kcjenkins

He just files MFS with the info he has, a paper return, and let the IRS sort it out.

Unless he sold it to a relative, the actual sale is a lot more important than any FMV estimate from some book or such. Lets face it, the cost of fuel in the last couple of years flooded the market with trucks. Lots of them sat for a long time because they could get no offers, or very low offers. Which makes better business sense, sell at a loss or let it just sit? I'd vote for the sale.

Send me a private message with your facebook name, and I will send you an invitation. I am pretty new to the game, but I am a good neighbor, [all my neighbors now are family] and fertilize and feed chickens for all of them every day, plus sending gifts, etc. If we link up our families, we can all grow. The game is a fun break for me, to go there now and then during a break, and see what I can do to improve. One thing I figured out, raising lots of different crops moves you up faster than raising just one big crop, when you are starting out.

Of course, the whole problem is that they will not even do the basics, such as truly seperate bank accounts for the different entities, so it is highly unlikely that they will do all the extra work it takes to generate the proper reports. And even if they did, it does not do anything about the basic problem of mingling of funds between the Corp and the disregarded LLC.

Our tax code sometimes leads to strange results, doesn't it?

Yes, they can take both.

I've recently gotten into this facebook game, and enjoy it. I need a few more neighbors, but do not really want to ask total strangers. If any of you are in the game, I'd love to be neighbors with you.

I believe she's entitled to both. There is nothing in the code that disqualifies her, that I see.

If there was no cash exchanged, just taking over the debt, then the sale would be for that amount, $6750. He'd have a loss on the sale.

To add to Fred's point, the S Corp is often used to 'shelter' part of the income from SE taxes, but that is why the IRS is now in the process of auditing almost all S Corps with significant income but no officer payroll. The whole point of using S corp rather than LLC or partnership is often to allow the owners to take part of the income as 'dividends' rather than pay SE tax on the entire profit. The dividends do NOT flow to the SE, because they are not considered self-employment income, but rather a return on investment. The portion of the income that is from the labor of the owners should have been shown through payroll.

Why do you want to "reduce his loss"? You did it right before. No depreciation taken on the years it was not 'in use'. He's entitled to take the loss, on a 4797. I don't understand why you would want to short him on his loss? What am I missing here?

I agree with you Tom, your client needs to file a gift tax return. Regardless of the notation on the check, the actual result was that the deceased gave the $150K to your client, who's only obligation at that point was a moral one, not a legal one. File the return to protect her. It might also be a protective act against the B-I-L, should he decide to go after her for somehow defrauding his wife in her illness. Proof that she carried out her sister's request will be supported by the gift tax return.

This can also easily be sorted, by first selecting just one or more types, before you mark them, if for example, you want a list of just the partnership clients. Or by selecting only the completed returns, before marking them.

Sure sounds like a commercial annuity. Has a rather small 'interest' component, but certainly some portion is, and has been taxable. However, based on the numbers shown, it might not have been enough each year to actually have changed your client's tax bill enough to worry about amending past years.

The one thing not clear to me.....is her father wanting to put the income on HIS return, or on the daughter's return? A big difference.

YES, I'd file it as a 1099Misc box 3, since it's not for 'eartnings' from current work, but in lieu of retirement plan payments. i'd suggest he get a letter to that effect, now, before the people who made that decision die or move away, etc. And keep a copy in your file.

It should work automatically. When you type, a misspelled or unrecognized work should show up with a red underline, and when you right-click on it, it should offer spellings and/or offer to add the word to your dictionary. You might need to reboot after adding it, I don't remember.

Subject: Did I Receive a 2009 Economic Recovery Payment? The IRS developed the “Did I Receive an Economic Recovery Payment?” look up tool which gives taxpayers an easy way to determine if they received the one-time ERP payment and which agency made the payment. Beginning March 8, 2010, taxpayers can call 866-234-2942 to access the phone application. The Web application will be available in late March on IRS.gov. Taxpayers who had earned income in 2009 or are government retirees and received an Economic Recovery Payment need to report whether or not they received an ERP and the amount when they prepare their Schedule M, Making Work Pay and Government Retiree Credits. The one time $250 ERP was paid to individuals in the following categories: Retirees, disabled individuals and Supplemental Security Income (SSI) recipients receiving benefits from the Social Security Administration, Disabled veterans receiving benefits from the U.S. Department of Veterans Affairs, and Railroad Retirement beneficiaries. Using the IRS look up tool taxpayers will have to enter three pieces of information to determine if they received an ERP: SSN Date of birth Zip code from the last filed return A separate telephone call or Web inquiry must be made for each taxpayer, even if filing a joint tax return.

TValue is the very best, and it produces beautiful outputs. But if you have Excel you can use their free excel spreadsheet that will do simple ones. My link Or consider this one. My link

Revenue Procedure 2010-14, which provides a safe harbor method of reporting gain or loss for certain taxpayers who initiate deferred like-kind exchanges under § 1031 of the Internal Revenue Code but fail to complete the exchange because a qualified intermediary (QI) defaults on its obligation to acquire and transfer replacement property to the taxpayer. If a taxpayer meets the requirements of the revenue procedure, the Internal Revenue Service will not treat the taxpayer as being in actual or constructive receipt of exchange proceeds if the taxpayer does not complete an exchange because of a default of a QI that becomes subject to a bankruptcy or receivership proceeding. A taxpayer reports gain under the revenue procedure on the disposition of relinquished property as the taxpayer receives payments. Given the current market conditions, this has become a serious issue for more than a few people. So this one could be BIG for some clients.

Have fun, and remember, if a bull comes through or over the fence, you should MOVE as rapidly as possible, diagonally to the path of the bull. :lol:

In today's Quick Alerts for Tax Professional: "The following changes are tentatively scheduled to be implemented on March 30, 2010, in the 11:00 am drain:.............. Error Reject Code 0375 - Form 1098-C A modification to ERC 0375 will allow the Form 1098-C Date of Sale field to be the current tax year or processing year." Isn't that wonderful? Hey, five weeks after the IRS posted something about the problem, it is "tentatively scheduled" to modify the problem.

I love them both. In fact, I love it whenever someone responds with another joke. Breaks the tension when we laugh. And this year has had more than it's share of tension, given all the FTHBC questions, the Energy credit questions, the making work pay questions, and now the IRS changing the efile process on March 2nd!

Yes, the whole amount flows to the Sch E, page 2. Then you can add another column on the K-1 Input sheet, where you put the same EIN and name, but put any special adjustment that the particular partner has. Just like you do to add UPE.

You have that many waiting to be efiled????? You don't need to do a thing on those already filed and acked, you know.