Steve M

Client lives full time in Arizona. Inherited property 6 years ago in Utah and sold in 2007 for long term capital gains. Client has never lived or worked in Utah. I am assuming that the taxes are paid to Arizona and not Utah, but want to be sure that I am not missing something. Am I correct?

Thanks, forgot that he would recoup the passive activity losses when he sells. Makes sense now. Steve M

Client has rental properties that he bought in 2007. However, because of AGI, he cannot claim any passive activity losses. When I complete Schedule E, part of those losses are depreciation of the structures. Since he cannot benefit from the losses, do you still claim the depreciation? If you do, on the sale, you will recoop the decpreciation even though he never benefited from the depreciation. Seems unfair and illogical. Is there some way to prevent this? Steve M

Maybe I can help someone avoid what I just went through. I spent over 3 hours on the phone with ATX -waiting for Customer Service and the rest working with Tech support. I couldn't open my 2007 program; customer service couldn't figure it out and finally contacted tech support. The Tech rep stated immediately that the issue was due to Vista UAC which is User Account control. He said the UAC which is supposed to prevent unauthorized users from stealing info on your computer, didn't recongnize ATX (it did for 3 weeks) and stole some of the important files, plus some client files, including files from 2006. He took remote control of my computer and juggled and opened and closed things for about an hour and a half, and finally fixed it. However, he said, make sure you do not turn on the UAC ever, and that it is possible for it to turn itself back on. His suggestion is to back up on a portable drive every day a copy of the backup file, the database (both in the program files) and to export all files as well. Every day. This is driving me crazy; who has time to do that daily, but I will because of what I just went through. Just wanted to fore-warn all of you in case you experience a similar problem. Also after I finally talked to customer service, she spent over 40 minutes "reading the knowledge base" trying to figure it out. Had no experience with the problem, but they are trained to read eveything they can before turning you over to someone with technical expertese. It's annoying because there is no time to waste this time of the year. Hope this helps you. Steve M

It doesn't open up even after 1 1/2 hours. Also the computer is only 3 weeks old and has lot's of memory. Thanks anyhow

Opened ATX 2007 this morning and received acknowedgements. Then closed program down. Now I am trying to reopen and all I get is the ATX 2007 initial screen. Program will not open fully - can't get to return manager. Been on hold waiting for ATX tech for the past 35 minutes and have clients coming shortly. Anyone had a similar experience or any suggestions. In the six years I have used ATX, I have never had som many issues. Steve M

I cannot download the AMT 6251 to my computer. The program is updated and when I go to download forms, it says installed on the web. However, when I click to download, nothing happens. Even when I use the view form screen, nothing shows up. Spent an hour of phone with ATX and they don't know what to do. All other forms are ok. Also can download in my home office. Any one have any experience or answers? Steve M

My old computer went down and I am restoring ATX 2005 backup files to the new computer with Windows Vista. Program loaded fine. However, when I go to install/restore (with program closed) I located the backup files, select them and start. It says the files are being restored. Howver, when I open the 2005, there are no files there. Any ideas what is happening. I called ATX for help and they told me they would not help me with a prior year until after this current tax season. Steve M

An important note regarding the refunds; they didn't ship (or at least they told me that no one would receive the software) until the week after Christmas. Therefore, that should be within the 30 days. S

I am having the same problem. When I ordered it I was told that there would be a refund if you requested it within 45 days. If they reneg on that promise, I will dispute it with the credit card company. Steve M

I am not able to e-file and get a message stating that my efin is not registered to my client number. It's the same EFIN that I've had for years and I just rolled it over from 2006. Any one else having this issue. ATX customer support is clueless at this point. Also ATX is telling me we cannot e-file until tomorrow because the 1040 is not finalized. Yet the forms log says vs 24 approved. I am getting a message saying EIC & 8880 not approved for e-filing. Is that because ATX's version is not approved or is the IRS the culprit. H & R Block claims they have been e-filing. If that's true then it's an ATX problem. Iguess I would just like to know. Thanks in advance Steve M

Thanks everyone for your opinions. Especially Redneck for directing me to the Section 1234A . That was very helpful. Steve M

I know he didn't apply for a loan for a personal residence; however, my question really regards can he claim the loss for a rental property because he never owned the property. He didn't lose money on the property because it was never his, so therefore, how can he claim the $17000 loss- or can he? I don't think it is a short term capital loss, so what would it be if anything? Steve M

He was planning to resell it, but he used personal funds for the deposit. He didn't place the money into a corp or LLC.

A client paid $17000 as a deposit on a new build home for speculation. Because he couldn't sell another property in time, he lost his $17,000 deposit. Is there any deduction for this since he actually never closed on the property? Also he is an individual, not a corp or LLC, so I can't see writing it off as a business loss. Would value your opinions. Steve M

Thanks to both of you. I was having trouble getting my mind wrapped around the situation. There was no loan on the bus so there was no debt recorded. Since the asset (the bus) is still in use, would it be correct to reflect the sale of the bus on a 4797? Since the partnership ended and the other owner continued on, I would assume that the bus was sold for the original price and that the continuing owner would also have a taxable event as a result of the sale. Let me know if my thinking is flawed. Again thanks. This board is so useful to bounce ideas around. I really appreciate it. Steve M

2 partners started an LLC in 2005. One contributed vehicle (Bus Tour Business) and the other contributed $25K cash. Partnership terminated in Oct 06 because partners couldn't get along. Partner who contributed the $25K brought me the books to do the 2006 final return. While completing Sch L, I found a $25K difference because the $25K was never entered into the partnership account; it went to the other partner. When they dissolved the partnership, the second partner returned the $25K personally. My question is, what basis did the partner have who contributed the cash? And how do I account for the $25K exchanging hands back and forth? Did it really have anything to do with the partnership as far as the IRS is concerned? I really like to get some other thoughts on this senario. Thanks, Steve M

Thanks everyone, you gave me some great answers. Steve M

Appreciate your input on my question of Auto expenses for client owning S-Corp. Can I still file for him under an accountable plan since there would not be any checks issued to him for the auto exenses? Seems like the IRS would want a paper trail. Again, thanks for your input. Steve M

A new client is filing 2006 S-Corp. He purchased a van in 2006 which he uses 90% for business. The problem is he never transferred ownership to the S-Corp; it is registered and titled in his personal name. Is there any way he can get depreciation on the Van? Since Corps can't use milage, is there any way he can use the actual expnses? Your ideas would be greatly appreciated. Steve M

Thank you for your input. I appreciate it, and I agree that lookng at the documents is probably the best solution.

A new client just handed me a stack of tax papers relating to her decendent trust. Her husband died 10 years ago and she has been filing 1041's for Trust 1 (decedent/residual) and her Trust 2 in her name for the past 10 years. No wheres does it say QTIP trust so I assume (maybe incorrectly) that this is a marital (A/B) trust. If so, shouldn't this have been dissolved years ago? At least the A portion? That s just her income- why would it be considered a trust? Is this a legal situation and should I refer her to an attorney? You thoughts would really be appreciated. I'm not sure about the proper way to file her returns. Steve M