RoyDaleOne

http://www.taxschool.illinois.edu/products.html I recommend the book on LLC. It has very good examples, using complete financials, to show what should be happen and the reasons for what is happening.

In the IRS instructions require a supplemental schedule to any K-1 to report to a member any items which are necessary information so that member can properly prepare that member's return. This includes any item that maybe treated differently in that member's return. Items so reported basally would not included elsewhere in the partnership return. Consideration of this instruction may be appropriate for this situation.

Actual expenses, the nature of which is in the form of freight. However, the accounting methods for the treatment of certain expenses can vary depending upon the sales volume, and elections. Sales > 10M Sales > 1M and < 10M Sales <1M 263A rules, or not Inventory elections Good luck.

This is just my opinion, "because of the programming tools used in programming ATX it would require a different programming approach to overcome some of the lag in ATX." I am agreeing taxit comments, same experience. Yes, I have a lag when trying to print the complete return, not in the printing part but in the preparatory part.

I would suggest more RAM 2 to 3 gigs or 4 gigs if going to Windows 7. After loading the software and the return I have not had a speed problem. I would guess I notice the speed thing in loading the ATX program, loading a tax return, and when I exit the program. If you are running over a network that also slows done the operations. I am running a 1 gigabit LAN to speed things up. Increased buffering of the hard disk and a faster hard disk would also speed things up. However, any buffering or latency in the write side of the operations increases the exposure to the effects of a power failure.

I guess because the partner's participation determines if the activity is passive or non-passive as to that partner. In addition, the activity may have different income tax treatment for different partners

That button thing from about, how about a feature to say, as an example, a button to link to a canned answer, or a button to insert a canned answer, or a button to link to a previous answer. As an example 1. Qualified child test for dependency answer 2. Qualified relative test fro dependency answer 3. Head of household requirements answer Just a random electrical impulse in my head.

Are losses limited because activity is passive? Generally, long-term equipment rentals are passive, and losses (from Schedule C, E, F1065s or S Corporations) are not deductible unless taxpayer has passive income from another activity. An equipment lease of greater than seven days is generally passive. Whether or not the taxpayer materially participates is irrelevant. The IRC § 469©(2)&(4). Passive equipment rentals go on FORM 8582 and cannot be deducted in the absence of passive income. With short-term rentals, the activity is treated like a business and taxpayer must materially participate to deduct losses. See Reg. § 1.469-1T(e)(3)(ii) for exceptions to the rental definition. http://www.irs.gov/businesses/small/articl...=146830,00.html http://www.irs.gov/businesses/small/articl...=146318,00.html Personal property. Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C or C-EZ if you are in the business of renting personal property. You are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity. Please, notice the "continuity and regularity" requirement, if this test is failed, I don't know where the activity is entered. Heck, I don't the requirements of the test. lol However, let me make this clear, I agree that Schedule C is the the correct choice almost every time. However, what I was really trying to do is to make two comments. 1. Even on Schedule C it still maybe a passive activity. 2. Rentals entered on Schedule C are not necessarily subject to self-employment taxes. I am glad I was corrected, when I failed to make a complete comment.

It may go on Schedule E, the renting of equipment does not necessarily go on Schedule C. It may be non-passive rental activity.

Do you know if an Section 108 exception applies?

Form 2119 from 1991, I am sure your client was instructed to keep that record forever.

Working from memory, I believe the personal representative is instructed to file any gift tax returns that should have been filed. I would guess that some of the unified credit will be used on the gift tax return.

1. There may not have been any debt forgiveness. 2. Has the client ask for the interest, fees, expenses, etc. from the receiver.?

What are the terms of the receivership? Was the receiver to give credit to your client for rents collected, or only use the rents for the benefit of your client? Were the rents applied to the loan on the property. Your client may or may not have a gain or loss on the sale of the property which may or may not have a tax effect, depending upon your client's tax circumstances.

I would be in favor of a plan that requires all taxpayers to use regulated preparers. Say every taxpayer receives a print out of the reported items and facts on file with the IRS, if the taxpayer agrees, check the box and it is over. Otherwise, the taxpayer uses a regulated preparer to file the tax return. The regulated preparer would be required to maintain all the necessary documentation for the preparation of the return. In such a system, the IRS could "audit" a preparer per se, and search for non-filers, thereby, reducing the necessity of such a large IRS workforce. This would reduce the size of the IRS by a factor of X. Compliance should increase by a factor of Y. Collections, at least initially, should go up by a factor of Q. I know the idea needs to be flushed out. Most likely this will not happen.

Pub 525 "Private unemployment fund. Unemployment benefit payments from a private fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Report the taxable amount on line 21 of Form 1040." ------------------------------------------------ My comments----- Use the cost recovery method to determine the amount reportable as income. Is only the excess of payments over contributions report on the 1099?

Goto Asset Entry The tab Global Settings (Mine is at the bottom of the screen) The last choice on the screen

It is a "business ordinary loss."

Most likely a cash basis taxpayer, therefore, the deductions are deductible in the year paid. Sad, but that is all there is to it.

Ok, no problem, it must be a case of semantics, "Investment expenses are deductible expenses, other than interest, directly connected with the production of investment income. Code Section 163(d)(4)©. If depreciation or depletion deductions are allowed with respect to assets that produce investment income, investment expense must be determined using the actual depreciation or depletion deductions allowable." Staff on the Joint Committee on Taxation, General Explanation of the Tax Reform Act 1986, at 265 Regs Sec 1.280F-6 "(3) BUSINESS/INVESTMENT USE-- (i) IN GENERAL. The term "business/investment use" means the total business or investment use of listed property that may be taken into account for purposes of computing (without regard to section 280F() the percentage of cost recovery deduction for a passenger automobile or other listed property for the taxable year. I guess.

My original comment was that under the regulations for 263 you could expense the new roof...... if during the recovery period.

Investment expenses (which can not include depreciation) does this mean investment property can not be depreciated? See the instructions to Form 4562 Page 1.

PapaJoe, I love to learn new things, or me too. And, the many times I am wrong is alright too, because I am learning. Thanks...

See Field Service Advice 200001005 September 10, 1999 See Field Service Advice 200141026 July 11, 2001 "The abandonment or retirement of a structural component of a building does not constitute a disposition. Accordingly, no loss deduction is allowed on the retirement of such property. The taxpayers continues to recovery the cost of such property through, .."depreciation"... deductions" See also Prop. Reg. 1.168-2(1)(1) and 1.168-6 provide no disposition on retirement.

Papa Joe, unfortunately it is possible that you can not write off the remaining roof "adjusted basis" as an expense.