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About Edsel

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  1. Edsel

    Where is the 941?

    Thanks to all. Found a browser that worked. Edsel (Quality automobiles from 1957 to 1959).
  2. Edsel

    Where is the Bulldog Tom?

    Bulldog Tom - great to meet you at Rita's gath'rin. You have been conspicuously absent. Did you quietly end up in the wildflowers on Rita's back 40 with the other huggies?
  3. Edsel

    Where is the 941?

    Thanks Lion. But this form does not "fill in."
  4. Edsel

    Where is the 941?

    Every time the IRS redesigns its website, I have a problem finding stuff. Today I'm looking for a fill-in version of the 941. I'm assuming it is a fillable .pdf format as it has been in the past. Can anyone tell me where to find a fill-in 941 and other fill-in forms? Thanks in advance - Edsel
  5. Edsel

    AICPA & NAEA - Simplify W -4

    The worst thing about the W-4 is yet to come next spring when taxpayers discover they have been underwithheld for 2018. We will be flooded with questions from clients who will expect us to solve their tax problems by asking us to fill out this new monstrosity W-4 for them. And then once we do that, the clients will blame us if the thing backfires. The new W-4 is a typical government solution which doesn't solve anything but adds layers of confusion. My solution to withholding is the same as it has been for the last several years. Figure out how much shortage has been incurred, leave marital status & exemptions alone, and simply add the shortage (divided by periodicity of payroll) to the line that says "Additional withholding per pay period." Some few of my clients have already tapped into the problem and have approached me. For the time being, I have asked them to restore their pre-reduction withholding by using the "additional" line.
  6. Edsel


    Abnormal, thanks. I'm not really that bright, but I worked in a sawmill 30 years ago. I'm not familiar at all with western timber.
  7. Edsel


    Setting a value of the timber is a sophisticated process. The board feet mentioned by cbslee are necessary because you need to measure what was available versus what was cut. Calculation of board feet as lumber is irrelevant because calculation of board feet as logs is 10-15% less because of what the sawmill figures they will lose in bark, knots, and irregularities in shape. Walnut is more expensive than most other wood species - up to 4X as valuable as pine. Today walnut is worth more than red oak, 15 years ago the reverse was true. Also, typically a landowner is paid 50% as much as what the logger can sell to a sawmill. This percentage drops as the contour of the land becomes extreme and difficult to transport the logs away. Real estate appraisers know the timber is there, but they are not necessarily qualified to assess it, so it is often ignored. Other complicating factors: over time, timber grows and creates more board feet than in younger years - but this is deceptive if the timber was mature and if so it reaches a point of maximum value and then begins to deteriorate. Timber is something that if you don't value it at the critical point in history, you lose the opportunity forever to have an accurate appraisal. Another difficulty is that timberland (forested land) is not worth more than pastureland just because it contains harvestable logs. Cattle cannot graze in forested land, nor can any row crops be raised.
  8. Edsel

    LLC Reporting

    I think you've put your finger on what I consider to be a threat. There are a dozen or so receivables set up when land was sold on installments. My fear is that this would be considered an operating business instead of investments resulting in interest and capital gains. This could be recharacterized as a Sch C business, and not only subject it to SE tax, but also loss of capital gain treatment.
  9. Edsel

    LLC Reporting

    Some people should never create an LLC. My client has just created one at the urging of lawyers (of course). Electing to report as a proprietorship will subject the taxpayer to SE tax, but: The only activity within the LLC is the existence of Receivables on Installment sales. Income is: (i) Interest on Loans and (ii) Installment Sale Capital Gains. Neither of these activities without other circumstances are subject to SE tax. Reporting as a proprietorship, Sch C, is not tailored to report this kind of income, but is tailored to create SE tax. Can the LLC be reported in some manner other than a Sch C? (Assume the LLC is defaulted to report as a proprietorship).
  10. Edsel

    Depreciation Question

    The "acid test" (in my mind) as to whether to complicate the transaction by reporting income and recording a fixed asset: If an auditor discovered this, would he take the time to write it up and recalculate a tax return? In my experience, only a neophyte auditor would take the time and trouble. Even if taxpayer does not elect s.179 the difference would not be worth his trouble.
  11. Edsel

    Depreciation Question

    Real world answer. RFassett is correct in everything said. But I might suggest a solution which is harmless. Leave the $500 expensed as rent for the prior year. Do not enter revenue or set up a fixed asset for $2700. As far as the current year, do not record anything. For $3200, this is not worth the scrutiny even if detected by the IRS. My solution would be different if the asset had a value of $20,000. Understand this is not a "pure" suggestion, and this post could be met with criticism.
  12. Edsel

    Strange Problem and Proposed Solution

    Thanks to all. I think the information in the link is definitive and clear. The situation calls for charging a timecard and billing as a consultant for the exact same duties. I advise against.
  13. Federal contracting regulations (in general) require that consultants cannot exceed more than 49% of the work for any given contract. This is to keep contractors from outsourcing their work and bailing out of problems that come with employees. One situation I have proposes 51% of the work to be performed by an employee, and 49% of the work to be performed by a consultant. Sounds good from the outset, but the employee and the consultant are the same person. In other words (fictitious numbers), $51,000 goes on a W-2, and $49,000 goes on a 1099 to his consulting company for the same work. For this person, $100,000 in total revenue and the 1099 portion is allowed full above-the-line business deductions. I'm not sure what the IRS thinks of a W-2 and 1099 going to the same person, especially for the exact same work. Is there a cite that definitively addresses the problem? Whady'allthink?
  14. Edsel

    Illinois Privilege Tax

    Thanks, Illmas. Question only involved a "privilege" tax - capital gains not involved.
  15. Edsel

    Illinois Privilege Tax

    for Illinois members - (Illigitimas are you out there?) Is there a statewide privilege tax (in addition to a local tax) assessed on corporations doing business in Illinois?