KEYWEST_RICKS

Can anyone help me with all the new questions. at first i just thought they were looking for foreign transactions but these say domestic also. what am i missing? what is the purpose of this info? it even asks does anyone own more than 50%. isnt that info already on the k-1 information? I think i am being to simple and not seeing what they are after with this? any thoughts?

Jeff

I agree that this could be a hobby and not a business. I assume that the client is not John Force, Jeff Gordon etc. Those would be very special situations. and if that is the case you have a business..... otherwise i think hobby and not business. is the person actually making any money racing?

Jeff

i think that the age cut off for not having to collect social security on your child is 18 or 19... i know it is not twenty. i believe it lists the age in the circular e

jeff

also, i believe that anything taken back cannot violate minimum wage laws. kind of like a garnishment. if they took all of one pay and part of another then i believe they violated the FLSA.

jeff

an llc can elect to be taxed as a corporation. i forget what the form is right away. the default is to be taxed as a partnership but once you elect to be a corp you can then elect to be an s corp is all other requirements are met

that is correct.. interest cannot offset passive losses

jeff

If he is a full year indiana resident i believe that his income all income, not just income earned in indiana. there is an allocation on the part year non resident return for indiana but not for a resident. i believe that indiana income should equal the federal income.

jeff

and why the freak would they wait until march to bring it back!!!!!!!!!!!!

same reason they took it away the first week of april last year????

i am back at this trust. the only thing they have is the will which says savings account goes to my grandson.... if he is not 25, which he is not.... hold it in trust till he is 25. trustee/executor got a federal id number and opened up an account. the account is in the federal id number that they obtained for the trust and it has $3000 of interest and div income for 2007.

they say there is no other trust documents other than the paragraph in the will. should the 1041 be completed as a complex trust and pay the tax on the income or must the trust pass through the income to the beneficiary? sorry to keep beating a dead horse on something that is probably very simple to some of you but i never do trusts and really only trying to help out a friend here. thanks so much for your help

thanks

jeff

I believe that the new property requirement was only for bonus depreciation a few years back

JB,

Best Wishes to you. of course Key West is my favorite spot on earth so I hope you have a great time there. Congrats to you!!!!

Jeff

i think that being covered by employers plan disqualifies him from SE health insurance deduction

jeff

I have a client that asked me about a trust for a relative. Seems that the father passed away and at that time a trust was created with life insurance proceeds to be used for minor childs education. They claim that no 1099 has been received but that the trust did have interest and dividend income. I do zero trust and estate returns. Who claims that income? the minor child or does there have to be a trust return?

thanks

jeff

Sorry, but i follow the thought that the 300 million get the govt they deserve. Our elected officials realize that if you rob peter to pay paul....... you are sure to get pauls vote!

just my two cents

jeff

I alway have like the program. Like was said above, i really dont have a problem with support because usually i dont have to contact them. the program usually works great and few problems. That is still true today. i think it is a good value for the price and the one thing i actually luuuuuuuuuuuuuuuuved about the program was the bulleting board. that was the reason there was no use for tech support. the bulletin board can answer anything. (lets just say that taking it away during april did not make me happy)

i do like the program and will be sad next year.

jeff

I BELIEVE THE FORM IS 8853 AND THE INFO IS ON THE SECOND PAGE.

JEFF

Sorry Montana,

But how do you unprotect the master 1040 form?

jeff

same with me, it was slow and i thought it was locked but all went through with a little time.

jeff

i would prepare the return correctly and mail it in using both w-2's. I would also be asking if there was anything else out there that the client had not told you. does she really have 2 more w-2's she has not received? is someone else really elig. to claim her?

good luck

jeff

The program is not doing what i think it should but usually that means that i am wrong. Partnership has $4000 of ordinary income and is taking a $4000 section 179 deduction. i think that on the k-1 it should show OI of 4000, Sec 179 of 4000, and SE income of 4000.

then on the individual return i think that after you input that in the k-1 entry page that the Sch E should net out to zero and that the income on the SE should also net out to zero.

my problem is that my SE is still showing $4000 of income subject to SE tax. when hop to the schedule for that number there is a line for the 179 reduction but the line is blank. Is the program not doing it correctly or.... believe it or not... am i off base here.

shouldnt the income subject to SE be zero in this case?

thanks for your time.

Jeff

Correct me if i am wrong. Workers comp received for lost wages is not subject to tax. Correct? This is not the amounts that are paid to medical providers. this is the amount paid to the employee for the time he was off work.

thanks so much for your help

jeff

Also, if you repay a loan that has zero basis, (due to the fact that you have used it to deduct losses) you create income.

jeff

Bob,

Have to say I always get a chuckle, no matter how stressed out i am about tax season, over what you are having for dinner!!! Hope you enjoy it.

Jeff

"In my first post, I mentioned the idea of only one person involved with the S-Corp. There are no shareholders unless you would count the owner of the S-Corporation as a shareholder."

Wouldnt the sole owner have to also be the only shareholder? Seems a contridiction to say one person is the owner but doesnt own any of the stock?!? who owns the company is determined by who owns the shares of stock.

For $525 i wouldnt lose much sleep over it and just leave it on line 22 as capital stock if this is an on going concern. You can take distributions other than dividend distributions to the extent of your triple A account if you are wanting to get some cash out. Be sure you are paying reasonable officers wages though.

Janitor Bob,

My sympathy goes out to you.

I believe you must be insolvent before and after the discharge. Additionally, I believe that a Form 982 is filed with the return.

Good Luck

jeff