kcjenkins

Well, I do think that tax software is a bit different than other types of accounting software, simply because it is not only the most complex, but more seriously, the law itself changes so often. I expect that this was something that no one actually did until you did it. I'm glad you warned us, but I don't think many of us had to use that box anyway. Only a few states have a problem with it. I do agree that the forms people should get back to you with confirmation that they are fixing it. They used to have a link directly to them, called the Forms Pipeline. I don't have a problem with them using us as extra beta testers, because the tax code is so complex, especially state quirks with the feds, that no one can catch every possible combination of facts that leads to some odd outcome. But so far, they have always fixed anything that I found that needed fixing. I bet you will hear from them soon.

:bday:

:bday:

Wishing you a very and many, many more.

IRS Guidance Revises Statutory Definition for Work Opportunity Tax Credit Eligibility The Internal Revenue Service Aug. 12 issued Notice 2009-69 to revise one of the statutory definitions from earlier guidance of persons now qualified for the Work Opportunity Tax Credit (WOTC) due to the 2009 economic recovery legislation. The notice clarified the tax code Section 51 definition of "not readily employable by reason of lacking a sufficient number of basic skills" that originally appeared in Notice 2009-28 (101 DTR G-3, 5/29/09). The definition now says a person who received a high school diploma or a General Educational Development certificate at least six months before the hiring date, and who otherwise meets the requirements for a "disconnected youth," will not fail to qualify as such if the person has been employed since graduation "as long as that employment was no more than occasional," IRS said. The notice provides transitional relief, stating that an individual shall not be regarded as a member of a targeted group unless the employer gets certification from a designated local agency on or before the date the person starts working that he or she is such a member, IRS said. The employer could also complete a pre-screening notice, Form 8850, on or before the individual's offer date and submit the notice to the designated local agency to ask for certification not later than 28 days after the individual starts working, it said. The transitional relief provided in Notice 2009-28 for employers who hire workers from the two new targeted groups--"unemployed veterans" and "disconnected youth"--has been extended in the new notice. IRS will consider employers who hire individuals from these groups after Dec. 31, 2008, and before Sept. 17, 2009, to have satisfied the deadline under Section 51 if he or she submits the pre-screening notice to request certification no later than Oct. 17, 2009, it said. Notice 2009-69 is scheduled to be published in Internal Revenue Bulletin 2009-35, dated Aug. 31.

The California legislature is considering a bill that would expand the permissible uses of LLCs. Presently, the California LLC Act allows LLCs to engage in any lawful business except banking, insurance, trust company business, or the offering of professional services for which a license, certification or registration is required, unless expressly authorized under other statutory provisions. The bill under consideration would allow an individual or a business providing services as a contractor to form and operate as an LLC. In addition, this bill would authorize the State Contractors’ License Board to issue a contractor’s license to an LLC. More information can be found on the California Franchise Tax Board’s website.

The elections forms are found by going to 'add forms' and typing Elections in the search box. Then select "Elections/Statements". The NOL Carryback is the first item on the 1040 tab. HOWEVER, it sounds like you do not need that because you do want to carry it back. And that is the default, which you have to elect to opt out of. You do not have to file an election to carry back an NOL, that is what you do if no election to forgo the carryback is made.

:bday: to you, and many more.

Here's wishing you a wonderful :bday:

You have my permission!

Well, even tho it's got to be paper filed, it should be processed fairly rapidly as it deals with only one item. Provide the proof with the 1040X, and warn her to expect the money around Christmas. That way, if she gets it faster, she will be happy, but if it takes that long, she will be prepared, and not calling you about it every other week. :D

No, I don't, although I think it was from one of his letters. I sure illustrates that human nature has not changed, even over thousands of years, doesn't it?

:bday:

Actually, it's not just knowledge that counts for this sort of thing, you have to also have a good "radio voice". Which many do not, but you DO. You sounded very professional, but also warm and caring. That's the sort of thing that may make you a 'regular guest' on the show. Which will certainly be good for your business, assuming you want more business. If not, it may still allow you to 'fire' some of your PITA clients and replace them with better ones. A win-win.

Have a very :bday:

I am not sure, but you could call 1-800-779-7228 and ask the bank.

Good job, Catherine. Listened off and on, as the interuptions kept coming. I'm proud of you. You did a good job of a complex subject.

From something I am on an Email list serve for. The person asking the question of the iRS office is a CPA/ Tax lawyer type. "I told a relative recently who bought 2/3 the old family homestead from his Brother & sistaaaaah that he qaulifies for FTHB Cr. and they just closed last Friday . This relative inhertted 1/3 of it. OUCH...!!!!!!!!!! Recently, the question arose as to whether an individual who inherits 50% of a residence from a decedent and purchases the other 50% from his or her brothers and sisters for $200,000 can claim a first- time homebuyer credit based on the purchase price of the 50% interest, and if so, in what amount. In a recent conversation with a representative in the National Office of IRS, I was advised that the position of the branch that deals with the first-time homebuyer credit is that if any portion of a residence is acquired by inheritance, the residence does NOT qualify for the credit. Based on the statutory language defining the word "purchase," query whether there is a reasonable basis for taking a contrary position and attaching Form 8275? You might want to be especially careful in giving advice regarding the first- time homebuyer credit since the statutory language is new and particularly intricate and there is little official guidance out on the subject. "

Have a very :bday:

Jainen is right, you should not assume that the lawyer knows the TAX implications. He's looking at legal liability, most likely, wantying to put a level of protection between the client and potential problems. But you need to discuss the tax effects with the lawyer, to be sure he and the client understand those.

Wishing you a very :bday:

In today's tax world, it would not float. The Congress, in it's wisdom, decided that there would be NO depreciation allowed on boats used for entertainment. A commercial fishing boat or cruise ship or ferry, are the only boats you can depreciate.

Basically, he is just back to where he was, except for the deductible. I see no benefit from reporting the insurance as income then writing off the replacement.

If you look at page 2 of the 8832, item 6 at the top of the page covers all the possible entity situations, basically. It covers much more than just the sub S election. Form 2553 is specifically for those that want to elect Sub S treatment. If using it, you no longer have to use the 8832 at all.

Yes, if he is the sole owner, the LLCs would be disreguarded entities, and he'd still report using the E. He could have 12 different LLCs, or two, or any number and devide the properties accordingly. He would quit-claim them to the LLC, most likely, although that could depend on whether they are mortgaged, and what the mortgage holder allows. That's for you to just mention, and he and the attorney need to decide how to do that. Not only does it depend on state laws that vary, it depends on what the mortgage-holder allows as well. You don't want to be in the middle here, so don't give any advcie on that except that he make sure it's done right, by the lawyer.