Abby Normal

You have to check the credit anyway, so I don't see the lack of 100% automation as much of a problem. It's always the last thing I do on a multistate return.

Edit: I've used software that supposedly automated it and found that I had to override the calculations a lot of the time, anyway.

My entire office is on Win8 since early this year. We have had exactly zero issues with ATX and most other newer programs. QB 2012-2014 run fine as well. QB2011 works but sometimes won't close properly. I told all my clients it was time to update to at least 12.

I honestly like Win8 better than Win7. I boot directly to Desktop environment and don't use the new interface for anything... but games.

As far as the cell phone and auto allowance is concerned, if these are paid under an "accountable plan" where the employee substantiates expenses to the employer where the substantiation equals at least the amount of the payments to the employee, these amounts paid are tax-free to the employee.  If the substantiation is less the amount of the payments, only the amount of the payments unsubstantiated get included in wages. 

You should recommend that they implement an 'accountable plan' for at least the mileage. This will save both the company and the sales rep taxes. It's hard to have a cellphone reimbursement in an accountable plan because most cellphone plans are flat rate, so the employee incurs no additional costs.

I have several out of state clients I've never met.

Free IRS webinar 11/13:

https://events.na.collabserv.com/portal/wippages/register.php?id=d746261d5e&l=en-US

We use it like it a lot. It's nice not to have to pay a monthly fee during months where we have no charges. I bought a touch screen pen so people don't have to sign with their finger.

I email password protected organizers to all 1040 clients (about 250). I only have about 25 that I have to mail. My clients start calling me if I don't send them out early enough.

I think if he has a signed note payable to him, you could ok. No experience with this scenario, just my first impression.

Which is why we are still waiting for an answer to # of employees and trucks, etc.

# of employees and trucks does not matter. You can have no employees and one truck and still get business use of home.

The purchase price must be allocated to tangible and intangible assets. See form 8594.

Edit: Yes, your state probably has a "bulk sales" tax law. Best if the buyer pays it so you know it actually gets paid.

Unfortunately, the IRS decided that Sch Cs cannot be joint. That would have been the simpler way to go: joint Sch C with 2 SE forms. They want you to split all income and expense items on two separate sch Cs. I don't have time for that, so I have the Sch C taxpayer issue a 1099MISC to the spouse taxpayer for roughly half the profits. The then spouse has a sch C with just income and no expenses.

The only reason for all this rigmarole is for both spouses to get Social Security credit.

Burned CDs may or may not be reliable long term. Saving install files to your hard drive and backing them up is clearly a better option.

Cash flow? Profits used to repay debts or buy assets? The 5 sounds like about the amount to pay taxes on the 13.

If his home is a place of business, then he has no commuting miles. It's all business. That's why you want "business use of home".

Single owner. How does a single owner have 0 basis? That is the part that confuses me.

Many of my single member s corps have 0 stock basis at year end some of the time, or even a lot of the time. It happens because of having debts/loans that do not increase stock basis, and do not provide debt basis. Debt basis is very restrictive in s corps. It's much easier in partnerships. They use those debts to buy assets that are 179'd or bonus depreciated to zero, wiping out income or even showing a loss. If they take too many distributions, their stock basis will hit zero and excess distributions are taxed as capital gains.

I NEVER let any of my s corps have loans payable to shareholders, because it's too much of a pain to deal with loan repayments where debt basis was used to deduct losses. Also, imputed interest. I always move the loans to paid in capital to increase stock basis. Keeps things much, much simpler and that's always a priority for me.

First off, you can't have negative basis in an S corp. Basis stops at zero. What you probably have are 200k in suspended losses due to lack of basis. The good news is that the 300k gain in the s corp will increase basis, but they should only take 100K in distributions this year so they leave enough basis to take all of the suspended losses.

Is there any chance that they can utilize the 0% bracket for LTCG on their 1040?

I think the IRS gave up trying to match K1 forms to 1040. A recent 1040 transcript a client got from the IRS didn't even show all the lines from the K1. But still, I think I would amend because it's missing from the Sch K as well as the K1.

I suppose they could hit you with preparer penalties?

Other software I've used had a box to check if you were a nonpaid preparer and it would type 'Nonpaid Preparer" in the signature box. Not sure if that means anything.

Nothing would drive the economy underground faster than a national sales tax.

Don't know if this will help in your case or not, but it's a nice site:

http://www.dinkytown.net/java/Tax1040.html

Doesn't add up...

http://www.theverge.com/2014/8/6/5973729/the-problem-with-the-new-york-times-biggest-hack-ever

It's probably covered by state law:

http://codes.ohio.gov/orc/1776.43

1. There's no reason to account for the grades of gasoline. All fuel can be lumped together.

2. Gas stations must inventory gas tanks daily. It's a simple matter to cost it using the last few delivery invoices.

I currently have 2 gas station clients and they both use CSS software to do their daily sales/inventory reports. http://css-corp.com/

It's DOS but I can still run it on Win8 by using a virtual machine with XP installed. They might have a windows version now and I'm sure there are other software companies out there.

The difference won't be exactly 32,000 as the state depreciation (not including 179) will be higher because the assets weren't 179'd.

I have no idea how WI handles this. In MD it's a separate addition/subtraction because MD starts with fed AGI.

IRS has no procedures to catch this except exam.

http://m.journalofaccountancy.com/News/Article/201410156.jofa