joelgilb

Not sure why, but trying to build a NV base and expand my office. Even reconnected with my old partner. Not sure why at this age I am being so crazy, maybe its the change of venue!

First year I don't have to deal with State income tax. Like getting a raise!

And almost forgot my own extension Never going to get it under double digits. Don't know why I gave up sleep this year to try something new, but wanted a longer vacation now that in NV.

trying to see if I can end up with less than double digit extensions for the first year ever. Failing miserably 4 new returns came in the door just today. All referrals and extensions of course. Gotta love those referrals!

Never been afraid of the EA like some, just never thought about it, since I had the other 2 designations. And honestly, I never saw a CPA that also had the EA. Never to old to learn new tricks. Sit Ubu!

Thx for the info. Never thought of that and now that I am in NV, it seems to make some sense to get the EA Although not old enough to retire yet, think Las Vegas is it for me. Almost like living on vacation now that I am here. Bye Bye Chgo IL, don't miss you or your winters!

BTW, LLB, I have a question about your CPA & EA licenses. Please take this right way, as I am asking out of my own ignorance here and to educate myself. Even at my age I can learn something. I understand why someone that is not a CPA or an Attorney would get the EA, but is there a reason to have both if you already have either the CPA or law degree? Also, my partner is not an attorney or a CPA and I am working on him to take the exam and get his EA. Is there any advantage in having both?

In my first post I did say the following: MY ORIG QUOTE "Think you need to find out why the BPMIC thinks this is income in the first place. Would the inheritance have been taxable income to him? Probably not, but some portion could have been. Just because the malpractice insurance company issued a 1099misc, does not make it correct." Definitely need more facts here to ascertain the tax consequences. And yes there is a matching issue to deal with that no-one addressed. Guess we all felt that DHAWK was aware that this needed to be dealt with and wasn't asking about that. As for my last post, (the one before this one), I was addressing why the Malpractice insurance company or a Court (in this case it appears to be an agreed settlement) would award the client the $50,000. They still have to come to a conclusion of damages when there is malpractice, unless they award punitive damages for the attorney's behavior. Here though we have a second possibility (and I did not discuss this prob because of how close to 04/15/09 we are). Very often malpractice insurance companies settle cases just because it is more expensive to fight them. I have seen settlements where potentially there was no malpractice, just because it was the cheapest solution for the Ins Co. And although I said in my second post that there is a connection to the inheritance, I did not say that this in and of itself makes it non-taxable. You have to look at the case, the order and or the settlement agreement and I suggest speaking with both the client's second attorney and the insurance company, before determining that the 1099 is correct. Not to blow my own horn, as this is not my intention and because I think many here could have done this, but several years ago I was doing a tax return for someone that worked for Ameritech (now SBC). When looking at the W-2 there appeared to be an error. I called Arthur Anderson, their accountants, and asked them to correct it. They swore to me it was correct and I had to go all the way to the partner in charge of the job, until I got him to understand what they did wrong. (this is the short version) . My point here is not that I was smarter than all the accountants at AA (I got lucky), but that even a firm of this stature makes mistakes. How do we know that BPMIC did not make a mistake? Don't we all find mistakes in w-2's, 1099's etc all the time? As you suggested, this return needs to be extended! I agree with that and add that the proper research needs to be done to determine what happened and the correct tax resolution. Geesh had to edit this 4 times till I got it right. Okay never said I was perfect or infallible that is why I also have may questions here that I rely on our community members advice for!

This part is not a tax question but a pure legal question. So as a lawyer here is my answer. It is not enough for the court to find that the attorney committed malpractice for there to be an award to the client. In cases like these you also need a likelyhood that the original attorney would have prevailed in he original case to get damages in the 2nd malpractice case. So there is a connection to the inheritance.

CCH moved the cheese!

It shouldn't be that difficult to split the sched c. In the last post of this issues a few suggested to put all on one sched c, thend put a one line deduction for 1/2 to spouse and put that on the spouses sched c. Wallah almost as easy as checking the former Joint box. On the other hand it was also suggested to incorporate the client and do an S-Corp election as this would potentially save them Soc Sec Taxes.

Tom may have been tongue and cheek but he also may be correct. You need to find out which bank account the payrolls were paid out of first. If the sole proprietorship, you can leave what was done alone and deduct on sched c, but if payroll was paid from the corp bank account you do need to correct the returns and deduct in the corp. Clients far to often don't really understand how to do business with their new corporate entity. And I can tell from fighting this issue in audit and tax court IRS does take this seriously. Had a recent tax court case where IRS adjusted the clients returns because the accountant never explained that they needed a corporate bank account, so of course they continued to use the personal sched c account. Payroll returns were all filed in the corp, but of course paid from the sched c account. This is not a winnable case! Appeals was willing to work with us to an extent, just to avoid some of the double tax, but it cost these people a pretty penny. now the accountant is getting sued (not by me I might add). Follow their paper trail.

Think you need to find out why the BPMIC thinks this is income in the first place. Would the inheritance have been taxable income to him? Probably not, but some portion could have been. Just because the malpractice insurance company issued a 1099misc, does not make it correct. Was there any judgement from a court on this settlement? If so you should look at that as well, as it may add some insight to what this really is. I would tend to think that this shouldn't be taxable income at all.

have heard that one before, but it is still a great one!

Lion is sort of correct. ATX has added a balance sheet input sheet that now feeds to the Schedule L. the check box he is talking about is now on this sheet. Click down (via the brown rabbit on the side of the cell) to the balance sheet input sheet and then this check box is at the top of the page.

That is hwat I was both expecting and hoping. Thx

Happy Easter and Happy Passover

Just doing a favore for my old townhome assoc here. Used to be a president of my Townhome Assoc in IL. The new treasurer took over my duties for the tax preparation when I sold the unit and left. Thought I trained him well to file a timely return by 03/15/09, but guess I FAILED MISERABLY! At any rate, he is now late on the return. The rules say: 1. You must elect to file the 1120H each year by filing a timely 1120-H (including extensions) 2. that one can no longer file the 1120H but must file form 1120 (or other applicable income tax return) if the return is late. I am wondering if anyone has any experience with IRS on this and if they are more lenient and will accept the 1120 H even though the election is now technically late. Not a big deal as either way they should not have any taxable income (unless things have drastically changed sine I was there, and I doubt it, because I was brought on the board since the previous boards bankrupted the association. BTW, I did manage to get them solvent during my 2.5 years as President!

If the enter transaction is a loss I show the loss of $100 then on the next line back out the loss and show "Stock Wash Sale Adj" 100 gain. If you use the code for ATX, I think it will handle it for you automatically., however, the code in ATX doesn't work for situations where the the wash sale is only a portion of the loss, and in those cases you will have to enter the was sale adj on a seperate line by itself.

I never provide this unless the client asks for it or if they have questions about their refund and they need the phone numbers provided on the 9325

Or how about No I am not filing your return until you pay me!

and when you type: !$)(##()%(*$#_)(*%#^#_%*(!#%&(#&_+# you get a lot of people pissed off! lol

sure you didn't! lol

Now that is what I am talking about! $500 more than the one you are looking at and worth it.

Catherine is right on the money here! There are a ton of scanners for the casual user and home market. Stay away from all of them!