Schedule E is used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates and trusts.  You cannot claim rental of personal property on Schedule E unless the property is leased with real estate.

The at-risk rules place a limit on the amount a taxpayer can deduct as losses from activities. Generally, any loss from an activity that is subject to the at-risk rules is allowed only to the extent of the total amount the taxpayer has at risk in the activity at the…

Original Issue Discount is normally offered on some bonds and similar obligations in lieu of those bonds earning interest.  Original Issue Discount is reported on Form 1099-OID and is to be reported as interest income to the taxpayer.  To input these amounts in the software, from the Main Menu of the Tax…

Traditional Individual Retirement Agreements (IRAs) can be converted to a Roth IRA, however these conversions are taxable transfers.  In order to report a conversion, the taxpayer will be issued Form 1099-R showing the total distribution made from their Traditional IRA account.  The full distribution does not need to be converted to a…

Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer.  If both you and your employer pay for the plan, only the amount you receive that is due to your employer’s payments…

Amended returns, filed on Form 1040X, are used to make corrections to a previously submitted and accepted tax return.  An amended return can be done for any tax year, however, if a change to a taxpayer’s return requires the IRS to give them a refund, the changes must be made using…

If a taxpayer receives a Form W-2 marked as a Statutory Employee in box 13, you will need to make two entries in the Keystone Tax Solutions program.  Enter the Form W-2 in the Form W-2 entry menu. Make sure that you place a check mark in the Statutory Employee box…

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To discourage the use of pension funds for purposes other than normal retirement, the law imposes a 10% additional tax on certain early distributions of these funds.  Early distributions are those you receive from a qualified retirement plan or deferred annuity contract before reaching age 59 1/2.  The term ‘qualified…

A health savings account (HSA) is a tax-exempt trust or custodial account set up with a qualified HSA trustee to pay or reimburse certain medical expenses incurred by an individual, spouse, or qualified dependents.  Any medical expenses reimbursed by an HSA cannot be covered or reimbursable by insurance or any…