cred65

The LLC defaults to a 1065 if multiple owners. Use Form 8825 for rental units. Yea, you might be crazy.

Would Form 4797 be appropriate?

Maybe thats why Jack Bauer is retiring after this season

(and I already know they won't be willing to adequately compensate me since she asked if I thought I could do everything for under $1,000). You had better add a "0" to that fee. 7 years of F 1065's and possible 35 amended 1040's, plus all of the cockroaches under the rock. Don't bury yourself.

Since the partners returns from 2002 thru 2005 are beyond the SOL what is the procedure for amending those? Also ummm.

TP says the banker informed him that it was deductible. PMI = Pardon My Ignorance" for not knowing what it is and asking this stupid ???. TIA

Thanks gang, Client has agreed to keep the 2 entities separate and do a much better job of bookkeeping! Beverages for all!!

LLC 1 is a RE rehaber and is 50% owned by spouse and 50% by son. The company is taxed as Sub S. The company has liability issues with a lawsuit, back taxes and large bank debt with personal liability. The LLC is basically insolvent and is holding several properties that it cannot sell or has funds to rehab in order to rent. LLC 2 is a RE rental company (app. 80 units) owned 100% by husband and filed as a disregarded entity (Sch E). This LLC has large mortgage debt (app. $5M). It has a small equity position. The husband and wife have several rental properties (held app. 20 yrs), which have positive equity and cash flow (Sch E). The wife has a large self directed IRA that has acquired and rehabed RE rental units in 2009. Since the owners attempt to record the business transactions in QB the books are a mess and the finances are intermingled to the extent that checks are disbursed from the account that has the money no matter where the liability, including payroll. I only get consulted about this mess in March each year and attempt to reconcile it during the summer. So a QuickBooks advisor has suggested that they consolidate recordkeeping into 1 QB file using Class to separate entities, which would also include personal and retirement fund accounting starting in 2010. I am overwhelmed by this suggestion and have recommended against it based on how to separate the entities for tax and financial reporting, the liability problem associated with the blantant intermingling of funds and records, and all the other issues that can and will appear. I also advised that they consult with their attorney in this regard since the corporate shield will probably be pierced. Thanks in advance for any input and advice that you can offer. Don't worry about sympathy because tommorrow I will have a bottle of vodka. Drinks for the house!!

"Business bad debts are generally deducted where business income is reported (not line 21)." Wouldn't the business bad debt be reported on Form 4797?

My Acks just came through.

I e-filed them on 2/19/10 and they are still sitting as "Transmitted to EFC". Is this normal? This is my 1st experience with 1099MISC e-filing. TIA

Thanks gang, it worked well. I owe you all a bottle of vodka.

I have never done this before. Could someone provide me with a link to info, or just tell me what form in ATX to use. Is it Form 4996? TIA

PS: the first face sb B, the second b. What did I do wrong?

This is taken out of context from a CPE course: "An S corporation is also allowed to own a qualified subchapter S subsidiary. A qualified subchapter S subsidiary is a domestic corporation that is not an ineligible corporation (i.e., a corporation that would be eligible to be an S corporation if the stock were held directly by the shareholders of its parent S corporation) if: (1) 100% of the subsidiary's stock is held by its S corporation parent, and (2) The parent elects to treat it as a qualified subchapter S subsidiary (§ 1361 (b )(3)(B )). Under this election, the qualified subchapter S subsidiary is not treated as a separate corporation. Thus, all the assets, liabilities, and items of income, deduction and credit of the subsidiary are treated as belonging to the parent S corporation (§1361(B )(3)(A))."

If the PLLC is in fact taxed as a Form 1065 (as Old Jack inquired above msg #2)what are the reasons for the reclassifaction? To avoid the SE Tax? What are the operating assets of the LLC? Is there rentanl property involved? In order for a proper analysis more info is needed. But probably the best advice is to tell the client to get Legal Advice because your question may be beyond the scope of this board.

TIA

Thank you KC. You are a life saver (or something like that). Cred65

Taxpayer received $134K total distribution from former employers plan net of 20% fed WH. He then rolled $90K over into an IRA within the alloted time period, with the intention that only $44K would be taxable. The 1099R reports the total amount 134K taxable in Box 2a. Does he have to attempt to get a corrected 1099R from the former employer? Is the rollover Form 5498 substaintation of his intent upon notice from feds? What course of action is available to him? (Or is he up a creek without a paddle)? TIA

Economic Recovery Payments Recipients of social security benefits, railroad retirement benefits, or veterans’ benefits were eligible to receive a one-time Economic Recovery payment of $250 in 2009. The receipt of this payment will not be reported on the respective information forms (SSA-1099, RRB-1099, etc.) received by taxpayers. The IRS is not able to assist taxpayers with determining whether they received the payment or the amount. If this information is needed, the taxpayer must contact the agency that made the payment to them. The following phone numbers can be used for that purpose: Social Security Administration - 800.772.1213. Additional information is available on their website. Railroad Retirement Board - 877.772.5772. Additional information is available on their website. Veterans Administration - 800.827.1000.

Thanks guys, that works much better.

I have a new HP scanner with ADP & flatbed (cheap model $300) and am starting to scan in clients documents into their folders that I have setup under the master folder, Tax Records. The software defaults to .bmp but this seems to take a lot of disk space (but what do I know). There are many file types; .tif, .jpg, .pdf, .txt, .htm, etc. I am looking for something more economical in disk space. What type of file type would you recommend? TIA

Settle down man! This is not "polictical" or a "rant"! This was intended to be an informative reply to current events in the media that the members of the ATX board might have an interest. Also, in this regard, I felt compassion for some of our members that have practiced for many years but may/will be forced to comply to these regulations and/or that some may have to sell their practice for less than FMV, or liquidate. Since I am a CPA, I am excluded from these requirements, but most of these "soon to registered practioners" know a hell of a more lot than I do about personal taxes. I would hate to lose their knowledge and input! Hang in Gang!! Since we both will benefit from this we have something in common, but chill out man, you don't have to be so shrill or contesting about some of the off-the-wall statements I have said in #6 above. So if you refer to me as a "capitalistic pig" may I refer to you as a "commie"? I'm here in Cinti waiting for an NFL playoff game Bengal's vs Jets. So as you sit on your beach in CA have beautiful day. Peace cred65

I would never put you through the agony of having to listen to the Capitalistic Pigs that read the WSJ. Big Brother knows best!! I'm going to go get a bottle of vodka. Happy Friday all.

Since there has been a fair amount of venting going on I thought it was interesting that they are not alone. If you have a subscription to the WSJ you can read the comments to this article(206). Now there's some real venting.