mcb39

If I read you right, why not just let LLC B accept the equipment as payment for the bill. Then B should sell the equipment to LLC A. The check should not be made out to cash. It should be recorded as a sale so that B records the money as income. B can then pay for the supplies and record the expense. LLC A will own the equipment and can depreciate it as a proper purchase. I think you are making it more difficult than it has to be. I do understand that you don't want to report the income twice and, of course, you shouldn't. The first transaction isn't really a purchase as it is an exchange. As long as you don't record the income twice, there should not be an issue.

John, you get the prize. That is the exactly correct answer. Don't know what the prize is, though! I have never had any problems with any of their products and they are willing to send you free samples if there is something you want to see before you purchase.

I have used Tenenz for years. If I start running low during the season, order online and delivery is really fast, plus discount. Good Luck. I Cannot remember what the company used to be called, but am sure someone here will refresh us.

I renewed early on and did not get charged a fee for using my Credit Card. However, we have been going to a few public estate auctions this summer and they are now charging a 3% "convenience charge" for using a credit card to pay. This was not the case in prior years. Also, remember how we used to have to pay a membership fee every year just to HAVE a credit card. I am not aware of that ever being the case now. :unsure:

I don't believe that Fl has State Income tax. Even so, Margaret, keep it simple if it is as small a business as you indicate. I understand wherein lies your dilemma (The matter of not paying back SS). You can split the income and expenses as you see fit. It doesn't have to be 50/50, though that is sometimes easier when doing the calculations. Make the split as honest as you can. If he truly does half of the work, etc. I have never had the IRS question one of these, but WI is Community Property so that might make a difference. I am sure that you have carefully read the cite posted by Montana EA. The answers are all there. Follow your original instinct. You were on the right track all along. IMO

Making him an employee involves withholding, Unemployment, Workmans Comp, etc. She would be better off to make him a partner and file a 1065 (Not that I recomment that route). Margaret is thinking correctly IMO....split the income.

In a Community Property State, it is a "given". In other states, if he truly does a lot of the work, it is not a problem. It is just a nuisance for us as the software no longer allows us to just "check the box" to split the income and expenses. You have to do it manually. I had a few of these for 2008 and don't expect it to change for 2009. Good Luck!

Sara, I don't understand how you figure that a week in Canada is going to qualify you for non-taxable income. Matt won't be working in Canada. I hope that you really are aware of what you are doing and what the results might be.

A very Happy Birthday, Wayne!

I wouldn't touch it. I am having enough problems with a legitimate FTHB Credit for an honest taxpayer. I think that if you agree to prepare their 2008 return, you jeoporadize your honesty because you KNOW that they have filed false returns in the past even though you did not prepare them.

:bday: Joan! It is always so good to see some of the names from the original board. Have a wonderful day!

I didn't check it because I am on vacation. However, I was impressed when they delivered the correction so promptly.

I have childless couples ask that question every year. :rolleyes:

They just called me to pitch their product and I read them your post.

Amen!!!!!!! and :bday:

The same client that I had checked in May because he took the credit for 2007 has now received a 4549 Income Tax Examination Change, demanding that he pay the money back before August 31. He sold property in 2007; which was vacant property. He had intended to build on it, but his brother wanted it and because he was getting married, he sold the vacant land and bought a house. We faxed them pages and pages of proof in May. Today, I called him to set up an appt to make the call from my office so that the Examiner would talk to me and we could fax whatever else would satisfy them that he DID qualify. Guess what! Today he gets a letter of apology stating that they neglected to examine the paperwork we had presented in May and were very sorry for the inconvenience, but he should not take any action until he hears from them again. We are still going to call them next Tuesday just to check on the status. BUT, how can they be so careless, inconsiderate and downright negligent? This isn't even the free credit, this is the one that has to be paid back and there is absolutely no doubt that he qualifies. Any of you who have done any of these, be prepared for possible chaos. Have a call right now on my machine asking when I can amend a return for a girl who just purchased a house this month and has moved in. I don't even want to call her back. She is getting married in Sept and I imagine she thinks that she will get the magic $8000 in a few weeks and I will have to tell her that amendments are not filed electronically. I would rather not even get involved, but she is a relative. Happy taxing to all! :dunno:

Was it not only two separate laws, but also two separate administrations that passed those laws? I'm sure you will correct me if I am wrong on this. I, personally, don't think that it will ever go retroactive. It reminds me of all of the parents who were paying high tuition for their college kids and getting no credit for it. They moaned and groaned when the tuition credits came into play. Nobody ever said it was fair, but the law is the law is the law.

I had three for 2008 and had one checked right away. Am sure that I wrote about this before. We had to furnish copies of closing papers, tax transfer stamps, etc. I would never consider doing one of these without having copies of the closing papers in hand. (As well as answers to all of the other qualifiers)

It is good to know your solution. The pastor's that I have DO report on Sch C and are considered to be self-employed. I don't have a lot of them, though.

And, really, why is it such an issue? We all have the option to make the choice we want. As long as we ALL end up with a functional, useful and productive program, why is it so important who gets a discount and when? Be happy with the decisions that we each made and not cry over spilled milk. I know that I am "all right" with my decision and was ready to put it behind me the day I made it and move on to other things. Best of luck to each of you on this board for a successful new tax year. There will be difficulties enough with the new laws, so let's just hope that whichever software we chose is up to the task.

Therefore, his income is reported on a Sch C as SE income?????? This might be the reason for the Elections. I think you are worrying too much about it. If it is his personal residence and he is paying for it himself (not subsidised by the Church) you have no problem.

Does your client, by any chance, own a business or rental property that would trigger the election not to depreciate?

Margaret, it worked for me too......... :rolleyes:

Tere.......have not seen you here for some time, but have a Wonderful Birthday...........

I have also been through a couple of conversions and, no, they weren't all that traumatic. However, they were much more expensive and I was much younger. I don't expect things to stay the same for several years, but as long as I like ATX, and I do, I am not going to leave them just because I might not agree with all of their policies. That was the only point that I was trying to make. I can only hope that ATX stays around. If not, I can walk away from this business or consider another software that is cost effective for me.