cpabsd

A Client went to work for a local Parks and rec board. Parks and Rec does not pay nor withhold SS tax. The client would like to contribute to SS on their own. How do i do this and is it even possible? Thanks, Bonnie

I know they are long term...but software is defaulting to short term. It will not allow me to override and I cannot locate the proper place to input that it is to be treated as long term. i found a work around ....but i'd rather do it correctly.

On the input tab - in the corporation or individual file? I am just missing the line item for this one. Frustrating!!

S corp distributions in excess of basis - I believe these are to be treated as LT capital gains but ATX is bringing them in as ST. How do I override to treat as LT? I cannot seem to locate within software. Bunny hopping is not working on this one and it will not let me override the system.

Is the per diem expense allowed to be utilized for an air traffic controller for meals incurred while on the job? They are by law not allowed to leave the building. I know they fall under the DOT rules for 80% of the deduction. Please provide a cite. Not having much success locating specific allowable deduction. Having a "co-worker" who takes it is not good enough.

Thank you Judy. The student is not required to file, so no need to add to household income.

Who pays the penalty? Parent or child? My research says the parent is hit with this penalty.

Thanks everyone. I knew it was a capital lease, but the client was pretty insistent. Always nice to have confirmation that I was correct.

Taxpayer is paying for a lease through Quality Leasing for 3 different pieces of construction equipment. They independently called the leasing company and were told that the lease was fully tax deductible. I'm not so certain that is the case. They can purchase each piece of equipment for $1 at end of lease. I believe I need to capitalize and depreciate. Thoughts??? Here is what Publication 535 says regarding this: Conditional sales contract. Whether an agreement is a conditional sales contract depends on the intent of the parties. Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. No single test, or special combination of tests, always applies. However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. The agreement applies part of each payment toward an equity interest you will receive. You get title to the property after you make a stated amount of required payments. The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. You pay much more than the current fair rental value of the property. You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. Determine this value when you make the agreement. You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. The agreement designates part of the payments as interest, or that part is easy to recognize as interest.

I have an S corporation running accrual basis books and cash basis tax return. For the balance sheet on the tax return, is this allowed to be done on the accrual basis of accounting even though the tax return is cash basis? I don't really have a cash basis balance sheet. Also, I thought I heard in a seminar but wanted to make certain that the Schedule M-2 does not have to tie to the Schedule L, even though my software thinks it must. Thanks

Client went to work for a local Parks and Rec board. The employer does not withhold SS or medicare. The client wants to pay into SS. How do they go about doing this? A W-2 will be received by the employee. They offer Sect 125 benefits for health insurance. I'm confused as to why SS and medicare is not being withheld but want to help my client out.

I have a client who submitted an application for a 501 C (3). They have not heard back from IRS. Attempted to file a postcard return and was denied. The IRS says they are to be treated as a club like a rotary club and would fall under the same tax requirements. What would those be? Please help.

Client lives in Thailand but is a US citizen. He receives SS income and a small retirement from HP. HP reported the income on a 1042-S. They have his SSN but still withheld at the 30% rate. Where does this income get reported?

I have a client that the IRS reclassified this past year as a "social sports group." What tax return would be required for such an entity? It appears to me they are a 501 c 7 organization. Their annual receipts for 2013 were $1805. Any help appreciated. The IRS website says they are not eligible for the Form 990-N. Thanks!!

A new client spends roughtly 50K a year on care providers in residence. He has not issued 1099's or W2's before. However, he has taken the deduction on Schedule A. The 50k is to around 12 different individuals. I am of the opinion that if he takes the deduction, he should issue 1099's at minimum to individuals. He wants to treat properly for 2014. Any thoughts???

Mortgage insurance premiums paid on a rental property - are these to be capitalized? If yes, do you add an amount each year for the premiums paid and depreciate it?

The money came from the corp owned by mom. It was 1099 income,not wages. I prepare the parents returns as well. However, last night, I was just working on the kids return.

Doing a tax return for 16 year old child. 1099 Misc was received for cleaning his parents office. Investment income greater than $2000 may kick in the kiddie tax. I believe the Schedule C income is earned income so kiddie tax would not apply. Agree???

Taxpayer and spouse are getting divorced. Wife moved away. Since she works for her dad,she didn't change jobs but thinks moving expenses should be deductible. I do not believe so. She worked for her dad before moving and after moving. She moved in with her parents since separation. There was no job change even though the mileage criteria would be met. Agree with me??

Thanks everyone. I knew there was a form but it has been so long, i could not locate it.

I e file all clients that quality. This client qualifies but does not want to e file. Do I need to have them sign a form stating it was their choice?

I did this very thing this year. Copy the personal return. Delete everything but the Fixed Assets. Add a Form 1065. The assets and prior depreciation are all there. In my case, a section 351 transfer was required. It is a way to save a lot of data entry time.

Thank goodness for this board. I did not install the update!!!! Sorry for those having issues. Hang in there. You will survive!!!

Corp has a book loss for 2013. They distributed $132,706 excess distributions. I understand I have to issue a 1099. Is this a 1099-div? On the books of the s corp, AAA cannot go below zero due to distributions. Where do I put the excess distributions on Schedule M-2 so that retained earnings is in balance? This entity has always been an S corp.

Does anyone have a sample of Form 3115 attachments for a conversion from accrual to cash basis? I just want to make sure something is not missed. If you'd rather, you can e mail me directly at [email protected] Thanks!