ed_accountant

From the Schedule E form, you need to make sure that you are on the "Input" screen. The input screen is a bottom tab. On the top of the input screen you click on add property.. Good luck

You could report them to the IRS Criminal Investigation Hotline #, 800-829-0433... You have the option of leaving your name and information or not..

Page 1 of form 1041, line 11, taxes, you can deduct property taxes. No K-1 would be issued since there have been no distributions. I am assuming this is not the final return. You would issue a K-1 on the final return .

Thank you Roy! You are right..

Hi, I have a cash basis - LLC with two partners who is in the process of buying commercial building. In year 2007, they were in contract but the purchase did not close. I believe they are still in contract working out details. They have some significant expenses all relating to leasing the commercial building with an existing tenant. They paid a leasing fee commision in 2007 of approx 20k and they have approximately 10k in legal fees related to leasing. Of course in year 2007, they have no rental income and want to claim the above expenses. However, I am unsure if they can deduct the leasing fees and legal expense since as of 12/31/07 they did not own the building but were only in contract.... Any opinions? Thanks

I encountered this problem last year. I doubt the 2007 program calculates it correctly. The 2006 program did not calculate NOLs correctly. You may need to calculate manually. Last year, I had to use Lacerte pay per return program to calculate it since I was having issues with calculating it manually.... I am still using two programs. I use ATX for 95% of my individuals and Lacerte pay per returns for all business returns.. Goodluck Thanks

The above two replies are correct. When in doubt issue a 1099. You can still issue a 1099 even if they are a corporation.. Thanks

I agree with you. He should be able to claim HOH. Your taxpayer should communicate with his ex-spouse to inform her that he claiming the children so she does not. I have seen IRS letters result when both parties claim the same children as HOH.

I have been preparing income taxes for 18 years and I also never use the 1040EZ or 1040A. I use the full 1040 form for the benefit of credits and other possible deductions... Thanks

Hi, I have a small manufacturing SCorp on accrual method between two partners, each having 50% interests, who were both actively involved in the business. Due to a partner dispute, Partner one purchased partner two interest for approx $500K on December 2007 for an amount much greater than his original investment . The sales price was paid by the remaining shareholder and checks cleared before 12/31/07. The Scorp income through 1/1 - 12/07 is approx 500,000. However, most of the profits were in inventory and receivables, so distributions were much less than the allocated income... Distributions were approximateley 140k to each partner. I am planning on allocating 50% of income, $250K through 12/1 to the exiting partner even though he received only 140K in distributions. My justification is that he received the 500k sales price and part of this sales price was the unpaid current income.. I would appreciate your opinion.. Thanks Also, they both had separate attorneys and went through arbitration to come to agreement on the sale of shares and the exiting partner signed an agreement that he could not come back and sue the corp or Partner one if he accepted the sales price... thanks