JerryH

There is a number associated with the reject that will correspond to the number in IRS publication 1345A the Supplement which may not be in print now. the numbers correspond to every line item on the return. dependents start with ssn #1 is =175 next one is 185 then 195 and 4th one is 205.

If both tps have at least 700 in long term care payments then the ks s form allows 1400 in deduction. Input the amounts on sch a of federal under the long term care item on medical work sheet and it will carry to the ks s form.

It's ordinary per this ruling, just can't find where they want it reported. Tp used the loan to get the loss in a prior year then got his $ back in following year. Loan was only for about 2 weeks. Thanks for replys. JerryH IRS Revenue Rulings Code Sec. 1376 -------------------------------------------------------------------------------- 26 CFR 1.1376-1: Adjustment to basis of stock of, and indebtedness to, shareholders; increase in basis of stock. A shareholder-creditor of a small business corporation derives ordinary income from the repayment of a loan made on open account to the extent that the repayments exceed his basis in the loan. REV. RUL. 68-537 An electing small business corporation, as defined in section 1371 of the Internal Revenue Code of 1954, repaid to one of its shareholders a loan made on open account. The shareholder's basis in the loan was reduced by the amount by which his share of the corporation net operating loss exceeded his basis in the corporation's stock. Held, the installments received by the shareholder in retirement of the loan must be allocated in part to a return of his basis in the loan and in part to income, but the income is ordinary income and not income from the exchange of a capital asset. See Joe M. Smith and Florence P. Smith et al v. Commissioner, 48 T.C. 872 (1967). The situation here involved is distinguishable from that in Revenue Ruling 64-162, C.B. 1964-1 (Part 1), 304, since in that Revenue Ruling the corporation had issued its shareholder a note as an evidence of the indebtedness and such note was a capital asset in the hands of the shareholder. -------------------------------------------------------------------------------- © 2008 CCH. All Rights Reserved. CCH® Master Tax Guide Top Federal Tax Issues for 2008 1040 Express Answers 1041 Express Answers 1065 Express Answers 1120S Express Answers Business Quick Answers All States Quick Answers Find it Fast Kleinrock's Compliance Guide 1040 Kleinrock's Compliance Guide 706, 709, 1041, 1120, 1120S, 1065 Kleinrock's 1040 Kleinrock's Payroll Tax Kleinrock's 990 Federal Daily Tax Bulletin Federal Daily Tax Bulletin Archive Federal Tax Bulletin Back Issues Employment Tax Briefing Employment Tax Briefing Archive California Tax Bulletin New York Tax Bulletin Kleinrock CPE Annual Review CPE Federal TaxExpert® All States TaxExpert Employment TaxExpert® Federal Archive Library State Archive Library

Where on 1040 does one report the income from a 1120 S repayment of loan to shareholder who now has a -0- basis due to prior yera losses?

They have shown the excess and earnings on the check stub. don't have payors id etc and would like to efile. There was no withholding . could this go on misc income line vs the wages line?

Anyone know how to report an excess 401(k) distribution received in 2008 that is taxable in 2007 without having a 1099R (It won't be issued until jan 2009). Tp wants to file 2007 and pay tax now instead of waiting for 1099r and paying interest on balance due. Thanks

I had the same thing execpt one of my 1065's showed a reject when it had been accepted by IRS on 2-7. I thought it was a name thing so shortend the name and got an immediate reject saying it was a duplicate. I called IRS they have the return accepted in feb with no problem. Haven't had time to ask tech support whats going on. will assume all is well for now.

No, If their was substantial gainful activity the disability would be in question. If it were passive income no problem. It still has to do with definition of "qualifing Child" which doesn't have the income limitation.

Whats the distribution code show. I've had several with no taxable amount shown with a code 6? saying its a nontaxable exchange. Seems to be something new ( at Least to me) this year.

The disablilty qualifies the child (any age) as a qualifing child. The income limitation doesn't apply to a qwalifing child.

She needs to have a residence somewhere or else all the lodging and meals and car she gets thats not on the w2's would be taxable as she has no tax home other than where shes working. Better to move to fla or tx before starting the travel route.

" I _really_ like being able to "drill down" (i.e. follow the "jump-to bunny") when I have a question as to where number comes from (although I _don't_ like it when the bunny hops in a circle and brings me back to my starting point!). I _really_ like the ..." My son worked for cch prosystems call center last year. He was told that the main reason cch bought atx was so they could use the bunny in their system.plus they have access to all of us that can't afford and don't need their high priced pro system.

If your using windows you need to install to a file in other than the "Program" file in order for it to work. there is a knowledge base document on atx web site that will guide you through the process. good luck!

What about the 16 yr olds in 2007 that won't qualify a parent for the $300 in 2008? Will parent get $ this year based on 2007 return or will they look forward to 2008.

The IRS policy is to enforce 6 years without compelling reason to do more or less. Fraud and or excess of refunds will help determine the number of years to enforce.