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Yes Terry, you are correct that a different journal entry would be needed. If you post the proceeds to the Other Income account, or whatever you call it (I would call it Gain(Loss) on Asset Dispositions), then you would make an entry to remove the asset cost and accum deprec from their accounts with the balancing part of that entry being the NBV posted to the Gain(Loss) account to offset the proceeds that have been posted there via the deposit, and so that the resulting balance in that account is the gain or loss on the disposition. Like I said, there is more than one way to get to the result. Just make your explanation of your AJEs clear and have a workpaper with the details for when you do the return and financials.

Can't you simply have the bookkeeper edit the transaction that records the deposit and post it to the Other Income account that you've created? I have a couple of clients that I use QB for after the fact bookkeeping for, and I never have used that undeposited funds account. I enter deposits directly in the check register and post the credit directly to the account I want it to go. I agree with MAS. We were typing at the same time. GAAP reporting won't care how you got to the proper answer, as long as you get there.

The owner of the building (the single-owner LLC) will report the sale of the building without taking into account those improvements made by the S corp tenant. As long as the S corp continues to occupy the building, the leasehold improvements should stay on the fixed asset schedule. Those improvements will be written off as abandonements when the S corp vacates the building as an ordinary loss. It will be part of the flow-through on the K-1.

Beautiful family, Jack. I'm glad you had a lovely day with your kids.

You didn't specify what type of rental this is, but in general, sec 179 isn't allowed for rental acitivities unless that rental activity rises to the level of a trade or business.

I think that an S corp may not use a carryover of sec 179 deduction where that sec 179 deduction was created in a C corp. Check out sec 1371("b")(1). The quotes around the little "b" shouldn't be there, but I couldn't remember how to tell the forum not to post the "b" as a smiley.

So the owner of the S corp is also the owner of the facility, is that correct? Under code sec 267, only the rent actually paid is deductible. Even if the entity liable for the rent payment is using the accrual basis of accounting, because it is paid to a related party, the deduction is limited to the amount that is included in the income of the cash-basis recipient/owner. Including the unpaid rent back in income in 2013 is not the proper handling because it sounds like it should never have been deducted in the first place. If the books are accrual, then this would be a timing adjustment for expenses on the books/not deducted on this return. Likewise, it is possible to have the reverse when an accrual-basis company pays back rents due, and in that case the rent deduction on the return will be higher than the accrual based GAAP financial statements. As to your other question about separating out the rent payable from the trade a/p, yes, I would definitely do that. Especially in the case of rents payable to a related party where many months of rent go unpaid, it is important to track this separately from a/p and other accrued expenses. As for the other trade a/p, I don't know that I'd be so quick to write that off. Those should have been legitimate costs of producing the product that are payable to outside vendors that still have a claim against the assets of the company as unsecured creditors.

>>complete lack of "empathy and understanding of human emotions".... Oh....And when did I say anything about this man's ethnicity? You assumed he was either selling oranges on the roadside or part of the drug cartel back in his "developing country". << Whoa! Insulting other members on here that are trying to help you will get you nowhere fast. Empathy and understanding human emotion won't help you prove your case. And you were the one to bring ethnicity into this when you said that the client is from Columbia here on an F-1. Then you mentioned maybe being Columbian had something to do with the extra scrutiny but you aren't sure because you did a Mexican's return with the exact same scenario but haven't had the issues with that one yet. So you were the one that brought ethnicity into the discussion. And on another point, no one suggested or even implied that this person was working "in the fields". You seem to be looking to be offended when I don't see where anyone here has been offensive, and everyone here including jainen, MAS and JoanMcQ have tried to steer you in the proper direction to prove your case about the MBA being used to maintain or improve job skills for his current employment. I don't see that their questions raised in this regard are offensive at all and are right to the point that you must prove to win this case. You've received excellent advice so far. If all you want is for us to say that you have a bad auditor, well maybe you do, but you are having to work with her. You've given us the facts piecemeal and have been adding to it as you go along, and we also don't know what your client said directly to the auditor that may have led to some of her conclusions. If you want us to say that it's impossible for the auditor to have received a large package of documentation and to have responded to it within 5 days, we can't say that that is inconceivable either. I doubt that it took 5 days for the auditor to read 19 pages and consider them. Concerning the scholarship, was all of it used for tuition, books, fees and supplies? Was any of it used for room and board? Was your client involved in any teaching or other activities related to receiving this scholarship that could be taxable as compensation? Have you reviewed the actual charges from the school to see everything that this scholarship covered?

I would have answered but I was without power until late this afternoon, and then I had to put the generator and all the cords away. Yes, the zero percent cap gain rate for those in the lowest bracket was extended, so I think you have the correct answer.

Yes, if you look back earlier in this thread you'll see that I have a 6300 watt with push button start, but it isn't automatic. If the electric goes out unexpectedly then I have to manually open the garage door, wheel the generator into position and run the cords. It's not bad really, just a little bit of a hassle. With hurricane Sandy, we had everything ready to go and mostly sheltered from the weather. I just don't want to leave it there all the time. All I really need at this point is the cutoff plug near the breaker box. Someday.... We faired well through this storm. It wasn't much more than a lot of rain...5 inches of it...and hardly any wind. I haven't heard of any power outages in our area.

Coffee pot is also critical around here. lol Jack, I have gas (propane) furnace and water heater too, and while they don't use electric directly, they need electric to run the blower to vent the fumes to the outside so we don't die of CO2 and also to blow the hot air through the ducts. It's a safety feature of both that if the blowers can't run, these units don't turn on. I'd love to have an automatic system, but it won't be happening on our budget.

Terry, thanks for saying all of that. It's pretty easy to not be as polite on an internet forum as we would be in person given the anonymity that the internet allows, and I think each of us should keep that in mind when responding to the posts. I truly believe that we have a great group of people here that are all very kind and generous individuals; we just don't agree on some things. I try to act the same on the internet as I would if I ran into a person at a professional or social gathering. If I don't like something that's being said, I will find a way to offer my view without being offensive, or if I can't seem to get to that point I simply move on and try to ignor the person that I find so offensive. One of this forum's features allows us to ignor any member of our choosing by globally hiding his or her postings. You won't even see their posts unless someone quotes them. I had someone blocked for a short time, but then I found myself reading their posts anyway when someone would respond to their comments. After that short period of time I felt kind of silly having them hidden. The board is really slow right now and many of the users have disappeared for the remainder of the year, so it does seem that more posts are being made by those few of us that are still here. I'm one that usually disappears during the summer, but I'm making more of an effort to stick around for several reasons. I want to have more contact with my peers (I'm a solo), I need to stay more on top of the upcoming changes, I'm very interested in what's going to happen with ATX, and I'll try to help with those that have questions about Drake without sounding like a cheerleader.

Joel, I paid $315 to renew the license in 2012, and the year before was $305. I can't say what the price would be for a new user, but it might be the same. I used it at the firm I worked for and decided to stick with it. I've had it since 1996 and have never had any troubles with it. It is a great program.

I'd suggest that you convert several of your business clients into Drake and play with the program and see if it gives you the reports you like. I have some businesses that have several hundred assets entered and the reports seem complete to me. It also has reports for next year's regular depreciation, but I don't see an AMT depreciation report for future years. That's not a deal breaker for me since these are all under the threshold for being subject to the AMT. One partnership that I have does have a small AMT adjustment that flows through, but the dollar amount is inconsequential, so again I'm not too concerned about that one either. FWIW, I didn't enter these assets manually. I converted everything into Drake in early February and spent some time that weekend checking all of the depreciation. I didn't find anything to correct. Everything came over from ATX correctly as far as the fixed assets were concerned. The only real issue for my conversion was lines not matching up on detail schedules for the businesses. The bottom line net profit was correct, but the detail worksheets were off. For example, accounting expense in ATX might have ended up on bank & credit card processing in Drake. I did correct those since the clients do like the comparison and I use it as part of my overall review. I do have a separate depreciation program that I use for my accounting work that requires more detail than is found in any tax program. I've had it for years and plan on keeping it in the future. It is the old Creative Solutions DS II that is now part of Tompson Reuters and is called Fixed Assets CS. It would integrate with Ultra Tax if I ever used that. Too expensive for my little practice, but the fixed asset module is excellent and will give any kind of report I need. I hope this helps somewhat.

My mom is going to be 87 this fall and still has SE income from a home based business although it is getting smaller, mostly because the customer base is slowly shrinking and not because my mother is slowing down or unable. She works as hard as ever, and she definitely has more energy than I do. I honestly am frequently amazed by her.

Lion, I don't think you'll regret spending some money on the generator. While we aren't out in the boonies, we have frequent outages and are nondevelopment so we are low priority when the outages do occur. My husband didn't think it was necessary, but he'd never lived in this area to realize how long some outages are and what the basement would look like without the sump pump having power! When he had cancer 10 years ago, I saved up and bought a portable generator of 6300 watts with a surge of 9100. I spent extra to get one with a push button starter since I didn't think I could handle the pull cord on my own. Now the husband is very happy to have it! We've talked of having the plug-in recepticle installed into the main wiring so that I could pick the circuits on the breaker box to leave on, but we've never done it. Now if you really want convenience, get one that will sense the outage and kick on automatically. I'd love that, but I can't justify the expense as long as I'm able to handle the portable one. I was a nervous wreck during Hurricane Sandy, but we were extremely lucky to have sustained no damage and didn't lose our power either. I really dislike when the weather map gets very colorful.

Why is MetLife having to correct anything if Wells Fargo made the mistake, and what are they correcting the amount to? Is ML revising their 5498 to show the incorrect amount so that it will match the incorrect 1099R?

lol Yes, but everything was done with a calculator, spreadsheet, pencil and eraser when I started. I actually enjoyed doing the accounting for the plans with the reporting at FMV and determining the appreciation or depreciation. Now that was fun!

No, I've never heard of those. None of the plans were 401k plans, all money purchase plans and profit sharing plans that I did, and that one defined benefit plan. This was a long time ago that I worked for any firm. I've had my own practice since late 1995.

The firm I worked for for many years did quite a few 5500s. We (really I did them all) did all of contribution calcs, plans' accounting, the tax filings, the participant statements, SARs, SPDs, everything except the plan maintenance and not considered to be plan admins. The only ones we did only accounting for were the defined benefit plans and the actuary did the rest of the work. I don't really miss that at all.

It sounds like the overall losses from the passive activity are being limited, and that would be calc'd on the 8582 and its worksheets. That would be most likely where the PAL adjustment is coming from.

I hope someone advised this person that if he quits or loses his job that he has 60 days to repay the remaining loan or the remaining loan will be a taxable distribution to him, possibly subject the the 10% penalty depending on his age. Also, if he still has 401k deferrals coming out of his paycheck, you should check the plan documents to see if those contributions are allowed while the loan is outstanding.

Hmm, I could have sworn I responded to this. These watches are astounding, and all the more because the maker had no watch maker skills when he started.

I purchased this 24" LCD monitor thinking everything would be bigger and I'd be able to see better. Everything has always been crystal clear on it and not too light as you others have described, but I did change the zoom setting in the "view" menu to 125%. Old eyes and too many years looking at tiny numbers, I guess.

It works. I just checked an individual return with an NOL carryback to 2010. After entering the SSN, DOB and zip code, the next screen appeared that said a return for the following year(s) appears in our system. My screen only had the one year with a radio button beside it. Clicking on that brought up a status bar with three sections of "received", "adjusted", and "completed". Below that a statement showed the date the return was received, that it is in process, and to wait 8-12 for processing to be completed.