helow

Thanks much. I really appreciate your help. Helow

Actually, I am working on last year's return. Thanks much all. Helow

I am getting a message "Warning: Amount from state use tab of form 4797" and I cannot figure out what I need to do. Have you seen this before? Thanks Helow

Please respond. Thanks

I do not think I can file the 1045 as TP did not file 2007 timely. This is what I am working on now. The only option is to carryback to 2005 and file 1040x. What about the other questions that Taxability raised in his previous message. Thanks much Helow

I told client she could not include the condo fees. She took her stuff and probably went back to her old preparer. Thanks all. Helow.

Sorry, I had an emergency and temporarily stopped doing taxes for a while. But fortunately, I am back now and stronger than before. Below are answers to your questions: 1) The corporation dissolved in 2007 2) His basis is 116,655, he co-owned with 2 others. He borrowed the money and has to pay it back with interest. 3) His K-1 loss is on line 1. 4) The loss occured in 2007 and want to carryback to 2005. How do I carryback the NOL to 2005? Do I need to amend the 2005 return (1040x) and claim the NOL? When I added NOL worksheet to 2007 return, I am showing in tab 1, $12, 912 (I reported initially $46,777 but when I entered nonbusiness deduction the loss changed to 12,912)and in AMT Calcualtion tab, I am showing $-1560. My question is where do I need to show these figures? Also, do I need to do anything tabs Ln 24 NOL and AMT Ln 24 NOL? How do I tell the software that I am carrying back the NOL? It is showing me warning, not in red fonts though. I appreciate your help. This is the first time I am working on a return with NOL, so I appreciate any help. Helow

TP owns a condo and paid $5,784 as condo fee. She lives in the condo and is not renting out any space. She wants to claim the condo fee as a deduction such as real estate. She claims that her accountant did just that last year. I tell her she cannot claim the fees as a deduction just like she cannot claim her utility as a deduction. Am I missing something here? Thanks Helow

Does the NOL carryback go into line 21 of 1040? Thanks Helow

TP wants to file 2007. He filed extenstion but still did not file. I did his return and then he brought a sch K1 from an S corp that is now dissolved. He owned 33.33%. The sch K1 shows a loss of $116,655, creating what appears to be an NOL of $46,777. I added NOL worksheet which also showed $46,777 as NOL. I deducted it on form 1040 Sch-E since TP borrowed the money from the bank and must repay it. I would like to know if this is the correct way. On the back of my mind I am asking, could this be shedule D. Also, If I have to carryback, should I carryback to 2004 (3-years) or 2005 (2-years) and what amount? When I add 1040x to 2005 tax I prepared, where does this amount go. I have done his 2005 tax return and when I added 1040x I was not sure how to go about adding the NOL. This is the first time I prepare NOL or even 1040X. I appreciate your quick tutorial and affirmation that the NOL piece. Helow

Thanks much.

Hello I have two issues I hope you woud help me with. 1) How can I break the cost of land and building in Asset Entry form? I went to my county auditor website to separate taxable value for the land and building and then used the percentage allocation used by the auditor to allocate purchase price. 2) I also noted the value allocated to the building is different from the value of last year, resulting in different depreciation amount. The basis for the building will have different value each year if I use the value from the county website. How do you handle these situations. Thanks Laga

I am looking for a model letter I can use to request for reinstatement of an S Corp. registered in VA. I would appreciate if you would send it to me [email protected] . Appreciate your help. Helow.

I need help on issue relating to non-profit org. The org is registered in DC but operates from Virginia. for the past 6 years. Must it register in VA also. It has an agent in DC where it receives its correspondances. I understand that there is a disagreement between trustees and they want to oust a member. Some members went to DC and changed the agent's name to one of the members. The client who came to me found out this and he went and changed the agent's name to a friend of his. What does the law says about this? Who is authorized to make changes? Client wants to find out who signed the SS-4 forms after the member who signed the document passed out couple of month ago. He think that other members also changed this information. He called the IRS but IRS declined to release the info as he is not on the form. How can he make sure that he is the autorized person who have the sole authority to amend the changes. He signed the 990 forms so he ultimately bears responsibilty. He is also the founder and manages the day to day operation of the orgnanization and his service is voluntary - does not earn a dime. Others have no involvment but they are creating a lot of problems for the org. I would appreciate any advise on these questions. Thanks Helow

Another question. How do you calculate Property distribution in line 16d (1120S) or Sch K-1 Would salary paid to a shareholder who owns 100% of stock in an S corp be considered as property distro. Sorry, this is my first time I am doing an S corp so I do apologize for these basic questions. Thanks Helow

In Peachtree, do you set Stockholder's equity account for one person S corp? I have CS, Paid in Capital and RE. Thanks Helow

Yes, you have. Thanks, you guys are great. Helow

Thanks all. Really appreciate your help. Helow

Sorry, I had to get out of the office for I don't know which software the previous accountant used but I am using Peachtree. I think the financials are not accurate. The trail balance is out of balance and I cannot understand how begining equity, which I think means R, is increased by the 2005 income of 24,500.07. What would you do if you were me? I see that these numbers does not make sense and am not sure if I can ignore them. This is a new client for me (an S Corp) and I am already getting headaches. I am doing all 2007 accounting and have to also do the 1120S, K1 etc. How can I enter the beginning balances in Peachtree (First time I am using this tool) What would I do the differences shown in the trail balance. 2006 Capital.............................................................1,000 Beginning Equity.............................................68,301.19 Stockholder's Equity.......................................(66,214.89) Net Income.................................................... 3,985.50 Thanks much Helow

Anothe question, Does ATX support Peachtree?

If the financials are prepared using US GAAP only, ignore the tax part, can the net income reported on the IS be different from what is on the BS? I have the following Financials Statements: 2006 Capital.............................................................1,000 Beginning Equity.............................................68,301.19 Stockholder's Equity.......................................(66,214.89) Net Income.................................................... 3,985.50 The net income report on the income statement is $9,302.50, more than what is reported on the BS (5,317) 2005 Capital.............................................................1,000 Beginning Equity.............................................43,801.12 Stockholder's Equity.......................................(49,929.41) Net Income....................................................19,183.07 The net income report on the income statement is $24,500.07, again more than what is reported on the BS (5,317) 2004 Capital.............................................................1,000 Beginning Equity.............................................29,997.74 Stockholder's Equity...................................... (17,881.00) Net Income....................................................12,890.31 The net income report on the income statement is $18,207.31,again more than what is reported on the BS (5,317) I took the 2006 IS and BS figures and entered them as Beginning balance in Peachtree, selecting period 12/1/06 - 12/31/06 (Not sure If I need to select 1/1/2007 - 1/31/2007). Once I have entered the beginning balances and the income statement figures, I could get the net income of $9,302.50 but my trail balance was out of balance by $4,230.70. The net Income of $9,302.50 is what is appears on the 1120S as Ordinary Business Income. When I hit OK, Peachtree adjusted the beginning balance "to keep me in balance"! When I hit OK, it wiped out the Begining Equity of 68,301.19 and replaced with (4,230.70) and net income was zero!!!!!!!! Can someone please help me with the above issues. Thanks Helow

How and in what circustance? I learned that the net income on the IS follows through to the BS? Thanks

The net income reported on the income statement is different from the one on the BS for this S Corp! Can this happen? Thanks Helow

Can this be considered as other income?

Waaw, do I have to fill out all these questions? :scratch_head: