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David

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About David

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    ATXaholics Anonymous
  • Birthday June 15

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  1. That too. That's why I thought no sales needs to be reported. But since that is non taxable income, can the estate deduct the commission paid for the estate sale?
  2. Usually these are items that are not sold above their purchase price - furniture, cars, clothing, household items, etc. Is my thinking not correct on this?
  3. Are sales commissions paid for selling items at an estate sale deductible on form 1041? I'm thinking they may not be since the income from the sale is not taxable or reported on form 1041. However, it is an expense for the estate. I don't see this type of commission specifically mentioned in the instructions. Thanks.
  4. Business switched from a SMLLC to an S Corp effective 1/1/17. The client is planning to make a big profit sharing contribution later in the year. The intent was to file an extension by 3/15. I thought an extension had been filed for the new S Corp but it wasn't filed. I know it is possible to get relief for the late filing penalty but I can't find anywhere where there could be relief for paying the profit sharing after 3/15 if an extension wasn't filed. Has anyone dealt with this situation before or know knows if there is relief for the S Corp to pay the profit sharing later in the year when they intended to file an extension? Thanks.
  5. Tax Prep Fees Paid After Final 1065 Filed

    Ok , that makes sense. I guess you can report UPE even if no K-1 is issued. Thanks for your help on this.
  6. I don't see anything in my research tools that indicate an LLC can report the tax prep fees for preparing a final 1065 when these fees, of course, won't be paid until after the final tax return date. It appears that the LLC members are out of luck as far as deducting their portion of the fee, Is this correct? Thanks.
  7. S Corp Using PEO

    Thanks Judy for the link. A little scary since every company I know who uses a PEO thinks the PEO is liable. But back to my question as to how best to handle the officer's wages since no payroll reports are filed by the company - John's solution is similar to how I was planning to handle this - see my original post. Does anyone think that reporting officer's wages on line 7 of form 1120S will be a problem when there are no W-2s or employer reports filed by the company? Thanks.
  8. S Corp Using PEO

    An S Corp with one shareholder/officer is using a Professional Employer Organization (PEO). There are no quarterly employer reports filed by the employer since the PEO files under the PEO's tax ID. Typically the payroll expenses are reported under a category such as PEO expenses. If the expenses are reported as payroll expenses it may raise a red flag with the IRS as to why no quarterly reports are being filed. Since this is an S Corp I know it may raise a red flag if officer salaries aren't reported. I am thinking that I will still report officer salaries and then PEO expenses for the other employee wages. In the security questions section I am planning to report 1 as the number of officers with compensation, zero number of employee W-2s issued and no quarterly employer reports. How have those of you who have this situation for an S Corp handle it? Thanks.
  9. Thanks so much for your help.
  10. I guess I should have said that the purchasing sibling will show the purchase price (2/3 FMV paid to the 2 siblings) plus her 1/3 cost of the property distributed to her from the LLC as her cost on Schedule E. Thanks.
  11. Ok, that makes sense. The 2 siblings will of course have to report the sale on their personal tax returns. The purchasing sibling will simply show the purchase price as their cost on Schedule E. Am I thinking clearly about this at this late hour? :-) Thanks.
  12. This is a new client. The siblings inherited the property and put it in an LLC in 2014. They got an appraisal and the property was quit claimed from the LLC to the purchasing sibling and her husband for $10. The purchasing sibling and her husband obtained a mortgage to pay the other 2 siblings 1/3 each of the appraised value.
  13. Thanks for all of your help. Are you saying that I need to report the sale at FMV and allocate the gain to all 3 siblings on each of their K-1s, even the sibling who purchased the property? Therefore, the sibling and her husband who purchased the property will report their cost at the FMV amount on their Schedule E? No way to report the gain to only the 2 non-purchasing siblings? Thanks.
  14. Yes, the 3 LLC members are siblings. The property was deeded out of the LLC and to the purchasing member and her husband. So isn't this considered a sale of the rental property by the other 2 siblings and a transfer, or distribution, of the purchasing member's 1/3 adjusted cost basis? Therefore, the purchasing partner's basis will not be the old basis but will be 2/3 of the FMV paid to the other 2 siblings plus her adjusted basis (old basis)? Thanks for your help with this.
  15. A rental property in a multi-member LLC was sold at market value to one of the LLC members. The LLC has other property so the LLC is a continuing entity. There are 3 LLC members each with 1/3 interest. There is no debt on the property.The LLC member who purchased the property will continue to rent the property and report it on her 1040. The sale price was $246K and the cost was $175K. I can't seem to find anything in my research that addresses this situation, which is odd to me. So I need to check my thinking on how to report this. Is the following correct? 1/3 of the gain from sale should be reported on each of the other 2 LLC members' K-1. The K-1 for the purchasing member will not show a gain for her 1/3 interest. Her 1/3 interest in the property will be reported as transferred to her at cost. If this is correct, how is the sale price reported on the disposition worksheet so as to not report a gain to the purchasing member? Is 2/3 of the $246K sale price plus 1/3 of the orignal cost (for the purchasing member) reported as the sale price? Therefore, a gain of $47K to be allocated to the the 2 non-purchasing members? Of course, depreciation would need to be factored in but I wanted to keep the example as simple as possible. Please let me know if this is the correct approach and if not, how this should be handled. Thank you.
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