SunTaxMan

Rich, You do raise an interesting possibility, if I can express the gist of your question differently. Can we take K-1 income or Distribution (all or part) and 'handle" it on the 1040 in a way to pay SE taxes, that is either by Schedule C, instead of Schedule E, page 2, or simply "forcing" an entry on Schedule SE? This would seem to be a "compliance" with the "spirit of the law," with regard to IRS, even if not the "letter of the law." But it does not address SUTA or FUTA. I would be interested in the group's comments to the "creativity."

I always consider total of lines 7 & 8 need to match W-3

I don't put anything on line 7 that doesn't match W-2.

"What are trying to do?" We HAD a capital contribution. Now shareholder took distribution 3 times salary taken because I told her she could take money out of business. Now she asks "Why can't we make it a loan, so excess distribution doesn't "attract attention? Just no interest paid yet, so absense of interest income doesn't also "attract attention?"

Shareholder loaned money to corp. Can we write loan agreement for interest to accrue, with only principal being repaid during loan and interest paid at end of loan?

Now it makes sense. Thanks.

I am missing something. On the input sheet the only "H" I see is just below the section for "Stock and Loan Basis" and the only items accompanying that "H" are checkboxes for "Final K-1" and "Amended K-1" and the statement to be completed "Shareholder's percentage of stock ownership for tax year......_________%" Am I looking at the wrong input sheet?

In the return I am working on, I have losses for the shareholders and the one who IS passive is showing carryforward of losses, which is as it should be, but I cannot figure out how, WITHIN the 1120S program, to indicate that this shareholder is indeed passive. What brought up the subject is that this shareholder will be becoming an employee and will become active in 2011.

Common sense says that's where it would be. but..... The form in ATX does not show any "active" or "passive" checkbox. Form form IRS.gov does not either. The only place I found it is in the 1040 K-1 worksheet at the top - to indicate if passive. This seems too late in the process of preparing the 1120S, even though the corp info is at the top of the 1040 K-1 worksheet (in the 1040 program.).

I have an S-Corp, two shareholders, one active, one passive -- but I can't find the area in the ATX program where I designate a shareholder as active or passive.

Restaurant franchise requirement. Obviously "suitable for street wear." Does franchise requirement make the cost deductible?

FYI. Employer advised COVA stands for "company owned vehicle allowance."

No COVA there.

Box 14 item. COVA. Taxpayer doesn't know what it is. Nothing on checkstub matches amount. Any ideas?

Service or property? "Property" is usually tangible.

2 shareholders 50/50, unmarried. Other shareholder is and remains active and on payroll.

S-Corp shareholder, passive, with several years of losses, suspended. Now business is becoming profitable and shareholder is becoming employee and working in the business. Payroll being paid. Can I use passive losses against now active gain from K-1, or are passive losses restricted for use ONLY against passive gains? Same shareholder, same business.

New client, divorced father. Ex-wife has custody and exemption. Father must pay some medical expenses, i.e, insurance, co-pays. I am thinking he gets no deduction because child is not his dependent. Correct? Is there some exception for divorced, non-custodial, non-exemption-claiming parent?

My first client with a reverse mortgage. What aspects of this do I need to know or be wary of? Anything unique? Thanks,

Are you talking about your own or clients?

I don't understand why anyone would want to change their PIN. It would seem that the DOB sequence is a number that would be remembered by both the taxpayer and the preparer. Why change it?

On the worksheet in ATX for Form 940 is a spot for "4-Character Name Control" assigned..by IRS. What is this designation? I assume it is issued by IRS. For what purpose? The Form 940 does not appear to have any area for this "designation" to be entered. Nor have I seen it on E-Filed forms. Thanks,

I am not sure which action I did solved the problem. But I think..... it was subscribing to the forum that finally accomplished it. Anyway, posts are now appearing in PC and in Mobile. thanks.

Nope. Problem remains. Posts this afternoon are not appearing in Gmail, PC or Mobile.

FWIW. Your response registered three times in GMail. on PC and on Mobile.