BulldogTom

Am I confused or is ATX just not acting right. My understanding is that the NOL just has to be recomputed for AMT and the difference added back. Is this correct? ATX is adding back the entire NOL. Am I missing a box or just totally screwed up on NOLs and AMT (a distinct possibility). Thanks for any help Tom Lodi, CA

My bad. I did not see that you had posted that link. Tom Lodi, cA

cdallen7 - I just had this same issue. There is a really cool website that will walk you through this and give you a nice printout for your file of the new basis. I don't know how to link that site to this message, but if you go over to page three of the board and look for my post of March 31, you can get the site off that thread. KC was the one who posted the link. It is something like costbasis.com. Check it out, you will be very glad you did. Tom Lodi, cA

There is another way to get the K1. I am not at my software, but if you go into the global options on the K-1 page, there is a checkbox for just printing the K-1 package. You can select the partner numbers that you want to print. It completes the partner letter and the codes as well. It is a pretty neat feature I found this year. I wish I could describe it better, but I know it is on the global options tab of the K-1. Tom Lodi, CA

Next questio is bank products? Do you have to go through the CCH site to process them like in ATX? Or do they have another way of working with the bank? Is that $10 charge in play with the TRX version? Sorry for all the questions, but I am seriously looking at dumping ATX this year. I am looking at Drake, but if I can get ATX without the bank products headaches, I may go that way. Tom Lodi, CA

Here is my big question. IF I purchase TRX $699 ATX package, will all my returns roll from ATX 2008 to TRX ATX 2009? Anyone have any insight on that. I use a lot of the ATX forms that are state and local, like NV Sales and Use, Sacramento County 571L, CA Sales and Use. I wonder if they will still be there? Tom Lodi, cA

We need a new title for Kyle. After that one, "Advanced Member" just does not seem to adequately describe his stature on this board. Tom Lodi, CA

Thank you Kyle. I wish you had thought to record the conversation on the phone so it could be posted here. Eric is a great man, and we all owe him a lot for what he did in putting this community together. But he needed to get paid back for what he did to us yesterday. Can you from memory give us a blow by blow of the conversation? Tom Lodi, cA

KC - you wouldn't????? Yeah - you would. tom Lodi, CA

Trying to e-file and not getting a response from the server. Called ATX and they said they were updating the server and it should be good to go in an hour. Still not getting to the server. Is it just me? Tom Lodi, CA

OK, this should go to the other board on the site, but I never read that one, so I am posting it here. Are any of you CA ATXers going to the Drake 4 hour seminars in CA. They are doing a bunch of them. I think I will go to the Burbank one on the 25th. Since I am going to SoCal anyway that weekend, I can make this a deductible business trip. And 4 free hours of CPE doesn't hurt. Tom Lodi, CA

You need to find out for sure if the tax has been assessed. Call the agent in charge of the audit and just ask if it is closed or not. If the case is closed, file an amended return. If not, share your information with the agent and they should fix it. The 1099R has the details, so it should be a non-contentious conversation. The trick is going to be getting in touch with the agent. Tom Lodi, CA

ERC - you SUCK!!!! That has to be the best April Fool ever. My heart was in my shoes. I could not believe it was going to happen again. You got me good. Tom Lodi, CA

Thanks all. That is a cool website. Tom Lodi, CA

What happens when it turns out to be a loss? Non-recognition of loss. I got it now.

Maribeth, I think you are right. Thanks so much. Tom Lodi, CA

That is along the lines of what I am thinking. What I did is take the difference between the number of shares he had and the new number of shares and said he sold them. Then I took the remainder and said he exchanged them share for share. I will put some numbers to it. Client holds 1575 shares with a basis of 10,000 or 6.34/share. He recieves cash of 3,933 and 1074 shares of stock in the merged bank. So he sold 511 shares with a basis of 3,260 for 3,933 with a gain of 673 and exchanged 1074 shares of old for shares of new with a basis of 6,760 Something is telling me this is not right. I can't put my finger on it though. Is it possible that he has to add the value of the new stock to the cash recieved as the sale of all 1575 shares, calculate the gain, and then act like he puchased back shares in the new company? Thanks again for your help. I just can't find anything that is on point in my research. Tom Lodi, CA

Client held shares of stock in a bank. The bank merged with another bank, and the client recieved both cash and stock in the new bank. I am not sure how to handle this. The terms of the merger call for each shareholder to recieve $2.50 in cash and .6 shares of stock in the merged bank. Any suggestions on how to handle this? If it was stock for stock, I think I would not report it and substitute basis. If it was cash for stock, I would have a sale and gain/loss. The 1099B shows it as a sale, but it is a very weird looking Substitute 1099B. Any help is appreciated. Tom Lodi, CA

This is a little off color, so if you are easily offended, just quit reading now. The post by Jack reminded me of my "colorful" economics teacher in college, the best professor I ever had. He was teaching a principle to the class that he called the "prostitution principle of economics". Why does a hooker get paid before providing the service? Because the value of a service declines immediately after the service is rendered. The more desireable the service, the more that can be charged for the service before it is rendered, and the steeper the decline in value after it is rendered. Now, I am not saying we are all hookers, but we do provide a service that is in high demand right now. If we don't get paid for it while the cliet percieves the need for the service, the client's motivation to pay us will decline proportionately after the service is rendered. I have never forgotten that lesson. All the women in the class were shocked. I was roflmao at that one. Thanks Mr. Yerge. Tom Lodi, CA

Taxbilly has always been "elite", now he just has the title to prove it. Tom Lodi, CA

I am with you Ray. Food is good, but......................... some things ARE more important. Both is always better. Tom Lodi, CA

Yes they are. I first had them at the Big Fresno Fair about 10 years ago. They are abour 6" long by 3" wide and they have the crusted cinnamon and butter on the bottom. They keep them hot so the cream cheese melts on them a little. They give you a fork, but you have to eat them with your fingers and then lick the sticky off your fingers. Tom Lodi, CA

This came up one time before, and I think it is correct. I think it has something to do with the law that a baby who is born and dies in the first year can still be a dependent. I think if you are alive on 1.1.XX and you die sometime during the year, you get a full year return, full exemptions, full credits. Tom Lodi, CA

My problem is my client got the 1099 SA and it is code is 1. I don't like changing the distribution codes on the forms, because of exactly the reason you stated Cathy - if the IRS looks at it, they are going to say no way and send the bill first and ask questions later. I was hoping for a way to explain it on the tax return. My eyes are getting tired, so I think I will sleep on this and see if I can get it to come out right tomorrow. Thanks for the responses. Keep them coming. Tom Lodi, CA

Help Please. My client contributed to an HSA, but he was not eligible. His spouse has coverage for the entire family. So he took the money out of the account. There were no earnings in excess of his contribution. I have tried to put this all together in the software, and this is what I am coming up with. His contribution is not deductible. His withdrawal is taxable. Since he did not have eligible medical expenses, he has to pay a penalty for withdrawing the money. This seems like a totally unfair result, but tax law is not fair. I hope I am missing something. Since California does not comply with the Federal on HSA's, we don't see many of them. Any help is appreciated. Tom Lodi, CA