lbbwest

Now THAT'S what I'm talking about!

Where is JB? Happy Bday JB! lbb

Instructions to the SE Tax Schedule Pg SE-4. Good luck, lbb

I called ATX support regarding this issue, the software does not support depletion as an asset on the "normal" asset listing, we have to make a separate spread sheet for the depletion allowable. lbb

Hey buddy, I miss you! lbb

To clarify what michaelmars posted the IRS NEVER "cares." It's a humongous machine of computers. 1099s would fly through the system even if they were for MORE money than the W2s for the same employees. Human beings don't "look" at the papers. What has happened in this case is a savvy preparer correctly noted to the client an employee can not receive a 1099 and W2 from the same employer. If the savvy preparer files an SS8 the employer is sunk. The ONLY time the IRS enquires into anything is in a random audit (Very very very very rare) or someone "drops a dime." (Also rare.) That's why so many preparers can give faulty and illegal advise to others with the satisfied statement "I've never had a problem." Because none of us "have a problem" with anything we do, as long as the computer information is appropriately matched up, ..... until we get caught. Fortunately there are preparers so incompetent that they don't have the knowledge to even match up the documentation appropriately. To my knowledge there is no acceptable dollar level of fraud, I was not aware there was a materiality component to tax law. lbb

lion wins: Instructions to Form 8594: Who Must File target affiliates, whether or not actively Definitions Generally, both the purchaser and seller traded, other than actively traded stock must file Form 8594 and attach it to their Trade or business. A group of assets described in section 1504(a)(4). income tax returns (Forms 1040, 1041, makes up a trade or business if goodwill Examples of Class II assets include U.S. 1065, 1120, 1120S, etc.) when there is a or going concern value could under any government securities and publicly traded transfer of a group of assets that make up circumstances attach to such assets.

See Pub 535 de minimis fringe benefits for allowable 100% deduction. Hope you are having a good tax year. lbb

Many times (because the law keeps getting more convoluted) the issue of taxability is addressed directly in the settlement, especially in class actions suits. Have you read the settlement? lbb

It's so boring when we all get along.

Eli, How is the family? I hope all are well. lbb

I'm always a mess after a "bad night." A mattress may or may not be involved.

I agree with you. Using a cut and past from KC's cut and paste "in addition, if disqualified assets were transferred, relief can only be granted to the extent the income tax liability exceeds the value of those assets" It sounds like your client had "constructive receipt of those funds." lbb

What is a student loan deduction? I was aware of a student loan INTEREST deduction for payments made after the fact, and I was aware of Tuition Deductions for the year of payment, what am I missing? Always looking to learn, lbb

It's great to see all the familiar faces...errr names, Jainen gone? Shocked.

Sorry, typed too fast. Thoughts not coherent. Let me rephrase. IF QDRO was correctly done AND distribution was from Ex-husbands plan to wife NO PENALTY, if she rolled into her IRA no TAX. IF QDRO not done correctly and distributed in EX-husband's name/social COULD BE subject to penalty as community property state could be on joint return. Mea culpa mea culpa mea maxi culpa

The way the QDRO works is that it's paid out to the recipient; the recipient has the right to roll it over into his/her own IRA, no tax, no penalty. IF spouse (wife) received the funds rather than rolling it over, she is subject (if applicable) to early distribution penalties. It doesn't matter where the ex-spouse is or why. One can not be the best advocate for the taxpayer if one is emotionally involved. We are talking tax law here, not good and evil. Calm down. Look at the facts, research the law and move forward. lbb

OldJack, I do believe you are wise beyond your advanced age, but I disagree with you on this one; perhaps if only theoritically. It's the personal use issue that I couldn't get past, if the client dumped the issue on the original posters desk how can he ignore the information? Please note the materiality (KC's 20%) can't even be addressed due to lack of information. The correct answer in tax and accounting as you well know is always "it depends." It's too early in the season to get testy. lbb

What is the MOTIVE for renting to the old family friend? IF the property remained vacant for a long period of time at $1,000 a month and you are renting to OFF (old family friend) for $750 perhaps FMV IS 750. Look at the facts and circumstances BEFORE you choose A or E, not after. IF FMV is $1,000 per month and you rent to OFF for $500 because he just got divorced and that's all he can afford is an entirely different scenario. Form follow function, not the other way around. lbb

Deductive reasoning- "based on deduction from accepted premises." Inductive reasoning - " form of reason in which the conclusion, though supported by the premises , DOES NOT FOLLOW FROM THEM NECESSARILY." The above definitions are from Webster's. I would encourage all tax professionals, or thinking individuals in general to reflect on the difference in the above two methods of reasoning. lbb

Glad to "see you." Don't you DARE complain about the weather... (Northern MI) most people don't realize I am about five hours NORTH of you. lbb

Not to be disagreeable (but I am so DARN good at it) my experience with not-for-profits has been generally negative. Depending upon how large, and organized, I have experienced difficulties with everything from separation of duties, to basic disagreements about dual entry accounting systems. The MOST challenging aspects for me, has been the consistent belief by many individuals working in the "not-for profit" sector is that many tax laws are suspended especially having to do with compensation. You didn't mention what KIND of "not for profit" you are talking about, again, many urban myths regarding deductibility of donations etc. Even though you are NOT the attorney you need to verify Your state laws regarding type of entity etc. Warning Will Robinson Warning. lbb

"However, that loss is due to the shareholder deducting his "draws". He now shows that he withdrew 56,900 w/o any payroll taxes" I am very confused (brain damage due to lifestyle choices) How does one deduct "draws"? So, are you saying that one should take a draw throughout the year to live on, then maintain that it is a return of capital? Perhaps the Appeals officer that stated the IRS "likes" to have 50% of net income of S Corps as draws, hasn't read the same Tax Court cases that the rest of us have. lbb

Warning Will Robinson Warning. Be afraid. Be very afraid. (Translation, stay away from this "client." If he is truly insolvent, he doesn't have the money to pay YOU. lbb