Randall

Finally, it's over.

I agree on preferring email.

ATX helped me once on this. It was simple but I still can't remember it now. One of those things that you don't do often, and forget immediately after you do it.

I think the basis worksheet can be used for that. ATX only added it the past couple of years so you may have to input some numbers to make the prior info correct.

l think that while they do tax the value of the cash award, they do not include the price of the metal in the medal. Although that is something that a smart auditor certainly would include, since the price of gold and silver has increased so much in the last few years.

As for taxing the prize, why shouldn't they? Frankly, that's part of what is wrong with our tax code, too many emotional exceptions Why should a person who works hard to win a race be treated differently than someone who works hard to sell enough cars to win a bonus, for example?

I agree KC. Emotions.

Wow on the metal content! Somewhere I got it in my head that the gold medal was 5 ounces of gold. That would be quite a bit. 6 grams sounds more reasonable.

I agree JohnH. I've tried to keep jogging for 36 years. It's tough to keep it up and find the time but I do it for myself and my health. Yes, these are great athletes, but so what. Then they come home and get their face on the box of Cheerios and become hucksters and make big bucks. Sheesh.

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.