Booger

Client builds cabins and rents them out (SHORT TERM) to the public. He actually bought around 300 acres

and is building the cabins on this site. He formed a LLC with his son. His first year of operations

is 2008. Do I use the 39 year commercial property life or do I use the 27.5 year residential

rental life for the cabins?

As far as the actual business activity is concerned, we will be filing a 1065. Since this is a business,

I'm planning on reporting the rental income and related expenses on Page 1 of the 1065, instead

of reporting the income and expenses on Form 8825. Client has employees at the site working in

the rental office and also maintenance people on the payroll.

Should the income/expense activity be reported directly on Form 1065, or does Form 8825 have to be

used?

Thanks in advance for your input.

They buy the program in large 'lots', at wholesale price, basically. Remember, CCH [in fact all software companies] have a fixed cost to develop a program, but selling extra copies does not significantly increase their costs. The main cost that they have, for extra copies, is the support function.

So they sell the program themselves, at retail prices, with full support. They also sell to the TRX at wholesale, with all the features, but no support. TRX provides the support for those users. This costs CCH little to do, brings in extra income, and also, to some extent, feeds them new customers, they hope, when some of those new users move up to their premium products. Plus it allows them to attract the low-end user market, without having to appear to cut their prices. TRX can sell it cheaper because they buy it cheaper. But the 'marginal cost' for CCH of these extra copies is basically the cost to print an extra CD.

It's similar to GM or Ford selling to Avis or another rental chain at a significant discount over what they sell through dealers. They want to get their cars into the rental market, so that renters will try out their cars and hopefully decide that they like the model enough to change to it the next time they buy a new car. And they can take a lower profit per car, because they don't have to pay commissions on the sale, and don't have as much cost in processing one big sale over processing many single sales.

Thanks, KC....now it makes sense.

Enlightened Booger

After reading all of the posts under the TRX portion of the forum, I still don't

understand HOW TRX can sell the same software for hundreds less?

Would someone please explain?

Perplexed Booger

You have my thanks as well for your contributions to this board.

Grateful Booger

Thanks, Lion. Knew that you used ProSeries FX (based upon your posts during tax season).

Was hoping you'd chime in.....THANKS!

Booger

Thanks for your input. Will request the demo program and play around with it.

P.S. Catherine, I won't be leaving this forum. (How could I LEAVE you????)

You're RIGHT, Zeke.

What was I thinking????

I'm thinking about "upgrading" from ATX to Pro-series. I do about 400 returns/year (75% individuals, 25%

businesses). I would like to hear your opinions about spending the extra $$....are the "bells and whistles"

of Pro-series really worth it?

I would like to add my "2 cents" also. Thanks to everyone that contributes

to this board. It's been a big help during this tax season.

Grateful Booger

Catherine, my love for you will not diminish just because tax season is nearly

over. I will probably have some questions to post on this board regarding the

extensions I'm responsible for.

Tired (but STILL amorous) Booger

It's an extension of time to FILE, not an extension of time to PAY.

There was a server reset yesterday. It generally resolves itself in a few minutes.

When I was single, I dated a woman named Sasha.....NICE LEGS.

Nostalgic Booger

Depending on the amount owed by the client, I make

sure that I get my fee FIRST. Seriously, it's been my experience that

most people are aware of what they are going to owe.

I just tell them "it is what it is".

Other than making sure my DCN beginning number is set to

a higher number than the other PC, is there anything else that

I need to do in order to E-File returns from the second PC?

They are not networked.

Client finally got back to me re the timeshare issue. Claims that his initial loan was "about $13,000".

Only made a couple of payments on it before he walked away. The $11,800 looks right as far as

the amount of debt forgiven.

You're so right about shooting...you compete against yourself and (hopefully) just

get better. My wife got me into it initially; maybe someday I'll be as good as her.

Where we live we have enough acreage to target practice there.

Rifle season starts in April -- first match is Saturday the 25th. I'll see if I can dig up a picture of me on the line from last year. Got it -- I'm the one with the green jacket sort of in the right/middle. Don't think anyone would be interested in a picture of dirt from my garden, though!

Catherine

Catherine, what kind/type of rifle is that? I tend to stick with .22's; also have tried Skeet Shooting. Remember when

I first tried Skeet....my right shoulder was sore for about a week!

Not really. What I do is a spreadsheet (EXCEL) that I give

to my clients each year.

Never mind....since all funds distributed were used to pay college expenses,

then the earnings are non-taxable.

Sorry for the stupid question.

Client received a 1099-Q with $124.68 in the earnings box.

All of the funds were used to pay higher education expenses.

Does the $124.68 get reported on Line 21 of the 1040 as

"Other Income"?

Haven't talked yet to this client.....what does "bump" mean???

OK, zeke, 2007 deduction. Will use the 2008 sales price as FMV.

Sorry for making a simple issue complicated.

Lion, I believe that in the scenario that I described above it is a 2008

deduction, since the value of the auto wasn't established until sold by

Goodwill.

Anybody else want to add their opinion?

When you donate a vehicle, does title transfer on the date donated, or

when the vehicle gets sold by Goodwill?

Taxpayer contributed auto on 12/31/07, but Goodwill didn't sell the vehicle until

01/15/08. Is this a 2007 charitable contribution, or a 2008 one??

I believe that it is a 2007 deduction, since taxpayer donated the vehicle on

12/31/07. However, the FMV of the auto wasn't established until 2008.

Any help would be appreciated.