Margaret CPA in OH

:bday: and many more!

Thanks, as usual, for chiming in, Jainen, with your keen observations and for setting us straight. I honestly did not (bad!) think through this carefully to determine whether there are such distinctions between home office and rental situations. It's so good that you did and shared that with us. I'll know better should this again arise.

Oooh, yes! I forgot about the changes in the market. That could make a difference, sadly.

Good question! My inclination would be to treat it as I do my home office with the appropriate percentages or one of x number of rooms. Don't forget the current appraisal minus the land.

:bday: and many more!

:bday: and many more!

I do appreciate the utilization of pencils and paper and problem solving using one's brain. It makes me a bit crazy when a store clerk is befuddled if I hand "too much money" over in order to receive a single dollar or some other easy change. Mentally doing the math seems too often beyond their comprehension with total reliance on the cash register to tell them what to do. Meanwhile, the updated and efilable Form 941 appeared yesterday so I am saved from printing and postage for at least some of these. Thanks for the good discussion here - it helps to not think about the heat!

The forms aren't approved yet for efiling. I guess I will just have to print and mail. I just prefer efiling. Thanks for input!

:bday: and many more!

:bday: and many more!

:bday: and many more!

:bday: and many more!

:bday: and many more!

Perhaps I'm too anxious, but I wonder how long it will be until we can efile the 941's for second quarter. Yes, I've updated today and it isn't accepted yet. I guess because of the COBRA credit thing, it's a new form although it looks the same as first quarter efiled. I do note that it is a revision as of 4-2010. I couldn't find any mention on MyATX but maybe looked in the wrong place. Anyone know of anything about this or do we have paper file now? BTW - have a safe holiday weekend all!

Check with NYS corporation laws. If they originally incorporated as a not-for-profit corporation, it seems they would still be a not-for-profit. If they have continued filing a 990, I think they/you should contact IRS, explain the situation and get guidance. It would seem to me that they must file a 1023 under their own EIN and get an determination. I had a small not-for-profit which originally was tax-exempt. Over several years, it's focus shifted from being an educational group to a specialty chamber of commerce. I contacted IRS, explained the evolution and the agent guided us to a change in status filing and redetermination. IRS was very helpful with this.

Well, jainen, I've never had any clients with employees with any employment tax or other credits before - just lucky, I guess. Perhaps that's why I had to ask the question on this one, lack of previous exposure to the situation. My inclination matches that of Karen Lee, to offset the insurance premium since the credit is to pay for the insurance premium but others in the group felt fairly strongly that, since it was on the payroll tax form and a reduction in the tax remitted, it should be a reduction in payroll tax. I'm too easily swayed in either direction because of uncertainty and lack of experience in this area. Thanks for the input, folks. I guess very few others on the board have a question about it.

Inputting the tax to book (or book to tax) adjustments by clicking on the appropriate item in the schedule and hopping to the worksheet will, at least should, make the book income match. Does the client have non-deductible T&E? Are there guaranteed payments? Is depreciation different for book and tax purposes? Read the options and input the differences that you know. Good question about not being required to file those schedules. If paper filing, I guess you would just omit. If efiling, I assume it isn't transmitted. I always complete them anyway just to be sure I didn't miss something.

:bday: and many more!

:bday: and many more!

:bday; and many more!

:bday: and many more!

:bday: and many more!

:bday: and many more!

There is a difference of opinion in my sole prop group as to the proper way to account for the Form 941 credit for COBRA premiums. Some say it should be a reduction in health insurance premium expense because it was a credit for COBRA premiums. Others say it is a reduction in payroll tax because it reduced the amount of tax due on Form 941. But the first says that the 941 was just a convenient vehicle to help the business and to reduce the payroll tax may skew the taxes actually withheld, among other things. One or the other accounts is affected for year end tax reporting. What say you all? I really don't like accounting and want to be prepared when this comes up at year end!

:bday: and many more!