Lucho

On 7/6/2016 at 4:04 PM, Eric said:

Internet Explorer 11 is there, but they don't make it easy to find.  Hit the Start Button (or wherever the search box is now), and in the search box, type "Internet Explorer"

When you see the familiar blue 'e' icon in the results, right click it, and pin it to your Task Bar and/or Start Menu

Well I did it. and let see what happens.

Thank Eric.

Lucho

Now I know.

Thank you Jack.

Lucho

I think that Microsoft edge is giving me a hart time with windows 10. How can I go back to just the plain IE 11 or the newest version? or are we all hooked up with the "Edge"?

I was out of the country for six months without any problem, but as soon as I landed back in the US my computer acts very slow or freezes. Firefox is also slow. I downloaded Google Chrome and it made things even worse. I going back to where I was but I prefer to fix it before I leave again the US.

Thank you for any idea I can get to fix my problem.

Lucho

How do I find the way to make the computer recognize my sd card, CDs and my external hard drive? (now that I downloaded Windows 10)

It looked easy the first time I inserted the SD card to see my pictures and I have to call someone to tell me how to eject it which he was able to help me. the next time I tried again with the SD card, the system will not recognize anything like SD card, CDs or my external storage drive. Can someone please help me. It might be something easy but I don't have any idea so far.

thank in advance.

Actually, it looks like the fax number listed is not a fax but a normal phone line. I tried several times last night without any success. The answering system said to call tomorrow.

Thank you very much Elrod.

Lucho

What is the fastest way to change my address with the Office Of Responsibility, I am in a big hurry, and I will appreciate any help. I am leaving the country for some time. I am changing all addresses, but need help specially with this institution. I am an E.A.

Thank you for any help.

Lucho

These facts make no sense. A REIT has to be a corporation but the 1099S would only be issued if it was a partnership or the real estate was ditributed to the shareholders before it was sold. If he was receiving interest, his investment was a loan. If it was a partnership, he should have been getting a K1. If it was a loan to a partnership that somehow got converted to equity then the facts make sense

Thank you for your post, it is very helpful.

Lucho

First, what kind of investment was it and what was the investment vehicle, REIT, LLP etc.

 

Second was he receiving K - 1 s or ?

 

Third, what kind of income was he receiving , Interest, or ?

 

Really need more detailed info 

1- Investment vehicle, REIT

2- No K-1

3- He was receiving  interest only

Thank you

Lucho

My client invested some cash in year 1999 and was collecting a profit from the investment (no return of capital) every year until 2008. The investment company which hold my client money declared bankruptcy.

During the course of business,  the investment company invested funds in real estate; after the bankruptcy, the trustee sold the properties and my client received a 1099-S that shows the gross proceeds (my client's share of the proceeds) in box 2 and the description of the property in box 3 and escrow number .

Am I right if I use Form 4797 and use the original cash investment from  year 1999 as the basis to figure out the loss of my client investment (proceeds is almost half of investment?   and keep the 1099-S as a reference of support for  the IRS.

I have not being able to find another way around, so, I am begging for help.

Thank you in advance.

Lucho

Form an LLC per his state law.  Form 8832 to elect corporate taxation.  Read the instructions and deadlines.  Organizing the LLC is usually easy.  Having a good operating agreement if more than one member is the part that needs a lawyer familiar with your state law.  What do you do when the members disagree, one wants out, one dies, one wants the other to leave, spouse inherits, one wants to sell, etc.?  Those are the things to put in a legal document now while everyone is getting along, before anything goes wrong.

Thank you Lion. I appreciate your post

Lucho

You will probably need form 8832 (unless you do a sub S corp. - exception in directions). See this URL for discussion (jumping to the proper type (single, corp., etc.) at the top right under "Related Links"):  http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Limited-Liability-Company-LLC

 

You also might want to review Pub 3402 which can be found here:  http://www.irs.gov/uac/Publication-3402,-Taxation-of-Limited-Liability-Companies

 

One of the things will be timing as some election options can only be done not more than 75 days before or more than 12 months after election filing.

 

Easy read, just step through the material.

Thank you very much.

Lucho

What kind of corporation?

 C corporation or S corporation

Lucho

 If a single or multiple LLC wants to be treated as a Corporation for tax purpose, what extra paper work would be needed besides the LLC documents.

I just want to be ready to answer basic tax question and documentation that will be required to form the business my client is in the process to open (A bicycle shop). I know he will need a lawyer to draft the paperwork but he wants to have a consultation with me before.

 he has been an employee for about 20 years in the same field.

Thank you for any help.

Lucho

You have to dispose of the property. Form 4797. This is NOT forgiven debt. That is form 1099-C.

The selling price is the amount of debt forgiven. Basis is calculated as normal. Depreciation is recaptured as well.

Box 4 has no relevance. There may be taxable gain by disposing of the property.

Jack, This is what I have done:

I disposed of the property in the disposition information of fixed assets worksheet.

The basis of property when placed in service was $178,600 less depreciation of $40,496 (which I believe will be the recapture) gives a new adjusted basis of $138,104 at the time the bank took possession of the property; the basis for the land is $65,900.

Adjusted basis of the house $138,104+$65,900(adjusted basis of land), gives a total basis of $204,004.

$204,004.00 property adjusted basis

$182,887.00 Amount shown in box 2 form 1099-A

$21,117.00 Loss

This is how I get the loss.

What do you think? Jack.

Thank you very much for your advice.

Lucho

After clients (couple) went through bankruptcy (Chapter7) , the bank sent a year 2013 1099-A showing the following:

Box 1 03/11/13,

Box 2 $182,887.12 Balance of principal outstanding

Box 4 $148,750.00 FMV of property

Box 5 Taxpayers personally liable for repayment of the debt.

Combining the amount of box 2 with the adjusted basis of the property (improvements and land), the taxpayers (my clients) have a loss of 21,000.00+. Line 14 Form 1040 is showing the loss

This was a rental property all the time my client owned it.

Am I in the right track with this return? or is there anything else I need to consider because of the bankruptcy issue?

I would appreciate any help.

Lucho

Do you have the contribution tagged to the proper taxpayer?

Yes

Lucho

I thought there was a special rule for folks receiving SS benefits and making an IRA contribution. How old are your taxpayers?

Rich

For year of contribution, husband (retired) 70 and wife (not retired and making the contribution) 54

Thank you,

Lucho

I have a couple (client), husband already retired wife still working.

Wife contributed $6000.00 to her IRA for year 2012.

IRS sent a letter to mi clients stating they owe more taxes; when I read the letter and the adjustments, they are incrementing the taxable SS Benefit exactly for the $6000.00 adjustment (in other words, they are adding back the $6000.00 adjustment to the total income.

I do not see any mistake in the worksheet for line 20 (1040) social security benefits (all computations are correct including line 7 of that worksheet.

Is it me or an IRS employee making a mistake?

I will appreciate any help.

Lucho

Even if it was discharged through bankruptcy, you must report the property as sold with the sale price being the amount of debt discharged.

Calculate basis in the normal fashion. There may be a taxable capital gain on the transaction.

The 1099-C for cancellation of the debt may come later and is a totally separate event and is handled differently.

1099-A is NOT cancellation of debt, but transfer of ownership. Do not confuse it with discharge of debt.

Also, the FMV shown on the 1099-A has no value in the calculations of gain or loss on the sale of the property.

Thank you jack.

Lucho

I am really please with the way the program worked this year. All I need after the season is to learn more how to use Windows 8.1 which is a real headache for me as an adult use to old fashion.

Thank you to both Kc. and joan.

Lucho

Late Good Night.

My client declared bankruptcy at the beginning of 2013 and got a Form 1099-A with boxes 2 $182,000.00 +, 4 $148,000.00 + and box 5 checked (liable for repayment).

This was a Chapter 7 case. The property was never use as main home but rented.

What is the best way to report this? Reading the IRS/bankruptcy, tells me this can be excluded through chapter 11 but do not mention chapter 7 at all; should we wait until my client gets the 1099-C? or disregard this issue as a result of the bankruptcy?

At this time I am so tired that and don't see myself thinking straight. Probably will file an extension. I was so happy that the season was almost over but...

Any help will be appreciated.

Lucho

Hi Lucho --

Get used to the 1099-HC; you'll be seeing it used across the country as people are forced to prove to the feds that they have purchased a commodity.

Box 2 is the EIN of the insurance company. Mass Schedule HC requires -- for EACH person, -- insurance company name, EIN, and individual's subscriber number. Those items are Box 1, Box, 2, and Box 5. Watch out for families, though -- subscriber numbers for families are sometimes all alike, and sometimes DIFFERENT. Plus,. sometimes the person on "spouse" is the primary subscriber; do NOT assume the "taxpayer" is the subscriber. Watch Box 3, as well. Subscriber number for other persons covered on the plan are on lines a., b., etc.

You will need info from parents for young adults over age 18 who are still covered on mom & dad's plan.

I have EIN's for EVERY insurance company authorized to sell insurance in MA if you need one for a young adult. The ins. co. name and subscriber number are on the insurance card, but not the EIN.

There is also a checkbox for "did not receive Form 1099-HC" that might get you around the EIN requirement.

Also be aware that those covered by Medicare, Medicaid, Tri-Care, Mass Health, & Commonwealth Care just need check boxes. "Neighborhood Health Plan" is a Commonwealth Care plan and gets the checkbox.

In the immortal words of Zippy the Pinhead, "Are we having fun yet?"

Thank you Katherine.

Now I know what information I need from Kaiser Permanente.

I wish you good luck and profit for your next two busiest weeks of the year.

Lucho

I have a Form MA 1099-HC and need to know what the number in box 2 stands for.

Is it an ID number for the insurance or that insurance federal employer ID.

I practice in California and have a return where the husband worked part of the year in MA. And wife in CA.

In order to continue with this return, I have to tell MA. That wife had her insurance in CA.

I asked the wife to verified the FID# from KAISER (her medical insurance provider) but they said they do not have that number or don't know what that number might be.

Thank you in advance.

Lucho

Jack, forget what you knew about Atx in the past (haha)! Atx creates the number automatically if you have the forms in the return. The number actually populates before you create the e-file, and will not change unless rejected by agency.

That is exactly what I am experiencing.

Thank you

Lucho