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jklcpa

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Everything posted by jklcpa

  1. Lion, let me know how it goes with your client, or what you are going to do with the bonus. I'm going to pick up a client's December records tomorrow and will see if holiday bonuses are written to employees exceeding the $25 and not put through the payroll service.
  2. Like the rest of you, I continued to pay dues year after year to the AICPA. I've been a member since late 1987 and I finally dropped it this year seeing no real advantage for me to remain a member. I do have my malpractice, term life insurance, and a small disability policy through AON because of my membership. During this past year I found out that I can retain existing coverage as long as I'm still a member of a state society. I can't ever increase the coverage, but I can continue to have the insurance already in place.
  3. I was hoping for clarification too. I got an email yesterday about updating Quickbooks to help with the 1099 prep. I know that credit card processing companies will issue 1099s to merchants for sales they've processed. This QB message was to companies that need to issue 2011 1099-misc to vendors & contractors, and the need to exclude payments made to them using credit & debit cards so as to not duplicate those amounts. I thought the new rules were repealed and we were back to the old rules, except for above.
  4. BNA has excellent software. I used their tax planning software for many years, but that was years ago. For depreciation I use Fixed Assets CS by Thomson Reuters Tax & Accounting, years ago was called Creative Solutions DS II. Not inexpensive though.
  5. I'm thinking that this preparer gave the couple a return to be paper filed, otherwise the IRS would know who this preparer is if the return was efiled. The 3rd party box not being checked isn't a red flag to me. I ask each of my clients if they would like to have that box checked and all but one says yes. I don't know why that one man does not want it checked. Maybe he thinks that the IRS will contact only my office and not him, or that he'll end up paying me for something that he can answer himself.
  6. I tried to renew last night and ran into problems. Today, same thing. I also have a question. Next to the credientials for my CPA certificate, the system requires an expiration date. Technically the CPA certificate itself doesn't have an expiration date, but I have State of Del individual and firm permits to practice that correspond with the 2-year CPE reporting requirements. So would I use that date as the expiration? I think that's what I did last year.
  7. I didn't realize the debt code indicator was gone, proof that the battery in my brain has died. I have a POA and receive each month's statement but was just curious about the ack. I never took notice of that code until this since I never got involved with RALs or any bank products, and have only had a couple of installment agreements where a refund like this was involved. Thanks for your responses.
  8. It seems like that final K-1 and the partnership accounting may not have been handled properly. Did the partnership provide a schedule of the partner's inside basis? Is it possible that the partner was relieve of his share of partnership debts? If that is the case, the excess of the debt relieved over his basis would be considered a deemed distribution and can be taxable gain to him.
  9. It could make a difference in the calculation of the self-employment tax, that is if the wife has other earned income on a W-2.
  10. Taxpayer has an installment agreement from 2008 with a remaining balance of $7,000. The overpayment for 2010 is $2,900. The return efiled successfully, but the ack is not showing a debt code. Any reason why the debt code wouldn't be indicated? The taxpayer wasn't unhappy about the overpayment going toward the prior year's balance.
  11. I tried the block for forcing the Sch A to print, but it still doesn't include in the efile for the state. The only way to get the Sch A actually included with the efile package is to tell ATX that the federal return using the "force to itemize even though standard is better" option, even though that's not how the federal return is actually filed. That's what I was wondering if that would cause a problem. That was suggested to me in past years as a solution. Perhaps Montana is a state that verifies the A deductions with the federal. Our state requires the Sch A be attached to the efile or faxed separately. I don't like piecemeal handling. At this time the state return has a status of "IRS cleared". I should know soon enough if this caused a problem.
  12. Yes, the deed was transferred into the name of the LLC. Delaware charges $250 per year for LLCs to remain in good standing. That fee was also paid personally. The brilliant idea was their own, and their lawyer created the LLC. They are owners of a closely held corporation with a large line of credit collateralized by the corp's assets and guaranteed by them personally. Their thinking was that this would shield the unencumbered condo from the bank's proceedings should the corporation default on the line of credit. I don't believe the LLC offers them this protection, and both the lawyer and I both told them that at the time.
  13. Delaware is one of the states that does allow itemizing when taking the standard deduction for federal. The Federal Sch A was in the system, but the ATX program won't include the Federal Schedule A with the state efile if the 1040 is using the standard deduction, even though the itemized deductions are properly showing on the state return. I duplicated the file before forcing the deductions on the federal because I wanted to preserve the actual Federal return as filed with the IRS for my records and for next year's rollover process.
  14. Taxpayer used the standard deduction for the federal return, itemizing for the state. The only way ATX would include the Schedule A for the state efile was to create a duplicate file and force the federal to use the Sch A even though it was less than the standard. I submitted the state efile after receiving the federal ack. Will this cause a rejection since the 1040 submitted with the state efile package won't match the actual federal return that was accepted?
  15. A second residence, a beach condo owned by the taxpayer and his wife, was put into a newly created LLC owned 50% by each. The sole purpose of the LLC is to own this condo. It has always been 100% personal use, never rented, never will be. Subsequent to the property's contribution to the LLC, husband and wife each gift 1% ownership in the LLC to their daughter. Other than the contribution of the property to this LLC, the LLC has no activity and no real business purpose or current profit motive. The LLC does have an FEIN. The taxpayer paid the real estate taxes from his own funds. Is a tax return for the LLC needed? What to do with the r.e. taxes paid personally?
  16. My client and his wife are lessors of commercial real estate, a strip shopping center. He wanted to expand the center with another anchor store. He moved one existing tenant and did extensive reovation and expansion at one end of the strip. He paid a commission to a retail strategy group to find a suitable tenant and help negotiate the lease for this newly built space. The commission, stated as a percentage of the total lease payments, was paid in 2010 when the tenant moved in. Another similar percentage-based commission was also paid to a local realtor. The lease has a 10 year term, so these commissions are a significant expenditure all in the one year, totalling over $60,000. Is this deductible all in 2010, or amortizable? I am really drawing a blank as to what key phrases or terms to use in researching this. If any other preparers here have experience with commercial real estate in this regard, I would appreciate any guidance you could give, or help with the key words for me to research. My other question relates to the costs of relocating the other tenant, a Chinese take-out. From going through the invoices, most of the costs were for all of the leasehold improvements to set this take-out place in business again, and demolish the old place since that's where the new anchor store is attached to this strip shopping center. Any help or guidance would be greatly appreciated.
  17. Yes, I know she is an employee, and she would not be exempt from FICA or FUTA because to be exempt, the family member would have to the family relationship with all owners of the partnership (as in a child employed by a ptnship owned by father & mother), which clearly she isn't the spouse of both owners. My problem right now is that Blue Cross of Delaware will only accept the state unemployment reports as proof of employment for her to be considered an employee of the company, even though in their correspondence they indicated that they would accept other documents such as 941s, w-2s, individual tax return and payroll registers. All of those were supplied to them and rejected! So I am going to attach a report showing all the wages paid, including the wife's, and then a line of subtraction stating that her wages are "exempt" from SUTA.
  18. LLC is owned by 2 brothers, each brother owning 50%. LLC is taxed as a partnership, and the income is considered self-employment income of the owners. One of the wives is on the payroll of this company. Her wages are included in all the payroll filings and she receives a W-2 each year. This company was randomly selected for audit by the Del Dept of Labor. Their only finding was to say that wife is not employed by the company. The dept adjusted the state unemployment filings by removing her wages. They cited Del law Title 19, sec 3302 11(C ). Sec 3302 pertains to unemployment compensation and 11 is part of the definitions. It is as follows: 11 - "Employment" does not include: ( C) Service performed by an individual in the employ of the individual's child or spouse and service performed by a child under the age of 18 in the employ of the child's father or mother. What am I missing? Is she not considered an employee of this company?
  19. They are still having problems. The "official" ATX community message board has postings with the same question as mine (haven't visited there in a couple of years). Sure would be nice if ATX posted about this problem on their blog or e-file status center.
  20. Thanks. Makes me feel better that it's not just me or my computer.
  21. Is anyone else having trouble connecting to ATX tonight? I tried sending a return and the message block just sat idle for a long time "waiting for server response." When I tried sending a test transmission, I get a red "server error" message, the transmission fails, and it appears that the program thinks I'm not connected to the internet. Is anyone else having this trouble tonight?
  22. Aon through AICPA, mine is $490 for $1,000,000 per occurrence, $2,000,000 aggregate.
  23. jklcpa

    ATX Server

    I don't remember getting any such email either.
  24. Eric, I'm sorry I missed donating to this. See what happens when I take a vacation from the normal work routine and computer! Happy 5th Anniversary to you both. We just passed our 18th, and both of us forgot. Husband remembered yesterday but didn't say anything. Wished me H.A. today and we both had a good laugh. :)
  25. Dispositions of property are reported on Form 4797. Here's a link to partners' instructions for Schedule K-1: http://www.irs.gov/instructions/i1065sk1/ch02.html#d0e1878. Click on the link for line 20. Also, the instructions for Form 4797 should help you too. Code L can also be used for gains and losses from casualties & thefts that would be reported on Form 4684, and for installment sales reported on Form 6252
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