RoyDaleOne

Why can he not claim the dependent and head of household? And she single no dependent. More refund if she claims.... I see....

At least on my machine it is not available for rollover yet. Updated two minutes ago.

For example if the LLC is on the cash basis and has $500,000 in accounts receivable, the selling partner must take the unreported A/R's in to effect when they sell their partnership interest. Hot assets are those items that would produce regular income but which are not tax as of yet. Depreciation recapture is also is a hot asset. The LLC could elect to step up the basis of assets if the partner pays more then book value.

Any "hot assets"? Ordinary income? Step-up basis for additional money paid?

KEEPING UP A HOME To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. You can determine whether you paid more than half of the cost of keeping up a home by using the worksheet shown on the next page.

SEC... at least in Florida limit of 35 investors (solicitations)..

Wow, you would need at least $500,000 to $1,000,000. I know of one software project that ate $10M before it was out the door.

For example, a contribution of the right to use property, such as a rent-free lease, is treated as a contribution of less than the taxpayer's entire interest in property and, thus, no deduction is allowable. Out-of-pocket expenses directly connected with and solely attributable to the performance of services for a qualified charitable organization may qualify for a charitable contribution deduction. Clean-up costs.... Not enough facts to tell...

See the instructions to Form 1099-INT...

First, there is a theft loss. Now who gets to take the loss? If the Corporation invested the money in its name it gets to take the loss. Second, maybe the investment made by the stockholder acting as agent for the Corporation (maybe, but harder to prove if necessary) the Corporation still has a loss. If the stockholder borrowed the money, then the stockholder has the loss. The police report helps prove the loss.

IE 7 tabbed and auto login - yes I use it. Great security -- not. I was inform that you have to change the password every so often and you can not use one of the last ten passwords you used. They keep a record and rejected two of my attempts to use an old password. My 2 cents. Double post?

IE 7 tabbed and auto login - yes I use it. Great security -- not. I was inform that you have to change the password every so often and you can not use one of the last ten passwords you used. They keep a record and rejected two of my attempts to use an old password. My 2 cents.

Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is related to the organization's charitable, etc., purposes Yes to parent fees. This list includes only those that exceed 2% of the total as you said. Hope this helps.

MONEY OR PROPERTY DISTRIBUTIONS Most distributions are in money, but they may also be in stock or other property. For this purpose, "property" generally does not include stock in the corporation or rights to acquire this stock. However, see DISTRIBUTIONS OF STOCK OR STOCK RIGHTS, later. A corporation generally does not recognize a gain or loss on the distributions covered by the rules in this section. However, see GAIN FROM PROPERTY DISTRIBUTIONS, later. AMOUNT DISTRIBUTED. The amount of a distribution is generally the amount of any money paid to the shareholder plus the fair market value (FMV) of any property transferred to the shareholder. However, this amount is reduced (but not below zero) by the following liabilities. * Any liability of the corporation the shareholder assumes in connection with the distribution. * Any liability to which the property is subject immediately before, and immediately after, the distribution. The FMV of any property distributed to a shareholder becomes the shareholder's basis in that property. GAIN FROM PROPERTY DISTRIBUTIONS. A corporation will recognize a gain on the distribution of property to a shareholder if the FMV of the property is more than its adjusted basis. This is generally the same treatment the corporation would receive if the property were sold. However, for this purpose, the FMV of the property is the greater of the following amounts. * The actual FMV. * The amount of any liabilities the shareholder assumed in connection with the distribution of the property. If the property was depreciable or amortizable, the corporation may have to treat all or part of the gain as ordinary income from depreciation recapture. For more information on depreciation recapture and the sale of business property, see Publication 544. Yes it is treated as sale.

"Apply for a Preparer Tax Identification Number (PTIN) only if you are a paid tax return preparer and you do not want to disclose your Social Security Number (SSN) on returns you prepare. If you use a PTIN, you will meet the requirement under IRC section 6109(a)(4) of furnishing your identifying number on returns you prepare. The PTIN cannot be used in place of the Employer Identification Number (EIN) of the tax preparation firm." IRS

"Ordinarily a check constitutes income to a cash basis taxpayer when he receives it. See Walter v. United States, 148 F.3d 1027, 1029 (8th Cir. 1998); Estate of Kamm v. Commissioner, 349 F.2d 953, 955 (3d Cir. 1965), affg. T.C. Memo. 1963-344; Kahler v. Commissioner, 18 T.C. 31 (1952)." Taxpayer did not receive check in 2007, and took no steps to avoid receipt of the check, therefore, under the taxpayer's cash method of accounting the cheeck is not included. Say a check is written on 12-31-xxxx and mailed to payee, is that income to a cash basis taxpayer. I think not. Assuming, the taxpayer had no control over the mailing of the check. However, if the taxpayer picks up the check, then the taxpayer has control of the check and it is reported as income it the same year. Hope this helps.

IRS VCSEP Rev. Proc. 2002-47 may cover what to do in this situation. I did not read it in completely.

Insolvent is the state of not being able to pay one's debts as they fall due, or having an excess of liabilities over assets. However, for federal income tax purposes only the excess of liabilities over assets test is used. (3) INSOLVENT For purposes of this section, the term "insolvent" means the excess of liabilities over the fair market value of assets. With respect to any discharge, whether or not the taxpayer is insolvent, and the amount by which the taxpayer is insolvent, shall be determined on the basis of the taxpayer's assets and liabilities immediately before the discharge. Section 108 jainen is correct.

Wow, so much to say. First, if there is no "issued" stock of the Corporation I would recommend that this situation be "fixed". How did the Corporation become an S Corporation without a Stockholder signing the S Election? Because, the stock is no par stock you would setup one account for common stock. This account would be what the shareholder "pays" for the common stock shares. If nothing is paid for the stock then the account would be zero. A "drawing account" on an S Corporation books is more correctly a called a distribution account or dividends paid. This account is an equity account and normally closed each year to retained earnings. You should look at the ordering rules for S Distributions, if, I remember correctly, the distributions are first charged against the current year profits. If you can narrow your questions some I am sure someone can answer them for you.

"Cancellation of debt income may not be taxable if the debtor is insolvent" Sounds like your client would have been insolvent at the time of foreclosure. Insolvent - unable to pay your bills at the time due.

Is this not the rule? "For 2005 and later years, a taxpayer can claim a qualifying relative (an individual other than a spouse or qualifying child) as a dependent only if all of the following tests are met: (1) the support test, (2) the relationship test, (3) the citizenship test, (4) the gross income test, and (5) the joint return test. "