Diane

28 degrees and 30 inches snow and counting.

Diane (Maryland)

Here's some advice for the Tax Headache:

Cure for headaches: take a lime, cut it in half and rub it on your forehead. The throbbing will go away. (Martha Stewart)

The rest of us --- Take a lime, mix it with tequila, chill and drink! All your pains go away!

Diane

If the money was received in 2009, then I would think there would be a 2009 W-2.

Diane

On the 2 returns that I rolled over earlier, the signature did not appear on the 8879; even after I deleted the form, then added back. I just rolled over another return, and, the signature IS on the 8879. Have no idea what the problem is. It seems that if the form needed an update, deleting and readding would have done the trick, but, it didn't. So, am hoping that all future rollovers will not be a problem.

Diane

Still can't get the signature on the bottom of the 8879. Everything is updated. Right now I had to sign the form for my first efiled return of this year.

Diane

I have the same problem. And, both boxes are checked in the Preparer Manager section.

Diane

Yes, I'm aware that Maryland follows the Fed rules. In my post I was referring to a single member LLC. But, it still has to file the annual Maryland Personal Property Return, as a Domestic Limited Liability Company, with the fee, no matter how it files its Income Tax Return (C Corp, S Corp, Partnership, or Schedule C).

Diane

In Maryland you file the single member LLC the same as Federal (Schedule C). There is an annual Personal Property Tax Return that has to be filed with a $300 fee. This annual report has to be filed in order to maintain the LLC status. This applies to Corporations, Partnerships, Non-profits, etc. The web site for info: http://www.dat.state.md.us/

Diane

I'm thinking that's probably the best way to go (Partnership) with the least amount of problems. And file the 2553 now for Year 2010.

Thanks for all the discussion. It sure helps to have someone to bounce this stuff off of.

Diane

They paid no wages because they have no money. They provide umpires and referees for sports events in our County. They have no assets and the only debts (so far) are the money they had to put in to pay umpires/referees, etc. They will eventually be reimbursed by the different clubs/teams, etc. I'm sure they hope to make a profit this year, but the start up year was a loss. Right now I'm not sure the process they went through to set up the LLC. I'm assuming they set it up according to the State requirements, etc., to get it going. They have their Federal ID and all State ID's.

Diane

How would you word the explanation? Basically, these 2 guys just set up the LLC (didn't tell me) and started doing business. Not much for 2009. I don't think they even thought about how they would file the tax return. The only other alternative would be to file them as a Partnership, then file the Form 2553; but, I really don't want to do that.

Diane

Can the explanation be that it was newly formed in 2009, with the intent to be an S Corp since it has 2 members, and intended to file election with the tax return.

Diane

I have a client with a newly formed 2 person LLC. They have a small loss for 2009. Has not filed anything yet. Wants to file as an S Corp if possible. So, from what I've read, can I file the 1120S by the due date with the Form 2553 attached requesting S Corp status for 2009? If not, what do I do?

Diane

It seems that someone has missed the fact that this whole process of regulating the tax prep industry did not start with the Obama Administration.

Diane

In the NOL year you adjust for business/non business income and expenses to calculate the actual NOL. In the carryover/carryback years you only adjust for capital losses, exemptions, certain adjustments to income and the itemized deduction recalculations. I don't see anywhere where you have to differentiate between business/non business income/expenses.

Diane

Why wouldn't the carryover NOL absorb the interest/dividend/pension/wage/rental income? I know there is an adjustment for any current capital losses, but I know of no adjustment that would not take into account all the current year income. Also, you get to use the current year itemized deductions (except for some recalculations) in arriving at the current year taxable income. If there are no current year capital losses and no recalculation for the current year itemized deductions, I calculate that none of the NOL carryover was used in 2007 and the whole $120,000 would therefore be carried over to 2008.

Diane

I also found that ATX does not calculate the correct carryover amount. I had a similar problem last year. A carryover 2007 NOL to 2008. ATX did not calculate the NOL carryover to 2009 correctly. I now keep my own calculations and do not use ATX's figures.

Diane

Thanks, I wrote down the tech support number just in case.

Diane

Thanks, I thinkI found my problem. When I checked the file thru AccuWage I think I clicked on the .zip file instead of the .asc file. I'm not really sure that was it, but, when I put it thru AccuWage the next time using the .asc file I didn't get that message. So, I either clicked on the wrong file the first couple of times, (and didn't realize it) or it fixed itself somehow.

Diane

I ran the AccuWage to check the W-2's. Had an error:

Execution of Testing was terminated due to the Critical Error in Record Number 1:

Record 1 must be RCA record.

1 Record(s) tested

1 Record(s) with Error(s)

1 Error(s) found

Record number: 1 Code: PK SSN:

Err Num: 1

Reference: Sequence of Records [Position 1 - 3]

User Entry: [PK]

Error Description: Record 1 must be RCA record.

Don't know what an 'RCA' error is. What am I missing?

Can anyone help?

Diane

Washer/Dryers were mentioned as possible tax credits along with windows/doors, etc. There are no federal tax credits for washer/dryers - there may be rebates from the utility companies in each State for certain qualified appliances. I felt that mentioning these appliances along with items that qualify for federal income tax credits was misleading.

Diane

New Research

http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=5941&p_created=1247840438

Check out this web site. It gives particulars on the REBATES that will be available through local utilities in 2010 for some appliances.

Diane

Some info on the Today Show that referred to Federal tax credits mentioning washer/dryers in the same sentence as windows/doors/insulation, etc..

Diane

I've done some searching, and reading of my tax books, and found nothing. But, this isn't the first time I've heard someone mention washer/dryers. To have someone on the Today Show mention them will probably create many questions from clients.

Diane

Just heard on the Today Show from someone giving tax info for 2009. She mentioned the new energy credits and in her explanation mentioned Washer/Dryers. She did not elaborate, but, I'm thinking that if clients hear this kind of info we are going to get a lot of questions on this subject. No where can I find anything discussing washer/dryers. Am I missing anything?

Diane