veritas

>>Been missing your oneryness self much<<

Well Veritas where have you been! I thought you were dead. I expect you have been hanging out with the wrong crowd on that other good for nothin forum? Most everyone over there are whiners wanting the authors to do their research for them.. you know better than to associate with those kind.

I have no quarrel with your example. Its about time you gave one!

That's what I've been missing! :)

>>although he did create a new entity for new location. <<

The new entity must treat any startup costs as such on the tax return of the new entity. The number of locations/entities owned by an individual is immaterial regarding startup costs.

Hey Oldjack!

Been missing your oneryness self much.

Ther original question was difficult to understand. My point was if an entity started another business of the same type at a new location, I don't believe they have start-up costs.

EXAMPLE: Allen is a wholesaler who started a retail business for his merchandise. Any start up expenses incurred with regard to the opening of the first retail outlet may be deducted and amortized. On the other hand, the start up expenditures to open additional outlets are considered expansion costs of an existing business, deductible under as trade or business expenses, if they do not have to be capitalized. If a separate entity is formed, whether in connection with the expansion in the same line of business or an expansion into a new line of business, the costs are eligible for treatment as start-up expenses. Specialty Restaurants Corporation v. Commissioner, T.C. Memo. 1992-221.

I have a restaurant client who opened a second location. Business entity ownership is the same, although he did create a new entity for new location. Thoughts out there about deducting pre-opening costs at second location since first location is already open for business instead of amortizing them under sec 195? Thanks.

-Adam-

If the operating company is the same for both locations, I don't believe you have any startup expenses.

Question?

If the contribution was made by the corporation, who is on the receipt that they must have?

Just stating the facts Veritas.

I suggested a long time ago, to those authors, that they have more than one book. You just can't cover all the subjects with only one book. Now they are coming out with two which I expect will just be a split of the individual and business entities and enough added info to say they have improved. Quickfinder just keeps improving with even a 5th book on special taxpayers this year. Quickfinder books discusses issues while the other book only mentioning the subject. Now that might be considered a little dig.

I buy one of each.

Thanks for the quote. I had searched "thetaxbook" for that situation and found nothing on the subject. Another example of how much better Quickfinder Handbooks are for the tax preparer.

lol

getting a little dig in Oldjack?

Your bass guitar looks just like my son's. Ibanez?

I must take exception to your conclusion. I believe that, as a CPA, I study much more than any doctor or lawyer and participation on tax forums is not to put anyone down it is to discuss and study more than doctors and lawyers. I have both doctors and lawyers as clients and at least the ones that I have are not all that smart.

edit: and to show them I am a professional, I usually charge doctors and lawyers twice as much as anyone else.

My big dream is to get a dentist for a client.

Which board are you guys refering to as 'the other board'?

http://www.thetaxbook.com/forums/forumdisplay.php?f=2

Wait till he finds out what the car insurance will be if he titles it in the Corp. I find there is usually three resaons autos are not titled properly. First low or no interest for personal auto loans are not available for business loans. Secondly the insurance agent tell you that it's going to cost you twice as much. Three the owners of corporations think like a sole proprietors.

Oldjack

Take a look on the other board at the one called "Our Cpa misled us". It's a good one.

This is normally a W2 taxable benefit but it depends upon if the payment is non-taxable as a cafeteria plan, life insurance plan or just an employee benefit. See Publication 15B.

Hey Oldjack,

What happened to the $5000 death benefit exclusion? I don't remember anymore.

By the way are you looking in on the old board? You namr is still coming up.

We have audits like this all the time. Yes they are going to look at contract labor. Secondly they are going to look at distributions. If the shareholder has a small salary they will gross the distributions up to the max which is 28k here. They also will reclassify distributions early in the year to get the max as soon as possible which will add more interest and penalties. They will then report to the feds so you will have to pay the futa tax. They also look at amounts paid to corporations for services and if the corportaion is a sub only of our client they will reclassify as wages and collect suta and futa.

Some years back the service was running a project for non-filers. We dealt with several who had returns assessed by the IRS. These are not returns for statute of limitations. The instructions were file an original return and write "SFR" at the top of page one of the tax return. They don't have to accept it but most likely they will.

So you will soon be going paperless right Oldjack?

Its nice to see you here veritas! Yes, Jainen and I should have also gone on vacation. It would appear that the powers that be were waiting for some reason to do as they did. Its no big deal as there are a lot of tax message boards around and that one was getting too full. I hope you will also use this forum as we need your experience and expert opinions to keep us all in line on those difficult tax issues. So how was the vacation?

The vacation was to short. We went to Hawaii for the first time and it was great! Look forward to getting some good discussion going.

My post was deleted because, on a political post, I said illegal aliens should be hunted down and turned-in (or words to that effect). Then I got a warning email from Paul Roberts saying that was not appropriate. I emailed back and said although I was a guest he should not have deleted my post and that I would appreciate an apology. He then banned me from the website. Its alright as I have banned their WebCD and tax book which cost them money and freed my time to spend on this and other websites.

I go on a little vacation and what do you do?

The other board has kinda dried up. Nothing very interesting going on. No Old Jack or Jainen.

And Blackbart has dissapeared? again