Leaderboard

Thank you! I was up teaching at Camp Constitution last week and we had our own fireworks and special presentations for the day. Great time!

Pub 535 says the amortization would begin on the date the restaurant opened for business.

This here fella really enjoyed his office/boat.....And it even redeemed Lieutenant Dan. ............... Dedicated in memory to his friend.... Bubba.

To You's.... .............................

I am glad you enjoyed the day, Catherine. Being a Veteran, I like to bestow good tidings to Patriots. Our country is a blessing for us all....

Does anyone else think that this has to be considered: What Can I Deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Most trusts have to use a calendar year. This from the Form 1041 instructions: "Generally, a trust must adopt a calendar year. The following trusts are exempt from this requirement: A trust that is exempt from tax under section 501(a); A charitable trust described in section 4947(a)(1); and A trust that is treated as wholly owned by a grantor under the rules of sections 671 through 679." Note that the extension due date is only 5 1/2 months. Also, the letters assigning EINs to estates and trusts are pre-programmed to use a calendar year. Almost all the estates I do elect a fiscal year, so you can safely ignore the letter. Gail is correct that the reporting period is established when the first 1041 is filed, letter instructions notwithstanding. However, this only applies to estates and exempt trusts.

Thanks, I submitted the extension and it was approved.

The year end for a trust is usually established when the first return is filed. If this is the first year of the trust, you should be okay both on the filing of the return and the submission of the extension.

It appears that the boat is NOT used for any purpose other than for business, therefore why would it not be a 100% deprecation asset and business deductible? It appears to me the whole boat is his office or business. If you treat it as personal property you will keep the taxpayer from recognizing a deductible loss if sold.

Is the letter you are referring to your initial letter before the lien is placed (30 days prior to if memory serves me correctly)? If so, take a deep breath as you have time to make sure your house won't be considered in the lien. First thing I would do would be to make eye to eye contact with the person who is in charge of legal documents such as mortgages, etc. That person is called the Clerk of Court in Louisiana. Anyway, go to the proper County that your home is domiciled in and get with the head knocker. Don't even give the other County a second thought. How are they going to put a lien on property when it's not even located in their County? The person in charge in your County can put a flag on you property if he/she even feels like it's necessary, but I'm willing to bet you will be told you have nothing to worry about! I would be extremely amazed if your property already has a lien from IRS on it, but go and visit your County's office IN PERSON so you will know all is ok!! Take care!

However, once they assess the penalty they can take it from any refund due. So those preparers who advised their clients to ignore the question on line 65 might be explaining next year why they did not get the refund they were expecting.

And I bet they don't. So we all look like incompetent schmucks compared to the preparers who advised all their clients owing SRP to ignore the question on line 65. And some days I feel like one, too.

We are in the limbo of the IRS saying you can file without self-assessing the penalty but the IRS may assess the penalty for you... BUT they can not enforce collection of the penalty (which is not new).

Naveen: 1. Don't use the business address anymore for ANYONE. 2. Get a PO Box so that any info goes to the PO Box. 3. If you use your address, make sure it always says "In Care Of" 4. If he was audited, use your POA and tell the Auditor to FIX it. Give the Auditor the correct address. 5. Get another big check from your client.... RIch

This is totally discombobulated. Taxpayer is not on title so this should be easily (sorry, maybe not so easily, I forgot who we are dealing with) corrected. No one is attaching your house, once the facts are out, but this is their first attempt at getting their 60K.

To further compound the problem is the fact that IRS has sent Lien notice to the wrong county. My zip code Straddle two county. Rensselaer County and Washington County. Our post office is in the Rensselaer County but my house is across the River in Washington County. IRS lien notice carry my house address but their lien notice is address to Rensselaer County so I am not even sure where to begin my work.