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That's creative. You need to go through that holding account piece by piece and look at all of the entries. An account to be written off wouldn't go to a holding account or against goodwill, it would be written off against where it would ordinarily be written off to. Example, ppd insurance would be written off against insurance expense. BOY accrued payroll that hadn't been reversed would be credited against payroll expense. Accounts receivable that are uncollectible and that weren't sold would be written off as a bad debt. Handle these like you would at any other time, not against anything to do with the sale. Separating the assets into their various asset classes (as used on the form 8594) is basically the residual method of valuing the various components of a sale of this type. Values are negotiated between the buyer and seller moving down through the classes one by one, and anything left over and unassigned is thrown into goodwill. That's not something you or the bookkeeper comes up with. Unless there is goodwill on the books of this company, the goodwill that is assigned in this sales contract will be 100% profit from that component of the sale, taxed as ordinary income with no cost basis against it.

That's a lot of questions! Here are some pointers that should put you moving in the proper direction. You must use Form 8594 to report the breakdown of the selling price into the asset classes. The purchaser should also be filing this and the numbers reported on the purchaser's and seller's forms 8594 returns must agree. Each of the items sold within each class will be reported on the corporate return. Report them as you would if they were sold in individual transactions and don't get hung up on this being an entire sale of the business...at least not yet. It may be helpful to make a schedule of everything that was sold and it's net book value so that you know what the gain should be once you start to create the tax return. Use form 4797 where appropriate and use the appropriate sections depending on whether the assets were held for less and one year or over one year. The final depreciation may be different than you expect if you have a short period tax year and considering the dispositions. Watch for any assets retained or not sold to the new entity (common example is an automobile in the corporate name that is distributed to a shareholder), any obsolete equipment and fixtures, and any leasehold improvements that might be abandoned if the seller isn't going to use the same location. Sale of the goodwill and intangibles will be ordinary income to the corporation. You asked about inventory. You have a selling price and you have cost basis on the books. The difference is ordinary income to the corporation. It's not really different than the company selling inventory at a mark-up over cost in their ordinary course of business. Once you've accounted for all of the items sold, then you have to figure out what to do with the remaining items. You mentioned prepaid expenses like insurance. Was that coming from the starting book balance at the beginning of the year? Were the policies cancelled? If so, you would write that off if the corporation has cancelled the policies and the corporation won't be continuing. Same thing with accrued expenses. Were they from the beginning balances? If so, those should be reversed during the current year. If the corporation used the some of the sale proceeds to pay off creditors and payroll taxes, the only payables remaining should be any corporate income tax liability, if any, from this final period. Once you've accounted for everything that was sold and dealt with those prepayments and accruals, then you'll also have to consider any assets that have been distributed to the stockholders, if any. You said that only cash was distributed. I hope that is correct because if there was any tangible appreciated asset distributed to a stockholder, that would be distributed at FMV and the corporation would record a gain on that distribution as well. It is at this point that you should be able to arrive at income before the NOL. You'll apply the NOL taking into consideration any adjustments for changes in limitations due to the use of that NOL. One such example of that would be a possible reduction in allowable deductible contributions deduction because of application of the NOL. Any remaining NOL not used by the corporation in its final year will be lost. Once you've accounted for everything that has been sold, distributed, or abandoned, you should have accounted for all of the balance sheet items, and then it's time to break down what each stockholder received as liquidating distributions to properly file the Forms 1099-DIV. The cash paid would be reported in box 8 of Form 1099-DIV, and any non-cash liquidating distributions are reported at FMV in box 9. These figures are reported on the personal returns of the stockholders on Form 8949 as sale of the ownership interest in the corporation, and the individual stockholders would report any basis against this to arrive at the amount of their respective capital gains on this transaction. Hopefully that gives you some idea of how to get started and if I missed something, I hope others will chime in and will add to this.

It might be helpful to know what is happening or what you are seeing when trying to launch the program.

If you are asking about medicaid qualifications and ramifications of taking her name off of the account or transferring the assets solely into the son's name, then yes, it would be a problem and would be included if the transfer occurred during the lookback period.

I found how to change my settings back to allow the desktop notifications. For anyone else using Firefox that is interested: to turn these on or off, or to see the settings for any of the plug-ins for a particular site, right click on a blank section of the page and choose "view page info" and then select "permissions" at the top. Scroll down to see the selections with this one being under "show notifications".

Yes, exactly this and what Rita said also. I don't charge for calls that are quick either. Giving away a couple of minutes of my time is good client relations and builds goodwill, and the clients recognize that and send me referrals. Other reasons for that are because that 2-3 minute phone conversation will save ME headaches later by allowing a bookkeeper to record the transaction properly and will produce a better set of books for the client and for me, or that smart client that has found the correct answer and only wants affirmation.

@Gail in Virginia , thanks!

@Eric , lemme know. I can't figure out how to turn it back on now. lol Will have to work on that. ETA - Looks like that is an add-on in Firefox and that would probably be annoying as the forum gets busier over the coming months. I'm on frequently enough so I'm skipping that for now.

Would these come through if I didn't have a tab opened up to the site or only if one mentions my name? I received a popup in the upper left at the address bar after the upgrade asking if I wanted to receive the notifications. I declined it initially after seeing other FF users say that it was annoying, but I could see that it might be helpful to turn it on.

Those quote and edit functions are very nice and welcome changes. Once again, thanks for taking good care of us!

Looks good, Eric. I like the features and options in the activity feed section. As far as editing, I've had trouble editing since the last upgrade because of a red paragraph break that would appear. That seems to be gone now, at least I hope it is.

I opened this subject and moved the above post from another unrelated topic so to not hijack it into a discussion of billing practices.

Good morning MBjunket. This forum is set up for professional tax preparers that use a particular brand of tax program to help help each other, and we don't provide taxpayer assistance to the general public. Your best course of action is to call the main IRS number at 1-800-829-1040 and ask these questions of an IRS representative.

Form C-EZ and schedule SE.

I agree, Easy and KC, and I didn't read far enough into the form's instructions that were expanded by another 4 pages or so over last year's instructions. I hope it's wrong too, but looking at the form's codes, now I don't think so.

Those persons on CHIP, Medicaid, Medicare, Medicare Advantage or Basic Health Program will not receive a 1095-B because those are forms of coverage through the government, so the gov't already knows about the coverage and there is no need for this form to report those types of coverage. That is stated on page one of the instructions of 1095-B under the caption "Insured Coverage" . I didn't read through all of the links, so if you did see something there to the contrary would you please point it out? Thanks.

Or set the clocks back, go to bed and don't worry about the clocks. The time will be correct when you get up tomorrow. I stay up late enough that I'll be adjusting the time before going to bed.

Link is safe but isn't to Forbes. It goes to The Daily Signal, a news page of The Heritage Foundation. In case anyone notices the facebook reference at the end of the link, one does not need to be signed up or signed in to Facebook for the link to work.

Yep, that memorandum jmdavis linked to is excellent. In addition to that but nothing official, here's a blurb from a group called Transportation Intermediaries Association where the third paragraph says that the type of freight might also make a difference in deciding whether reporting is required, where household goods are not classified as freight. This one from the IRS procedural manual for 1099 reporting, it is credit card payment reporting, but the table at .03 on page 5-6 shows that MCC 4214 motor freight carriers falls under 1.6041-3( c), which you probably already found. This has a broken link but gives food for thought about using 1099s as evidence that the payments are to independent haulers and not employees.

I agree with John that his solution would be the easiest for all concerned, especially since the error is a typo that is easily explained.

New members do not know that though, so I have to agree with JohnH and KC about being more welcoming of new members, not subjecting them to undeserved personal attacks.

Jack, enough with the snarks and little quips. Your remarks in your first post suggesting that this new member cannot afford the software or needs a course in budgeting were out of line. This person posted a concern regarding the company's handling of sales tax compared with that of other software vendors and provided a link to a useful map of sales tax rules by state, and has now voiced concerns over the company's overall treatment of its customers, its policies and pricing. There's no reason anyone here should not be able to discuss these issues as they do pertain to the ATX software and CCHSFS.

He wouldn't be a pet except that he was orphaned when only a few days old and was found by a rancher that turned him over to his rescuer.

I'm surprised that no one here has spotted or commented on the irony of the source of the map contained in the OP's link? "Source: Commerce Clearing House" aka known as CCH.