Booger

Good morning, everybody. I know how good Medlin's Payroll System is, but is anybody using their G/L, A/P and

A/R modules?

Any feedback would be appreciated.

>>Where did you get the "idea" that the client's numbers were unsupported?<<

I got that idea from your statement, "I was just going to prepare a balance sheet." From that I jumped to the idea that the tax return had already been filed before the balance sheet was prepared. In my practice, "supported" and "documented" have similar meanings.

I did have the assets & liabilities of the client documented/supported when the return was filed. All I was asking in my original post was whether the IRS had a specific type of balance sheet FORMAT required.

>>get some work done<<

Please let us know if IRS is satisfied with the worksheet, or wants specific proof like bank statements and appraisals. Hmmm, for that matter, let us know if YOU are satisfied with the client's unsupported numbers!

Where did you get the "idea" that the client's numbers were unsupported?

Quite a jump, don't you think?

>>Is there a specific "format" for the balance sheet that the IRS wants to see to prove insolvency?<<

According to the instructions to the form you say was used, "For details and a worksheet to help calculate insolvency, see Pub. 4681."

Thanks, jainen. Couldn't sleep, so I thought I'd get some work done.

I'm responding to an IRS Notice for a client who had debt cancelled in 2008. Form 982 was attached to the 2008 Form 1040.

Is there a specific "format" for the balance sheet that the IRS wants to see to prove insolvency? I was just going to prepare

a balance sheet and, with a cover letter, (along with a copy of the IRS Notice) send the response back to the IRS.

Margaret, I tried my best whining and pleading voice, but to no avail.

Would not budge on the 10%.

Bob, you're right. Those of us who didn't jump ship last year to TRX are only getting a 10% discount, not

the 40% that the TRX people are getting.

Doesn't seem fair, does it?

OH WELL

Depressed Booger

George, I realize that this doesn't help you now, but version 11 (which I use) works great.

Any way for you to get that version?

Booger

Thanks for your responses. The client would not be personally involved with the farm operation.

Jainen, thanks for the pledging of IRA assets reminder.

Morning, everybody. Client wants his IRA Account to invest in farm land. This land may or may not be

encumbered with a mortgage. Doing the research, I don't see a reason why the IRA cannot hold real estate

whether or not debt is involved. However, my question is how to structure this so that it is considered

a "rollover" from one qualified account to another.

Any suggestions?

Booger

I am trying out the TRX 2009 Tax Works program. The new motor vehicle sales tax is shown as an addition to Federal Taxable Income on Line 36 of the SC return. The ATX program does not show this add-back. Which program is correct?

Check out the SC instructions.......should tell you how that state handles the sales tax on new vehicles.

Booger

I'm going to add my 2 cents. If a non-client has a simple tax question, I don't mind answering it even though

I'm not making any money doing so. It's called "professionalism" in my book. I guess some people on this board

would like to charge $$$ if someone asks them for directions to the store down the block.

Booger

This year I have only 5 on extension, compared to about 20 in prior years.

Tax season went fairly smooth for me, which is unusual (however, the day isn't

over yet).

Booger

Mrs. Booger and I will be renting a cabin between Gatlinburg and Pigeon Forge, TN for tomorrow through Sunday.

Gotta get "reacquainted" with the Missus (sorry, Catherine).

Booger

Good morning, everybody. I had 2-3 clients qualifying in 2008 for the initial $7,500 FTHB credit.

I seem to remember reading on the IRS website that these people can file an amended return and bump

up the credit $500, which would also eliminate the need to repay the $7,500 starting on the 2010 1040.

Does anybody know if this is correct?

Thanks for your responses.

Booger

>>I THINK under both the following scenarios neither would qualify <<

I agree with your thinking.

Thanks, Old Jack. The one that's a little perplexing is #2. The ex-wife did not have any ownership interest

in the home which she and her ex shared. However, the scenarios outlined under the IRS website state that

ownership is imputed to both spouses. The d*a*m*n real estate agent told her she qualified....now I have

to tell her the truth.

Bad Guy Booger

Hello, everyone. I THINK under both the following scenarios neither would qualify for either the first-time

buyer or the long-term credit. Please let me know what you think.

1. On the joint return, the MAGI is high enough to preclude the couple qualifying for the long-term credit.

If filing status is MFS, then one spouse would qualify. Can the spouse take the long-term credit if filing

separately?

2. Married couple divorced in 2008, and one spouse bought a new home in March, 2009. Can she take the FTHB

credit?

Thanks for the input.

Booger

Costa Rica, anyone?

Senor Booger

>>Where is the deduction for the miles reported?<<

In my opinion, based on, well, everything, mileage is only deductible by self-employed individuals and employees. A partnership must use actual expenses, and in my opinion a partner would generally use actual expenses, especially if they are using the partnership to dodge SE taxes.

The net income allocated to both partners is considered self-employment income (subject to SE tax on the

partner's 1040's). Therefore, business mileage can be reported as UPE.

Booger

Thanks, Mike.

Booger

Hope someone could help refresh my memory. 2 general partners in a partnership use their personal vehicles for partnership business. They both want to claim business miles driven. The partnership does not reimburse for business expenses paid directly by the 2 partners. Where is the deduction for the miles reported?

Booger

Morning, everybody. Have a PA client that received union strike benefits of $1,000 in 2009.

This benefit was reported to him on a 1099-MISC, Box 3. I know that these benefits are reported

on the 1040 as compensation, but my first question is where, Line 7 or Line 21? If Line 7, how

do I link the 1099-MISC to report the $1,000 on Line 7?

Second question. If these benefits are considered compensation, are they subject to SE Tax?

Booger

Is this one of those cases where you want to use your name, self-employed, and SS#, OR company name and FEIN, but not a mix of company with SS# ??

Here's what ATX Help said (and it worked). I had to go into Preparer Manager and uncheck the Preparer

Box, but leave the ERO box checked. Then, on the 1120/1120S E-File Info Sheet, the ERO info was populated

(with the Paid Preparer Box checked), and the Paid Preparer info was blank.

The E-file was created....still waiting for the acknowledgement.

Booger

PS Thanks for your responses.

Morning, everybody. I've been e-filing individual returns for quite some time. This is the first year that

I'm attempting to e-file my corporate & partnership client returns. Here is what I'm running into, and I hope

that someone could offer some assistance.

Do I have to have an EIN? The error that I'm getting when attempting to create the e-file of an 1120S is:

1120/1120S EF Info Error--Error: If either the Preparer's Firm Name or EIN is entered, both must be entered

or both must be blank. NOTE: If Paid Preparer is also the ERO, enter the EIN from the Preparer Manager by

selecting the Preparer tab.

Also, the ERO portion of the 1120/1120S EF Info form is not being filled in (it IS when I prepare to e-file

individual returns). Is this also because I do not have an EIN? If the "fix" for this problem is to simply

file the SS-4 and have an EIN assigned to me, so be it.

Thanks in advance.

Booger

Thanks for your input. My correspondence usually DOES happen at least a year and a half down the road.

Booger