Naveen Mohan from New York

Dear Friend: this is not a tax question. You are my extended family. I have been married to my wife for 37 years. two weeks ago she caught flu which shut down her lung and kidney and caused conjustive heart failure.. She has been on ventilator and Dialysis for two weeks. Today doctor told me that nothing more can be done and even if she recovered which is unlikely she will have to live on machine for the rest of her life. My wife living will said that she did not want to live on machine and if something like that happen then to let her die. So hospital wants to shut down the machine so that she can die peacefully. I know that is what she wanted and I want to honor her wishes but how do you pull plug on somebody whom you have loved for 37 years. I am sure some of you may have encountered the similar situation but how did you handle it emotionally? thanks Naveen Mohan

I had used ATX for the last ten years. This year I signed up for Drake but then my wife suddenly became critically ill and she still is critically ill so I am not able to have time to learn the program and now it is actually time to do the return. so I am thinking of cancelling Drake and going back to ATX to save time. I am a one man shop. Do you think it is a good idea? if so Do you think Drake will let me do that and if so is there a penalty? How do I go about doing that? The reason I am asking is that couple years ago I lost money in TRX where they kept all of my money even though I cancelled before the start of the tax season. Thanks for your help. Naveen Mohan

Pacun: Problem is that for checking the return, Turbo tax is advertising $ 49.95 but in order to check it you have to do the whole return yourself unless you also buy turbo tax and the client gives you his data file to upload. The first lead I got from them the prospect gave 50 opages printout from Turbo Tax and his W-2. It took me over 2 hours to untangle what prospect has submitted to me and then I had to enter it in ATX to verify the answer. I treed to bill $ 268.00 for 1040 Sch. A with 2106. Sch. B, 6251, 8889,8959, 6251 and state return and I think my bill was very fair but prospect wants to pay $ 49.95 because that's what Turbo Tax advertised for checking a return.. How are you going to make money even if you get 70% of the posted $ 49.95 price?

I recently joined Intuit/Turbo Tax CPA/EA network. In a very first case, they passed on a 2013 tax return that taxpayer started but could not finish. I was given W-2 and all print out from Turbo Tax work papers. My problem is this: 1. I did not get any source documents except W-2 rest was all worksheets in which taxpayer had entered the information. 2. Obviously I do not use Turbo Tax in my tax practice so I actually had to do the entire tax ground up. Potential clients got upset because according to him my charge was too high for just checking his return. The only way I could see around it is if I were to buy Turbo Tax just for that and have potential client give me his turbo tax file. Those of you who have been in this business for a long time, how do you handle if some body off the street comes in to have you check their self prepared return or need help in finishing the return. How do you know that client entered all the data correctly. since it is your name that is on the tax preparer line what about the liability issues. Thanks for your help. Naveen Mohan

I have a prospective client who needs ITIN number for his wife and daughter in order to file his tax return but he is nervous about sending the original documents in the mail. can he take his file din form W7 and supporting documents to local IRS office. Will they certify for him. There is no approved ITIN certifying agent in our area. thanks for your help. Naveen Mohan

In New York State it would be a sale

Can anybody point me to the place where I can buy inexpensive error and omission insurance. thanks Naveen mohan

I have just purchased Drake 2014 software. How do I join their proprietary blog/community group. I went to their support page but I cannot seem to find the right spot on their support site. What should I be looking for? thanks for your help. Naveen Mohan

I have received Drake evaluation copy and I am trying to learn the program. I cannot print anything even though I did the printer setup. I can see the printer listed under print command but when I click print on an open form nothing happen but when I print same thing on Drake printer pdf then pdf is created. Obviously I am missing a step somewhere in the process but I cannot seem to figure it out. Thanks for your help. Naveen Mohan

Could some body point me to the right direction where I can get a basic no frill income tax preparation web site made out. I have a very small practice in a rural area and I am just looking for internet presence. Thanks for your help. Naveen Mohan

I have a client who is a U.S. Citizen, He is selling his commercial property in India and bringing the cash proceed to America. Since U.S. citizens are supposed to report all worldwide income so I think it is a reportable transaction. Do I report it on Schedule D. Can he take credit for foreign tax credit for income tax he pays to government of India? do I need to attach a copy of his Indian Income tax return or will that only be required if and when asked by IRS. Thanks for your help. Naveen mohan

If you can send me the screenshots that would be great. I really appreciate your kindness. Thanks again Naveen Mohan

If I migrate to Drake will I still be allowed to participate in this board also. The members on this board have been very helpful to me. Also could I get URL of Drake group? Thanks Naveen Mohan

I went to an annual tax update seminar and the person who sat next to me mentioned that he is transitioning out from ATX to Drake and he encouraged me to do the same. does Drake has a similar community forum like ATX. Also is it too late in the season to be learning a new software. should I buy both ATX max and Drake this year? Thanks for your help. Naveen Mohan

He is not "Shady" per se. The problem is the older brother had $ 300,000 that he invested in this Ethenic Grocery Store. Store has been constantly losing money since its inception and the older brother wants to get out to stop his losses. I cannot think of any other way except stock sale back to the corporation. I am very receptive to the other ideas how to resolve this problem. thanks Naveen mohan

I have a C corporation between two brothers. Each brother owns 50%. Now one brother wants to get out by transferring his interest for $ 1000.00 to the other brother's son. The departing brother basis in the company is $ 300,000. He wants to take tax write off for the loss of $ 299,000.00. My concerns are as follow: In order for me to treat as worthless stock, Business has to be insolvent. Business is still running but it is running at loss. If I were to treat as a gift to his nephew, then he cannot take capital gain loss. My proposal was to come up with the liquidation value of the business and treat 50% of the liquidation value as sale price and $ 300,000 as cost basis and do it as Long Term Capital Gain/loss deduction. The client wanted it to go as 4797 transaction where the entire loss is available in 2014. What is the correct and proper way of handling this is? thanks for your help. Naveen Mohan

I have a client he dissolved his corporation last May. he closed his bank account and filed his final tax return. Yesterday he received a check for $ 1,500.00 as return of unearned premium on his workers compensation policy. The problem is that now he has no bank account to deposit that check into. He cannot deposit it in to his personal bank account because the check is made payable to the corporation and he no longer have a corporation account to deposit the check into and now that the corporation is closed and the final return is filed, I don't think bank will let him open a corporation account to just cash this check. so how do I get around this problem? Thanks for the help Naveen Mohan

I have a client. His annual taxable income is zero because of his family size. He has sold a property in Pakistan and according to worldwide income rule, he has to include in his 1040. It is a long term capital gain and I tried to do it on ATX Max. all capital gain transferred to line 13 of 1040 correctly. I see entry in taxable income now but tax line is blank instead of Zero. My main problem is that when I did his New York State tax return, zero percent capital gain did not work and all of his income got taxed as regular income. My question is Zero percent capital gain limited to Federal return only and states do not have to follow it? thanks for your help. Naveen Mohan

I had an enquiry from local society of Chemical Engineers. They have lost their tax exempt status due to their failure to file form 990 for the last three years. It is a very small group with annual receipt of under $ 2,500.00. Is there a way to reinstate their tax exempt status without having to do form 1023 over again. Thanks for your help. Naveen Mohan i

I have a client who is sole stockholder in two S corporation. Lets call them corporation A and Corporation B. corporation A owns a commercial real property and he reports it on form 8825. corporation B owns a convenience store and a separate and distinct commercial real estate. He wants to remove commercial real estate from corporation B and transfer it to corporation A and then sell convenience store under corporation B as 100% sale of stock. Can I do a 4797 from corporation B to corporation A where sale price is equal to the adjusted basis of the property that is being pulled out from corporation B and put into corporation A. The reason I am saying is that there really is no arms length sale and no established sale price. Is this transaction OK or am I missing any other tax consequence in this case. Thanks for your help. Naveen Mohan

I have a client who had a big net operating loss in 2012. He has no table income in the last three year to carryback Net operating loss and he does not want to use NET Operating loss in future year because it will hinder his ability to get any bank loans in future if his AGI is showing zero in the future tax return. Can he legally skip carry forward of NOL as if it never happened. He would rather pay his tax on future year current income. thanks for your help. Naveen Mohan

I have a new client in Massachusetts. she want to start a wholesale general merchandise sale business where she will sell stuff to retailers out of state on wholesale only. MA Department of Revenue requires her to get a sales tax number even though 100% of her sale is going to be wholesale. My question is does she has any sales tax or corporate tax obligation to the states where she is shipping her stuff to. She will not have any physical presence in any other state. Thanks for your help. Naveen Mohan

I just did a 2012 return and I efiled it. IT came back rejected for both federal and state but when I go to efile manager and I click at efile then the box saying display efile rejection error is dimmed. How do I make the program show me exactly what is wrong with the return for efiling? Thanks for your help. Naveen Mohan

I am looking to buy a new laptop for the upcoming tax season. I have narrowed my choice down to ACER I7 with Intel core I7 and 8 GB RAM or HP Pavilion I5 with Intel core I5 and 16 GB RAM. Both have 1 TB Hard Drive. Which is better for ATX Max. Thanks for your help. Naveen Mohan

Can a single member disregarded entity elect to be taxed as a sub chapter S corporation by filing 2553? thanks for your help. Naveen Mohan