Denne

I received a stack of paperwork from a client regarding his mother. She passed away in 2006, however a Trust was not formed until August of 2007. What I have been given in some paperwork that has her social security number on the income items and he has separated the business expenses into that catagory too. Then I have the income and expenses after the Trust was formed. His mother had a care home for her grandson and the family members and friends kept the home going until the grandson's death in 2007. I am not familiar with the handling of such a situation. Do I actually file a return for his mother two years after her death or do I put everything into the Trust? When I did the 1099 forms for the people that worked taking care of the grandson I was given the Federal ID number of the business that was already established. Should they be chanced to be under the Trust. Monies did seem to be mixed a bit, but just because no one seemed to quite know what they were supposed to be doing. Suggestions as to how to handle this?? Thanks......

Thanks for the replies. I realized after I sent the message that I hadn't mentioned there was a Note drawn up with the stiuplation of interest to be charged. That makes sense about the salary she never got too. She did keep track of each receipt and her mileage when she was doing things for her job, but I have to see if they got anything in writing about collecting that back from the employer. Thanks again!

I had a couple come in with a nice spreadsheet that included all the office supplies, unpaid wages and even a loan that they gave to her past employer. She was just trying to save her job and the prior employer has not paid her a dime back in two year. The emplolyer agreed to pay interest on the $15,000 loan and hasn't made a payment yet. she finally left there when she was not getting her paychecks....totaling $12,320.00. I would say they have given the past employer plenty of time to pay the wages and pay them back. What is the correct way to write off this loss? I need suggestions on this one....never heard of such a thing!

I know that I had the Client letters all set up and after doing the file, when I go out to print the returns the Client Letters are gone.... Sure don't know what I am doing wrong, but it is very annoying to have to keep going in and setting them all up again! Any suggestions??

My client invested $5000 in an LLC. The description on the paperwork refers to him as an Independent Affiliate. He received a letter from a local law firm that refers to him as a Charter Member and indicates that the law firm is winding up the affairs of the company at this time and is dated July 25, 2007. What is the proper treatment of this loss? My client has tried to contact the company and there hasn't been any response. He wrote a letter to the company asking for his money back and also wrote a letter to the law firm handling the matter and can not get a response as to whether there will be any settlement or not..... Thanks for your expertise!!

Thank so much. I will look for the worksheet!

My client came to me with something new to me.... The 1099A . She had told me the bank took back her rental property and I was really expecting a 1099C. She tells me a 1099C will not be issued. I don't know if that just means for this year of one will not be issued at all. The loan amount on the 1099A was $56,000 however the property Value is listed at $20,000. The bank did sell the property for the $20,000. She actually paid $65,000 for this property two to three years ago. Is she entitled to take a loss on the "Sale" of the property by the bank? It seems like that is what I am reading, but I am not sure how to make the proper calculations....could use some advise there too..... Thanks!

To complicate things further.....like we needed that.....the attorney had them pay the annual LlC fee to the state to keep the LLC going.... Not sure what they are all thinking here, but sure does make for a complicated return. Would there be a reason that the ramaining partner can't have everything transferred to a Schedule C....including the equipment etc until it is sold? One reason I was concerned about that is because he didn't have income for 2007..... Suggestions??

Thanks for your reply. I don't feel so all alone in not knowing the best way to handle this matter. Of course the remaining client is anxious to have me find a way for him to write off his full payments....since he owes some taxes from the withdrawal from his retirement account. Perhaps we will get some addtional views on this.

Thanks for the ideas..... I am still not sure how to best handle this matter. Perhaps as a Capital Loss. The remaining partner will be starting things up again under his own sole proprietorship. He is pretty burned by the partnership history here. He just hasn't had any income for 2007. He went to work for someone else and will be opening in a portion of their building on a part time basis. It makes sense that there can't be a partnership with only one remaining partner. I was just thinking about a Final K-1 form showing no distribution of income or loss to the long lost partner.... Thanks for your thoughts. Perhaps others will have some additional ideas too....

This court case is coming up soon and I just had an email that they need the tax returns next week.....not good news when I am not certain about things.....

Sure do understand. I seem to be in the same boat! My husband's sister passed away this week and we tried to spend as much time as possible with her and then the funeral too. My husband hurt his back and can't help in the office and is having eye surgery on Tuesday..... Quite a tax season so far and it sounds like you had had the same.... Best wishes for a smooth finish to your season ;~)

I have some real concerns about filing this final 1065. The first thing that seemed odd is that the "Final" box was check last year on the 1065. The two partners just couldn't get along and had already decided to close the business. Well....the remaining partner ended up with the equipment to pay off and did that this year. The equipment that they each brought into the business was just returned to both of them. The remaining partner paid for any bills that came up...out of his own pocket. The wife the that partner works for attorneys and they have told her that the 1065 must still be filed this year due to the fact that they were still paying for expenses. I am not sure if there is also a reason to keep it open for legal reasons since the remaining partner is suing the partner that abandoned the business. The remaining partner ended up paying off the $50,000 in debts out of his retirement account. I have done the 1065 and show only the remaining partner as an active individual and given him credit for the expenses he paid and let the depreciation carry forward on the equipment etc. since they just recently divided up their own equipment. Is there anything else that I should be concerned about? This is a first for me doing this... Thank You for your tips and tricks!

He hasn't paid me a dime. He didn't work in Michigan and doesn't want to file this tax return. All I have had from him is a lack of cooperation with anything. I felt my services were already paid for and done, but then he refuses to sign the return so she can get her part of the money taken out of her paychecks. I would love to just withdraw and let her settle things in court. That might just be what will happen. I guess the lawyers will eat up the refund that way however.... What a mess....that I don't have time or energy for at this point.

She did sign the Federal return, since at that time she was in hopes of them staying together.

I forgot to add.... All of the income came from her earnings. His business showed a loss..... She should be able to get her taxes refunded....I hope just to her!

I have a 2006 return for Michigan that is still not filed. The couple is divorcing and he lived in Indiana and she lived in Michigan, but tje husband prepared and filed the return as a joint return. He also filed the Indiana return, but refused to file the Michigan return. He said the address on the Michigan return MUST be his address since that is where the Federal and Indiana return were filed. He refuses to sign the return. There is a Michigan refund of several hundred dollars and the wife has lost her job and would like the refund. I also see where I made a small error in the allocation and need to prepare the return correctly. Personally....I am so tired of the wife calling and emailing me several times a day trying to figure out how to handle this. She has already paid me to prepare the Michigan return and seems to think I can make her husband become cooperative....ya right! How would you handle this couple or at least get that Michigan return filed..... Thanks!

This is a new client for me. The two members of the LLC could not work out their differences. They decided to dissolve the LlC and filed a final return in 2006. There was more than $100,000.00 in oustanding loans in my clients name (since the other member didn't have good credit.) He took the $100,000.00 out if his retirement account to pay off the loans and has also sold some of the equipment that is remaining in his possession. He ended up paying several thousand in interest and also the fees for last year's tax returns. There was no income for 2007 although he will be starting up a little side business at some point this year or next. How would you handle the expenses he is paying for? The other member is not paying for anything so he has really been stuck and having to pay to keep his good credit. What a mess, huh? Sounds like a lesson was learned here ;~) Thanks for your assistance......

I took a few minutes to go outside to see what the Lunar Eclipse looked like. It was really very interesting and happened very gradually. It was a neat break every 15 to 20 minutes to see what stage it was in. I didn't have the time to leave the computer to look, but did it anyway! I sure am glad I did. It wasn't the distinct red color I thought it would be, but more of a dusty rose. I hope some of you got a chance to see it too. I also hope you didn't have to stand out in the cold like it is here tonight....in the teens or less ;~(

Sure enough.....it wasn't the W-2 that I was looking and and there was a space before the zip code! Thanks....it went right thru after I fixed things.

Thanks for the confirmation of my feelings, KC and Chrisbry. I thought I was right, but apparently the salesman did a pretty good job of convincing them... Thanks again!

I just had a client leave and they asked if their new Corn Burner qualified for an EC. I haven't found it in the listing yet, but the salesman....sound familiar....told them they had a credit coming. I can't find what the credit would be, if they are correct. Thanks.......

My client lost his job due to his disability. He was also unable to draw unemployment due to the fact they considered him unemployable. He did draw from his retirement funds in order to pay his living expenses. He was awarded Social Security Disability toward the end of last year. He did not inform the company of his disability status when he drew the first two times, but did the last time....so.....his 1099R's for the first two times are showing the income as subject to early withdraway penalties. Should the 1099's be changed or is there another way to still file his taxes without the penalties and still efile? Thanks for your suggestions and knowledge.....

Still wondering if anyone has something else for me to try.....

Thanks, Jack. I did that and still get the same error message. Good suggestion, but not the problem this time...darn it!