imjulier

Did the LLC replace the S-corp....meaning the s-corp is the previous owners' and the LLC the current owners? How about just filing on the iRS website for an EIN for the LLC if you don't think one exists? Also, do the new owners want to be an S-corp....its not too late for the LLC to elect S corp treatment. It sounds like you should really be having a sit-down conversation with the owners to truely understand what is going on and what needs to happen. Julie

Using the 5884 with the 1120 S does make it flow to sch. K and through the K-1 to the taxpayer. But, the income in the 1120S is increased by the amount of the credit (Line 8 Wages is reduced by employment credits). The result is that the taxpayer gets the credit passed to them but also gets more in ordinary income. I must be doing something wrong since this obviously nets to zero....so where's the credit? Julie

Hmmmm... with a little more thought on this one these are my new thoughts. Is LLC single member? If not, pship return and EIN becomes an issue. If so, wouldn't the rental be recorded as a disregarded entity with rental income and expenses simply recorded on the individual return and rent expense (the monthly rent) recorded on the books of the s-corp? This would actually make it rather simple. Julie

Thanks KC. I knew they had sold it at a loss according to the #s but wasn't sure what impact this would have on recapture. Julie

This is a good question and I have a similar situation so maybe someone else knows something. My thought is to apply for LLC now as you said and use it for 2008 as you don't want to go depreciating in one type of entity for a year and then transfer it to another entity. I think this is called substance over form. Anyone else with comments? Julie

I like it! Thanks for posting. Julie

Help! I have a K-1 from an s corp (for individual tax return) that lists the following detail to line 17 with a code of K (disposition of property with section 179 deductions): Sale of winstar acquired 9/19/07 sold 9/19/08 year of passthrough 2007 sales price 456 cost or basis 2281 depr allowed 177 sec 179 expense 1396 Only other items passed through in 2008 are ordinary income and section 179 deduction. I have no idea what to do with this as I haven't seen it before. Any input would be greatly appreciated. Julie

Hey- I'm just checking about using ATX for rental real estate. I check only line 3 at the top of the sch E p. 1 input screen for active participation. What is line 6 for non-passive rental activity for? Should I be checking this box as well? I'm just double checking since as most of you probably know, this yields different results in passing through the loss from rental real estate. For taxpayers with income over $150,000, losses from rental real estate don't pass through to the 1040 from the 8582. But if you check line 6, they do pass through to the 1040. I believe I am treating it correctly by not selecting line 6 and not passing through the loss to the 1040 but want to make sure I'm not missing something. Thanks for the feedback. Probably just a little brain damage by now. Julie

I may have a client in the same situation and I don't know the answer to this either. My instinct says debt relief is taxable and it was with a bankruptcy I worked with a few years ago....hopefully others on this board will have comments. Julie

Does anyone know how the form 5884 (work opportunity credit) and 3800 (General Business Credit) are cliamed and passed through from an S-corp. I'm reading the instructions which are about as helpful as those japanese instructions on polacing slot A in slot B etc. Thanks for any help. Julie

I agree with Lion....convert it to personal use and be done with it. No reporting required.

Change in accounting method requires IRS approval. Clearly they wanted to switch to accrual because it would lower income and save their cash which they distributed out to themselves instead of paying off creditors. I'd be asking a lot of questions rather than letting them tell you what to do. Just my 2 cents. Julie

I file my extensions without a signature...for just the reason you state....no signature required on hardcopy.

In looking at the support and residency requirements, I took child as dependent in '08 since he did not go to detention center until 8/1. Parents are not paying support while he is incarcerated. If he stays incarcerated most of 2009, I won't claim him for next year. Thanks for the thoughts. Julie

Can parents of teen "in the system" still claim them as a dependent? Thanks for any direction. JUlie

I concur w/ KEA. Anything over a year becomes permanent and expenses aren't deductible. I'd think twice about it though if there was a written employemnt agreement calling for a year (or less) and then it was extended for a limited time of less than a year, again in writing.

S corp election for current year if already an existing entity is March 15....make that 16th since 15th falls on Sunday. Only form 2553 required.

Your response makes sense and seems logical. Maybe you can check if any of this is in writing because rental of a truck doesn't seem to include rental of a person to me....and to prove it, he was paid wages. I'm still interested in finding out others thoughts. Julie

My 2 cents... Can't deduct living expenses from the rent amount but can claim these on form 2106 assuming wages were paid in w-2. I would think the truck exepnses could be deducted from the rent received for the truck though. Gas, insurance, depr, repairs and maintenance. I wouldn't think that the standard mileage rate could be used in this scenario though. We'll see what others think. Julie

I get IRS cleared on my piggy-back state returns. Since its piggy-back, it means the state will now process it. The ones that come back accepted just means that you didn't download the ack. while it was in the previous status so it went right to accepted. I would assume the status would change to accepted within a week if you download acks. Do you have any that haven't changed to accepted? Julie

Oh well. Not so bent out of shape today about it. I had tried using words yesterday like KC suggested but apparently, the program could tell it wasn't a valid address so I still got the error. Looked up the address on the web and input that so it worked. I just still find it odd that customer service insists this has always been a required field and yet I've never entered it in the past (including just last week) and haven't had any problems e-filing. Oh well, I just jotted the address on a sticky note and posted it on my computer so I can laways find it. Julie

Hmmmm- I've never had this problem before but today I go to create and e-file with a 1099G in it with no address. The Colorado 1099Gs don't have an address and I've never filled in the address field although I enter the name, city, state, and tax ID. Get an error that says the 1099G requires an address. Call customer service to say I haven't entered an address in this field in 5 years I have been with ATX including about 40 retruns e-filed already this year. Cusotmer service says this has always been a required field and the last time any changes were made to this field and this error filter were january 2nd 2009. So I ask how I was able to e-file all my other returns. They don't know since its always been required. Just venting. Julie

joelgib- You may want to check your preferences by choosing options, then preferences, then check what you have selected for preferences in the preparer manager and the rollover manager. I am not having a problem with my preparer info coming in. Julie

Ray- What are you smokin???? If you faxed it to him and told him not to lose it, how is it that you turned around and went against your own advice and lost it to? I'll take this as a Friday afternoon joke as I need to laugh at something. Please don't take this the wrong way, it just seems funny. Julie

Thanks RoyDaleOne for the response. That makes sense for a disregarded entity....I just wasn't thinking along those lines. Julie