Leaderboard

Hold down the Ctrl button and roll the scroll wheel on your mouse...

I haven't noticed anything unusual.

This is so true.

Use form 8594, Asset Acquisition Statement, via which both the seller and the buyer report the assets sold and purchased. It will walk you through the various categories of assets; anything left over after itemizing the tangibles is goodwill.

Probably my favorite "Far Side" cartoon as well. Attachment is for your viewing pleasure (if this is some sort of copyright infringement somebody please tell me) FarSide.pdf

An elderly man in Oklahoma calls his son in New York and says, "I hate to ruin your day son, but I have to tell you that your mother and I are getting a divorce; 45 years of marriage... and that much misery is enough!" "Dad, what are you talking about?" the son yells. "We can't stand the sight of each other any longer," the old dad explained. "We're sick of each other, and I'm sick of talking about this, so you call your sister in Hong Kong and tell her!". Frantic, the son calls his sister, who explodes on the phone. "Like heck they're getting divorced," she shouts, "I'll take care of this." She calls her elderly father immediately, and screams at him, "You are not getting divorced. Don't do a single thing until I get there. I'm calling my brother back, and we'll both be there tomorrow. Until then, don't do a thing, you hear me?" she yelled as she hung up the phone. The old man hangs up his phone and turns to his wife. "Okay", he says, "it's all set. They're both coming for Christmas and paying their own air-fare."

Document it as an officer loan and charge interest on it. Then comp it out next year or keep charging interest on it. Nothing wrong with loans to officers if there is a note and interest is charged, use the midterm IRS interest amounts, about 2-3%. Passed many an audit with loans on the book for draws.

They have a Hotkey sheet as well, that is now available directly inside the Drake software under "Help/Navigation Help. At the bottom there is a link to the PDF for the Hotkeys.

Drake is not CCH/ATX and from my short experience does not do the things that CCH has done that caused this board to be created and needed. I see members candidly discussing Drake and its flaws on its board, with no cencorship whatsoever (except for direct attacks on Named staff or other members, which really isn't approriate on any forum - and this I only saw from posts that this had happened in the distant past). On the other had, for the most part members there are happy with Drake and you see virtually no bashing.

an S corp it can be a distribution. Since we don't usually get the corp info or write ups in time for the 1099 div, we commonly post them as due from shareholder and then pick them up as payroll the next year. although not correct we never had an issue explaining it to an auditor and getting it ok's. If they make a stink then we amend it to dividend, client gets a refund of the fica and gets lower tax bracket too. The problem of declaring a dividend is if there is a loss or retained earnings is negative.

One of the best things about using this form is that each side gets a copy, so there is no problem later of different values leading to audits.

I'M GOING TO PIN THIS FOR NOW, BECAUSE I'M SURE YOU WILL NOT BE THE ONLY ONE WITH THAT QUESTION.

******************** This is awesome!

Any amount of the sale greater than the FMV of the assets would be considered goodwill. The amount of FMV over book value up to the original cost could be ordinary income/depreciation recapture. Ideally you want to structure so assets are sold at a FMV close to book value and the majority of sale is long term capital gain. If I am off base in my thinking please chime in.

This is a pretty straigtforward transaction. The assets that are being sold need to be itemized (hopefully you have an asset schedule for depreciation purposes) and priced at the agreed upon FMV. Your client will sell all the assets and they will flow through the 4797. The remainder will be goodwill. As lynn EA said, use the form and it will walk you through the process. Tom Hollister, CA

None whatsoever. And I know lots of Demo's kids who are ambitious and successful. I believe Pencil's point was not allowing a deduction for grown kids was "anti family". Once their education is complete it's time to jerk the ti. er bottle out of their mouth. I know 40 year olds still living with mom and dad. Sad.

Sure they did. The Republican's kids are out of the parent's house working for a living.

>> This is no different than people who connive to give away their homes, bank accounts, etc. so they will qualify for Medicaid ("free" nursing home care). Their kids get all their assets and we sucker taxpayers pay for their care while those kids live in luxury. There is a whole industry of lawyers behind this. Just watch the elder care ads they publish to get the "assets" out of your estate so you can qualify for this. People do it and then pray that they don't get sick until the look back period expires (5 yrs in my state)!

With one exception here ---- I agree almost totally ==== the exception is where they place in one statement (paraphrasing) --- when over 55 .... but in other statements (paraphrasing) can't decide benefits or costs. care, on age... Help those that need, make people who can pay - pay HOWEVER don't have two different structures because of age of recipient. ALSO don't hide it in the small print. By the way --- prior generations didn't THINK it was a RIGHT --- it was an obligation to take care of yourself and family --- AND ---- take care of those who REALLY needed help but fell short ///// NOT the scammers. Now without rule enforcement --- scammers have nothing to fear and even less worry they'll be punished if even caught.

You are driving down the road in your Corvette on a wild, stormy night, when you pass by a bus stop and you see three people waiting for the bus: 1. An old lady who looks as if she is about to die. 2. An old friend who once saved your life. 3. The perfect partner you have been dreaming about. Which one would you choose to offer a ride to, knowing that there could only be one passenger in your car? Think before you continue reading. This is a moral/ethical dilemma that was once actually used as part of a job application. You could pick up the old lady, because she is going to die, and thus you should save her first. Or you could take the old friend because he once saved your life, and this would be the perfect chance to pay him back. However, you may never be able to find your perfect mate again. YOU WON'T BELIEVE THIS..................... The candidate who was hired (out of 200 applicants) had no trouble coming up with his answer. He simply answered: 'I would give the car keys to my old friend and let him take the lady to the hospital. I would stay behind and wait for the bus with the partner of my dreams.' Sometimes, we gain more if we are able to give up our stubborn thought limitations. Never forget to 'Think Outside of the Box.' HOWEVER...., The correct answer is to run the old lady over and put her out of her misery because Obama's health care won't pay for her hospital visit anyway, have sex with the perfect partner on the hood of the car, then drive off with the old friend for a few beers. God, I just love happy endings

Subject: "Do you love your husband?" this one struck me funny..... A group of women were at a seminar on how to live in a loving relationship with their husbands. The women were asked, "How many of you love your husband?" Of course, all the women raised their hands. Then they were asked, "When was the last time you actually told your husband you loved him?" Some women answered today, a few yesterday, and some couldn't remember. The women were then told to take out their cell phones and text their husband: "I love you, sweetheart." The women were then told to exchange phones with another person, (the women sitting next to them) and to read aloud to the group the text message they received in response. Here are some of the replies: 1. Who the hell is this? 2. Eh, mother of my children, are you sick or what? 3. Yeh, and I love you too. What's up with you?? 4. What now? Did you crash the car, again? 5. I don't understand what you mean? 6. What the hell did you do now? 7. ?!? 8. Don't beat about the bush, just tell me how much you need? 9. Am I dreaming? 10. If you don't tell me who this message is actually for, someone will die. 11. I thought we agreed you wouldn't drink during the day. 12. Your mother is coming to stay with us, isn't she??