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About Ringers

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    Advanced Member

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    Horseshoes, Bowling, Blackjack, Cribbage, Teaching College Math, and....(yeah) accounting and taxes.
    Former ATX user for business since the Saber days of 1995 through 2012 and Pro Series since the Chipsoft days of 1988 for individual taxes. Now for 2013 I am using the Pro Series Power Tax Library for all returns. I love it!!!

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  1. Here is a very informative reference I have used for ISO redemptions. Tere is probably a similar site for NQSO's also. https://www.thebalance.com/incentive-stock-options-3192970
  2. With regard to this 1120-S, here is where things stand. The S-corp was always S for 22 year existence. Books were always on on TAX basis. Cash basis. There has never been exempt income. Net earnings for 2018 were $189000. 2018 Schedule L shows $50000 cash as only asset, no liabilities, $1000 stock and $49000 retained earnings. AAA account at $180000 even after $150000 distribution. Bank reconciliation shows 12/31/18 balance in all checkbooks as $1400 TOTAL. Schedules M-1, M-2 are all plugged figures. How would you prepare the 2019 tax return for this S-c
  3. The 1120-S for 2019 has not been filed yet. I have looked at the 1120-S for 2016, 2017, and 2018 and they show about $170 K each in profit with no shareholder wages (Dental practice). The former accountant is in very poor health and I have taken over the returns. I do not want to prepare the 2019 return without reasonable comp, and thus continue the erroneous ways of the former accountant, but I want to keep the penalties down for late filing and payment of the 941, 940, etc. Also, as a side note, may want to file for a PPP. I know that sounds "convenient" but my primary goal is to ge
  4. The client wants me to prepare a 2019 W-2 to change a portion of the 1120-S distributions into "reasonable compensation" after we had a conversation about her past returns. I am OK with amending all the 941's, 940, and state unemployment returns. I know I have to withhold FICA and Medicare, but is it mandatory to withhold Federal and State income tax withholding? We have agreed on a gross payroll amount of $100000.00. I am trying to cut down on the penalties and interest the client will pay on the late W-2/
  5. Thanks to EVERYONE who has responded. I agree with Catherine completely about balance sheets--if the Balance Sheet doesn't balance, then you can't trust anything else in the return. I finished inputting the 2018 corporate and personal returns for 6 different entities in the two clients that have come to me from my acquaintance, and I found numerous serious errors in ALL of them. One balance sheet for an S corp was off by over $200000, with $0 cash entered. Another had $58000 in Retained Earnings but $145000 in the AAA account. Incomplete postings of the K-1 to the personal returns associ
  6. WOW!!! Three of this board's heaviest hitters responding to my questions. As was often said on Wayne's World, "I'm not worthy!!!" All of the information and suggestions were excellent. First of all, with regard to negative AAA, my understanding now is that it CAN be negative, but can not be made negative or reduced below 0 by distributions, which would then be treated as capital gains to the shareholder--is that correct? All clients have copies of their returns which they have provided but 4562 forms just have depreciation from prior year assets or are simply not included. New as
  7. Assuming that the books of the 1120-S corporation are being kept on a TAX (rather than accounting) basis, and the corporation has ALWAYS been an S corp, are the following statements true: 1. If the corp has shown an overall profit since the date of incorporation and there are no "timing" differences between the books and the return, then the AAA account will equal Retained Earnings and Retained Earnings will have a positive balance. 2. If the corporation has shown an overall loss since the date of incorporation, the AAA account will be $0 and the Retained Earnings ac
  8. I saw an article from Kiplinger written by a CPA who filed his 2019 return in February. Based on his 2018 family income, he would have received a stimulus payment of $2900. Based on his 2019 income he would not be eligible for any stimulus. By filing early, he lost his stimulus payment of $2900 which, he claims, would not have been subject to repayment. How will IRS be able to justify penalizing someone for filing early!! If the current method stands, I do not expect any client in the future to allow me to efile their returns before April 15th of any tax year unless
  9. A client just asked me if he can still designate a QCD from his RMD later this year. As of right now, there is no longer a "Required" Minimum Distribution, so my feeling is that there can be no Qualified Charitable Distribution for the balance of 2020. It would seem that if someone took their 2020 RMD prior to the CARES Act, then they could have had a valid QCD, but not any longer without the IRS making a specific exception. What do you all think? I told my client what I thought but told him to watch the news and read the papers for possible future IRS clarification. I seem to
  10. Thank you to all who responded!! I just got back from 2 weeks in Alaska and have just now revisited the board. Ringers
  11. Clients of mine have finally sold their home and purchased a boat as principal residence. For 2019 they will be at least part year IL residents, but what will their state of residence be after they move to the boat? I am assuming that they will NOT have a permanent mooring anywhere but simply sail from location to location emcompassing many states. Will residency be determined by PO Box, Drivers' Licenses, voters' registration, or number of days docked in each state? Boat qualifies as domicile with three bedrooms, two heads, and an extensive galley.
  12. Ringers

    CA 593-E

    Thank you, Tom. That is exactly the information I was lookingt for!
  13. Ringers

    CA 593-E

    One of my clients (an individual and resident of FL) is selling a CA condominium she purchased in 2011 as an investment. The sale price will be $282400 and the profit will be $55283. In preparing the CA 593-E, the withholding based on the sale price is $9404 while the withholding on the profit is $6571. In my reading of the instructions, I can not find if it says you can elect the smaller of these two amounts as the amount of withholding to be paid to CA, but I assume that that is the case. Is this the correct interpretation and is the OPTIONAL withholding payment actually mandatory?
  14. I said TCC number, but I meant my 10 digit pin. Sorry!!
  15. My TCC number is my SS# followed by the digit "1." Try that if the phone number does not work.
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