ILLMAS

Have you considered letting the CPA deal with it?

Hello All, I am getting a database error, and technical support is closed for the day, does anybody know how to fix this? Thanks Marco

Next year during tax season probably.

Disney World for me in the next days :)

Just wondering if someone might have a sample letter that I can use as a basis to prepare a letter for my client. Client was going to through a foreclosure and bankruptcy and forgot to mail the return and form 2553 on a timely manner.

I just installed one for one of my clients last week, tested it and didn't like the software the scanner comes with, it's very poor. I also needed a scanner for my office and went ahead and bought the Fujitisu Scansnap s1500 and Rack2-Filer software, I am currently installing it right now. Both scanner do the same thing, scan duplex, scan multi-size papers at once, in color, business cards, receipts etc.... However Rack2-Filer is a virtual filing cabinet, Neatdesk doesn't offer that , check out the demo for Rack2-Filer: http://www.fujitsu.com/downloads/COMP/fcpa/scanners/videos/rack2-filer-L/contents/index.html If you decide to buy the Scansnap s1500, make sure you buy the model that comes with Rack2-Filer software or you can simply buy the software only.

Illinois charges an annual report fee for LLC, corporations and partnerships, the fee is not related to the company's income, only corporation pay based on the paid-in-capital contributions. The fee is to maintain the company active and in good standing, and most importantly to keep exclusivity of the company’s name, usually the state of IL checks to see if the corporation is active during an audit and also banks request a certificate of good standing if you want to open an account. I presume most states work the same and if you don't pay, someone else can take over your company name if it's not trade marked.

Hello one of my client recieved an IRS notice that reads: Form CIV PEN Tax Period Jan. 31, 2003 I have never seen a form like this, just wonder what does CIV PEN mean? Cival Penatly is what I am thinking. Thanks MAS

TP bought a property using their IRA account, however in this case the IRA is the owner of the property and not the TP. TP was telling me that the amount they collect for rent goes straight to repay the IRA, however they are on the hook for expenses. Has anybody else ever counter a case like this that can guide as how to treat the property (Sch E) or is there a special form that needs to be prepared. Thanks MAS

Is anyone else going to be working on their own tax return this week? Hopefully I am not the only one

Have you tried restarting the botht he computer and printer?

Again thank you. MAS

Question for Jainen, ok verified with TP and no FMV was used, sale price was based on actual cost which was around 900K at the time of the sale (sales price 300K or 1/3), the rear house/land was excluded which makes things easier now. Now for example, the relative is now 1/3 owner of the land, 1/3 owner of the 1st fl and 1/3 of the 2nd, and as more money is put in to finish up the 2nd fl., 1/3 or 33% will decrease because the relative is not going to be putting any more money in, only the TP. Also, since actual cost was being used and the land, construction in progress was not being depreciated, then there was no gain? The sale happened a couple of months before the 1st was put in service. Now the relative would have to show on their tax return 1/3 of non depre. land and 1/3 of the 1st fl? TP and relative won't show the 2nd fl until it's placed in service correct? There is were I am a bit confused, since the 2nd floor is not finished yet, how do I account for both if it hasn't been put in service? Thanks

Thanks Jainen, you have directed me in the right direction, I am going to create a spreadsheet to further analysis it. You brought up some good points that I need to address the TP. MAS

I need to setup a building (fixed asset) that has been partially completed and placed in service in 2010, and want to see if this would be the correct way of setting up in ATX. Scenario Land Cost $100K Construction Cost $800K and more needed to complete the 2nd floor Since I know what the land cost, I am allocating $100K for the cost of land, non-depreciation, now for the 1st floor, the TP believes that about 65% of the construction cost should be allocated toward the 1st floor. So I would capitalize $520K and depreciate over 39yrs since it's commercial space. Would it be ideal to leave out the 2nd floor information for ATX until it's finished and placed in service? Lets call this part II So we know the TP paid $100K for the land, $800K so far in construction and he also bought a house which he is renting, to eventualy knock down and to build a parking lot for the commercial and residential units once everything is completed. Land 100K Construction 800K Rear house 200K Total 1.1M TP then sells part of the investment for 300K to a relative (Beneficial Interest), for example, he now owns about 73% and the relative owns about 27%, my question is how would I account for this sale in ATX? The rear house already appears on Sch E as a rental property since it has been rented for the last 8 yrs, would it make sense just to post the sale towards the completed part of the project, for example, just take 300K out of the 1st floor against the sales price of 300K which would be a wash??? Any advice would greatly be appreciated. Thanks MAS

Only if you knew what I am personally going through right now to buy a property, just to give you an idea how bad things are, I had to have an indepent CPA review my tax returns that I prepared myself for the last two years. I've been preparing my own tax returns for the last 16 years :)

Carbonite automatically picks up the most common files word, excel, powerpoint etc.... But if you right click on a folder and find Carbonite, then you will see something like backup up this file, once it's backed up you will see a green dot next to the folder, if you see an orange dot, that means there were some files it did not backup which are usually program files. To access your backed up files in Carbonite, there should be a green lock with a happy face on the lower right hand side of the screen, if you double click it you will see Infocenter... then go to restore and the click on browse my online backup drive, a box will appear and just look for C:\program file\ATX20XX\backup\ then select the folder to restore. If you computer doesn't show the green lock, go to programs and look for Carbonite ->Infocenter

Just checked my machine and carbonite does make backups of the ATX folder, I remember selecting them to be backed up manually.

Then this should be your path: C:\program files\ATX20XX\Backup\ If you go to start, then run and type C:\program files\ATX2010\Backup\ This will open the 2010 backup folder, then you'll see if there is any files in there, to search for other years just type 2007, 2008, etc......

Look for this path: C:\program files\ATX2010\Backup\ it might different on your computer if you are using Windows 7 the path is the same for all the years. MAS

I use carbonite and I will check to see if it backups ATX files, will let you know. I know sometimes you need to select a folder you want backed up, so if that folder wasn't select then it won't back it up. FYI I have an external HD and export 2007, 2008, 2009 & 2010 files to separate folders in the HD, I do this very couple of months.

I just received an email from Fast Forward Academy regarding the release of the specifications for the competency test, I think it's more of a spam email to buy their product, anyway here is what I found from the IRS website related to "RTRP" (please add as a tag): Test Specification http://www.irs.gov/pub/irs-utl/rtrptestspecificationsaugust2011.pdf http://www.irs.gov/taxpros/article/0,,id=243833,00.html And here is something that surprised me, it seems CPA, EA and attorney will not be required continuing education, see below: http://www.irs.gov/taxpros/article/0,,id=243833,00.html MAS

Here is an idea from another forum I participate in: There is a cost associated in running a website we (the members) don't see, Erc has done a great job running this website and I wanted to suggest to Erc to create a sticky to allow members to donate $5, $10, $15 etc... to help maintain this website. Once a member makes a donation, they get a banner under their profile to show they are a site supporter. You can write off the expense as a membership or subscription (check with your tax preparer jk). Does anyone else agree with this to help out Erc? MAS

Blame the accountant, anyone ever heard that phrase before? LOL

There is a chance you will lose this client, I have dealt with clients like this before. Their story changes from collecting rent to borrowing money or using money from savings, but at the end we are not auditing their information, that's the IRS job. But now that you know he collecting rent set it up on Sch E, capitalize % use for business and deduct expenses related to the business use, it will probably be a wash.