kcjenkins

The basic problem with this is that part of every installment agreement is the understanding that the taxpayer will keep current for future years [which this is]. Note the CAUTION at the top of the form. He'll need to call that number to get permission to amend his current agreement.

§1374 has to do with the transfer of assets from a C corp to an S corp. and the BIG taxes. If you have an individual who is merely starting an S corp, and contributing assets to it at his basis, §1374 does not apply. So we need more detail, please.

Life is hard, and then you die!

Might not hurt to do that.

Well, the only thing else I can think of is one I had last year, where I had accidentally checked the box at the top for spouse. I don't know how or when, but she was older than him, so it was not calculating the penalty. Other than that, I can not think of any reason, so I'd just add the 5329, go to the line 1 tab at the bottom, and manually enter the amount on line 1 of the worksheet there. It's not an override that way.

Actually, that depends on how long ago the business was purchased. If it was 2008, and only one year was omitted, it's not too late to correct directly. Of course, if it's more than two years ago, then it would be a change in method, and need approval.

If you put in the purchase date in Sec B, and checked No in E, then the first box in Part II, number 3, the amount should flow to line 4 automatically.

I like to help when I have the time, and in this case I knew right where the cite was so it was easy for me.

Glad to help. They added that line to make it easier, since the trustee issuing the 1099R does not know about the rollover unless it is a trustee to trustee rollover. So they have to assume it's all taxable.

Something to look forward to, huh? Oh well, at least you started off with a good one, so he will tend to think well of you when a harder one comes along. First impression was good, and that's always a plus. The bad thing, tho, is that they are not likely to agree to putting any of them off until after 4/15, because they have pressure on them to close these as fast as possible.

True, but since she has a loss still, she might be better off to take it now, and then invest the recovered money in tax exempt bonds, or even in taxable investments. Either way, she should take the recognized loss, this year, as this [2009] is the year the amount of loss was determined.

Wonderful!

If you have determined that this intangible asset is an amortizable one then you use the asset entry, category Z subcategory 9 and it is 15 years SL. Section 197(c )(1) provides that, with certain exceptions, the term “amortizable section 197 intangible” means any section 197 intangible, (A) that is acquired by the taxpayer after the date of the enactment of § 197, and ( that is held in connection with the conduct of a trade or business or an activity described in § 212. Section 197(d)(1) provides that the term “section 197 intangible” means (A) goodwill; ( going concern value; © any of the following intangible items: (i) workforce in place including its composition and terms and conditions (contractual or otherwise) of its employment, (ii) business books and records, operating systems, or any other information base (including lists or other information with respect to current or prospective customers), (iii) any patent, copyright, formula, process, design, pattern, knowhow, format, or other similar items, (iv) any customer-based intangible, (v) any supplier-based intangible, and (vi) any other similar item; (D) any license, permit, or other right granted by a governmental unit or an agency or instrumentality thereof; (E) ) any covenant not to compete (or other arrangement to the extent the arrangement has substantially the same effect as a covenant not to compete) entered into in connection with an acquisition (directly or indirectly) of an interest in a trade or business or substantial portion thereof; and (F) any franchise, trademark, or trade name. Under § 197(f)(9)(A), the term “amortizable section 197 intangible” does not include any section 197 intangible that is goodwill or going concern value (or for which depreciation or amortization would not have been allowable but for § 197) and that is acquired by the taxpayer after the date of the enactment of § 197, if (i) the intangible was held or used at any time on or after July 25, 1991, and on or before such date of enactment by the taxpayer or a related person, (ii) the intangible was acquired from a person who held such intangible at any time on or after July 25, 1991, and on or before such date of enactment, and, as part of the transaction, the user of such intangible does not change, or (iii) the taxpayer grants the right to use such intangible to a person (or a person related to such person) who held or used such intangible at any time on or after July 25, 1991, and on or before such date of enactment. An intangible described in § 197(f)(9) (a section 197(f)(9) intangible) is treated as an amortizable section 197 intangible only to the extent permitted under § § 1.197-2(h). The purpose of the anti-churning rules of § § 197(f)(9) and § § 1.197-2(h) is to prevent the amortization of section 197(f)(9) intangibles unless they are transferred after the applicable effective date in a transaction giving rise to a significant change in ownership or use. Section 1.197-2(h)(1)(ii). Section 1.197-2(h)(12) provides special rules that apply for purposes of determining whether transactions involving partnerships give rise to a significant change in ownership or use. Under § 1.197-2(h)(5), a section 197(f)(9) intangible may be amortized by the acquirer of the intangible if the intangible was an amortizable section 197 intangible in the hands of the seller (or transferor), but only if the acquisition transaction and the transaction in which the seller (or transferor) acquired the intangible or interest therein are not part of a series of related transactions.

On the 1099R input, right after the Box 2 taxable amount, there is a line for "Rollover amount included in 2A. And there is a tab at the bottom for 'rollover explanation'. Using those is all you should need to do.

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index SOME appliances do qualify, but it's an area that is often misunderstood by average folks. Not all EnergyStar appliances qualify. Also, it must be an existing home & your principal residence. New construction and rentals do not qualify. And NO TVs qualify, to the best of my knowledge. Also, though, you should look at http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate to see what 'rebates' your state has, as almost all states have some. This is not a tax credit, but an actual rebate from the state, and often it has to be applied for within 30 days of purchase.

Well, in fairness to the broker, he may well have mentioned that there is a possible credit. Which is true. Few brokers are foolish enough to give detailed tax advice, they usually say something like "There is a tax credit that could give you a refund of 10% of the purchase price, and this purchase would qualify, so you need to mention it to your tax advisor." That is a true statement. but what the buyer hears is "You can get back 10% from the IRS." Because we all tend to hear what we want to hear, and often miss the qualifiers in such a statement. We hear 'could' as 'will', and 'might' as 'will' because that is what we want to hear.

ALL returns filed this year, no matter what the year the return is for, should use the addresses that are currently being used. That is how the IRS 'sorts' returns to the area that those type returns are being processed in this year.

Oh boy, here we go again. I guess it is hard for the IRS to keep up with changes in medical science, but I can't help but wonder if this is going to be another one of these 'have to fight for it every time' issues. Like bariatric surgery still is, where some doctors will advise obese patients to get it, but refuse to give them a letter saying it was a medical necessity.

Yes, it is only an exception if from an IRA.

Was the Code 1 on the initial distribution from his retirement, or on the disbursements from the IRA he rolled it into? I'm assuming it is showing as taxable, right? Just not including the penalty? Check to be sure you have his age entered correctly, of course. Then check over the upper and lower boxes on the 1099R to be sure that there is not a box accidentaly checked that should not be checked.

Newest version is 2009.2.91 It does seem to be opening faster now. Mine only updates when I tell it to.

Odds are good that it is not taxable, but the school will definitely be able to provide that info in writing. If the client lost it, they can get another copy from the school.

Clearly the schools had better lobbyists than the parents did. That is how they got the 'option' to put in just what was billed rather than what was paid. Still, most schools DO have online 'accounts' that the student can access to see what he owes, has paid, etc. I just ask them to give me a printout from that to go with the form. If your local college or trade school does not, have your clients complain and make them give the student the info.

Yes, that is the way I would do it. Just repay the workers, and amend the 941's and either get a refund or apply it forward.