ILLMAS

I like how Chicago Cubs fans have forgiven the goat and Steve Bartman, but they seem to have no recollection of a player named Sammy Sosa. Cubs fans had blast on burn Sosa shirt day

Yes, that is the impression I get too when comparing the 1099K & reported gross receipts. I am going to question the client first and if there is good reason I will continue working with them, if not, I am going to refer them to get tax attorney.

"I'm curious why the client didn't give you the form 1099K? And, it would help if we knew the what kind of business. " Good question, this client has been a cash only restaurant for 30+ yrs, until recently they starting accepting CC. TP does their own accounting and I will be asking how this information was missed. In order to show a profit, the floundering gourmet seafood restaurant was allowed to cook its books since there is no accounting for taste.

TP reported gross income was lower then the 1099-K received by the IRS, now the IRS has made a adjustment for the difference, the amount is significant and I wanted to see if amending the tax return would open a can of worms if we don't agree with the proposed change? Also, when the gross sales were reported on the tax return, sales tax collected was not reported in gross income nor was it expensed, however the 1099-K amount does reflect the sales tax collected, if we are going to amend the tax return, would it make sense to report the sales tax collected as part of gross sales, and just expense it? Thanks MAS

I didn't go into the office today because of the Cubs, they expected a couple of thousand fans at the rally, it turned out to be 5 million.

You are right, I just took SEE2 exam last week and basis questions were a killer

Welcome to the accounting department, where everybody counts.

I've been attending an annual tax review CPE class for the last few years, and I always leave a comment about the chairs, the seat cushions are so wore out, it feels like sitting on park bench for 8 hours.

This stinks, no wonder I cannot access QB online today.

I'm so ugly, my dog uses me to get other dogs

I do EFTPS payments for my clients, so far only one didn't have any funds twice or three times I made the deposits, IRS sent their account to local agent to collect.

What a load of ship

This ship is everywhere

What piece of ship

I wrote this so fast, I made some grammatical errors now that I re-read it, where is the edit function?

$150K is correct, it should be half of the $300K. As for the basis of the property as of 2015 is $380K (500-120 A/D=380), the problem is that the additional $150K in basis was never recognized and the property was sold in 2015, unfortunately everything was done on a shake hand deal and now the TP has a gain of about $120K and recognizing the $150K would help him out. Any suggestion on how to handle the $150K now? The refinance happened in 2009 and we are working on 2015 return. Thanks

Let's TP A co-bought a property with friend B back in 2005 as an investment property, A has been reporting 100% of rents, expenses, depreciation...etc since day one. In 2009 they have a fallout and A would like to keep the property and buyout B, property was bought for $500K and appraised for for $800K in 2009, A refinanced the property and paid B $250K half of the original cost and $150K half of the appraised value totaling $400K, A was on the hook for the $800K loan, my question is, would TP A basis increase by $300K for the additional cost to him? Thanks MAS

It's probably time to invest in a new scanner that is compatible with WIN10, I recommend the fujitsu s1500, the software that comes with it scansnap is excellent, I had to pay close to $500 just to get the software for free.

Both the the goodwill and non-compete intangible assets so there basis will be zero no matter if they allocate $1 for non-compete and $99,999 for goodwill, but there it's a good idea to have a reasonable amount in case your client does compete and have to pay the fine. I did a quick search and found this, hope it helps: http://www.schneiderdowns.com/our-thoughts-on/business-advisors/valuing-a-non-competition-agreement MAS

They are still going to charge you for a maintenance fee which is part of the shipping fee if I remember correctly.

I wish telling someone they owe taxes was just as exciting when a doctor says "it's a boy" or "it's a girl"

Are you using the fair market value of the mortgage balance as the sales proceeds? I am using the outstanding principal balance from the 1099-A as the sales price. 1099-A Box 2 $510K Balance of principal outstanding Box 4 $500K FMV of property Basis $322K Gain $188K I am going to ask the TP if he owed less then what they are saying, but for my records/reference, can you point me to where you are getting your information from? Thanks MAS

How about just filing it and not promising the TP a refund, and if he/she gets one, tell them to look at it like if they won the lottery

TP received a 1099-A, from the IRS instruction is to treat it as a normal sale of a property, the problem is the TP is going through hardship for a while and won't be able to pay the gain, is there any options (beside a payment) for him? FYI not confusing a 1099-A with a 1099-C