Other Information

Operating . . . . . . . . .Passive Activity C/O

Short-term capital . .Long-term capital . .28% rate capital . . .Section 1231 . . . . . .Ordinary businessgain/loss . . . . . . . . . .Comm revitalization .

Regular

Aggregation group . . . . . . . . . . . . . . . . . . . . .

Significant participation hours . . . . . . . . . . . .

Passive activity code . . . . . . . . . . . . . . . . . . . [35]

Recharacterization of income . . . . . . . . . . . . .

AMT

[37]

Include rental with active participation inSection 179 business income. . . . . . . . . . . . [41]

[45][43][42]

[44][46][48]

[47]

[53]

Group disclosure code * . . . . . . . . . . . . . . . . . [38][39]

[50][52]

[51][49]

Reg. 1.469-4(d)(1) group . . . . . . . . . . . . . . . . .[36]

[40]

[55][54]Section 179 carryover(Grantor trust only) . . . . [57][56]

Operating . . . . . . . .Passive Activity C/O

Sch D - Short-term . .Sch D - Long-term . .Sch D - 28% rate . . .Form 4797 - Part I . .Form 4797 - Part II . .Other - 1040 page 1 .

Regular AMT

Comm revitalization .Other carryovers:Sec. 179 . . . . . . . . . .

[24][25]

[23][12][13]

[15][16]

[14]

[17][26]

[21]

[27][28]

Excess farm loss . . .

Adjustment to income: AMTInstate portion

Municipal obligation additionUS obligation subtraction . . .

[32][34]

[33][35]

[20][31]

[18][19] [29]

[30]

Amended K1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [11]

[22]

K1-St State Passive and Information

Ordinary income anywhere . . . . . . . . . . . . . . . . .

Gain or-loss on dispositionof assets . . . . . . . . . . . . . . . . [36]

[38][37]

Other addition . . . . . . . . . . . . . . . . . . . . . . . . . . . [39]

Other subtraction . . . . . . . . . . . . . . . . . . . . . . . . . [40]

Final K1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10]

Credit Form Description#[§ 10] Pass through Credits

Amount

K1T-3 Forms 1041, Schedule K-1 - General Information (Continued)

8IK1T3 03 01/04/19

Entity unit number Name of entity

INDIVIDUAL

Enter credits on Forms K1T-Cr {34C} and 1116 {82A}

* 1 = New Grouping, 2 = Addition to Existing Group,3 = Regrouping

34C2018

ExacTax, Inc.

Credits and Recapture

[13]

[14]

[19]

[20]

Rehabilitation, energy and investment use (Form 80I)Undistributed capital gains credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Bonds credits not reported on Form 1097 - BTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CREB credits not reported on Form 1097-BTC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13P

Recapture of low income housing credit (Form 8611) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13D

13P13R [22]

[21]

Propertytype#

[§ 23] Recapture of investment credits (Form 4255)Date end

Qualified PropertyBldg or Energy

Prop typeOriginal

Credit RateCost orBasis

Date inService

**Type code Description# Amount13R[§ 24]

Recapture of othercredits . . . . . . . . . .

Low-income housing credit from pre-2008 buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Low-income housing interest acquired before1990. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13C

13C Low-income housing credit from post-2007 buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[12]

Taxpayer is NOT an eligible small business for the research credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . [11]

34C

K1 Code13 - Credits

1 = Indian Employment2 = Employer Child care facility

5 = Alternative Motor Vehicle6 = Alternative Fuel Veh Refueling Ppty7 = Qual Plug-in Electric Drive Motor Veh

Overflow #

**Recapture of other credits codes:

Qualified Business Income DeductionK1 Code

13 Section 199A income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[26]13C

Specified service business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 199A W-2 wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[27]Section 199A unadjusted basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[28]Section 199A REIT dividend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [29]Section 199A PTP income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[30]

[25]

13C13C13C

Portion of QBi allocable to qualified payments received from cooperative. . . . . . . . . . . . . . . . . . . . . . . . .

Cooperative's QPAI deduction allocated to patron and identified in writing. . . . . . . . . . . . . . . . . . . . . . . .Prop Reg Section 199A-4 aggregation group number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[31]

[32][33]

3 = New markets4 = Qual Plug-in Electric Veh

W-2 wages allocable to qualified payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [58]


54

RJOHNSON

Oval

1 = Taxpayer, 2 = Spouse, 3 = Dependent < 40, 4 = Dependent 41-50,5 = Dependent 51-60, 6 = Dependent 61-70, 7 = Dependent >70

Amount [19]

[20]City code/name

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . .

SE Health insurance premium . . . . . . . . .

Form 2555 allowable % of foreign income (xx.xx)Form 2555 allocation code (See instructions) . . . . . . . . . . . .

Description (19)# Code[§ 18] SE long-term care premiums

ST

[§ 22] † Multi-state allocation State% (xxx.xx)#Part-year / Non-resident

MUST complete.

† Single state allocation see StCO Form {36B}.Example:75.00 CA25.00 AZ

State use code [§ 19] State Number

[27]

[24]

[23]

[21]

1 = Cash sales of items bought for resale, 2 = Cash salesof items raised, 3 = Accrual sales, 4 = Custom hire, 5 = Other income

Description (19)# SalesCode

[§ 29] IncomeAmount

[16]

Community property designation (See instructions) . . . . . . . . [25]

TSJ

1 = Entire disposition 2 = Entire disposition of passive activity on installment basis

Entire family covered for full year with minimum essentialhealth care coverage . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [17]

Inactive activity for 2018 (Data entered for this activity willhave no impact on tax return . . . . . . . . . . . . . . . . . . . . . . . [26]

Amount [29]Description (23)#[§ 29] Taxes

Code(See instructions for codes. Same as Form Sch C {28A})

Beginning inventory . . . . . . . . . . . . . . . . . .Cost of product purchased . . . . . . . . . . . . .

[35]

Basis of items bought for resale . . . . . . . . .Crop ins rec'd in current year . . . . . . . . . . . .

Elect crop ins deferral to next year . . . . . . . . . . . . . . . .Crop ins amt deferred from prior year . . . . .

Accrual Income Items

Amount Received

Crop Description (18)#[§ 48] Elect crop insurance deferral to next year

Date Occurred

Date Received

Cause of Loss (15)

Insurance Carrier (25)

[33]

[34]

[49]

[50]

[46]

( )

[32]

Taxable crop insurance . . . . . . . . . . . . . . . .[47]

Expenses

Car/truck (Force) (Overrides Form {51} - Auto) .Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . .Conservation expenses . . . . . . . . . . . . . . . .

Custom hire . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) (No Amortization) . . . . . .Employee benefits . . . . . . . . . . . . . . . . . . .Feed purchased . . . . . . . . . . . . . . . . . . . . .Fertilizer/lime . . . . . . . . . . . . . . . . . . . . . . .Freight/trucking . . . . . . . . . . . . . . . . . . . . .Gasoline/fuel/oil . . . . . . . . . . . . . . . . . . . .Insurance . . . . . . . . . . . . . . . . . . . . . . . . . .Interest - financial institution . . . . . . . . . . .Interest - other . . . . . . . . . . . . . . . . . . . . . .Labor hired (less employment credit) . . . . . . .Pension/Profit sharing . . . . . . . . . . . . . . .Rent/lease - machinery . . . . . . . . . . . . . . .Rent/lease - other . . . . . . . . . . . . . . . . . . .Repairs/maintenance . . . . . . . . . . . . . . . .Seeds/plants . . . . . . . . . . . . . . . . . . . . . . .Storage/warehousing . . . . . . . . . . . . . . . .

F-2

[25]

[11][10]

[12]

[14][13]

[15]

[18][16]

[19]

[21][20]

[23][22]

[24]

[5][6][7][8][9]

[26]

Carryover from prior years . . . . . . . . . . . .Conservation expenses (Force) . . . . . . . . .

[27]

Amount [41]

F Schedule F - General Information

8ISCHF 01 10/31/18

Principal product: (35)

Activity unit number . . . . . . . .Taxpayer/Spouse/Joint (T/S/J)Employer id. number . . . . . .

Description (Mandatory): (35)

State postal code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ending inventory . . . . . . . . . . . . . . . . . . . .

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Veterinary, etc. . . . . . . . . . . . . . . . . . . . . . .

Accounting method (1 = Cash (Default) 2 = Accrual) . . . . . .Agricultural activity code . . . . . . . . . . . . . . . . . . . .Was there material participation? . . . (1 = Yes (Default), 2 = No)

Exclude income from SE tax . . . . . . . . . . . . . . . . . . . . . .

Cash and Accrual Income Items

Description (25)#[§ 41] CCC loans reported under election

CCC loans forfeited . . . . . . . . . . . . . . . . . .Taxable CCC loans forfeited . . . . . . . . . . .

Dist received from co-ops - total . . . . . . . . .Dist received from co-ops - taxable . . . . . . .Agricultural program payments - total . . . . .Agricultural prog payments - taxable . . . . . .

Suppress carry of home office interest/ taxes to Sch A . [36]Net income for home office # 1 . . . . . . . . . [37]Net income for home office # 2 . . . . . . . . .

Preproductive period expenses . . . . . . . . . .

[38]

Overflow #

36A

36A

ExacTax, Inc.INDIVIDUAL

- For carryovers, see Form F-2 {36B} -

2018

CRP payments received by retired SSA or SSDI recipients (Included intaxable pymts entered above) . . . . . . . . . . . . . . . .

[14]

[11][9]

[8][6]

[3][2][1]

[4]

[5]

[42][43]

[31][30]

[33]

Payment made that require filing Form(s) 1099 (1 = Y, 2 = N) [12]

If yes, all Forms 1099 were or will be filed . . . (1 = Y, 2 = N) [13]

Memo only Total Expense

Home office Net Income

Description (25) Amount [32]#[§ 32] Other expenses

[36][37][38]

[40]

Trade or business to which net investment income taxapplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [15]

[39]

[28]


55

Schedule F - (Continued)

Schedule F - Qualified Business Income Deduction, Passive Activity and Other Information


Description (45)

Aggregation group number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Passive activity code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [18]#Preference items . [§ 18] CodeSignificant participation hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[16]Group disclosure code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Reg. 1.469-4(d)(1) group number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[17]

1= New grouping2 = Addition to Existing Group3 = Regrouping)

[13][14][15]

St CO State Passive Activity and Other Information


Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Carryovers:

State Passive Activity Carryovers: Regular AMT

Commercial revitalization (Schedule C Qualified Joint Ventures and Schedule E, Page 1 only) . . .

Percent of federal allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx)Amount of net income allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[21]

[18]

[16][15][14]

[19]

[17]

[24][25][26][27]

[9]

[20]

[28]

[31]Excess farm loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [23] [33]

[29]

[10]


Section 1231 loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ordinary business loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[30]

8ISCHF2 04 01/03/19 INDIVIDUAL

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Carryovers:

Passive Activity Carryovers:


Section 1231 loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ordinary business loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[25][24][23][22][21]

[32][31][30][29]

[35]Excess farm loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[27]

[33]


[34][26]

Regular AMT

REALCIRCDEPL

= Accelerated depreciation on real property-pre 1987= Circulation costs= Depletion adjustment

Comments#Election history [§ 19] Tax Year Effective PeriodDescription (29)

= Mining costs= Tax shelter farm activities= Long-term contract= Research and experimental costs

MINEFARMCONTRESX

[28] [36]

Activity unit number (one per activity)

Overflow #

36B

36B2018

ExacTax, Inc.

(Activity number must be the same as Form {36A}.)

Prior year Section 179 . . . . . . . . . . . . . . . . . Prior year Section 280F (Force) . . . . . . . . . . [52]Recomputed Section 179 . . . . . . . . . . . . . . . Recomputed Section 280F (Force) . . . . . . . .

Elect to capitalize carrying charges(Election will auto print) . . . . . . . . . . . . . . . . . . . . [§ 34]

AmountDescription of Trade or Business (29)# Date Paid/Incurred

[53][50][51]

F-3

F

Elections

Other Income from recapture:

Election for Sec 451(e). . . . . . . . . . . . . . . .[§ 48]

Schedule F-2 (Continued) ExpensesF-2

Election for Sec 1033(e) . . . . . . . . . . . . . .[§ 49]

Small taxpayer safe harbor election. . . . . . . . . . . . . [§ 35](Reg.1.263(a)(3(h))

Description of Eligible Building Property

Qualified business income (QBI) (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .W-2 wages (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified property (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Portion of QBI allocable to qualified payments received from cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cooperative QPAI deduction allocated to patron and identified in writing by cooperative. . . . . . . . . . . . . . . . . . . . . .

[6][7][8][9]

[10]Prop Reg Section 199A-4 aggregation group number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[11]

PATRDP87DEPR

= Patron's adjustment= Depreciation on property-pre 1987= Depreciation on property-post 1986

W-2 wages allocable to qualified payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[37]


56

RJOHNSON

Oval

Amount [32]Description (25)#[§ 32] Other income (Include gas or fuel tax credit or refund)

Part-year / Non-residentMUST complete.


Income Items

[16]Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 = Entire disposition 2 = Entire disposition sold on installment basis

[14]Community property designation (Blank = Communityproperty, N = Non-community property) . . . . . . . . . . . . . . . . . . .

Description#[§ 17] Income from Production

T/SJ

Inactive activity for 2018 (Data entered for this activity will haveno impact on tax return) . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]

Expense

Crop Description (18)

Insurance Carrier (25) Amount Deferred

#[§ 30] Elect crop ins deferral to next year

Date Occurred

Date Received

Cause of Loss (15) Amount [66]

4835 Form 4835 - General Questions

8I4835 04 01/04/19

Car/truck exps (Force) (Overrides detail)

[4]

[1]Activity unit number . . . . . . . .

INDIVIDUAL

Taxpayer/Spouse/Joint (T/S/J)Employer identification number

Description (Mandatory): (35)

Was there active participation in the operationof this farm this year? . . . . . . . . . (1 = Yes (Default), 2 = No)

State postal code (Required for state processing) . . . . . . . .

[10]City code . . . . . . . . . City name

Dist. received from cooperatives - total . . .Dist. recv. from cooperatives - taxable . . . .Agricultural program payments - total . . . .Agricultural program payments - taxable . .CCC loans reported under election . . . . .

[21][22]

[25]

[23][24]

CCC loans forfeited . . . . . . . . . . . . . . . . . .Taxable CCC loans forfeited . . . . . . . . . . . .Crop insurance proceeds received. . . . . . . .

[26]

[28][27]

Taxable crop ins. proceeds received . . . . .

Crop insurance deferred from prior year

Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . .Conservation . . . . . . . . . . . . . . . . . . . . . . .

Custom hire . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) (No Amortization) . . . .

[64]

Employee benefits (Includes health insurance)Feed purchased . . . . . . . . . . . . . . . . . . . . .Fertilizer/lime . . . . . . . . . . . . . . . . . . . . . . .Freight/trucking . . . . . . . . . . . . . . . . . . . . .Gasoline/fuel/oil . . . . . . . . . . . . . . . . . . . .Insurance (Other than health). . . . . . . . . . . . .

Interest other . . . . . . . . . . . . . . . . . . . . . . .Labor hired (Less employment credit) . . . . . .Pension/Profit sharing . . . . . . . . . . . . . . .Rent/lease - machinery . . . . . . . . . . . . . . .Rent/lease - other . . . . . . . . . . . . . . . . . . .Repairs/maintenance . . . . . . . . . . . . . . . .Seeds/plants . . . . . . . . . . . . . . . . . . . . . . .Storage/warehousing . . . . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Veterinary, etc. . . . . . . . . . . . . . . . . . . . . . .

Description (25)#[§ 66] Other expenses

Preproductive period . . . . . . . . . . . . . . . . . [67]

Memo only Gross Income

Total Expense

Net Income

(O = Override)

Amount [63]Description (23)#[§ 63] Taxes

Code(See instructions for codes.)

Overflow # 38A2018

38AExacTax, Inc.

[§ 12] Multi-state allocation State% (xxx.xx)#

State use code . . . [§ 9] State Number

[2][3]

[5]

[7]

[31]

[65]

[46]

[44][45]

[40][41]

[39]

For carryovers SeeForm 4835-2 {38B}

Considered farming business for income averaging. . . . [13]

[51]

[47][48][49]

[52][53][55]

Amount

[29]

Trade or business to which net investment income taxapplies . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [8]

[56][57]

[62]


[59][58]

Interest mortgage . . . . . . . . . . . . . . . . . . . .

[50]

[61][60]

Memo Only

Conservation (Force) . . . . . . . . . . . . . . . . .[43]Carryover from prior years . . . . . . . . . . .[42]

[§ 68]

4835-2 Rental activity rises to level of aSection 162 trade or business (Y = Yes, N = No) [38]


57

RJOHNSON

Oval

DP87CIRCDEPLPATR

= Depreciation on property-pre 1987= Circulation costs= Depletion adjustment= Patron's adjustment

Comments#[§ 20] Election History

Tax Year Effective PeriodDescription

DEPRMINEFARMRESXCONT

= Depreciation on property-post 1986= Mining costs= Tax shelter farm activities= Research and experimental costs= Long-term contract

1 = Other passive activity2 = Rental real estate with active participation (Default)3 = No limitation applied4 = Real estate professional

Description (45)

Aggregation group number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Passive activity code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [19]#[§ 19] Preference items

Code

Group Disclosure code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [18]

Passive activity is subject to recharacterization. . . . .(Codes 1 and 2 only)

Reg. 1.469-4(d)(1)group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [17]1= New grouping2 = Addition to Existing Group3 = Regrouping

[14]

[15][16]

State Passive Activity and Other InformationSt CO

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Short-term capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 1231 loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ordinary business loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[15]

[19]

[16][27]

[25][26]

[17]

[28][29]

[18]


Percent of federal allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx) [9]Amount of net income allocated to state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10]

[14] [24]

[20] [30]

[21][22]

[31][32]

Regular AMT

Commercial revitalization (Schedule E Page 1 only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 179 carryover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excess farm loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 179 - COGS carryover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Carryovers:

Section 179 carryover . .

Operating . . . . . . . . . . . [30]

[25][34]Section 1231 loss . . . . .

[24][23]

[28]

[27][22][31]

[36]

[35]

[33][32]

Regular

[29] [37]

Other Carryovers:


Short-term capital. . . . . .Long-term capital. . . . .28% rate capital. . . . . . .

Ordinary business loss .AMT

Excess farm loss . . . . . .

Form 4835 - Passive Activity4835-2

Activity unit number (one per activity) (Activity number must be the same as Form {38A}.)

Form 4835 (Continued)4835 Overflow # 38B2018

Election for Section 451(e) sale of livestock due to weather-related conditions:[§ 33]

[§ 34]Election for Section 1033(e) deferral of gain of livestock to due to weather-related conditions:

Other income from recapture:Prior year Section 179 . . . . . . . . . . . . . . . . . [35] Prior year Section 280F (Force) . . . . . . . . . .Recomputed Section 179 . . . . . . . . . . . . . . . Recomputed Section 280F (Force) . . . . . . . .

8I4835-2 05 01/03/19 INDIVIDUAL 38BExacTax, Inc.

[36][37][38]

Qualified business income (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .W-2 wages (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified property (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Portion of QBI allocable to qualified payments received from cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cooperative's QPAI deduction allocated to patron and identified in writing by cooperative. . . . . . . . . . . . . . . . . . . . . . . .Prop Reg Section 199A-4 aggregation group number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[7][8][9]

[11][12]

[23] [33]

Regular AMT

Regular AMT

Qualified Business Income Deduction

[10]

[26]

W-2 wages allocable to qualified payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[39]


58

RJOHNSON

Oval

Motor Vehicle Credit Hawaii Excise Tax CreditCredit code A, L or N must be entered in Tax

Mid-Quarter and Section 179 Force Options

Asset # Desc

COGS

8ICRINFO 02 01/03/19

Asset Page #Other

ALL SYSTEMS

Include in mid-quarter calculation (force)

Exclude from mid-quarter calculation (force)

Asset calculated using mid-quarter convention (force)

Eligible section 179 property (force)

Not eligible section 179 property (force)

OnlyONE

532018

ExacTax, Inc.

53

Credit Information

Credit code I must be entered in HI TreatmentYear of vehicleMake of vehicleModel of vehicleMaximum credit allowable

Phaseout percentage (xxx.xx)

OnlyONE

Motor Vehicle Credit Hawaii Excise Tax Credit

Investment Credit Recapture

Mid-Quarter and Section 179 Force Options

Asset # Desc

Sales/use tax creditclaimed under sec 238-3(i)

Purchased from out-of-state sellerUse tax was paidAcquired from related partyIntegral part of building or structure

Include in mid-quarter calculation (force)

Exclude from mid-quarter calculation (force)

Asset calculated using mid-quarter convention (force)

Eligible section 179 property (force)

Not eligible section 179 property (force)

OnlyONE

Business usepercentages

Current yearLast year

Three years agoFour years agoFive years ago

Original credit amt (memo)Recapture amount (memo)

Do Not compute recapture

(xxx.xx)

Credit Information

Credit code I must be entered in HI Treatment

Credit code R, C, T or O must be entered in Fed Treatment

OnlyONE

Date prop ceased to qualifyRecapture percentage %

Two years ago

(xxx.xx)

Sales/use tax creditclaimed under sec 238-3(i)

Purchased from out-of-state sellerUse tax was paidAcquired from related partyIntegral part of building or structure

Asset # and Description are MANDATORY. Please indicate the schedule the asset(s) belong to.

QBID Overides

Investment property

Th

isen

du

p

Credit code A, L or N must be entered in Tax

Cost of conversion

Year of vehicleMake of vehicleModel of vehicleMaximum credit allowable

Phaseout percentage (xxx.xx)

Cost of conversion

Tracking Partner's outsidebasis (1065 only)

Investment Credit Information

Investment Credit Recapture

Credit code R, C, T or O must be entered in Tax Treatment

Measuring period beginning date

NPS project number (18)

Date approved

Measuring period ending date

Beginning adjusted basis of building

Qualified expenditures incurred

Business usepercentages

Current yearLast year

Three years agoFour years agoFive years ago

Original credit amt (memo)Recapture amount (memo)

Do Not compute recapture

(xxx.xx)

Credit code R, C, T or O must be entered in Fed Treatment

(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)

Date prop ceased to qualifyRecapture percentage %

Two years ago

(xxx.xx)

Sch CSch A Sch F K1 Rent 2106 4835 Inc

Investment Credit InformationCredit code R, C, T or O must be entered in Tax Treatment



Date approved




(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)




Date approved




(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)

VIN




Date approved




(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)




Date approved




(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)




Date approved




(mm/dd/yy)

(mm/dd/yy)

(mm/dd/yy)

VIN

990 OnlyPSA Code

Exclude assetfrom QBID

199A Qualifying basis (force)for QBID

QBID Overides

Investment propertyTracking Partner's outside

basis (1065 only)

990 OnlyPSA Code

Exclude assetfrom QBID

199A Qualifying basis (force)for QBID


59

RJOHNSON

Rectangle

Other Adjustments, Business Loss LimitationOtherAdj

8IOTADJ 04 11/27/18 INDIVIDUAL 60C

60C2018

ExacTax, Inc.

Overflow #

3903 Form 3903 - Armed Forces Moving Expenses

minus MUST be 50+ miles

B

A

Number of miles from old home to old workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 = 100% foreign during assignment2 = 100% U.S. during assignment3 = U.S. and foreign days worked during assignment4 = U.S. and foreign days worked before/after assignment5 = Days worked before, during, and after assignment

Description . . (Mandatory) (25)

Unit number . . . . . . . . . . . . . . . . . .

Armed forces move * . . . . . . . . . . [7]

Taxpayer/Spouse/Joint . . . . . (T/S/J)

State postal code . . . . . . . . . . . . . . .

City code . . . . . . . . . . . . . . . . . . . . . .

Form 2555 allocation code . . . . . . . .

Move is outside United States or its possessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of miles from old home to new workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8]

Transportation and storage expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Travel and lodging (not including meals) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BA

[11][12]

[10]

[9]

[6]

[5]

[4]

[3]

[2]

[1]

[13]Miles driven to new home (.18 per mile)(When not using actual out-of pocket expenses for gas and oil) . . . . . . . . . . . . . . . . . . . . .Total amount reimbursed for moving expenses (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]

[§ 6] Other adjustments

[§ 4] Educator expenses Description (30)

[§ 1] Alimony Paid

# Taxpayer [4] Spouse [5]

PostCode# Amount [3]Recipient SSN [2]T/S [1] Name (15) Address (15) City (12) ST Zip

# Taxpayer [6]Description (28) Spouse [7] PostCode

TypeCode

PostCode

1 = Jury duty pay given to employer2 = Reforestation amortization3 = Repayment of Sub-Pay5 = 403(b) Certain chaplain contributions (403(b))6 = Unlawful discrimination claims (UDC)7 = Whistleblower fees (WBF)

Form 461 Business Loss Limitation461

Other income, gain, losses not reported on Form 461, lines 1 through 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[8]

Income/gain not attributable to a trade or business reported on Form 461, lines 1 to 8. . . . . . . . . . . . . . . . . . . . . . . . . . . .[9]

Losses/deductions not attributable to a trade or business reported on Form 461, lines 1 to 8. . . . . . . . . . . . . . . . . . . . . .[10]

*When zip 7 is not checked, moving expense will apply to the state only, when applicable.

[11]

AMT Adjustments to business losses (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


60

RJOHNSON

Oval

* MANDATORY Code: 1 = Taxpayer, 2 = Spouse, 3 = Dependent < 40,4 = Dep. 41-50, 5 = Dep. 51-60, 6 = Dep. 61-70, 7 = Dep. >70

1 Schedule A - Itemized DeductionsMedical Expenses

[§ 28] Additional state/locality infoPY Date To

[30] Sales taxDescription (27)# TSJ

[§ 29] Major purchases

[32] Sales taxDescription (27)# TSJ

[§ 31] Actual expenses

Total Interest Expense

Interest Expenses

Tax Expenses

[48] Amount# TSJ Code STDescription (24)

No. ofpaymentsDate (mm/dd/yy)

SSN or EIN

[16] Amount

[5] AmountDescription (24)# TSJ ST

[18] Amount STDescription (24)# TSJ Code

8ISCHA1 03 01/03/19

[3] AmountDescription (24)# TSJ

Code 1 = Principal residence, 2 = Other real estate taxes

Street address (18) Zip Code

[§ 2] Medical and dental expenses [§ 6] Long-term care premiums

[§ 15] State & local taxes [§ 19] Real estate taxes

[§ 23] Other taxes

[§ 39] Other interest not on 1098

[§ 45] Refinancing Points Paid

(Code 1 = State, 2 = Local, 3 = RE withholding)

Code 1 = State, 2 = Local

ST

INDIVIDUAL

[§ 4] Insurance premiums (Medicare adds in automatically from {27A})

MilesT/S/J

[§ 17] '17 taxes paid in '18

Description (24)# TSJ STCode

(Code 1 = State, 2 = Local)

[§ 21] Personal property taxes

Payee's name (20)# TSJ

Description (24)TSJ

Overflow #

Force income tax or sales tax deduction . . .Resident state (for IRS tax table value) . . . . . . . [26]



[7] Amount# TSJ Code* STDescription (24)


1 = Income tax2 = Sales table3 = Sales-actual

A

(Code 1 = Other, 2 = Private activity bond)[§ 47] Investment interest(other than on K-1s)

ST# TSJ Code PY Date From Locality name (15) IRS

Total Medical Expenses

Total Tax Expenses

70A

2018

ExacTax, Inc.

18(x.xx)

181818

(Code 3 = PY state, 4 = PY Local)

[§ 8] Prescription drugs[9] AmountDescription (24)# TSJ ST

[10]

Rate

(Optional table code, A, B, C, D)

Do not include refundable portion of refundable tax credits allowed per Notice 2005-31 . . . . [36]

Date (mm/dd/yy)Description (24)# TSJ

Mtg. Type*Recipient / Lender Name (24)# TSJ [38] Total paid[§ 37] Home mortgage interest - Form 1098

TSJ ST(1098 Box 4) **Code

ST[40] Total Paid Type* AMT% AMT allowed

Fullydeducted

%of prin >original mtg

on CY1098Prior amortTotal points ST[46] Current amort

* Mortgage Type CodeBlank = Used to buy, build or improve main/qualified second home(default)

1 = Not used to buy,build, improve home, investment

TSJTSJ

Fullydeducted

%of prin >original mtg

on CY1098Prior amortTotal points [46] Current amort

# Description (24) No. ofpaymentsDate (mm/dd/yy)

ST

[§ 14] Elect to deduct decedent's medical expensesDescription of Expense#

X.18 =

70A

[11]

[35]

Medical miles driven

STPayer's/Borrower's Name (25)# TSJ Street Address (18) City (20) Zip Code[§ 41] Other Person(s) Who Received Form 1098 For Mtg Interest Paid

(Birthdaterequired onForm {1} )

Points Paid Box 6Adds to Total paid

City ST

***Mtg. ins.Premiums

TS [14] Amount

*** Currently inactive

Refunded Interest

** CodeBlank = Do not include refunded interest in income (default), 1 = Include in other income


61

[76] AmountDescription (24)# TSJ ST[§ 75] Other expenses (Efile - Each description requires an amount)

TypeCode

(Type Code (Mandatory for ELF) (All amounts not entered elsewhere))(1 = Claim repayments, 2 = Federal estate tax, 3 = Impairment-related workexpenses, 4 = Schedule K-1, 5 = Unrecovered pension investments), 6= Ordinaryloss debt instrument)

[§ 79] Gambling losses[80] AmountDescription (24)# ST ST

Use

(1 = State lottery: CA, NJ)

Date (mm/dd/yy)[§ 81] Elect to capitalize carrying charges (Election will print automatically)

Description (24)# Amount

TSJ

[83][82]

Unearned Income Net/Cap Gn/Qual Div

Miscellaneous Expenses

Volunteer Miles Driven

Total Misc Expenses (Subj to 2% limitiation)

Miscellaneous Expenses - Subject to 2% Limitation (state use only)

[8] Amount

Tax preparation . . . . . . . . . . . . [5]

Safe deposit rent . . . . . . . . . .

[§ 1] Unreimbursed expenses (Not included on Form 2106) [§ 7] Other expenses

[§ 3] Union dues (Not on W-2)(Adds to amounts from W-2)

Description (24)# TSJ ST

[§ 9] Hobby expensesDescription (24)# TSJ ST[4] AmountDescription (24)# TSJ ST


[14] Amount[§ 13] Investment expenses

Description (24)# STT/S/J (1 = Other, 2 = Private activity bond invest)

TSJ Code

T/S/J

[6]

[10] Amount

[12][11]

A-St

[34] AmountDescription (24)# TSJ Code

Code 1 = VA benefits, 2 = Nontax unemployment, 3 = Public assist, 4 = Other

[§ 33] Non-taxable income (For Sales Tax only)

2 Schedule A - Itemized Deductions (Continued)Charitable Contributions

8ISCHA2 04 01/09/19 INDIVIDUAL

Overflow #A

Bond premium amortization . .

STUse†Description (29) [51] Amount

[§ 50] Cash

[§ 55] Noncash (Entries here will add to Form 8283 {73A-C} Do not use if total >500)

# TSJ STCode

Total Charitable Contributions**

(Code 1 = 60% limitation (Default), 2 = 30% limitation)

70B

70B2018

ExacTax, Inc.

T/S/J

01/01 - 12/31 (.14):

[52]MilesT/S/J

Description (29) [56] Amount# TSJ Code*

1 = Public contribution MI2 = Homeless/Food Banks: MI3 = Qualified foster care org: AZ4 = Working poor: AZ5 = Public school contr/Fees: AZ6 = School tuition org: AZ7 = Check-off contr (cash only): AR8 = Art/literary contr (noncash only): AR10 = Oregon cultural trust contri.: OR11 = Oregon child care fund: OR12 = Injured vet program: IA13 = School tuition organization credit: IA14 = Oregon prod. invest. fund: OR15 = University venture fund: OR16 = Oregon ind. dev. acct. donation17 = Military family relief fund: AZ18 = Food pantry contribution: MO21 = Charitable conver. contribution. : IA22 = Qualified edu. expense credit : GA23 = Endow Iowa (cash only): IA

1 = 50% limitation (Default)2 = 30% limitation3 = 20% limitation4 = 50% capital gain (30%)

* Noncash Code

† State Use

X .14

Total Noncash Contributions (If >$500, efile MUST use Form 8283 {73A})

STUse†ST

[53]

[78][77]

** Contributions from Forms 8283 {73A-C}, 1098C {73D}, K1-3{34C}, K1T {34A} will add the amounts on this form. If the totalnon-cash exceeds $500 you must move all non-cash entries onthis form to Form 8283 {73A-C}.

Form 8615 directly connecteditemized deductions . . . . . . . .

Date

Date

(Qualified disaster relief - 100%)


62

RJOHNSON

Rectangle

RJOHNSON

Line

RJOHNSON

Rectangle

Additional Vehicle Information

Net income for HomeOffice deduction limitation

Lease inclusion (Force)

[§]Other

expenses

# of months

Type of Property ( one only)

Enter Totalin box 17 below.

Employee Business Expenses

Other

Suppress carry of homeoffice interest and tax toSchedule A [15]

TravelAway from

Home

LocalTrans-

portation

Reimbursements(SBE only)

Unit #

1 = Qual artist, 2 = Impairment-related, 3 = Fee-basis official, 4 = Not applicable, 5 = Reservist

State use code . . . . .

Tax

Form 4562 Vehicle Questions:[ This Vehicle ]

Available for personal use during off-duty

Vehicle/Listed Property (and Other Business %)

CURRENT DEPR

State postal code (Required for state processing)

Activity unit number Taxpayer / Spouse (T/S)Occup in which exps were incurred . . .

Special occupations[3]

[5]

[1] [2]

[6]

Date in serviceAMTPrior Mid-Qtr

Asset #(State) State AMT

Cost (@ 100%)MethodLifeADS LifeSec 179 ExpSalvage ValueCredit Code/Amt*Prior deprec

DepreciationDesc

Luxury auto (Passenger) . . . . . . . .

Van or light truck (after '02) . . . . . .

Listed vehicle (no limit) . . . . . . . .

Used property

Sport utility vehicle . . . . . . . . . . . .

Employer Reimbursements Not included in Box 1 of W-2 (Force fields)

8I2106 04 01/14/19

2106 2018

INDIVIDUAL

Overflow #

City code . . .

Description (36)# Amount [20]

Other amounts . . . . . . . . . . . . . . . .Meals. . . . . . . . . . . . . . . . . . . . . . . . Meals (Subject to 50% limit only) *(Nonconforming states, see note). . . .

Meals subject to DOT hrs of service limitation (80% allowance)

Other reimbursement amounts (not entered in W2, Box 12, code L)Meals reimbursement (Zero is a valid entry). . . . . . . . . . . . . . . . .Meals for DOT service limitation reimbursement . . . . . . . . . . . . . .

Page # 72

ExacTax, Inc.

Total

X 50%

[§ 20] Other business expenses

Taxi, bus, etc.

Total local transportationAir, train, taxi, etc.Lodging (not meals)Baggage handling

Total travel expenseLaundry & other

( )

Enter Totalin box 18 below.

Section 280F recomputed depreciation (Force) . . . . . . . . . . . . . . .Section 280F deduction allowable in prior years (Force) . . . . . . . .

Section 179 carryover (State, if diff) . . . . . . . . . . . . . . . . . . . . .Section 179 carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental Business Expense (SBE) Form/Sch Bus % (xxx.xx) Auto % (xxx.xx)Allocate expenses to other forms or schedules:C, Rent, F, 4835 or K1 (for partners only).

Shareholders must use Form 2106.Suppress carry of excess allocated expenses to 2106 . . . . . .

Asset

Form 2555 allocation code

Another vehicle is available for personal use

Evidence to support business/investment useEvidence is written

[ All Vehicles ]

Form 2106

1 = MA: outside sales or travel away from home,2 = MI cities outside sales, 3 = Qualified enterprise zone: CA

MUST complete Form, Unit & Bus%(Auto%, if applicable)

Meals for DOT service limitation . . .

No. 1

Home office (Force):

*See Form [53]

Compute lease inclusion:

Description (25)

Length of lease

Parking feesInsurance

Repairs

Car washes

Registration

TotalParking & Tolls + (Total X Business use %)

Interest

Fair Market Value

TollsGasolineOil

MaintenanceTires

LicensesProperty taxes*Vehicle rentals

Amount

No. 2

Thisend

up

Other

Other information

Vehicle Use

Tax Method ( one only):

Value of employerprovided vehicle

(Force no bonus = P)

Optimize (1st year only)

Standard (Default after 1st year)Actual

Total milesCommuting miles

Business use %

Business miles

Avg round trip commute

[11]

[13]

[32]

[40][44]

[36][33]

[41][45]

[37][34]

[42][46]

[38]

[49]

[51]

[48]

[14]

[15]

[18]

[19]

[22]

[26]

[27][28]

[52][53]

72

[35]

[43][47]

[39]

[50]

[29]

[54]

* Personalportion to Sch A

when not to2106

[23]

Business miles X .545

Section 179 carryover - AMT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . [24]Section 179 carryover - AMT (State, if diff) . . . . . . . . . . . . . . . . .[25]

Use this unit for state processing only. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [7]

[10]

*(States: Enter net entertainment on Form A-St {70B}, zip 1)


63

RJOHNSON

Line

Due Diligence Questions for Applicable Credit(s)/Benefit(s)

Did you explain the tie-breaker rules about claming the EIC when a child is the qualifying child of more thanone person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . (1 = Yes, 2 = No, 3 = NA)

[14]Did you ask the taxpayer if the child lived with the taxpayer for over half the year, even if the taxpayer has supported the child theentire year?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

[13]Have you determined the taxpayer is eligible to claim EIC for the number of children for whom the EIC is claimed, or to claimEIC if the taxpayer has no qualifying child?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Did you ask the taxpayer whether he/she could provide documentation to substantiateeligibility for and the amount of the credit(s)/HOH status claimed on the return if return is selected for audit?. . . . .(1 = Yes, 2 = No)

Did you ask the taxpayer if any credits disallowed or reduced in a previous year? . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No), 3 = NA)[9]

If credits were disallowed/reduced, did you complete Form 8862, as required? (Force) (See Form EIC {79B}) (1 = Yes, 2 = No, 3 = NA)[10][11]

[1]Information provided by taxpayer and/or reasonably obtained to complete return?. . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)Questions & answers asked/documented to determine eligibility for claiming credit(s)/HOH status? . . . . . . . . . . . . . .(1 = Yes, 2 = No)Adequate information reviewed to determine eligibility for and amount of credit(s)/HOH status?. . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)Did any information provided by taxpayer, third party, or obtained by you in connection

with preparing return appear to be incorrect, incomplete, and inconsistent?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)If yes, were reasonable inquiries made to determine the correct/complete consistent information? . . . . . . . . . . . . .(1 = Yes, 2 = No)

If yes, were the inquiries documented?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)Did you satisfy the record retention requirement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

[2][3]

[4][5][6][7]

If yes, documents used to determine credit eligibility/amount/and or HOH status:

#*TypeCode[§ 8]

* Type Code (zip 8)

1 = School records or statement2 = Landlord or property management statement3 = Health care provider statement4 = Medical records5 = Child care provider records6 = Placement agency statement7 = Social service records or statement8 = Place of worship statement9 = Indian tribal official statement10 = Employer statement

11 = Business license12 = Forms 109913 = Records of gross receipts provided by taxpayer14 = Taxpayer summary of income15 = Records of expenses provided by taxpayer16 = Taxpayer summary of expenses17 = Bank statements18 = Reconstruction of income and expenses19 = Doctor statement20 = Other health care provider statement21 = Social services agency or program statement

Qualifying Child(ren) for EIC, CTC, ACTC, HOH Documents/Info (For C/C-EZ Filers)

Answer all questions if any credit claimed.

DescriptionOR

Use a type code or enter yourown description.

Schedule C completed correctly based on information provided by the taxpayer?. . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No, 3 = NA)

[15]

Due Diligence Questions for Returns Claiming CTC/ACTC/ODC

[16](When any credit applies, zip 16 must be completed along with either zip 17 or 18)

Have you determined that each qualifying person for the CTC/ACTC/ODC is the taxpayer's dependent who is aa citizen, national, or resident of the United States?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Did you explain to the taxpayer that he/she may not claim the CTC/ACTC if the taxpayer has not lived with the

[17]

[18]

Due Diligence Questions for Returns Claiming AOTC/HOH

Did the taxpayer provide Form 1098-T and/or receipts for qualified tuition & related expenses tosubstantiate the AOTC claimed on the return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [19]

Credit Eligibility Certification & Alternate Preparer

[21]All answers on Form 8867 certified to be true, correct and complete?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)EIC preparer name (If different than preparer signing the tax return). . . . . . . . [22]

[23]PTIN (If different than preparer signing the tax return)(Must begin with the letter "P") . . . . . . . . . . . . . . . . . .

CTC/ACTC/ODC preparer name (If different than preparer signing the taxreturn). . [24]PTIN (If different than preparer signing the tax return)(Must begin with the letter "P") . . . . . . . . . . . . . . . . . .[25]AOTC preparer name (If different than preparer signing the tax return). . . . . . [26]PTIN (If different than preparer signing the tax return)(Must begin with the letter "P") . . . . . . . . . . . . . . . . . .[27]HOH preparer name (If different than preparer signing the tax return). . . . . . [28]

more than half the cost of keeping up a home for the year for a qualifying person?. . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [20]

Have you determined the taxpayer was unmarried/considered unmarried on the last day of the tax year and provided

Due Diligence Checklist (EIC, CTC/ACTC ODC, AOTC, HOH)

79A

79A8867

8I8867 05 12/05/18 INDIVIDUAL

Overflow # 2018

ExacTax, Inc.

Due Diligence RequirementsTo comply with due diligence requirements, answer the following questions pertaining to all applicable credits claimed on return:(Earned Income Credit (EIC), Child Tax Cr/Add'l Tax Credit/Oth Dep Cr (CTC/ACTC/ODC), American Opportunity Tax Credit (AOTC), HOH)

[12]

child for over half the year, even if the taxpayer has supported the child, unless the child's custodial parent hasreleased a claim to exemption for the child?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No, 3 = NA)

Did you explain to the taxpayer the rules about claiming the CTC/ACTC/ODC for a child of divorced or separatedparents (or parents who live apart), including the requirement to attach a Form 8332 or similar statement to thereturn?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No, 3 = NA)

PTIN (If different than preparer signing the tax return)(Must begin with the letter "P") . . . . . . . . . . . . . . . . . .[29]


64

RJOHNSON

Oval

RJOHNSON

Oval

Kiddie Tax - Parent and Taxpayer Information8615 (2018)

Form 8615 - General and Parent Information

Parent's SSNParent's first nameParent's last name

Parent's Client ID

Earned income adjustment for Form 8615, line 1 (Unearned income)Unearned income is estimated

1

2

3

4

5

6

8615 86A

2018 INDIVIDUAL18,2,0


65

California Tax for Certain Children (Kiddie Tax)CA3800 (2018)

Parent Return Information

Sibling Return Information

Taxpayer (Child) Return Information

Unearned income (Force)

Alternative minimum taxable income (Schedule P (540/540NR), Part I, line 21)Alternative minimum tax exemption amount (Schedule P (540/540NR), Part II, line 22)

Information from Parent's California Form 540/540NR:

First name, Last nameSocial Security numberFiling status

Adjusted gross income from all sources (Form 540NR, line 17)Adjusted gross income from California sources (Form 540NR, line 32)

Taxable income from all sources (Form 540/540NR, line 19)Taxable income from California sources (Form 540NR, line 35)

Total income tax (Form 540/540NR, line 31)Tax from Form 3803 (Form 540NR filers only)

Itemized or standard deduction (Form 540NR, line 18)

Itemized deductions related to unearned income (Force) (If different from Federal Form 8615)

Total unearned income for all other children (Force) (Total sources, from CA Form 3800, line 5 for other children)

Amount from child's 2017 Schedule P AMT Exemption Credit AGI Limitation Wrk, line 9

California Form filed (540 or 540NR)

Taxpayer (child) information:

If this is the child's return, enter data in this section with information from the parent's return to complete Form 3800.If this is the child's return, use Screen 3800S for sibling information.

Fields on this screen are non‐enterable if federal Screen Family indicates this is the parent's return.

To share information between parent return and child return: Visit Utilities > Family Transfer Utility, select parent return and child/dependent return(s), mark the box for Kiddie tax, and select Transfer.

Information from Siblings' California Form 540/540NR:

Total unearned income for all other children ‐ CA sources (Force)

Use this section only if information for siblings cannot be entered on Screen 3800S.

Unearned income ‐ CA sources (Force)

3

4 5

6

7

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

CA3800 CA31A



66

California Kiddie Tax - Sibling InformationCA3800S (2018)

General Information

Return Information

SSNFirst nameLast nameDate of birth (mm/dd/yyyy)

Total unearned income (Total sources amount from California Form 3800, line 5)

If this is the child's return, enter data on this screen with information from the sibling's return to complete Form 3800.

Fields on this screen are non‐enterable if federal Screen Family indicates this is the parent's return.child/dependent returns, mark the box for Kiddie tax, and select Transfer.

To share information between children's returns: Visit Utilities > Family Transfer Utility, select parent return and

Total unearned income ‐ CA sources

2

3

4

5

7

8

CA3800S CA31B



67

Taxpayer Identification NumberName

Form Qualified Business Income (QBI) Component Worksheet 20181040

3.

11.

12.13.

9.

10.

14.

Multiply Line 2 by 20% (.20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

Name of trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mark if a Specified Service Trade or Business (SSTB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

5. 4.Allocable share of W-2 wages for this trade, business or aggregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allocable share of the unadjusted basis immediately after acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

1.

2.

4.

5.

6.

8.

9.

10.

11.

12.

13.

14.

W-2 wage and qualified property limitation. Enter the smaller of line 3 or line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16.

17.

18.

19.

20.

21.

22.

23.

Multiply line 7 by 2.5%(0.025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Add lines 6 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enter the greater of line 5 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16.

17.

18.

19.

20.

21.

22.

23.

Form / Schedule . . . . . . . . . . Unit number

7. 7.

24.24.

25.

26. 26.

25.

If taxable income before deduction is less than $157,500 ($315,000 MFJ), skip lines 4 through 12. Enter line 3 on line 13.

Qualified business income from the trade, business, or aggregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Multiply line 4 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Multiply line 4 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

Phased-in reduction. Enter amount from Part III, line 26, if any. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified business income deduction before patron reduction. Enter the greater of line 11 or line 12. . . . . . . . . . . . . .Patron reduction. Enter the amount from Schedule D, line 6, if any. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified business income component. Subtract line 14 from line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Complete additional worksheet for remaining qualified trades, businesses or aggregations, if any. . . . . . . . . . . . . . . . .

Go to Part IV: Determine Your Qualified Business Income Deduction after all qualified business income components determined.

married filing jointly), and line 10 is less than line 3. Otherwise, skip Part III. Complete Part III only if your taxable income is more than $157,500 but not over $207,500 ($315,000 and $415,000 if

Qualified business income after phase-in reduction. Subtract line 25 from line 17. Enter this amount on line 12 . .

Total phase-in reduction. Multiply line 19 by line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Phase-in percentage. Divide line 22 by line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Phase-in range. Enter $50,000 ($100,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 21 from line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Threshold. Enter $157,500 ($315,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 18 from line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the amount from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III: Phased-in Reduction

1.Complete this schedule only if above trade, business or aggregation is a patron of an agricultural or horticultural cooperative1.

Qualified business income allocable to qualified payments received from cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Multiply line 2 by 9% (0.09) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .W-2 wages from trade or business allocable to the qualified payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Multiply line 4 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Patron reduction. Enter the smaller of line 3 or line 5. Enter this amount on Part II, line 14 . . . . . . . . . . . . . . . . . . . . . . . .

2.

3.

4.

5.

6.

Schedule D - Special Rules for Patrons of Agricultural or Horticultural Cooperatives (Coop)

6.

5.

4.

3.

2.

Part I: Trade, Business, or Aggregation Information

Part II: Determine Your Qualified Business Income Component

JOHN & MARY SAMPLE ***-**-8187

FARMF 1

40,8378,167

2,0001,000500

29,069727

1,2271,2271,2274,3554,355

4,355

8,1671,2276,940

369,929315,00054,929100,0000.54933,8124,355

000

PAGE 1 OF 8

09999940060 01/22/2019 Pg 70


68

1040

Taxpayer Identification NumberName

Form 2018

Total qualified business income component from all trades, businesses, or aggregations. Enter total of all Part II, line 1527.

28a.

28b.

29.

30.

31.

32.

38.

37.

36.

35.

34.

33.

Total qualified REIT and PTP loss carryforward from the prior year. Enter as a negative number. . . . . . . . . . . . . . . . . .

Qualified business income deduction. Enter the smaller of Line 32 or Line 36. Enter deduction on Form 1040, line 9.Income limit. Multiply line 35 by 20% (.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excess of taxable income over net capital gain. Subtract line 34 from line 33. If less than zero, enter -0-. . . . . . . . .

Net capital gain (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified business income deduction before the income limitation. Add lines 27 and 31. . . . . . . . . . . . . . . . . . . . . . . . . . .

REIT and PTP component. Multiply line 30 by 20% (.20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total qualified REIT and PTP income. Add lines 28 and 29. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified publicly traded partnership income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified real estate investment trust dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV: Determine Your Qualified Business Income Deduction

Total qualified REIT dividend and qualified PTP loss carryforward. Add lines 28 and 29, If zero or greater enter -0-39. DPAD under section 199A(g) allocated from an agricultural or horticultural cooperative. Don't enter more than line 3339.

33.

34.

35.

36.

37.

38.

32.

31.

30.

29.

28b.

28a.

27.

minus line 37. Enter this deduction on Form 1040, line 10. See the instructions for Form 1040, line 10

Schedule A - Specified Service Trades or Businesses (SSTB)

6.

5.

4.

3.

2.

11.

10.

9.

8.

7.

12.

13.

Qualified business income from the trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Allocable share of W-2 wages from the trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Allocable share of the unadjusted basis of the trade or business qualified property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Threshold. Enter $157,500 ($315,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Phase-in range. Enter $50,000 ($100,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Divide line 7 by line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Applicable percentage. Subtract line 9 from 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Applicable percentage of qualified business income. Multiply line 2 by line 10. Enter on Schedule C or Part II, line 2.Applicable percentage of W-2 wages. Multiply line 3 by line 10. Enter on Part II, line 4. . . . . . . . . . . . . . . . . . . . . . . . . . . .Applicable percentage of unadjusted basis of qualified property. Multiply line 4 by line 10. Enter on Part II, line 7. 13.

12.

7.

8.

9.

10.

11.

2.

3.

4.

5.

6.

Schedule C - Loss Netting and Carryforward

2.

3.

4.

5.

6.

1a. Trade, business, or aggregation qualified business income (loss). See statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified business net loss carryforward from prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total trade or business losses. Combine the negative amounts in line 1a and 2, for all businesses . . . . . . . . . . . . . . .Total trade or business income. Add the positive amounts of line 1a, for all trades and businesses. . . . . . . . . . . . . . .Losses netted with income of other trades or businesses. Enter as a negative number, . . . . . . . . . . . . . . . . . . . . . . . . . . the smaller of the absolute value of line 3 or line 4. Allocate the amount to each trade or businessQualified business net loss carryforward. Subtract line 5 from line 3. If greater than zero, enter -0- . . . . . . . . . . . . . . .

1b.

1c.

Reduction for loss netting. See statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Adjusted qualified business income. See statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c.

1b.

1a.

6.

5.

4.

3.

2.

Complete only for specified service trade or business and taxable income is more than $157,500

Schedule B - Aggregation of Business Operations

Qualified business income W-2 Wages Unadjusted basisAggregation grouping number

1.

but not over $207,500 ($315,000 and $415,000 if married filing jointly). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

Qualified Business Income Deduction (QBID) Worksheet

JOHN & MARY SAMPLE ***-**-8187

10,9445,000

5,0001,00011,944369,929

369,92973,98611,944

0

93,0505,00038,887369,929315,00054,929100,00054.929045.071041,9382,25417,526

90,25813,22490,258

-13,224103,482-13,224

X

09999940060 01/22/2019 Pg 74


69

Welcome to the 2018 Business ExacTax workshopThe 2018 tax season will be an “interesting year”, there are over 25 majorprovisions in the Tax Cuts and Jobs Act (TCJA) impacting business filers,including changes in the corporate tax rates, adding Qualify Business Incomededuction (QBID), expanding the balance sheet information for disallowexpenses, removing of AMT computation for corporate filers and manymore changes.

This workshop will assume that you've already attended an update seminarfor 2018 tax law changes and will concentrate on the input changes. In manycase, the input has remained the same as 2017, other than the new input forQBI.


70

IRS Opening Date for Business Electronic Filing The IRS has announced that the opening date for Business returns willbe January 8, 2019 (January 28, 2019 for individual returns). Despitethe government shutdown, the IRS is continuing to update itsprogramming and processing systems for 2019. In addition, the IRScontinues to closely monitor potential legislation that could affect the2019 tax season. The IRS will continue to work closely with the nation'stax professionals and software community as preparations continue forthe 2019 tax filing season.


71

New Form and Worksheet add for 2018 (1120)The following calculating forms and worksheets where add for Corporatereturns.

• Form 8994, Employer Credit for Paid family and Medical Leave• Form 965, Inclusion of Deferred Income Upon Transition to Participation Exemption System• Form 965‐B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liabilityand Electing REIT Report of 965 Amounts

• Section 199A Information Worksheet for both S Corporation and Shareholder

The following item where deleted in reaction to the Tax Cuts and Jobs Act (TCJA)• Removed the AMT forms, worksheets, and calculations for C Corporations• Removed the Tax Computation Worksheet

The following item where added in reaction to the Tax Cuts and Jobs Act (TCJA)• Nondeductible entertainment field to Form 61C/61S on the M1/M2 input (Note: Thedeductible portion of entertainment expenses will be automatically included as a Californiaadjustment to ordinary business income (loss) on Form 100S, Page 6, Schedule K. )

• Input for QBI on the Income & Deductions (Form 20A), Farm (Form 36), Farm Rent (Form 38),and Rent (Form 31) to calculate the Section 199A Information Worksheet

• Form 96A to complete Form 965• Form 96B to complete Form 965‐B


72

Qualified Business Income DeductionThe biggest change for 2018 is going to be the QBI deduction for S‐Corporation,Partnership and Trust. Additional input has been added to the Income (Form 20A),Schedule F (Form 36), the rental (Form 31), Schedule K‐1(Form 32E) , Form4835(Form 38) and deprecation input (Form 53). There are 3 components used tocompute the limitations for QBI deductions: 1; QBI income, 2; qualified wages and3; qualified property.

1. Qualified Business Income: Is the net income from any trade or business thatmeets the section 199A requirements.

2. Qualified Wages: Includes all wages subject to wage withholding, plus any electivedeferrals, plus any deferred compensation paid in the production of QBI.

3. Qualified Property: If the activity qualifies for the QBI deduction, the depreciableassets are assumed to be qualified property. The term “qualified property” meanswith respect to any qualified trade or business for a taxable year, tangible propertyof a character subject to the allowance for depreciation (therefore inventory, landor amortization can't be included) under section 167.


73

Qualified Business Income Deduction (continued) System defaults and override for components to be used in computing QBI deduction

(QBID) will be as follows:

If an activity is a “Qualified as trade or business for Section 199A”, enter a “1” in zip11 (zip 18 for Partnership) in the QBI section, otherwise enter “2”. This QBI sectionis located on Form Inc (Form 20A), Schedule F (Form 36), the rental (Form 31), andForm 4835(Form 38) in each system.


74


deduction (QBID) will be as follows:

1. Qualified Business Income can be overridden in zip 6.2. Total of wages entered in “Officer Compensation” in zip 15 plus “wages and

salaries” in zip 18 (zip 9 for partnership). To override the qualified W‐2 Wages,enter amount of qualified W‐2 wages in zip 7 Form 20A.

3. If the activity qualify for the QBI deduction, the assets are assumed to be“qualified property” within the limits. To override the qualified property, enterthe amount of property in zip 8. (RDE: See RDE section, for additionalinformation).


75


deduction (QBID) will be as follows:

4. S‐Corporation REIT dividends are entered on Form 21(S)A, zip 22 (zip 16in QBI section for partnership).

5. Enter any QBI allocable to qualified payments from a cooperative in zip 9.6. Cooperative QPAI deduction allocated to patron and in writing in zip 10.


76

Qualified Business Income Deduction (continued)Depreciation override to be used in computing QBI deduction (QBID) will be as

follows:Individual asset qualified basis overrides are located on Form 53

If an asset was not used in theproduction of QBI, enter the assetnumber and check the box to“Exclude asset from QBI”.

All assets are assumed to be “qualified property” within the limits.

If an asset was not used exclusively inthe production of QBI, enter theasset number and enter“199AQualifying basis for QBID”.

25137

x

3

4


77

New Form and Worksheet add for 2018 (1065)The following calculating forms and worksheets where add for Partnership returns.

• Nondeductible entertainment and Nondeductible expenses subject to 2%fields on Form 61 (M1M2).

• QBI input on Form 20 (Income & Deductions), Form 36 (Farm), Form 38 (FarmRent), and Form 31 (Rent) to calculate the Partner’s Section 199A InformationWorksheet (See pages 6 and 7).

• Form 965 input, Inclusion of Foreign Deferred Income on Form 96.• Form 8994, Employer Credit for Paid Family and Medical Leave on Form 80E.• Questions for Schedule B‐2 (1065), Election Out of the Centralized PartnershipAudit Regime on Form 3A.


78

New Form and Worksheet add for 2018 (1065) (Continued)Schedule K depreciation

The Tax Cuts and Jobs Act (TCJA) suspendedmiscellaneous itemized deductions subjectto 2% limitation, including some portfoliodeductions. In prior years, ExacTax classifiedexpenses related to portfolio assets(depreciation, amortization, start‐upexpenses, organization costs, and leaseinclusions) as portfolio deductions subject tothe 2% limitation.For 2018 – Caution: Asset deductionsrelated to portfolio income in 2018 arereported as Schedule K‐1, Box 13, Code L,Deductions – portfolio (not subject to 2%).These deductions include depreciationexpense, amortization, organization costs,startup expenses, and lease inclusions. If anasset’s related deductions should be treatedas portfolio deductions subject to 2%, enter“zero” in the current year depreciation fieldfor federal “Tax” and “AMT”.

0.00 0.00


79

New Form and Worksheet add for 2018 (1041)Tax Cuts and Jobs Act (TCJA) made the following changes:

• QBI input section has been added to the Schedule C (Form 28B), Schedule F(Form 37B), the rental (Form 31), Schedule K‐1(Form 33C and 36B) , anddeprecation input (Form 53).

• Miscellaneous deductions are only used in the calculation of accountingincome and are no longer a deduction on Form 1041.

• State and local tax deduction is limited to $10,000.• Net operating loss carrybacks are now only allowed for farm losses only.• Form 965, Inclusion of Deferred Foreign Income Upon Transition toParticipation Exemption System


80