Laurie P

You do the best you can and hope that your equipment doesn't let you down. However, I still and always say that you must BACKUP religiously. That is your safest safety net.

Deb,

I agree about the backup. I have an external westgate harddrive that I use as a backup to my laptop. I have it scheduled for each morning (IU am normally up late working so the AM works for me) which I know is alot but I do not want to lose any work. After tax season I am wanted to move to a dedicated computer to house all the data files a nightly scheduled backup in place automatically. Since I am networked internally I think this will not be too hard to add to.

Laurie

The red light indicates one of two things, most likely the first.

First, make sure that there is a ground to the power outlet. Use of a 'cheater' plug that converts the cord from a three prong to a two prong basically means that you have no ground. Some older houses wired by homeowners sometimes connected the neutral wire to both the neutral lug and the ground lug because they had the situation where there were only two wires going to the outlet with a 3 prong outlet. While they are actually eventually going to go to the same point (ground), this is not advisable as it defeats the purpose of having a safety ground and allows current from the neutral wire to go back through the ground lug (shortest path to ground).

Second, the 'hot' and 'neutral' wires in the outlet could be reversed. Once again frequently common when homeowners wire the outlet instead of an electrician (or an electrician who is rushing/tired), they put the black hot wire on the lug for the white neutral wire. Hopefully the ground wire actually exists in this situation.

You can tell which situation you have if you have a 3 prong outlet by going to your hardware store and buying a couple dollar 'tester' that looks like the end of a power cord with 3 leds. It will tell you what's wrong with the outlet.

This should actually be corrected as when there is a surge, the UPS or surge protector will shunt excess power to the ground. If the ground is not there, NEITHER the UPS or Surge protector can actually do any good. In a no ground situation, the surge protector actually just acts as an extension cord with multiple outlets as the Metal Oxide Varistors (MOV's) in the surge protector can't shunt the power to another conductor.

Wow - you sure do have lots of knowledge way beyond taxes! Thanks for the information. We learn each day.

Laurie

Laurie.. I agree with your debits and credits except for possibly some depreciation for a part year if that has not already been included in accumulated depreciation to determine book value. If you handled this thru the asset disposition tab it would/should have taken a part year depreciation. The form 4797 and K-1 would appear to be correct if your FMV and book value is correct resulting in an allowable loss. Good work.

Jack,

Thanks so much for your help! I am glad I am on the right track. Sometimes working on your own is great but you do not always have someone to ask. This board and few others are great and without them I could not imagine.

The asset was taken off at 01-01-06 so no deprecaition expense for the current year.

Again, I appreciateall your help.

Laurie

The personal withdrawal feature of the Asset Schedule should not be available for a form 1120S corporation. Non-recognition of gain or loss is simply not allowed. Any asset of an S-corp must be treated as sold at FMV to the shareholder and reported as such on form 4797 or Sch-D as the case may be. In the case of a vehicle, it is usual, due to depreciation, that the FMV will result in a taxable gain to the S-corp. Depreciation upto gain will normally be recaptured as ordinary income. I would not use the feature of withdrawal to personal and show it as a normal sale at FMV, then an adjusting entry to the books to charge at FMV as a property distribution. The "Force 4797 might work.. I have never done it that way.

Hi Jack,

I appreciate you input. This is the 1st scenerio that I have had with a vehicle disposal so I want to make sure that I do it correctly....

The Book value $10,627

The FMV (using Edmunds) is $8,875

So, when I complete the disposition sheet, I used $8,875 as the selling price. The loss of $1,752 flowed through to the 4797 part 1 ; flowed to K-1 net section 1231 (box 9); the $8,875 would be shown as a property distribution. Is this correct?

In my mind...

Dr. Loss $1,752

Dr. Accum Dep $19,973

Cr. Vehicle 30,600

Dr. Distribution $8,875

I appreciate your help here..

Laurie

You have probably done it but just to mention the fact that an asset distributed to a shareholder of an S-corp must be treated as a sale at FMV, therefore it should show up as a gain or loss on form 4797.

Hi Jack,

Thanks for the post. From what I read I did not see anything regarding the 4797. Only to record the balance of the book value against distributions or that is that it will reduce the basis of the SH. I am sorry to ask so much here but this is the first time that I have done an vehicle asset conversion to personal. I want to make sure that I am handling correctly so going forward I am ok when I have it come up again.

If the 4797 is to be done then am I suppose to use the "Force 4797" line on the disposition tab to do this? I guess I am confused. I selected this and the 4797 is blank...

Thoughts?

Laurie

Don't feel dumb, it is easy to overlook a simple step from time to time. Dumb would be not asking!

KC - I take back the part to it flowing correctly..

Cost 30,600

A/D 19,973

Book value @ 01-01-06 $10,627

On the asset tab, I changed to 0% which removed the depreciation for the current year

now, going over to the distribution tab...If I change to 0% the cost is gone so there is a gain. I should keep it at a 100% on this tab correct?

Then, I would need to go to the K-1 (Page 3 of 1120-S) and enter the amount in the property distribution snd it will flow to the M-3. Is this correct?

Thanks,

Laurie

Did you make sure that the 'business %' was set to zero?

OK - I did that on the disposition worksheet and it worked How dumb I feel...I see it flowed over to the K-1 & M-3 as property distributions which reduced the basis as it should. Thanks so much!

Laurie

Hi all,

I have a 1120-S that I am removing a vehicle (100%) and converting to personal use as of 01-01-06. I have completed the disposition worksheet and put in all the information...

Before considering this, the depreciation for the year on two vehicles is $7,987.16. After the disposition the depreciation should be $6,212.16. On page one of the 1120-S the depreciation expense is still showing as $7, 987.16 and not $6,212.16. Is there something I am missing here for this not to flow right in the program? Any help would really be appreciated. I have spend 30 minutes playing with this and still am stumped.

Thanks,

Laurie

The question is just so vague that I would not know where to start, Laurie, to answer you. Could you give us some details? We'd like to help, but your question is almost like someone asking "My car won't start, what should I do?" It's just too unclear for us.

Hi KC,

Thanks so much for your willingness to help. I have an S-corp in which I am trying to understand where to go to enter info for the "Basis" worksheet in ATX. What I am hoping is if someone was willing for me to email them the few sheets to look at and I could possibly talk with them to just walk me through this so I have it straight. I can try to throw numbers out here but just thought it would be much quicker to email someone. If you are willing to help me and just want me to post here I will gather the info and try to explain what I am having issues with. Please, let me know what will work for you as I really need the help.

Thanks,

Laurie

With which part are you having problems?

Where to enter the info to tie to what my excel worksheet indicates in the loan and stock basis.

Hi all,

I need some help please on S-corp Basis and entering in ATX. I have spent an hour trying to get ATX basis worksheet to tie to my basis worksheet (in excel). I can send over to anyone that has the time and maybe they can quickly help me understand what in the world I am missing. I am really fustrated with this. I know it should be simple. I do not mind calling if that is quicker.

It would really be appreciated.

Thanks guys,

Laurie

Hi all,

Just wanted a confirmation. Sch C Home office business purchased a printer. I think that this would NOT have to be listed property.

Is this correct?

Thanks,

Laurie