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A client one time brought in a QuickBooks P&L with only two lines....Income and Expenses.

The ultimate in minimalist accounting.

I hope none of my client's ever see that - I am sure they would think that is sufficient. They already think they did not take any income from the company because all they did was pay their bills.

don't forget that any payments made should clearly state "for trust funds only" Officers are basically just held responsible for payroll taxes withheld, not for the company's portion.

Yes, that is correct.

Would like to clarify on this topic: MY client converted a rental to personal use a couple of years ago. At the time it had $65,000 plus suspended losses. He has three other rentals. In 2017, he sold one of the other rentals. ATX is giving him the $65,000 losses on the former rental because he has the gain on the property sold. This uses up all of the suspended losses on all four of the properties and he still has a gain. Based on my understanding and your info above, this is accurate. I just want to confirm this is correct. I surely don't want to give him a $65,000 loss in error!! Thank so much!

That's what sports cars are all about. Your butt scraping the pavement and the adrenaline rush of high speed. Hmm! Only 90 mph? Must of needed a tune up! My college roommate had a Facel-Vega. They stopped making them in 1964, but the sporty coupe model had a 354 Chrysler hemi motor that was rated at 325 HP. That was a lot of HP for a small car. The first time out my friend took it up one of SF's steeper hills, it went up so fast I though we were going to shoot off into space.

That was my question. I would like to do that one time. Tom Modesto, CA

My all time fav was a weekly "shop supplies" check made out to Costco...

I figured it was universal because I've seen it so many times from different clients. If I delete it QB and they add it back again, I rename the account Reimb***DO NOT USE***.

Can't use cash withdrawals to justify an expense since the cash could have been used in Atlantic City. Cash payments are ok as long as you have receipts for the expense.

I've had really good success with the first-time penalty abatement request. Try it!

Failure to pay is covered but the first time penalty rules: https://www.irs.gov/irm/part20/irm_20-001-001r#idm140198826274112

thank you so very much!

Few things get on my nerves more than a client listing an expense as 'reimbursed' or 'reimbursement'.

This is exactly why I love roller coasters.

With you!!! I have one who lists "reimbursements" as INCOME in his business. But they're not reimbursements at all. They are payments to him from insurance companies for covered services to their insureds. Those are separate from "reimburse" which is when he reimburses himself for stuff he bought for the business on his own dime instead of the business dime. Ten years and I haven't been able to get through to him. So we just up-charge him for the time to straighten it all out.

You mean all the stuff employers want to give to employees (and deduct) without running it through payroll..... Tom Modesto, CA

Converted to personal use = withdrawn from service, but that is not a disposition of the activity. For a qualifying disposition that will trigger current and suspended losses to be currently deductible, three conditions must be met: (1) dispose of the entire activity, (2) in a fully taxable event, and (3) to an unrelated party. Unless there is other passive income enough to use up these losses, you will still have the suspended losses to track, so I would mark this as out of service but not delete it from the depreciation schedule, and the 8582 will continue to track the losses.