Laurie P

Question...does anyone know if the program issues are mainly network setups? I am the only one prepping and really think about moving the entire program to my computer (Window7 pro 64 bit) and running it as if it is a stand alone? Any thoughts?

I updated this afternoon to the latest and wish I had not. It is hogging up resources and just crashed. Thanks for sharing. I really hope the release on the 21st will be better.

Happy Birthday!

KC - You are such a giving person and I know have helped me on many occasions as I grow. It is appreciated beyond words. You are definately a special blessing to many of us! I hope your BDay is a great one!

Laurie

Thanks for the feedback. I sure hope that I do get to go to the one I paid for!

KC & others,

Got a call from ATX as I had been holding off on renewing. Through the end of this month they are offering the seminar (one seat) free with the TTO I ended up renewing. The second seat I paid $119 for. Just thought I would share this information.

Laurie

I don't think we will go completely paperless, but I wanted to scan and save W-2's, 1099's, etc. that are related to their current tax file. My hard drive isn't near as big as yours but we are only a small office. We only have 150-200 returns. I thought I would save the PDF files of the returns on a Flash Drive. That would save hard drive space.

May I suggest that you might want to look at an external hard drive if your computer is small. I just got a Seagate with a 160 gig for $90. I have one at home too so when I am between office/home I can backup to either one if really needed. It really works like a charm. There are different types of harddrives so I would research first if you decide this might be a good option.

Laurie

Hi all,

I have searched for an hour online and really could not find any info out there to see if there are any special accounting to consider for the travel agency industry.

I am looking for information related to revenue recognition and prepayments of travel/tours and how to handle correctly for an accrual based agency. I am thinking that revenue would be recognized based upon date of travel and any deposits would be a liability while any Prepayments to vendors would be an asset.

If anyone can point me to something that would be great or if you have experience with this and can give me some feedback that would be great.

Thanks,

Laurie

The link (at least for 1040s) is on the IRS site at http://www.irs.gov/efile/article/0,,id=166050,00.html third item down.

Hi Don,

Thanks for the link. Unfortunatley it did not have the code I need.

I have a rejection on an S-corp return (not sure if you can efile after deadline and maybe that is why). It is R0000-910 XML Return Structure.

Can anyone point me into the right direction?

Thanks,

Laurie

Hi all,

Can someone point me to the error codes for efile?

Also, does someone know what the efile deadline is for filing an 1120-s? Can it be efiled still although deadline was on Monday?

Thanks,

Laurie

Hi all,

I have been struggled with this basis in ATX for an hour now and I am at my wits end. I need help please.

Here is the background:

Basis @ 12-31-05 $5,045 (all of this represents share of partnership libailities - Orig liability balance was $7,303)

For 2006:

Share of partnership liability is $14,073 (net increase of $6,770 from 2005 to 2006)

Here is what I have calculated (hopefully correct)

Beg Basis 5,045

CY change in liab 6,770

Loss/Non deduc (11,377)

Basis 12-31-06 438

Now - my problem is I can NOT get ATX to agree to this.

On the basis worksheet:

Beg basis 5,045 - looks correct

Increase of share of liabiliities 14,073 (it looks like it is pulling the $14,073 from Question M on the detail tab WHICH

I am pretty sure should be $14,073 that shows up on the K-1)

Non-deductible Expense 1,150 - looks correct

Loss 10,227 - looks correct

Ending Basis 7,741 - incorrect because the liabiity is off by 7,303 (liability as of 12-31-05)

Can someone please tell me where to go in ATX to adjust the liability by 7,303? I know it is probably simple but I just can not find it.

One other question:

I have also a suspended Section 179 loss from 2005 to roll to 2006 which can not be used and needs to flow to 2007 when I am hoping we can use. Where do I enter this carryforward? I tried entering in the "Carryover from PY" but this impacts my basis in CY which i believe is not what I need to do here.

Any help is very much appreciated.

Thanks,

Laurie

Okay that does change the entry some.

Cr Disposition of asset $15000

Dr Loan $ 7000

Cr. Vehicle $10000 ( Assuming a fully depreciated vehicle)

Dr. Accumulated Depr $ 10000

Dr. Distributions $ 8000

I'm guessing the reason the payment went to the shareholder is one of those deals where they titled the vehicle in the shareholder's name rather than the corp? Sigh....

Outwest,

I want to ask one more thing on this.

If I have the replacement in 2007 then I guess I could deferred the gain of $15,000 and then apply to new vehicle $15,030 purchased in Jan 2007 OR record the gain this year and take the Section 179 next year. Correct?

Thanks,

Laurie

Okay that does change the entry some.

Cr Disposition of asset $15000

Dr Loan $ 7000

Cr. Vehicle $10000 ( Assuming a fully depreciated vehicle)

Dr. Accumulated Depr $ 10000

Dr. Distributions $ 8000

I'm guessing the reason the payment went to the shareholder is one of those deals where they titled the vehicle in the shareholder's name rather than the corp? Sigh....

Hi Outwest!

Thanks for the info...I will save for future. Yes - you are correct on that. Asset has been on books depreciation, etc by business since 2002 but in SH personal name. Sigh too....Talked to SH about titling over current assets. He said they will not extend credit and told him that many will as long as you personally guarentee the debt. I did mention increase possibly in insurance, etc. I see so many setup like this and trying to explain this. I finally made up an "Info Bite" on it and hand it out to applicable clients. Same with no salary and distributions with an S-corp. I see that quite a bit.

Thanks for your help!

Laurie

As KC said, you can handle several ways:

I would do it this way assuming the insurance was received in 06.

Cr Disposition of asset $8000

Dr Loan $ 7433

Cr. Vehicle $10000 ( Assuming a fully depreciated vehicle)

Dr. Accumulated Depr $ 10000

Dr. Cash $ 2567

Note that because you have a fully depreciated vehicle, you have a gain on the insurance proceeds. Makes sense, you have no casualty loss because you have zero book value = nothing to lose from a tax basis. If the vehicle is partially depreciated, then you lost the book value and the gain is reduced.

Hi Outwest,

Thanks for the response. Question for you on this. The total proceeds were $14,000. Sorry if I confused you. $8,000 went directly to SH and the other $7,000 were paid directly to loan company. Do I need to consider the $7,000 loan payoff also?

Thanks,

Laurie

Knowing that they planned to replace it, I would not remove it. I am sure you could get arguments both ways, but its sort of like the situation where you have a machine that is damaged, and not usable for the second half of the year, but is in the process of being repaired. You do not take it off the depreciation schedule, and when the repair is completed, you add that cost to the basis. In this case, you know that they replaced it, so keeping it on the schedule is appropriate.

KC,

What should I do about the note payable sitting on the books. This was paid off by the insurance company in Dec 2006? There is a $1000+ difference between the balance and payoff which is not interest. So - I guess I am asking about what the accounting entry would be here.

Db. Loan $7,432.79

Cr. Due to Shareholder 6,261.96

Cr. Gain on Asset 1,190.83

Does this look right? I really appreciate your help.

Laurie

Does anyone have a suggestion or recommendation on E&O insurance. I am a one owner non corp person.

thanks

Hi Taxman,

I also have Hartford. I went through my local insurance company to get it.

Laurie

Since it was replaced, you do not have a 'disposition'. You just adjust the basis to reflect what happened.

And you can generate a statement by using the 'Elections' form and the tab for 'Blank Statements' and type your own statement.

Hi KC,

It was replaced in 2007 so do I not need to get it off the books as of the date it was stolen?

Also, I posted an additiona question on the liability on TaxPro and if I am doing the proper adjustment on the books. If you have the time could you please respond to it. I value your opinion. Sorry if this is a no brainer but I guess I just am not thinking and this is a first I have had this. I am always learning. Sometimes I wish I had someone in the same office I could bounce things off of....maybe down the road. I am so thankful for the tax boards.

I hope everything is going ok for you. I said a prayer for you today.

Laurie

Hi JB. Yes, home nursing care is deductible same as if in hospital or in a nursing home.

Gene

Hi Gene,

I am from Sebastian/Vero Beach Florida. I did move up to NE Georiga but will always be a Florida Girl! See you around.

Laurie

I appologize for my unclear post. I should have said "if the card is in the name of the owner and the organization is a corporation and there is mixed use, I would shy away from putting the CC on the balance sheet."

My point was (1) if the entity is a proprietor, and the card is in the owners name, I have no issue with putting it on the BS and recording each transaction as either an expense or capital draw, (2) if the entity is a corp and the card is in the owners name, but strictly used for business purposes, I have no issue putting it on the balance sheet, and (3) if the entity is a corp and the card is in the name of the owner but is mixed use, I prefer not to put the card on the balance sheet, opting for recording the business transactions from the card usage as a transaction between the owner and the corporation.

My assumption was always that the card was in the name of the owner, and I was approaching the question from that assumption.

That is the problem with quick answers to questions, we sometimes think that what we think we said(or typed) is what will be understood.

Tom

Lodi, CA

Hi Tom,

I think this board and great and I myself sometimes post too soon if I am in a big hurry. I enjoy reading your posts and insights and support!

Thanks,

Laurie

KC - You truly are a special person to many of us. I will pray for God to give you strength and for him to provide healing and recovery to your husband. God is an awesome God and I have seen healings through the power of prayer. When 2 or more unite!

Blessings,

Laurie

Hi all,

I need a confirmation on a business gain & how to handle in ATX.

S-corp which had a stolen vehicle in 2006.

Replacement property purchased in January 2007.

Insurance proceeds for $8,000

Section 179 taken on vehicle in 2004 so no basis.

I am ok on how to calculate new basis in 2007, by question pertains to 2006 and what I need to report. Pub. 547 requires a statement to be sent to the IRS in the year in which I would have the gain & the year in which replacment property purchased.

Questions:

1. In 2006, is there a statement that can be generated to provide the information needed to be sent to the IRS for the option to replace the stolen property in ATX?

2. On the disposition tab of ATX, Do I select the "casualty/loss" drop down if I am replacing? What other items should I have marked/completed on this tab or - for the situation given above what would I complete on this tab for it to calculate correctly?

Form 4684 would normally be done BUT for S-corps and with a Section 179 the instructions indicate Form 4797 would be used. For my situation I do not think that either would apply because of the replacement. The instructions are not clear to me here.

This is my first one like this so I really appreciate any input on where to go in ATX and make sure that I am completed the correct forms for 2006 based upon the situation. Deadline is near approaching.

I look forward to any input from the group.

Thanks,

Laurie

Deb,

Is this a sole proprietor? If so, are there any other expenses on that card?

If the card has no other charges that are personal to the owner, set it up as a credit card in QB, and just post the payments and interest charges to it .

If the card is being used for mixed purposes (business and personal) it will make the interest calculation manual at tax time, but I would still set it up as a business credit card, post all the transactions, and show the personal ones as owner distributions.

If it is a corporation and there is personal uses, I would shy away from the credit card showing up on the balance sheet and record a loan from the shareholder and document it. Have the corp pay the shareholder and the shareholder pay the credit card.

My 2 cents.

Tom

Lodi, CA

Tom,

Just my 2 cents on this...I do not think you have an option not to setup the credit card as a liability on the books if it is in the company's name. Any personal charges, depending on the type of entitiy would be charged against distributions, draws, or maybe to reduce a SH loan balance. Just my thoughts.

Laurie

How would you handle this? I'm doing bookkeeping for a business who has taken out a credit advance on their credit card and loaned it to their business.

I am trying to imput it in such a way so that it tracks through the credit card account, (this way I can reconcile the statement each month) but I originally set it up as a long term liability. When I post the payment it will credit the credit card account but does nothing in reducing the long term liability. Am I missing something or am I hoping for the impossible?

Has anyone had experience in handling advances on credit cards in this way?

Thanks for any imput! :

Hi Deb,

What I do in this situation if first of all I do not setup as a credit card in QuickBooks unless it is a company credit card. I create a bank account called 3rd party payments. Then, I enter the credit card charges that are business as a write check using the 3rd party as the cash account. I have clients during the year enter charges for business that were paid personally. At year-end, I move the balance to the approriate account i.e. reduction of loans, draws, etc depending on the type of entitiy and the situation. This method allows the detail to show up in your vendor reports so you can see who was charged, etc. It works clean for the clients I have trained this way. It also keeps them out of trying to do JEs which they normally would get mixed up.

I hope this helps.

Laurie

I am not in AK but have had to do simpler spliting between states.

I would find out for the income where they lived when they received it and split it out accordingly. For example on the pension, if it is a monthly amount received then I would take 4 out of the 12 months and allocate to AK as income.

For Georiga, there is an allocation worksheet where I put in the amount of income for GA and it adjusts the main forms to calcualte the correct tax.

I hope this helps.

Laurie

Hi Steve,

To add to this if the vehicle is converted to personal use down the road you have to deal with selling the business asset and tax impact.

I like the mileage the method best. You have the best of both worlds...tax write-off for the corp and the payment to the SH is not taxable as income.

Laurie

Hi all,

I have a K-1 from an 1120-S. Previous 2 years had enough profit to claim the current year's loss on the 1040 (i.e. enough basis). Where in the world do I indicate this in ATX so that the loss from the K-1 flows to the 1040 Page 1? I can not figure out. I do have it marked as passive which I thought is correct. I know if I uncheck it will flow. Are there any other options? Thanks.

Laurie

so then what happens when some misguided soul just prints his own forms???

zeke

I did this a few months ago and it took about a month or so to receive them. May I also add that I have to provide to a client that had a booklet because they changed him from a 941 filer to a 944 annual filer and his deposit coupons did not have a bubble for the 944 deposit. You would have thought that they would have sent him new booklets when they made the change but they did not.

Laurie