imjulier

Hey- Just looking for verification that I am recalling the rules correctly. I have been treating the health insurance of S-corp SH as not subject to Social Security and Medicare withholding. Is this accurate? Thanks, Julie

I just bought a Win 8 PC this summer because I couldn't find anything else. No issues with any programs yet but I only do tax work on the side and don't really ramp up until January. I have used ATX 2012 to some degree on the Win 8 and have not had any problems. I have opened a few of my larger returns (35 forms) and have not had any problems. The new computer really speeded up the ATX software. My 2 cents. I'm not a techie but I suspect ATX and Win 8 will be fine for my purposes (about 100 returns on the side of a full time job). Hope this helps. Julie

I just renewed Max for $995 plus the shipping charge and taxes. I think this is their standard offer (I think standard price is $1100+) so I would just call and ask and negotiate further if you are so inclined.

I know my small business clients should have a buy-sell agreement for those that have more than one shareholder and I know there are some other things they should have in place. My question is this: how would the purchase price of the business be defined in a buy-sell agreement? They are a small engineering and surveying company. One of the owners is an engineer and does business development as well as provides services. Extra work gets contracted out when needed. The other owner oversees the surveying piece and does business development and oversees the surveyors (two employees and one contractor). I don't believe the surveyor would be able to pick up the engineering side but the engineer may be able to pick up the surveying side, if something happened to either one of them. They are cash basis and if they don't get paid within 90 days, the receivable generally has a problem and they may not get paid (problems with the general contractor, legal issues on the overall project for the main contractor, etc.) for a long time. I'd propose something like split the cash on-hand at the time of death plus 50% of the profits of the business over the next 3-6 months. Or maybe split cash on hand at time of death plus receivables less than 90 days old at a certain margin (probably 30%). Other ideas? I know I will be referrinf them to an attorney but they will definitely want ideas from me since I am so familair with their business. Thanks and happy Friday! Julie

Just as an fyi....recall that I had posted about a new windows 8 computer a while back and asked for guidance on getting data transferred over from old computer. Well, I have everything up and running and last years product works great on my new computer. Single user though, I don't have a need for more. Outrageous amounts of RAM must be helpful. I intend to renew based on how last years product works on my new computer. Julie

Thanks Eric for the info. I'll look into it. I suspect this will all work out OK for me in the long run. I did get ATX 2012 loaded this weekend and opened and worked in a dummy 1040 return. Seeemd to be working OK. I could not find the data (individual/business tax files) from ATX 2012 on my old computer to move to the new computer. I looked under programs and in the appropriate folder for each ATX year (I think the folder was called CCH small firm services for 2012) but didn't see anything that looked like the data that I should move over to be able to open completed returns from my old computer. As I've stated, I'm not a techie so I generally accept any defaults when loading the software. Any ideas? Thanks, Julie

I will try some of these suggestions over the weekend. Thanks for the ideas! And I like John H's comment about the smart computer too!

For the exclusion, you have to have owned it and lived in it for 2 years. A gift today does not mean the son owned it 2 years ago. My short, simple answer.

ATX documentation says 2012 ATX did not support Win8. When I couldn't load it, I thought this was the reason, I can't even get my Win 8 to read the ATX 2012 disk. I did not get touch screens, etc. I realize now this is the reason for Win 8. I'm looking into if I can revert back to Win 7. I couldn't find any off-the-shelf computers with Win 7....this was pre-loaded. I have always just purchased off-the-shelf computers and didn't realize that this doesn't work any more. Hopefully MS does not decide to run/ruin our lives any more than they already do by coming out with a new operating system every year, but I do think this is where we are headed. If I was a tech head instead of an accountant/tax preparer, I would have already known all this.

Great-Got a new computer so that ATX can't blame me for the slowness. 2012 ATX supported windows XP and windows 7. 2013 software recommends windows 7 or windows 8. New computer has windows 8. Can't load 2012 software on new computer with windows 8 for rollover to 2013. Do you think ATX will help with this? I'm not confident but haven't called them yet.

Yep- This is pretty much my take as well after researching and hearing opinions on this board. Holding RE that has a mortgage on it should definitely be done outside of an IRA. And I agree, no upside for the accountant. Julie

I only had a few clients who did this and I recommended it becasue they owed upwards of 20K....better than mailing around checks for that amount or incurring transaction fees. I haven't heard from any of them....I'll be interested to hear if there are any problems as well.

John- Can you share more? Is it that they are unscrupulous (sp?), high risk for individual investors who may not be that savvy, putting all the eggs in one basket, no time to manage the investments available, easy to screw up and wind up with a distribution, something else? What was your take that made you react this way? I'm still just gathering information and appreciate any expanding you might do that helped you form your opinion.

Interesting information and opinions. I agree that what I am hearing from the client is not what the sales person is actually saying after having read what jainen suggested. I also can't imagine that you get to pick and choose what expenses the IRA pays for (principle) vs. what the individual pays for (interest of course so the deduction doesn't get lost). I also can't seem to find any information addressing this exact scenario which lets me know it is the sales person who is doing their job, selling. I'll let you know if I find out any other information about this.

I have a client who is looking at using a self-directed Roth IRA to purchase real estate. He claims it takes a few thousand to set up and then the annual fee is only $40. Since he can't buy a whole property with funds in his Roth, a portion would be held by the Roth and a portion held personally. Whoever is marketing this to him is claiming that as the amount of principle paid goes up, the amount held in the Roth would also go up so that if the property is held until the mortgage is paid off, the property would be 100% in the Roth so no capital gains would be recognized. I would think that the portion in the Roth and the portion not in the Roth would need to stay consistent so there would be the non-Roth portion that has to recognize part of the capital gains at the same percentage that the property was purchased by the individual, not the Roth. I know this is gibberish....just the way clients relay it to me. Has anyone heard of this and is it a scam? Any insight is helpful as I'm just trying to wrap my head around it. Thanks, Julie

The ATX front page says that they recommended unlinking the state from the fed retrun in the state e-file tab....check box at the top starting last Friday I think. I got one of these for Colorado but the federal was accepted. I just checked the unlink box and re-sent the state seperately. I hope this works.

I thought ATX had a check for SSNs before e-filing???? Apparently not because it wasn't caught until it was e-filed. Taxpayer has wrong SSN on 2 W-2s. I'm thinking about submitting the tax retrun with the right info. and informing the taxpayer that they need to notify both previous empoyers and have them do W-2Cs. What do you think of handling it this way? Julie

From pub 970 Student loan repayments made to you are tax free if you received them for any of the following: The National Health Service Corps (NHSC) Loan Repayment Program (NHSC Loan Repayment Program). A state education loan repayment program eligible for funds under the Public Health Service Act. Any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in under served or health professional shortage areas (as determined by such state). Just what I found right away which makes it sound like it has to be through a qualified program which an s-corp is not. I'll let you know if I find anything else.

I need a $2M rounding adjustment!

Yes I have e-filed about 8 with no problems. Only thing I noticed was that I had to add the signature form 8453 for pship/scorps manually.

I came across this exact example in an IRS pub within the last week. Business vs personal mileage still matters....and you are correct, the expense of the paint job/logo only. Do a search for business use of car on IRS web-site and you'll find it. Julie

I predict version 12.13 will be available on April 14th and work perfectly!

Terry- I've done this on Sch E by just using 50% ownership and splitting the basis as someone else suggested. No problems. Julie

I have not e-filed the wrong return. I create the e-file with the 8879S in front of me so I can double check the amount that the client signed off on before I create the e-file. I've never had that be different either but its how I ensure I am doing the right thing. You might also be a little weird or have a little OCD but we all have our quirks. Find something that lets you check one thing and then let it go mentally knowing that you have completed your check.

Make sure in the asset entry that you have assigned the assets to schedule E with the proper property number. They may be unassigned.