taxdan

I'm entering assets on the asset entry form for a partnership return, and the computer keeps putting the beginning asset life at one year prior. For example, if I enter a 2003 beginning year, it puts it at 2002. And it doesn't matter what type of asset I enter. I tried completely deleting the 4562 and starting over, but it doesn't help. My forms are all up to date. This is the only return it's happening on. I've done the return since 2004 and...ooops....I noticed that my program started doing this last year with this return. All assets have been rolled over. Again, I tried deleting the assets, then the entire 4562. Any help appreciated. Very frustrating. Dan

Thanks for the advice. I will ask all of those questions and more and if I don't feel the client has taken the proper steps to retrieve his money, I will leave it alone. Otherwise I will file it as a capital loss.

Client gave $10,000 to an individual claiming to be part of a company called Network Group. It was supposed to be an investment in a piece of real estate. Individual took the money and ran. Client feels really stupid. Can the client deduct this as a capital loss on Sch D? I would imagine he would need some sort of proof that he attempted to get his money back. Any advice is appreciated!

I think that's exactly correct. I just had a client with $94K in interest paid and $95K of income. Neg am loan refi. Interest didn't come out of pocket, but built into new loan.

Thank you for your responses. Since it is such a small amount I think I will just use the 12/31/07 conversion rate.

Clients have savings account in UK and earned small amount of interest reported in British pounds. Does anyone know how to convert this since it was earned throughout the year?....or is the conversion simply done on the amount at each date paid...monthly I would imagine. Thanks! Dan

Am I right that CA still does not conform to Fed for deductibility of HSA contributions? Thank you! Dan

I filed a CA 541 (estate) for a client last year that was for a fiscal year 10/1/06 to 9/30/07...so it was a 2006 541. The client received a 2007 CA Real Estate Withholding Tax Statement 593-B showing $20K in withholding that he was going to be refunded since it was a final 541 and everything being distributed in 2007 through K-1s. He just received a letter from FTB saying there was no 2006 593-B received, so no refund. The 593-B was actually a 2007 form, but since this was for a fiscal year, did FTB simply make a mistake? or did I do something wrong? The client is already not in a good mood because he mailed his 706 return 2 days late in January and is now being billed $15K for late filing penalty. Thank you for any help! Dan

Am I doing this right?... Client moved from HI to CA in March 2007. Client has huge loss on HI rental property while living in CA...was living in the property while in HI. I am claiming the loss on the CA return since it occured while a CA resident... ...and claiming the loss on the HI return since it is HI property. For 2008, the client will file FY CA and NR HI and I will do the same with the rental loss. Am I doing that correctly? It just seems a lot to be claiming the loss on both state returns. Thank you. I'm from IL originally and not terribly familiar with HI returns. Dan

In the above scenario, does the taxpayer still get to file as HOH on the OR return and just not allowed any of the other tax benefits of having a qualified child?

Thank you both Peggy and Neil for your responses! Neil, you were dead on. I needed to delete the kids in the dependent form and enter them at the bottom of the Qualifying Child form under EIC. Thank you so much!

I want to enter multiple dependents for client to claim HOH and EIC, but don't want client to claim 2 of the 3 kids for child tax credit and exemption purposes. Client is letting non custodial parent claim them. In 2006 and 2007 program, you can click a box that says "check to not claim dependent this year". There is no such box in the 2005 program and was wondering how I go about doing that. If anyone remembers that far back, I would appreciate it. Thanks! Dan

Yes, I agree with Maura. SS tax in box 4 is calculated on the amounts in both the amounts in box 3 AND box 7.

Thank you all very much for your responses. This is a new client this year. This guy is doing three business activities under the LLC name that are very different. 1. Vending machine business (new business in 2007) 2. Buys and resells shoes (new business in 2007) 3. Attempting to "flip" properties. Good luck with that one. I know this can go on sch D if no work is actually done by the client other than buying and selling. Unfortunately, this guy got taken and had to convert to rental to make a few bucks while he tries to dump the property. I am using sch E for the income/expenses and will use the 4797 if he's ever lucky enough to sell. I think I should file separate sch Cs for jobs 1 and 2 to be on the safe side. For the "flipping props" business in 2006 the last tax preparer filed a sch C under the LLC, calling the type of business "investments", and deducted...well let me explain... My client gave some character $10K as a form of "broker" that was supposed to go toward the property and the guy just takes off with his money. Not sure the particulars yet, such as what paperwork was involved (if any). The last preparer amortized the $10,000 over 5 years as "start up expenses". Yes, I know there are so many things wrong with that. Does anyone know how/if this can be written off properly...depending on what (if any) paper trail was involved? I don't want to just continue amortizing that...especially on a sch C with no other expenses or income. Yes, again it's late and I'm tired and I'm going to charge this guy plenty.

Hello All, Since I am not very familiar with single member LLCs, I have a question about filing a sch C. I know that a different sch C needs to be filed for each type of business a taxpayer does, but if we're filing the sch C under the single member LLC and there are multiple "types of work" being done under the LLC name, do I still file multiple sch Cs? Sorry for the silly question. Thanks! Dan

I was receiving acknowledgements and the process froze at "Verifying Customer Info"...for a half hour. I ended up having to shut down the tax program and restarting it. Now when I go try to efile, I get "Another transmission is in process.... ...Please wait until that transmission is finished." Has this happened to anyone else? I'm dreading calling tech support so I thought maybe one of you good people would know of a solution. Thanks! Dan

Thanks for the info. I efiled mine the day after you did and it still sits there "validated". I guess I'll just wait a few more days until I complain. Unluckily for me, it's a clients return and not my own.

JKL, out of curiousity, have you had your 1120S acknowledged yet? or ANY other response than "validated"? I still got nothin'! Thanks, Dan

I efiled an 1120S on 1/31 and it still shows "Validated". If they're going to reject it, I hope they do it soon so I can retransmit it!

Thank you so much. I can't believe I didn't see that line! I jumped from the withholding line 29 to see if there was any input options there...I filled out the 593 worksheet...yet I didn't even see that line 31. Sometimes I just need to slow down and pay attention. Thank you again!

Does anyone have any experience with CA Form 593-B, the Real Estate Withholding Tax Statement? I'm filing a fiscal year (10-1-06 to 9-30-07) CA 541 in which the trust/estate sold a rental property and received a form CA 593-B showing $20,982 of CA withholding. Where do I input this on the 541 to show the tax was withheld? I can override the program, but I always feel I'm doing something wrong when I have to override. Thank you for any help! Dan

Thanks Zeke. That's what I needed to know.

I just figured out the problem I was having with the 1041 sch D. I was checking the box for final return, so the computer would not allow the amounts to flow to column 2 on sch D, part III. Is there a rule that the trust/estate can not claim the income if it is the final return and everything will be distributed to the beneficiaries this year? Does the estate HAVE to allocate all gains and ordinary income to the benis via the K-1s instead of having the estate pay the taxes? Thanks so much!

KC, yes, column 1 has input fields. By default, I just meant that the program automatically put the numbers in there. I can just delete them. My problem is that I don't know how to get them to show up in column 2 without overriding. Taxit, I've acutally tried a bunch of options for the purchase date to see if I could get it to change. In the dispostion worksheet, it doesn't allow "inherited" for the purchase date, so I'm not quite sure what to put down so it will calculate gains at the long-term rate. Either way, I just want the darn numbers to show up in column 2 of Sch D part III and I'm not sure how to do it. Or do I even want the estate to pay the taxes on the gain? Should I leave them in column 1 (the beneficiary column), and distribute the gains to the benificiaries via K-1? I'm so lost.

I'm a newbie when it comes to fiduciary returns and I'm having trouble getting the sch D on a 1041 estate income tax return to calculate correctly. Client passed away 10-2-06 and kids sold an inherited rental property on 8-10-07. I'm showing the rental income the estate received along with the sale of the property on the 1041. I used the disposition of assets worksheet to show the sale of the land and building separately and calculate the current depreciation taken that will be recaptured. It looks like it carried the numbers to the 4797 correctly (land Part I and building Part III), but it is taxing everything at the normal income trust tax rates. On the sch D Part III, I want the gains to show up on lines 14a and 14b column 2, but they are just defaulting to column 1 and I do not know how to get them over. Since most of it is long-term capital gains, we are just choosing to have the trust/estate pay the tax instead of passing it on to the beneficiaries via K-1s. Is that dumb? Any input would be GREATLY appreciated. Thank you.