Randall

joanmcq, you're my hero. I don't have time to comment a lot. Not that it would do any good. Thanks for your posts.

Yes, on the individual side. But for new contributions, the plan is now a new plan sponsored by a different employer. On the employer side, that piece of paper needs to be changed. And usually on the individual side, the custodian has the employer name as part of the account name. That piece of paper needs to be changed too for new contributions.

Sole proprietorship was the 'employer' sponsor of the SEP. That business ended. Did he have employees? They would have to be considered in the change. S Corp status, 4 members? Are you saying he and 3 others formed an LLC and elected to be taxed as an S Corp? Or did they form a corporation and there are 4 shareholders? Either way, the new business must establish a new employer sponsored SEP plan. S shareholders' W2 compensation is the amount to determine eligibility for SEP contributions. Depending on level of W2 compensation, he might want to look at a SIMPLE plan (or 401k). Once a new SEP plan is established, he can roll his old account into the new account.

I thought so from my review. Just wanted to check.

Is fair market value at the date of death mandatory? If stock value went down, can you use original cost to have a capital loss on the estate return 1041? Or do you have to use fmv at date of death and have no gain no loss?

By giving them both salary reported on W2, they both get Social Security creditand they both can be eligible for retirement plans.

Ky has the same fee. The only difference is with MMLLC, you file Fed 1065 and Ky equivalent 765 and pay the $175 (same for S Corps, Ky form 720S, pay $175). For SMLLC, you run thru Fed Sch C with 1040, and it runs thru Ky personal 740, but in addition, file Ky SMLLC form 725 and pay the $175.

Anyone know about DC? Is there separate registration and tax form and fee required? I've haven't looked yet, just thought I try here on this topic.

Not an answer to the specific topic, but people just don't keep their records. They think they don't need this and don't need that. I keep reminding people but they still don't listen. Mortgage and loan statements, original debt documents, correspondence, mutual fund statements. On and on. Mail that comes in just seems to disappear. Then they say they never got anything.

Ky has $175 minimum fee and a separate Single Member LLC form for those Fed Sch Cs and Es.

How are they organized? LLC, S Corp, just two individuals joint ownership? I thought basis limitation was according to what you actually put in (inside basis, outside basis)? also debt liability comes into play, according to entiy type. Yes mcb39, what was Peter thinking? Hope they stay friends.

Many times with those questions, people think it's an option and they can take the best outcome for themselves.

I think a lot are wrong in the IRS favor but the other way around. In other words, when corrected, the client will owe more tax. Like charging the same business miles on a Sch C and 2106 for the same business activity.

Not sure. I think I did get some Windows updates come thru. So that might have done it.

My ATX shortcuts on my desktop disaapeared. I don't know how it happened. I rebooted. I had the past 3 years on my desktop. Earlier years are on my computer but just listed in the directory. I still have the programs in my directory and was able to create shortcuts again on my desktop. So far, I haven't noticed anything else strange. Anyone else have this happen?

Got the extensions done (almost). The toughest part of the extensions is for those who need to send in a payment. Then there are the local business extensions who don't automatically accept the Fed extension and they want a payment with the extension. I can barely get anything done the last few days. Just of gas.

We've had something of a reprieve on tax changes. Still in effect for 2012 (except those extenders expired at the end of 2011). So except for the extenders, our tax season next year will be for 2012 tax laws. But who knows what to expect for 2013.

I'll take off early Tuesday, all day off Wed. Then back to normal hours. The weekend off will feel like a vacation.

I find myself singing the Beatles' Taxman song off and on during the tax season. Even though I'm not the govt taking the taxes, the song pops in my head a lot during this time. 'Let me tell you how it will be ...'

Thanks. Forgot about 9325. Out of sight, out of mind.

Bulldog is right. You have to make the election (to spread over life expectancy) by Dec 31 of the calendar year following year of death. Or you can take nothing up front, but then you must take all of it in 5 years. Small accounts, no big deal, but large amounts, it matters. This is where the Roth really is better if the original IRA owner could pay the tax with other money and not touch the account. No RMDs in his lifetime, nonspouse heirs's distributions spread over their lifetime tax free.

I don't know of a form. But you can print out the acknowlegement form the ATX program. I've had clients who needed to show a bank their extension and I've printed the Form 4868 with the efile acknowledgment.

It's also nice when the person at the bank actually knows what she's doing. Ha. Many bank and brokerage people only have a cursory knowledge of IRAs/taxes and have no idea what you're talking about.

This is what I'm finding too. Doesn't seem fair, but you reduce the 2012 reportable amount first. Ugh.

This seems to be happening more and more. With young people jumping the gun and efiling their own returns. Don't forget when paper filing, attach W2s and 1099s with withholding. I tend to forget to do this since we've been efiling tha last few years.