michaelmars

how much? how material is it?

if the daughter does wind up paying the interest the mom will receive a slightly lesser amount as interest income - sort of a wash.

IN THIS case i would pay the se tax on the net income but you should definately spin off the salon business from the real estate for a vast number of reasons.

how much is this 10% penalty that we are talking about? i bet the hearing office will simply accept the court info. I wouldn't worry about a potential court case until after meeting with the appeals officer. If you work in a different area than the client i would move the case to your area which would mean a different irs office and thus different person to deal with if its not too late for that.

1. The IRS issued their temporary and proposed regulations ( you might want to get them and read them) that will reduce the extension of time to file tax returns from six months to five months for certain entity returns that generate a K-1 form. The change is effective for extension requests for returns due on or after January 1 2009 and apply to form 1065, form 1041 and form 8804 for any entities that have a tax year ending on or after September 30, 2008. 2. For as long as anyone can remember- start up costs and organizational expenditures were permanently capitalized and non amortizable unless you made the proper elections on your tax return. This week the IRS issued temporary regulations that make the start up costs and organization cost elections automatic when the taxpayers have those costs. The regs were issued this week but they can be applied to all expenses paidor incurred after October 22 2004. You still need to make sure you pay attention to these costs. You still have to comply with the rules on when and how they are deducted but the separate election no longer has to be made. The "deemed" election under the new regs should be a plus to those clients who were affected by having a dedcution permanently disallowed because a preparer failed to make the election. 3. The IRS over the years has softened on allowing late filing of S elections. Now the IRS just allowed an S corp that inadvertently terminated by having an LLC as a shareholder to "redo" their forms and treat the individual members of the LLC as the shareholders thus preserving the election. A kinder, gentler IRS perhaps??

here i go on my soapbox again but way overkill here in my opinion. report the $5m, thats a given. As for the expenses, he either purchased them, stole them, received them as a gift or found them. If we take the assumption he purchased them you can get the cost out of any music equipment catalog. Your only issue of debate is if he purchased them in 2007 or prior, perhaps the store or mfg has records if he filled out warrentee info. If you are too conservative to assume 2007 without real proof then assume 2005, get a fmv as stated above and take depr for 2007. As for mileage, if you are reporting the income from a job then take the mileage to/from the job, use mapquest! If the irs throws out the mileage then they do but your method is reasoned and logical and defendable. don't forget all other expenses even if the client says there aren't any, he isn't a businessman obviously. Did you discuss where he makes his demo's etc, does he have a home studio, does he advertise, etc? -Just my 2 cents

talk to the irs re: the problem and show proof that the client sent the money to CA, and did not profit by keeping it in his bank acct. He never intended to not pay his taxes and had the funds available and simply mailed it to the incorrect gov't entity. I have almost always got them to abate any late payment penalties in this situation but its best to deal with someone live @ the irs. I had 3 this season alone.

TAXCPANY, where are you, i live in eastnorthport, and till 3 years ago had my office on larkfield and then on jericho in dix hills.

Thanks I just discovered how to clear my cache and it did the trick. the site is back to normal ---- well as normal as you clowns always make it. Thanks again for the imput.

Anyone else experiences a change in this site, i lost the background and just have what looks like something typed on an old typewriter graphics. is it me or is the website under some sort of reconstruction? I was away for a few weeks and came back to this!

Looking for an experienced ATXer to work 8-16 hour per week during tax season for complete tax return preparation. Mostly simple returns, repeat customers so they will be already set up. TBWS will be already done for most business returns. I am in Great Neck, LI. We are open 7 days and someone is here most evenings so your hours can be flexible. Would like you to start during August a few hours a week working on extension returns to make sure we are a good mix before January.

not an answer to your question but another comment- don't forget that some of the 754 has to go to land so you have 2 754's, depreciable and non-depreciable land 754.

I go by the theory that if i can't figure it out and the atx programmers can't figure it out, then the irs auditors can't figure it out either. Hand them a work sheet and 9 out of 10 times they say fine if the numbers are close. on that dreadful 10th time, just blame it on the computer!

"upper right hand corner two amounts: tax on return and amount due/refund. " Its still there, its an option you have to turn on in preferences

do an amended return normally then just add letters normally and an amended letter comes up! as the other mike did, i just checked on a lark to see if they added it and they did.

WOW THEY ADDED CLIENT INSTRUCTION LETTERS FOR AMENDED RETURNS!!!!!!!!!!!!!!!!!!!!!!!!

PLS DO

THE long and excellent analysis above left out one other item concerning real estate, refinancing. When you refinance in an llc you put the money in your pocket and walk away. in an S corp you have a taxable event if you take the money out of hte corp. Almost every major RE transaction now a days is either a LLC or a Reit. if you are going to hold and operate it. only if you are going to flip it does an s corp make sense.

bunch of mine got it too, sent out an email warning and put it on my web site too to warn everyone

ssssssh, it is and now you can charge $1000 for the tax basis calculation!

$3000, Our professional time answeriing this thread already cost more than that! <wink>

look at it this way, did the rent go up because of the new and improved cabinets?, if this were a sec 8 housing would the goverment qualify the cabinets for a capital improvement rent increase? Or did you just replace a few broken down cabinets but leave the old aged floors, ceiling, appliances in place?

why? take 5 year and if the irs a] audits you, b] picks that item to question, c] doesn't accept your answer only then you will have to amend to 27.5 and you will be where you are willing to start out at. It is ok to be aggressive as long as you have a defendable basis for your decision. If you start out at 27.5 you already did the work of the irs. One thing you didn't mention is the dollar amount you are talking about. In the scheme of things is it even a number to worry about? Just the fact that you got so many different opinions here should show you that there isn't a cut and dry answer and you have an argument for using a shorter life than 27.5. -good luck

$250-300 IS MY QUOTE too, depends on what they give me, number of stock sales, etc. covers a basic return, a few sales, mortgage deductions, 2-4 w-2's etc. and NY returns. I also add on efiling fees of $25-50 and expenses [postage, etc of $15 or more-most of mine go out 2nd day overnite]

VOTE 5 YEAR TOO