Lion EA

Clients received two small checks from Merrill Lynch re a legal settlement, pricing issues I think. Maybe $45 each to H & W. Thing is, with all the typos on the ML letter/check stub, it appears these were IRAs for the H & W. So, do I ignore the settlement because it took place in an IRA (clients have not been taking distributions, are way too young for RMD, and are no long contributing to their IRA due to retirement plans at their jobs)? Or, is it considered a DISTRIBUTION from their IRAs since they received and deposited the checks personally? Do I have to dummy up a couple of Forms 1099-R for these two receipts? Checks were made out to MLPF&S Cust FPO John Doe Rra FBO John Doe address... and similarly for his wife. Yes, they both said "Rra" which I'm guessing is IRA. They don't remember what they had at ML. They're new clients and recommended by long-time clients, so I'd like to do as much as possible for them this year and not send them looking for information that they have no more access to than I do for this class action suit. Hoping someone out there has had a similar ML check come across your desk this season.

I would convert the business auto to personal use. Then the client trades it in or drives it or donates it. I don't think biz auto and personal auto are like kind, so an exchange or trade in is not appropriate.

bumping this topic up again to the top with a post

Only a single member LLC is a disregarded entity, unless it elects to be taxed otherwise. The multiple member LLC that these children actively formed defaults to a partnership unless they elect to be taxed as a corporation. Can you still have an implied life estate when an entity separate from your children or family own the house? I can see where you could ask the children what they implied by letting parents live there. But, how do you ask a partnership and how does it show you what it implied? Probably by the partnership agreement saying it won't sell the house until the original owners leave or pass away. Now, it's written and not at all implied. Have you read the partnership agreement? The transfer deed?

But, the parents didn't give the farm to an LLC; they gave it to their children. The parents didn't retain much of a life estate if the children were free to (and FELT free to) transfer the house to an LLC. That's the part that concerns me.

A very :bday:

Tell him to cook during tax season, they he can eat any time he wants. And, a very :bday:

Scream?! Tax preparers? Never! I can't imagine such a thing. :dunno:

What a dapper son! Danielle, did you see the picture of Kerry as a pink princess?!

Does she have a good divorce lawyer yet?

MFJ with injured spouse or whichever form it is.

2007 if he no longer owned it, Goodwill did.

If husband is in your system from prior year, pro forma him to 2008 and prepare him MFJ. Then, call up the X, switch their names/SSNs, and type in her info from her original HOH return in column A. I'm having you switch the primary taxpayer and the spouse to get the one that's being amended listed as primary. However, you might want to research whether that's necessary. Maybe it's OK to have the one who's being amended as spouse; OK to file as primary taxpayer on an amendment the one who has NOT filed yet. Probably so, and then you save the hassle of switching names/numbers in your system.

BUMP just in case more of us CT preparers are running into this...

Hi, Danielle!

If you did NOT prepare either return, neither is in your software: prepare the return as it should be. Then call up the X forms, letting the new information go to column C and type in the primary taxpayers OLD info in column A. Your software should calculate column B, but proof it for reasonableness knowing it's adding the spouse's OLD info with some minor adjustments for the different tax tables, etc. Sometimes, you just can't duplicate in your software the original return due to their errors or rounding differences or whatever, so don't even waste your time. Just type in the taxpayer's software results in your X column A. If you DID prepare one or both returns, at least one is already in your software: call up one return. Then call up the X forms, NOT letting the OLD info go to column C, keeping it on column A only. Then re-prepare the return the way it should be done including the spouse's info. Now, your re-done return info is in column C and your software calculated column B.

A very :bday:

Well, my very fancy, very pricey, ProSystem fx does NOT have an opt-out form for CT. Has one for NY. The best they could suggest is a "footnote" so it prints right after the CT return. I used the wording TaxPerson gave, the ending of that paragraph, for the client to sign and mail in with their return and to sign a copy for me to keep. I also put in a suggestion at Pro fx!

If you can't get it working with the help from some of our more computer literate posters, then try our friends at VMSUS.

Thank you. I thought I read everything on their site. But, I was skimming things re preparers. I file electronically. I encourage it of my clients. But, I have a couple that will not, and they pick up this week. Still want to cover myself, something on paper that client instructed me that I can keep in my files, as well as for them to mail in as their "written request." Guess I'll just make it short and sweet, a sentence...

What do other CT preparers do when you have a client who will not e-file? Do you write up something for them to sign? Does your software have a form? Do they mail it in with the return? Do you keep it like you do Forms 8879? Have you had any correspondence from CT re not e-filing? (This is only my second year out on my own after being under the umbrella of a corporation, so it's the first year I "qualify" to e-file ALL returns.) I have a client picking up this week who must mail their returns. What do I need to do to CYA?

Maybe one of the tech savvy types like KC will know what *.exe files should be in ATX and whether you should have your AV software remove it. Can you print now that it's quarantined? The VMSUS guys respond in 90 minutes and can clean your computer remotely. Good luck.

The liability protection of a corporation, no matter which kind, can vary from state to state, so let us know where the doctor practices or have him consult or you consult with a lawyer well versed in that state's corporate liability laws. Of course, he needs to maintain his malpractice insurance. And, he must do all the usual things to act like a corporation and not mix business with personal, keeping funds separate, etc., no matter where he is or what entity he is. Some states have professional limited liability companies of some type that might be right for him. And, such structures might protect his personal assets from acts of his staff or falls on his property or other things not associated with his professional actions, but situations due to his own professional actions are hard to escape personal liability for.

A couple of years back I moved to a new computer. Installed the ATX years I wanted on the new computer. On old computer, did an export of returns for a year to a flash drive. Then, on new computer did a import. Repeated for the years I wanted to move. Was quick and easy. Good luck. (NOT backup/restore.)

Good Luck !! :P