Vityaba

Yes, it's a great feature. I wish I could rollover customized fields from year to year...

I have a C corp client with $200k in capital account and negative $150k in the accumulated retained earnings. The corp has accumulated some cash and the owner wants to pay himself dividends. A few questions here: Can the corp pay dividends if the RE are in red? Can the corp pay dividends if the capital and RE accounts combined are positive (up to $50k in this case)? Can the corp pay dividends over $50k here? I am asking strictly about IRS regs. The client is researching the state law aspect that regulates dividends Thank you

Easytax, yes, these are separate calculations, but since this is a S Corp, its calculations flow through to the owner and create large loss on his return. If the 1099 was during the same year that loss would have been offset by the COD income. But if there will never be COD income (due to bankruptcy), it turns out to a large tax advantage to the TP. I am worrying that I may be missing something and I actually do need to reduce the basis by the COD. The problem also is that at this point there is no COD yet. It may occur next year

No, that's not correct. From Pub 544: Buyer's (borrower's) gain or loss. You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale or exchange. The gain or loss is the difference between your adjusted basis in the transferred property and the amount realized. Amount realized on a recourse debt. If you are personally liable for the debt (recourse debt), the amount realized on the foreclosure or repossession includes the lesser of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The fair market value of the transferred property. You are treated as receiving ordinary income from the canceled debt for the part of the debt that is more than the fair market value. The amount realized does not include the canceled debt that is your income from cancellation of debt. See Cancellation of debt, below. So let's say a TP has a truck with basis $100,000. Outstanding loan at the time of repo is $110,000. FMV is $80,000. So according to the Pub 544, the amount realized is $80,000, which will create $20,000 loss this year. My concern here is that if next year the debt will be cancelled due to bankruptcy and won't be subject to the income tax the TP will end up with $20,000 loss, when in reality this should have been $10,000 income due to cancelled debt, or at lease zero...

A trucking S Corp is going out of business and all tucks were repossessed. The owner was a personal guarantor on all loans. The lenders are going for him personally and most likely hi will file ch 7 bankruptcy sometime next year. How do we go about calculating of gain/loss on the "disposition" of these trucks. In most cases FMV of the trucks is lower than basis which creates a large loss this year. Do I reduce the basis by the amount of FMV-loan, or since the debt was not cancelled yet we cannot do that and have to show the loss.

Yes, it's really confusing - filing threshold vs. filing requirements. Self-employed individual has to file a tax return if net earnings are $400 or more: http://www.irs.gov/publications/p17/ch01.html#en_US_2014_publink1000170425

See, everywhere I read about that exemption it refers to the filing threshold, but for self-employed it's $400, not $10150. So I am not 100% sure I can use it. Any reference to the code?

I have a self-employed individual who made around 6,000 in 2014. She qualified for medicaid program but did not apply for it, so, technical, I cannot use Unaffordable exemption because she could have gotten a free coverage. Question - can I use Income below the income tax return filing requirement exemption since the income is below $10150 Thank you

This calculator does all the magic: http://www.valuepenguin.com/ppaca/exchanges/ I played with it today for a few hours, verified calculations by checking healthcare.gov Bronze and SLCSP rates for several scenarios and everything was matching.

I remember seeing somewhere that the system was having issues with customized forms when updates were loaded. This must have been pre 2012 software. Thanks for your input.

I never used it before. Found out about it today. It looks really useful and forms updates do not affect saved data. Is there anything I should be aware about? Is there anything that can go wrong with customized forms? Thanks

The following IRS offices can review originals and send copies for processing. One of my client did this just a few months ago. http://www.irs.gov/uac/TAC-Locations-Where-In-Person-Document-Verification-is-Provided

A TP purchased a home as an investment with an intention to remodel and sell. It was a cash purchase (overall basis as of today is $90k). He held the property for a year and took a loan ($100k), from a private person, that he intended to use for the remodeling. In a few months the TP decides he does not want to do the remodeling and made a deal with the person who loaned him money to transfer that property into that person's name to cancel out the loan I see two options here: 1. classify as an investment with cost $90k and selling price $100k; fyi, the TP is not in a business of flipping; it was a one time deal for him 2. a capital loss of $90k and a cancellation of $100k debt; The TP wants to go with option 1. I am afraid that the IRS may clasiffy it as the second option and it will result in $3k allowed capital loss per year and $100k income in year one. Your opinion? It would be nice to have a reference to some kind of regulation to present this to my client. Thank you for your input

A nonprofit corporation (by state law) is collecting money from members of a community and then spends them for whatever their mission is. Do I include "donations" collected in the gross revenue and expenditures in the expenses? Since the corporation is not tax exempt by the IRS I'd say yes, it has to include those funds in gross revenue, but at the same time it makes no sense because these are real donations that people make without getting anything in return. Your thoughts?

I had over 500 returns in 2013