michaelmars

Sometimes when i get that, a reboot clears it up

not always so simple for an empoyer to determine, how do i know if my staff is supporting and claiming their moms and dads, and truthfully, its none of my business. Once in a while you do get a letter from the irs that states you should ignore any w-4 files and withhold as per the letter but otherwise i accept the w-4's

This forum is for tax professionals, my advice is for you to consult with one.

Was the single family home for rental/resale or for him to live in personally?

can't get in trouble for typo's

HMM since this whole conversation, along with others here don't directly benefit the posters practice, are they charging this to personal use on their logs?

oops correct - sorry

John G. is 63 years old and owns a small business. He's a life-long Republican and sees his dream of retiring next year has all but evaporated. With the stock market crashing and new taxes coming his way, John assumes now that he will work to his dying day. John has a granddaughter. Ashley is a recent college grad. She drives a flashy hybrid car, wears all the latest fashions, and loves to go out to nightclubs and restaurants. Ashley campaigned hard for Barack Obama. After the election she made sure her grandfather (and all other Republican family members) received a big I told-you-so earful on how the world is going to be a much better place now that her party is taking over. Having lost both roommates, Ashley recently ran short of cash and cannot pay the rent (again) on her 3-bedroom townhouse. Like she has done many times in the past, she e-mailed her grandfather asking for some financial help. Here is his reply: Sweetheart, I received your request for assistance. Ashley, you know I love you dearly and I'm sympathetic to your financial plight. Unfortunately, times have changed. With the election of President Obama, your grandmother and I have had to set forth a bold new economic plan of our own” The Ashley Economic Empowerment Plan." Let me explain. Your grandmother and I are life-long, wage-earning taxpayers. We have lived a comfortable life, as you know, but we have never had the fancier things like European vacations, luxury cars, etc. We have worked hard and were looking forward to retiring soon. But the plan has changed. Your president is raising our personal and business taxes significantly. He says it is so he can give our hard earned money to other people. Do you know what this means, Ashley? It means less for us, and we must cut back on many business and personal expenses. You know the wonderful receptionist who worked in my office for more than 23 years? The one who always gave you candy when you came over to visit? I had to let her go last week. I can't afford to pay her salary and all of the government mandated taxes that go with having employees. Your grandmother will now work 4 days a week to answer phones, take orders and handle the books. We will be closed on Fridays and will lose even more income. I'm also very sorry to report that your cousin Frank will no longer be working summers in the warehouse. I called him at school this morning. He already knows about it and he's upset because he will have to give up skydiving and his yearly trip to Greenland to survey the polar bears. That's just the business side of things. Some personal economic effects of Obama's new taxation policies include none other than you. You know very well that over the years your grandmother and I have given you thousands of dollars in cash, tuition assistance, food, housing, clothing, gifts, etc., etc. But by your vote, you have chosen to help others -- not at your expense -- but at our expense. If you need money now sweetheart, I recommend you call http://www.whitehouse.gov/CONTACT/; You yourself told me how foolish it is to vote Republican. You said Mr. Obama is going to be the People's President, and is going to help every American live a better life. Based on everything you've told me, along with all the promises we heard during the campaign, I'm sure Mr. Obama will be happy to transfer some stimulus money into your bank account. Have him call me for the account number, which I memorized years ago. Perhaps you can now understand what I've been saying all my life: Those who vote for a president should consider the impact on the nation as a whole, and not be just concerned with what they can get for themselves. What Obama supporters don't seem to realize is all of the money he is redistributing to illegal aliens and non-taxpaying Americans (the so-called "less fortunate") comes from tax-paying families. Remember how you told me, "Only the richest of the rich will be affected"? Well guess what, honey? Because we own a business, your grandmother and I are now considered to be the richest of the rich. On paper, it might look that way, but in the real world, we are far from it. As you said while campaigning for Obama, some people will have to carry more of the burden so all of America can prosper. You understand what that means, right? It means that raising taxes on productive people results in them having less money; less money for everything, including granddaughters. I'm sorry, Ashley, but the well has run dry. The free lunches are over. I have no money to give you now. So, congratulations on your choice for "change." For future reference, I encourage you to try and add up the total value of the gifts and cash you have received from us, just since you went off to college, and compare it to what you expect to get from Mr. Obama over the next 4 (or 8) years. I have not kept track of it, Ashley. It has all truly been the gift of our hearts. Remember, we love you dearly....but from now on you'll need to call the number mentioned above. Your "Savior" has the money we would have given to you. Just try and get it from him. Good luck, sweetheart. Love Grandpa

i would call and advise that his returns WERE NOT filed yet and he needs to make payment before you release them.

yep

i agree with OldJack - always file

lawyers need to make a living too!

how about sch L line 7a "loans to partners"

i would love to see an operating agreement thats properly done or even attempted to be done. Especially since the 2 members are husband and wife, i seriously doubt an agreement exists. and of course that agreement can always be amended to say anything they want and once you ask them about it, i am sure they will find one dated in 2010 allowing whatever saves them the most taxes this year.

probably a commercial by LifeLock

exp it, or machinery and equip with 100 bonus depr

from manager, click tax warehouse

if they were to take it personally, it would be unreimbursed partner exp which would reduce se tax too. [not saying this is the proper way to go with this]

Jainen - We are all using recapture to mean the 25% rate, thats where the confusion come's in. We aren't talking about ord income recapture. Same as with my post of the other day which you helped on. Your are recaputing the depr since you have to pay taxes on it. I think we all know [although we are incorrect] that when we say recapture we are talking about recouping the deduction.

Its working fine-i just checked

Doesn't it reduce the basis? cost 100,000 depr 30,000 basis 70,000? didn't mean 1250 recapture

lived in co-op for 10 years, then rented for 5-6, then left vacant until market turned 3 years.. i assume the depreciation during rental needs to be recaptured, There was no depreciation while vacant. Can any of the carrying cost during the vacant years be added to basis. Since it was vacant [investment?] property for the last 3 years could any co-op charges, insurance, etc be added to basis?

don't forget the profit motive. he got to charge for an additional return.

no profit motive, no depreciation. business use is 0

i beleive thats how atx handles it. entire nol with an adjustment backingout the prior amounts on the current nol calculation worksheet