ILLMAS

Found it, http://www.visualwebcaster.com/IRS/68828/reg.asp?id=68828 I am off to see client, so won't have time to view. MAS

"Note however that any costs or interest payable to or on behalf of the brother would not be deductible as rental expenses, because the loan proceeds were used elsewhere." Thanks Jainen, if understand the the above, any payment made by the brother will not be deductible on the partnership return correct? At this point, the TP is making all payments related to the property sold (including the mortgage), the brother doesn't pay for anything. Something else that has me concern is the depreciation expenses, who gets to deducts it???

Thanks everyone, this sure looks like a sham, I guess the TP was thinking it was going to be treated as it was a refinance. I contacted an associated of mine, he mention having the brother coming in as a partner in the business, and the amount he didn't finance, to put down as a capital contribution, and of course putting all this down in writing or going through an attorney draft something up.

TP had a bought a house back in 2008 cash, renovated the house, his total cost was 100K (cost of home + improvements), he wanted to refiance it however no bank wanted to help him, so he sold it to a brother for 95K in order to take out money. Basically he just sold it to the brother in order to get money to finance other projects, he still contines to collect rent, pays the mortgage and other expenses. I don't know if this would cause a red flag, sells the home and contines to report it as if it was his???? FYI there is a sales contract. Thanks MAS

Hello I have a TP that has varios rental properties that I report on form 8825, however in 2009 they had expenses not related to the properties (office supplies, telephone, meals etc...) not necessarly linked to a spescific property. So I just wanted to make sure it was okay to report those expenses on page 1 of the 1065, even though there was no revenue to offset those expenses. Thanks

+1 Quickbooks, I don't remember the DOS version, but I've been using QB since 95/96 and before that it was One-Write-Plus which was DOS based. If your clients cannot afford it, have them use excel, create a template and train them how to enter the data, like that at the end of the year you can focus on the tax return preparation. MAS

From the Chicago Tribune: Sentence for tax cheat: Provide free prom dresses May 19, 2010 8:28 AM | 4 Comments | UPDATED STORY A bridal shop owner has been ordered to play fairy godmother to hundreds of teenage girls as restitution for cheating on his company's sales tax returns. Dale Buziecki, 64, president and owner of House of Brides Inc., pleaded guilty Monday in Cook County to filing fraudulent sales tax returns for his stores in Glen Ellyn, Norridge, Schaumburg, Oak Lawn and Chicago. As part of his punishment, the Wheaton man was ordered to donate 500 formal dresses a year for the next three years to the Glass Slipper Project, a nonprofit that collects and distributes prom outfits for Chicago-area high school students who can't afford them. "The state will recover the sales tax owed and, through the required community service, many young women who want to attend their high school prom will have that opportunity," Illinois Attorney General Lisa Madigan said in a written statement. Criminal investigators with the Illinois Department of Revenue estimate that the tax scofflaw overstated deductions and underreported more than $5 million in sales from November 2005 through June 2006. Buziecki could not be reached for comment. The court also ordered him to serve 30 months probation, pay a roughly $280,000 fine and perform 250 hours of community service. Duh!!! My wife got her wedding dress from this joint, that I paid for. LOL

>>I will answer my own question<< Wasn't your question about bringing money into the country, rather than about selling property? Well I thought it was a simple process of just declaring the money brought in to US with the US Customs, but after speaking to a retired IRS agent, he was telling me since she is a U.S. resident, the sale of the property has to be declared also in the U.S. (Sch D or Sch E + 4797, depending on the us in the forgien country), therefore paying and tax due. By declaring the sale, she can bring in the money and pay the tax, then invest on how she pleases. Any thoughts?

agree 100%, I notified TP about this and for him to consult with his agent.

WOW I was not aware, thanks for sharing. MAS

I use Quickbooks, the newer verions allows to you email invoices and statements to your clients. I highly recommend it, simple to use and simple to maintain (unless clients don't pay you LOL).

TP owes 13K, he has has a business but is not on the payroll because he is just able to cover the operating expenses, he has a rental property (worth $250K) that is paid off and has another on a short salen (worth 150K). Also, TP had an installment agreement back in 2008, but stopped making payments after the 1st one. From your experience, will the IRS accept an OIC for this TP?

I will answer my own question, after doing some research, the sale of foreign property and the TP is a US residence, then it treated exactly if the sale occurred in the US. TP gets credit for foreign taxes paid.

TP is going to sell property and land in another country and she wants to bring in the profit of sale into the U.S. to invest. Is there a form I will need to prepare to declare the money she brings in?

Tom: There this online service called Gotomeetings, you can send invites to selected individuals, chat online, have a conference call via telephone or internet (requires mic and speakers).

I think it's a great idea for socializing, but not for tax purpose. Usually chat rooms work for people that are online all day long, and I think most of us have work to do during the day and peek in here every so often. I participate in a motorcycle forum, they setup a chat room, but discontiued it because of lack of use :)

TP has a tax lien, he has a investment property going on a short sale, TP wants for the IRS to take the money owed to them from the property if it sell. Will this happen once the property sells, I am afraid the bank will even lose more money + add on more taxes due from TP. Your thoughts. FYI TP has no money to pay.

I processed a couple of returns last week, to this day the status has not changed, is someone else having this problem? If yes how do you correct it? Thanks

I have used Symantec antivirus for the last 10 years on my work stations. I would recommend going with the corporate edition now called endpoint, you schedule scans (daily, weekly etc....) and it does everything in the background, no need to do updates or annoying reminders, it does everything. I've been pretty happy with, but it's not cheap, I bought a 5 license and only have installed it in 3 pc. On my Windows 7 at home, I am using Kaspersky, unfortunetly I was not able to use my avaialable license because it's not compatable with Vista and Windows 7. I really don't like Kaspersky, but I needed protection.

There was a radiator shop around the corner of where I grew up and this was their slogan: "Best place in town to take a leak" This Chicago Radiator Shop really knows their customers!

Sign over a Gynecologist's Office: "Dr. Jones, at your cervix." In a Podiatrist's office: "Time wounds all heels." On a Septic Tank Truck in Oregon: Yesterdays' Meals on Wheels On a Septic Tank Truck sign: "We're #1 in the #2 business." At a Proctologist's door "To expedite your visit please back in." On a Plumber's truck: "We repair what your husband fixed." On a Plumber's truck: "Don't sleep with a drip. Call your plumber." Pizza Shop Slogan: "7 days without pizza makes one weak." At a Tire Shop in Milwaukee: "Invite us to your next blowout." On a Plastic Surgeon's Office door: "Hello. Can we pick your nose?" At a Towing Company: "We don't charge an arm and a leg. We want tows." On an Electrician's truck: "Let us remove your shorts." In a Non-smoking Area: "If we see smoke, we will assume you are on fire and take appropriate action." On a Maternity Room door: "Push. Push. Push." At an Optometrist's Office: If you don't see what you're looking for, you've come to the right place." On a Taxidermist's window: "We really know our stuff" On a Fence: "Salesmen welcome! Dog food is expensive." At a Car Dealership: "The best way to get back on your feet - miss a car payment." Outside a Muffler Shop: "No appointment necessary. We hear you coming." In a Veterinarian's waiting room: "Be back in 5 minutes . . . Sit! . . . Stay!" At the Electric Company: "We would be "de-lighted" if you send in your payment. However, if you don't, you will be." In a Restaurant window: "Don't stand there and be hungry, Come on in and get fed up." In the front yard of a Funeral Home: "Drive carefully. We'll wait." At a Propane Filling Station, "Thank heaven for little grills." And don't forget the sign at a Chicago Radiator Shop: "Best place in town to take a leak." "Wonderful bargains for men with 16 and 17 necks." Signs In a clothing store "Our best is none too good." On a sign on a delicatessen wall: "Persons are prohibited from picking flowers from any but their own graves." On a sign in a Pennsylvania cemetary "Shaky Grounds" Seen on a San Francisco Bay Area coffee shop "Yesterday's Meals on Wheels" Seen on a Septic Tank Truck in Oregon "We're #1 in the #2 business" Seen on Septic Tank Truck in Oregon "Dr. Jones, at your cervix" Sign over a Gynecologist's office. "To expedite your visit please back in" Sign over a Proctologist's door "We repair what your husband fixed" Painted sign on a Plumber's truck: "Don't sleep with a drip. Call your plumber" Sign seen on a Plumber's truck "7 days without pizza makes one weak" Pizza Shop Slogan "Invite us to your next blowout" Sign at a Tire Shop in Milwaukee. "Hello. Can we pick your nose?" On a Plastic Surgeon's Office door: "We don't charge an arm and a leg. We want tows" Sign seen at a Towing company "Let us remove your shorts" On an Electrician's truck "If we see smoke, we will assume you are on fire and take appropriate action" Sign In a non-smoking area in a manufacturing company. "Push. Push. Push" Cute sign for a Maternity Room door huh! "If you don't see what you're looking for, you've come to the right place" Sign seen on an Optometrists Office door "We really know our stuff" Seen on a Taxidermist's office window. "Time wounds all heels" Seen at a Podiatrist's office: "Salesmen welcome! Dog food is expensive" Sign seen on a residential fence in Texas "The best way to get back on your feet - miss a car payment" Sign seen at a Car Dealership in Detroit "We just keep rolling a lawn," JB Instant Lawn, Portland, Oregon "Satisfaction guaranteed or double your trash back" Bunting Trash Service, Evans, Colorado. "We Dry Harder" a Utah concrete products company. "We're easy to get a lawn with," B&G Turf Farm, Helendale, California. "We do more than mow, blow and go" Yardvark's Lawn & Maintenance, Bullhead City, Arizona. "We meet most of our friends by accident" Auto body shop, Fremont, CA (Richard DeBiaso) "No appointment necessary. We hear you coming" Sign on the side of a Muffler Shop in Hood River, Oregon. "Be back in 5 minutes. Sit! Stay!" In a Veterinarian's waiting room "We would be delighted if you send in your payment. However, if you don't, you will be" Maybe At the Electric Company: "Don't stand there and be hungry, Come on in and get fed up" Sign seen in a restaurant's window "Drive carefully. We'll wait" Funeral Home sign, please be careful! "Thank heaven for little grills" Sign seen at propane filling station "Best place in town to take a leak" This Chicago Radiator Shop really knows their customers! "Loaded with experience," Crescent Truck Lines, Hayward, CA (Richard DeBiaso) "Nobody knows the truffles we've seen," Nevada City Truffles, Nevada City, California. "Your pane is our pleasure," Hogan's Window Cleaning, Lake Havasu City, Arizona. "Hired Killer" a California pest exterminator service. (submitted by S. Boyers) "I glove you" Western Oregon Glove Company "Take a spin with us" West Side Laundromat, Helena, Mont. "Let us steer you in the right direction" Santa Fe Meat Company "Our business is growing," Smith Gardens, Washington state "We curl up and dye for you," Orchid Hair Salon, Delta, Colorado. "Don't let a drip spoil your trip," Ray's Radiator Service, Grass Valley, California. "We run a shady business," The Tarp Man, a mobile business seen in Arizona. "Our business is picking up," Grass Valley Disposal Company, Grass Valley, California. "We kick ash," Mad Hatter Air Duct Cleaning, Seattle, Wash. "We meet by accident," Prestige Automotive Center, Kingman, Arizona. "Let us lighten your load," Hey Diddle Diddle Diaper Service, Hollister, California. "Can't get it up?" Willits Winching, Willits, California. (submitted by Joanne Moore) "While you sleep, we loaf," Tahoe House Restaurant and Bakery, Lake Tahoe, California. "Let us strip for you," a furniture refinishing shop near Little Rock, Ark. (submitted by Barry Burton) "A good flush beats a full house," Salcido Plumbing, King City Calif. (submitted by the Johnsons) "A great place to take a leak," Acme Radiator, Bandon, Oregon "Business Sucks," a California vacuum cleaner store. (submitted by S. Boyers) "All the stuff that's neat for both your feet," Dave's Shoes, Grass Valley, Calif. "The Answer To Your Hangups," Art Laminators, Inc., Seattle, Wash. "Have your work done here...and you'll never go anywhere else again," TVS Complete Auto Repair, Temecula, Calif. (submitted by Steve Augustine). "We Take a Bite out of Grime," car wash, Camp Verde, Arizona. (submitted by B.P. Soutrane) Copyright 2000 by Out West Newspaper "It's a Ruff Life," Dog day care and activity center, Phoenix, AZ (Joanne Gardiner) "We're number one in the number two business" Slim's Sanitation, Greeley, Colorado. "After the first whiff, call Cliff." Septic service, Sunshine, Wash. "We don't want an arm and a leg...just your tows!" A towing company, Weaverville, California. (submitted by Todd Steele) "Get your buns in here," Glenn's Pastries, Gallup, New Mexico "It's great to be kneaded," Rainbow Touch Massage, Seattle, Washington "Here today, lawn tomorrow," Oregon Turf and Tree Farm "Spouses Selling Houses," Real estate agents Shari and Ron Laverty, Seattle, Wash. "Let us remove your shorts" Art's Electric, Pullman, Wash.

TP has a son that is still in HS and he is 19, is "student" reserved people that are in college only for EIC?

This what happened to a man after dealing with all his tax clients:

I just took on a new client that had setup all its business filings before coming to me, after speaking to them the 3 partners want to have a weekly payroll. I informed them that they can take a guaranteed payment and not payroll because they are a partnership and need to file form 1065. Now my question, is there a way to change the entity with the IRS from 1065 to a 1120S, or would it be easier just to re-apply for a new FEIN. I called the state and they need to file articles of incorporation and close the partnership with the state. Thanks

I am done for today, taking it easy for next couple of days, but then I have to do payroll quarterly filings... Hope everyone had a wonderful and lucractive tax season. Take care, MAS