OkieTaxGal

I wonder why this short answer to a legit question.

Rfassett gave you a good answer. Keep in mind that the way the economy has been acting in the past 3 years, I don't think the IRS will challenge many businesses for not having a profit for the last 3 years in a row.

That does make since, too!! A lot of small businesses are having a hard go of it right now.

I wondered if the short answers are just to get out of the newbie status. :)

Thank you for the help and better understanding! That's great advice.

Grow up!

I'm sorry Achmid if I offeded you. I have been using atx and the community for over ten years and everyone has always been very nice and helpful.

Have a great day and may God bless you!!

I feel really stupid asking this question. This should of been so simple.

Does the two out of five year profit test that the IRS uses for the first five years continue on after five years. Do you need to show your making a profit at least two out of every five years of the business??

I always thought so but I could only find on the IRS web site about the initial five year test.

I have a new client that after looking at his last two years tax returns has already had several years of losses in a row on his schedule c's.

He has a baling business and has lots of depreciation on heavy equipment but not much income. I thought I needed to look into it more. Mostly it's depreciation thats causing the loss. But the IRS.gov wasn't much help to me this time;) Or I just didn't know where to look.

Thanks for any help

Can anyone help me. I have looked on IRS website and not really sure how to find the answer. I am very familiar with residential rental property, but I have a client that just leased 39 acres of just land for cattle use. They leased it out for 3 years, but are receiving the payments as half in one lump sum and then 1 payment per month for 4 months to finish the lease payment. Can you divide the payments up between the 3 years or just put it all on the year they received the payments? And Im sure it goes on a schedule E. I know you can't depreciate land. Just wondering if there is any special tax incentives for land with cattle on it? Thanks for any information that can be given.

Paula

Does anybody even have a guess?

:scratch_head:

I have another return that has SSD with workers comp offset. This would not be a deduction since it is an offset not a repayment....is that right? I searched IRS website all it stated was what it was not if you could deduct it in anyway.

Thanks

Paula

I Guess when you look at it that way it doesn't seem so bad after all. I didn't know for sure if she would be able to get a credit for taxes paid on the returned money. So that's why i posted I knew someone on here could help me.

This board hasn't failed me yet. Thanks for all the good info.

Yes it is SSD. Thank you for the help. I just didn't want to miss anything. I haven't delt with any pay back to an employer for disability pay. It just didn't seem right her having to pay back 17,000 that she has paid taxes on. She broke her back at work thru another employees fault and has had 5 operations. She will never be able to work for any length of time so I wanted to make sure she got all the benifits she was allowed.

Thanks again

Paula

My sister in law just recieved her social security after two years. They sent her back pay for the two years. The company she had worked for has been paying her Disability for the two years. She received w-2's, never was checked 3rd party sick pay, still had the retirement box checked. Everything marked the same as before her injury, except they never withheld her Fed or State Tax. Now that she has recieved her SS Disability they say she owes them back the last two years..........She has already paid taxes on that money and won't the lump sum be on her statement from SS for 2009 tax returns? So she will have taxes to pay on that Lump Sum. If she owes it back to her employer how will she be reimbursed for the taxes she paid on it for the last two years? I did'nt know you had to pay back LTD. Sorry so long, I'm just confused I've never delt with Back Pay from SSI. Also what about the Attorney fees? Can that be deducted on Schedule A?

Thanks for any help!!

Paula

I didn't know you could deduct personal attorney fees??

That is only if you are going to mail a return. The IRS doesn't need the1099-Rs and W-2gs if there is no tax withheld. On the e-filed ones everything gets sent.

Paula

The IRS decides to audit Grandpa and summons him to the IRS office. The

IRS auditor is not surprised when Grandpa shows up with his attorney.

"Well, sir, you have an extravagant lifestyle and no full-time employment,

which you explain by saying that you win money gambling. I'm not sure the

IRS finds that believable."

"I'm a great gambler and I can prove it," says Grandpa.

The auditor thinks for a moment, says, "Okay. Go ahead."

Grandpa says, 'bet you a thousand dollars that I can bite my own

eye."

The auditor thinks a moment and says, "It's a bet."

Grandpa removes his glass eye and bites it. The auditor's jaw drops.

Grandpa says, "Now, I'll bet you two thousand dollars that I can bite my

other eye."

The auditor can tell Grandpa isn't blind, so he takes the bet. Grandpa

removes his dentures and bites his good eye. The stunned auditor now

realizes he has wagered and lost three grand, with Grandpa's attorney as a

witness.

He starts to get nervous. "Want to go double or nothing?" Grandpa

asks. "I'll bet you six thousand dollars that I can stand on one side of

your desk and pee into that wastebasket on the other side and never get a

drop anywhere in between."

The auditor, twice burned, is cautious now, but he looks carefully and

decides there's no way this old guy can possibly manage that stunt, so he

agrees again.

Grandpa stands beside the desk and unzips his pants. Although he strains

mightily, he can't make the stream reach the wastebasket on the other

side, so he pretty much urinates all over the auditor's desk.

The auditor leaps with joy, realizing that he has just turned a major loss

into a huge win.

Grandpa's attorney moans and puts his head in his hands.

"Are you okay?" the auditor asks.

"Not really," says the attorney. "This morning, when Grandpa

told me he'd been summoned for an audit, he bet me twenty-five thousand

dollars that he could come in here and pee all over your desk and you'd be

happy about it."

Author Unknown - :lol:

I restarted my computer, and it worked fine. Strange, it happened right after printing checks for the first time. Must have had some conflict with the check writing download.

Paula

Your phone calls must have done the trick

THANKS!!

I just received the 8582 okay to file.

When I remove the 8582 from the return it increases the tax liability alot. I guess I'll just wait. I just received the Oklahoma ef forms yesterday.

Why is atx so slow. I work at a tax office that uses Taxwise and they had all their forms way back in January.

Paula

I just tried to receive acks and I'm getting a message saying can't find connection to efc

Thanks Paula

>>She says divorce decree states... "

Never mind what she SAYS, take a look at the actual document. You're going to need it for your archive anyway. It doesn't matter that he has 1/2 title, and it doesn't matter that she moved out part way through the year. The good news is that it is probably 100% deductible as qualified mortgage interest. The bad news is that it's probably 100% taxable as alimony.

Thanks Jainen. I never even thought about the alimony part.

This couple is divorced. First year to file seperate.....not mfs. She says divorce decree states she gets to claim interest on house. He's making the payment. she lived there about 8 months of last year. He did not live there at all. The house is on the market to sell. He is okay with her taking the interest. (He gets to claim the child). The 1098 is in both their names, the social is in his since he was the primary on the contract. His mother (who can't stand the exwife) is a tax preparer and told her ex daughter in law she can only claim 1/2 no matter what.

What are your thoughts?

Thanks

Paula

Maybe I am missing something, but my version of OrrTax (the 2007 Windows version) only has three boxes on the C to check for exemption from SE tax:

1. A minister exempt from SE tax,

2. A former insurance salesman with termination pay exempt from SE tax, or

3. Exempt from SE tax due to filed and approved Form 4029.

I see no box related to age (nor to income as a notary or foreign SE income covered by a treaty). Where is it?

Don, I will check when I go back In next week. I know it's on there somewhere, because I used it last year. She does not use the Windows version she uses the classic version, maybe that makes a difference???

Thank you for all the help. I see there is only a few exeptions to the rule.

I'm so glad I found you guys (and gals) again. JB keeps me laughing thru the season. I was so dissapointed when It dissapeared from the ATX website.

Paula

Hey Jack,

Actually I found on the IRS website under their question and answer section under self-employed......... The IRS gives an answer to a question about a son being a newspaper carrier....

The IRS says........Your son may be liable to pay into the social security and medicare system by paying self-employment tax. However, if your son is under the age of 18, he is exempt from self-employment tax.

This is the only place other than Ortax program to show this info.

??

I work for a tax office that uses Ortax. They have a box to check on the schedule c that indicates the filer is 18 or under so the SE form is not generated. Is there anything like that for ATX? I haven't found it if there is......Do I just delete the form? Will the IRS be smart enough to look at the age of the filer? I have had them to change an elected use of the Schedule A for state purposes, so the client would get more back on the Federal.

Thanks for all the help.

Paula

I will setup a private board here shortly, but that brings me back to how to keep it really private? How many of you are connected to CCH? All of you I would assume since you were customers, but at least it will cut down on the rest of the competition knowing what is going on.

I think this is a great idea.....