ILLMAS

TP is a property manager, no vehicle is provided by employer, manages 15+ building with over 250 units has to drive back and forth to pick up keys from the office and is probably unhappy because he is on call after hours for emergencies.

I believe someone here posted a case about a CPA or accountant that argued his client was a had a substantial increase in salary every year after his client was fined for not having a reasonable salary. If I remember, the person was making 20K as supposed to $200K, so the accountant would significantly increase the salary by $5K a year, that is a huge increase for someone making $20k lol.

If they were to get an VPN from let's say a cousin that lives in the U.S, would this be a work around?

If a tax payer does not have a mileage log, but has records of oil changes that have the mileage recorded, would that be sufficient for the IRS if they are requesting proof?

Yes, there was a partial distribution.

Thanks John, in this case the individual has a very small salary from another business, they are just pocketing the profits or buying more inventory from what I can tell and they are not receiving a compensation at all.

I seen a tax return prepared by another tax preparer and that has left me scratching the little hair I have left on my head. Basic details 1120S (LLC), one K-1 Owner buys, rehabs property and sells right away Property are reported as inventory Profits are passed to shareholder as ordinary income Here is my concern, since I have not dealt with a client in this situation before: If they are in the business of buying/fixing/selling homes, shouldn't the profits be subject to SE taxes? I did not see it (SE tax) when I reviewed the shareholder personal tax return, again I have not had dealt with a client like this before and just want to make sure to say the return was prepared correctly or incorrectly and it should be amended. Thanks

Can they be treated as inventory?

So what do you think about government employees that connect via wireless (hotspot) modems?

Has anybody had a client that failed to take the proper or no deprecation at all, but the IRS recapture it anyway?

Flow-chart please

Scenario: TP decided to renovate a rental unit after the lease expired, the property was rented for three months in 2015, improvements overlapped into 2016 and was finally rented in 2017. Questions 1. Would it be proper to depreciate the property in 2015 for only 25% (3/12), zero in 2016 and whatever percentage applies to months rented in 2017? 2. Same question but for expenses, what is the appropriate thing to do, expense (continue expensing each year) or capitalize (in year placed back in service)? From the IRS Idle Property Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it is not available for rent. Please define temporarily idle? Let's say in this scenario, TP was not in a hurry to have the job completed or to rent it. Thanks

Tooth be told.

I had the same issue and I believe some here mentioned it doesn't work after 4-15-17 date.

Good points, thanks everyone.

@FDNY please make sure you are compensated for your worries.

After working 20+ years for a firm/self-employed and working long hours, that time finally came to an end this past summer, I longer work past 4pm I put myself first, managed to lose weight, spend more time with my family, the only person I baby sit is myself.

Last couple of SS-4 I have prepared, I have received the same message. I usually fax it over and wait until my client receives the acceptance letter.

I also recommend the Fujitsu S1500, it's the best scanner since the invention of whipped cheese in a can. I have a question, can one get a bad ream of paper? I recently bought a whole box of paper at Costco and when I print more then 5 pages it curls up, now if want to scan it, my scanner chews up the paper pretty badly, anyone had this happen to them?

I usually fax it directly to the agent on the spot, I get what I need and if later on I need to call again, they usually forward the POA on your behalf.

Thanks, but how about penalties for filing late trust returns?

TP has been reporting rental income and expenses on their personal taxes for a past couple of years, however they recently found out the rental property should of been reported on a trust return and TP as a beneficiary, what kind of problems can arise from amending the individual return and reporting it on trust return? Mostly interested on the trust side.

Most likely the external auditors are looking at it more of the organization acting as a fiscal agent, you mention it appears under the liabilities and therefore it appears as a liability of the organization when its not. If it's being questioned by the board, you might want to ask the external auditors about it.

Unfortunately, I have not seen a specific IRS code on it, however it's a common practice with p'd off landlords around the country and the only IRS backlash I have read about is when using 1099-C (designated for banks, lenders etc....) for unpaid rent, so forget issuing a 1099-C.

Maybe I am comparing apples to oranges, but when someone wins a radio contest, let's say a vacation, mostly likely the individual will receive a 1099 "other income" with the FMV of the vacation package, no exchange of money but received a benefit from it. I am seeing the tenant received a FMV rent valued at X amount for free?