mcb39

Too bad we can't get CE credits for what we learn on this board. I have been e-mailing your comments to client in question. I only have one left who wants to "split the income", which used to be an option in ATX just by clicking on a box at the top of the Sch C. I have been trying to fire this client anyway.......have already stopped doing their payroll and sales tax reports; so maybe this will do the trick. Thanks for the input.

As I posted in a different thread, my information as to how many returns was incorrect.

Here, in Wisconsin, also CP State, I have a few LLC Married Couple Partnerships. We file 2 Schedule Cs and split the income and expenses according to who does what. It is a lot of work, but so is a 1065 which is more expensive. My personal goal is to save my clients money; not charge them more for unnecessary paperwork.

I have only ever had it happen once and it was a relative. I paid the fee, but fired the client. Often, I will hold a check for a client who is honest enough to say that it will be good on (whatever day). They have never let me down, so far, and always call to let me know that I can take that check to the bank. Having them write a check and holding it is much better than accepting a "promise to pay" and never getting paid.

Yes, Prayers and Love are flowing your way. Perhaps you can find the same care and support on this board as you have always given to us. May Don truly rest in peace.

Of course, we are all your friends and many of us have gone through Hospice with a loved one. May God be with you on this journey.

She would lose in the tie-breaker because she did not use the money to support the child. (IMO) No time right now for a cite.

Isn't that the truth? I was a total basket case for three days before the test. As soon as I got into my cubicle and started out I calmed right down. The nice part was that I knew the stuff and what I wasn't sure of was easily researched or just plain common sense. Congratulations!

I suppose this is a trick question, but I would say that if you sell it, you have a $20,000 loss. If you rent it, your depreciable basis would be $520,000.

I knew that. Do you really think a taxpayer would be that devious? :dunno:

It wouldn't make any sense even if it was allowed. She would have to claim the interest as income.

My understanding is that costs that are added to basis are only costs of additions and other improvements that have a useful life of more than one year. Also, special assessments for local improvements and amounts spent after a casualty to restore damaged property. Expenses must add tothe value of the home, prolong its useful life or adapt it to new uses. Costs that maintain the home in good condition but do not add to its value or prolong its life are non-deductible and are not added to the basis. (Quickfinder Handbook page 7-15)

Heirs are allowed to claim a loss on inherited real estate so add all expenses to basis including fixup costs, realtor fees, etc.

Good for you, Joel. Let's hope that all of us older or middle aged preparers got 100% :dunno:

I had problems recently. Finally was able to bookmark it after changing my password twice. The bookmark is working fine for now.

"Taxpayers who adopt a child with special needs are allowed to claim the full amount of the credit regardless of actual expenses paid or incurred in the year the adoption becomes final (Code Sec. 36C(a)(3). Wouldn't it be nice if they extended this very worthy credit for special needs kids? I have a client who adopted three in 2005 and never had a problem with the credit which we carried forward to 2011 which was their fifth and final year. In 2011, they had an awful time getting their refund and exchanged paperwork for several months before they finally got their credit in Nov. Personally, I thought the "old" way of not refundable was a much better plan. It just wiped out their tax liability. However, I don't get to make the laws.

The ability to open multiple returns will be huge to those of us who work alone and have only one screen. I don't know how many times I have had to close down the return I was working on in order to reference another one. Add this to a new faster computer and I will save a lot of time.

I agree with Jack. And, I don't believe there is a law against it either. The end result is pretty much the same and the IRS receives the tax owed in either case. One does have to wonder why it was set up on a 1065 if the wife contributes nothing to the Partnership. A case of more paperwork and more income for the original preparer? Could have been a sole proprietor LLC.

Pretty interesting, Terry. Keep us informed as many of us have not signed up for CE yet and many of the classes are not held until October or November.

The original poster did not state whether this "reasonable salary" had taxes withheld and was reported on a W2. That would be incorrect, but I have seen it done. However, all profits from a Partnership are taxed to the partners in some way or another. They flow through to to partners on the K1 and if the partner is active, he also pays SE tax on it. All of the posters are correct, but everyone says it in a different way and there is info missing from the original post. If the wife is an active partner, her share of the profits are taxable and subject to SE. Another question, are they equal partners, or what is the setup here.

Yes, it is subject to SE tax as well as a percentage of the remaining profit; and the wife is subject to SE tax on the rest of the profit. That is, if she is an active partner.

I guess I didn't make myself clear. I am referring to the questions that don't make any sense or leave out pertinent facts so I have to end up calling them to find out what they mean. I do a LOT of correspondence by e-mail, but primarily with out of town or out of state clients. I do prefer the phone when I have to ask them questions and end up with the exchange of five or six e-mails before getting to the point. Perhaps some of you have your clients trained better than I do. Also, I agree with John when it comes to people coming up and asking questions. It IS all in controlling the conversation.

Or the ones who send a question by e-mail when they could just as easily pick up the phone. Good thing that I have texting blocked on my cell phone or some of them would surely text a question.

I have long been wondering the same thing. However, who is going to come on here and admit that they failed. It sure wouldn't be me. I had the same feelings as Deb and am also glad that it is over.

No advertising, no sign out here. Made it much easier to get a building permit for addition to home office.