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DANRVAN

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About DANRVAN

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  1. DANRVAN

    1040X for client that came back

    Now that I have read the instructions it makes sense to put original numbers for husband in column A. Since column C contains the correct joint amounts, column B will net out as plug numbers. Those number will actually equal the amounts from the wife's original returns plus the difference between both original returns and the correct joint return. That is true since you are jumping from original filed by husband to correct joint filing, the difference will fall out in column B. I would still run the numbers on a spreadsheet to double check and to confirm the correct figures are on lines 16 through 22. So in Pacun's case, I would prepare a correct joint return and open 1040x. The correct amount will be in column C lines 1 -15. Then input the amount from original husband return in column A. Program will fill in Column B. The next step is to put in the combined amounts from the both original returns on line 16 and 18. The final step is to make sure the amount of refund or payment due nets out from the amounts on the corrected return and two original return.
  2. DANRVAN

    1040X for client that came back

    Okay, when all else fails follow the instructions. However the method I posted has worked for me in the past. It appears both methods yield the same numbers in columns B and C. In the method I used columns A and B net out to column C. Column C is the most important since that is the correct filing for the joint return. Also important are lines 20 - 22 which shows the adjusted amount due or refund to the client.
  3. DANRVAN

    1040X for client that came back

    I believe the correct way is to file one 1040x. Show the combined amounts for both original returns in the first column. The amount of refund or amount due will net out from the differences. Attach a copy of both original returns and a spread sheet that shows the combined amounts reported in the first column of 1040x.
  4. DANRVAN

    I really am not that dumb - report 6252 sale

    If you are using the fixed assets module of ATX it will ask you what type of disposition so you choose installment sale. Works the same if "bulk" sale. For most of my clients I use a depreciation schedule outside of ATX so I just go straight to the input sheet for form 6252.
  5. DANRVAN

    Cash Basis Taxpayer & Credit Card Charges

    A charge from a card with a "bipartate" agreement is never currently deductible because it does not involve a third party as in the case of a" tripartate" agreement. This is supported by years of case law, why are you still digging?
  6. DANRVAN

    Business Reimbursement or Schedule C Income/Deduction

    Well it could fall under an accountable plan, but it would net out the same on Schedule C.
  7. DANRVAN

    Cash Basis Taxpayer & Credit Card Charges

    I don't think that makes any difference. Case law has established a general rule that an expense charged to a credit card is treated as paid with borrowed money. Rev rul 78-38; Granan v. Com; and other cases confirm this. Your client is borrowing from Citibank to pay Home Depot so go ahead and take the deduction.
  8. DANRVAN

    1099 for consignors

    He must issue 1099 misc if paid "cash" to individual who is in the business of catching fish.
  9. DANRVAN

    1099 for consignors

    I would not. Consignors are selling goods, not services. Actually the shop owner is the one providing the service. Filing unneeded 1099's can cause recipients headaches and issuer extra cost of preparing them. On second thought, there is one situation I am aware of where 1099-misc is issued for purchase of goods. If taxpayer is in the business of buying fish for resale.
  10. DANRVAN

    look it up - 2014 audit closes when pls?

    Depends on how the timber was treated on the tax return. If treated as ordinary income then DPAD. However if treated as capital gain, such as in the case of a Section 631(a) election, then considered sale of real property and not a DPAD.
  11. DANRVAN

    Farm Auction - Depreciation Recap

    Well first of all extension until you get time to sort this out. You are doubting depreciation schedules, so is this client new to you? Offhand I can't think of anything your missing, but then again it's past my bedtime. How about schedule J, farm income averaging? The sale of farm equipment qualifies as elected farm income. Schedule J helps if taxpayer was in lower tax bracket in 3 previous years.
  12. DANRVAN

    back to the trust year

    There are two things to keep in mind. For the first year the estate can chose a short year for any number of months it choses. Secondly, the estate can adopt an accrual method of accounting. Those are powerful tools in timing income, expenses, and distributions to beneficiaries!
  13. DANRVAN

    More Trust mishandling

    Even if you did make it final, and it turns out not to be final, the IRS will still except a 2018 return.
  14. That doesn't make any difference. The LLC is a disregarded entity for tax purposes. They don't become personal assets unless they are used as such, otherwise loss allowed on 4797.
  15. DANRVAN

    More Trust mishandling

    From what I understand you are saying, I would file 1041 which reports the 1099 amount on Schedule E and then back to out as other expense with an appropriate title.
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