OldJack

>>but I have done that. << Are you resetting the date or the time as it is saying? And are you resetting within the setup program or after windows disktop has appeared?

>>Time of day not set - please run setup program."<< You probably need to run setup as it suggests and enter the time as the startup configuration has lost the time. To run the setup program you usually hold down a function key during the beginning of the boot process after power on to the computer. The hold down key is different for different computers, but if you watch the quick screen at boot time you will see the key mentioned. Try holding the F2 key. True, that your lithiam batter is getting old but that is probably not your problem in this case.

>>Wish I could think of the name of it. << Not to worry about it KC... loss of memory happens to us all when you have spent too many years on tax boards. :)

I would bite the bullet and enter all 44 units as separate assets. Otherwise you are just going to have to deal with keeping track of numbers and splitting every year as the units are sold. As far as I can tell there is no special ATX feature that would deal with this any other way. One other thought is are all 44 units of equal size and value to get an equal basis, you may need to allocate basis on some other method such as estimate of fair market value or future selling price.

I would write the client a check for the full amount of whatever the client has to pay the IRS. The client will be happy and you will get your money's worth in goodwill and advertising to everyone the family tells. If you don't do that you will probably NOT have any new clients coming your way for some time. IMHO

It has been my understanding that ATX has always given a huge negotiated discount to larger tax preparers buying multiple copies. Its just a fact of business that the little guy gets scr**ed.

>>My only objectives in posting on this site are to help those in need, and occasionally (lightly) chastise those who are not completly forthright in their commentary. << Helping is a worthy thing... chastising is much the same as flaming (or whatever that word is) and should be banned regardless of "who you know". edit: And since no one seems to know who or what you are, what makes you thing we would know what kind of help to ask of you. If you can help with some free money... I need your help now. :)

>>The IRS soon will force all of us (paid preparers) to efile.<< Do you know something the rest of us don't or is that just a prediction?

Do you suppose that maybe some of the web program employees may no longer be with ATX? Maybe the one that makes changes to their web pages isn't around anymore. Mergers and takeovers usually eliminate the good people, leaving mainly those that really don't know much in the way of details.

>>If the polar ice melts, wouldn't the spinning earth get unbalanced? << If everyone goes to Washington to protest the war, wouldn't the spinning earth get unbalanced? LOL

>>if they gave me 10% off for renewing and a flat fee of $200.00 for unlimited e-file<< That could imply that ATX is "hurting" for renewals and is willing to negotiate a price for their product. We will never know but I would bet that a large percent of their business has not renewed at this time.

Its cold in the polar areas of our globe, therefore making ice. The water needed to make the polar ice comes in the way of rain/snow from moisture of the ocean. If the ocean has more water from the ice melt and the globe is warming from the environment, should not there be more rain in the polar areas creating replacement ice? Therefore if we don't have global warming we might not have polar ice?

I have used ATX W2 & 1099 software for years and the only problem is the same with any such software as it requires a test run with minor adjustments for printer/paper alignment. Also, it is best with a laser printer.

BMJ... maybe I don't understand, doesn't your client still own the new shares of Whirlpool or did the client also sell those shares after the merger during the same year? If your client still holds the new shares received you got a problem with reporting them as sold. As to the fractional shares, since the sale amount is not insignificant they should have a portion of Maytag cost basis allocated for sale reporting on Sch-D, thereby changing the carryover cost basis of the received stock of Whirlpool shares. Of course if all shares were sold in the same year it would all wash out with the proper net gain/loss on the Sch-D. It is certainly unusual for there to be a loss on merger transactions.

I guess I should have pointed out also that you need to know the full FMV of the shares involved that determined the $27.85 per share boot which is in reality a fractional sale of shares. The ratio of the boot to the FMV determines the ratio of ADESSA, Inc "stock cost basis" that can be allocated to the fractional sale. Thus, although the $28,000 is reported as the sale price on 1040 Sch-D, there should be some percent of ADESSA basis allocated to determine taxable gain. In many cases the original basis of the selling/merging stock is so low that the amount allocated is commonly ignored and the full boot is simply reported as the gain or as in some cases it is called cash in lieu.

More details are needed. 1) Did your client that received the merger proceeds also receive shares of stock in KAR Holdings, Inc.? 2) It appears the merger was "Type A" statutory merger [see flowchart in Small Business Quickfinder Handbook, page 12-33]? Code sec. 368(a)(1)(A thru(G) describe 7 types of tax-free reorganizations. Thus 368(a)(1)(A) is a Type A mergers that generally is an exchange of stock for stock by the shareholders, however, the transaction will retain its tax-free status if money or other property (boot) is distributed in addition to stock [Reg. 1.368-2(B )], but gain might be recognized on the portion of the consideration that is boot [Tax Planning for Business Quickfinder, page 12-24]. Generally gain to be recognized is the "lesser" of (1) FMV of KAR Holdings less ADESSA stock-Basis, or (2) The $27.85 per share boot received [see example in "Tax Planning for Business Quickfinder, page 12-24"]. Yes, the taxable gain is reported on 1040 Sch-D, with a holding date of his ADESSA stock in 1986.

And... the IRA is an asset of the estate for purposes of determining if the estate has an estate tax (form 706 Sch-I) on assets valued at over the $2 million. However, it is not a part of the estate for estate income tax (form 1041) or distribution since she inherited it direct as a beneficiary. In other words its her money immediately upon death and basically it is 100% taxable only when she takes the money out of the account. When she takes or has to take the money out is what the regulations and requirements are all about. No big deal.

Thanks KC.. I would never think of flaming. Heck.. I have always been afraid of fire.

Got to have a little fun now and then. LOL

>>How about picking up Pacun's post from yesterday morning?<< I don't see a current original post from Pacun listed. Maybe you could help me find it? edit: Disregard I see the post now. I just don't know anything about foreclosures.

I wouldn't be caught dead without at least a little tissue.

>>The vacation was to short. We went to Hawaii for the first time and it was great! Look forward to getting some good discussion going. << The "banded culprits" are duking it out presently on quickfinder.com They may also be banned from there soon. LOL

My Midwest state CPA society did a recent survey of 100 offices in our state (not my office) and published the results-- A). Respondents were asked to rank their firms' stage in the paperless office transition: The firm size responding were 24% individual practitioners, 64% 2+ partners, etc. 1. 6.2% have gone completely paperless. 2. 21.2% have no interest in going paperless. 3. 41.2% are in transition of being completely paperless. . Purpose for which firms use paperless applications: 1. 45% Tax documents 2. 24% Audit documents 3. 9% Communication documents 4. 26% Management documents C). Those that have not gone paperless express a variety of reasons: 1. 24.2% see no reason to go paperless 2. 18.2% budget reasons 3. 18.2% software does not meet needs 4. 51.5% other reasons --- I realize the percentages do not add up to 100%. These are their figures not mine.

Its nice to see you here veritas! Yes, Jainen and I should have also gone on vacation. It would appear that the powers that be were waiting for some reason to do as they did. Its no big deal as there are a lot of tax message boards around and that one was getting too full. I hope you will also use this forum as we need your experience and expert opinions to keep us all in line on those difficult tax issues. So how was the vacation?

Oh... If he is doing construction work for others with the corporation, then its not quite the problem. However, related transactions are still a question if he is shifting income to avoid taxes. A C-corp can be a good way to save taxes if it is a long-term operation where the main reason is to average tax rate brackets with the 1040 income or to sell the corporation stock at a later date to cash-out at capital gains rates. There are a lot of disadvantages to a C-corp such as the old double tax effect if you have to pay non-deductible but taxable dividends. Also, the problem with possible "personal service corp" status and tax where most of the income is generated by the owner in certain field such as consulting. I would expect that to start with your client might be better off electing S-corp status. You should review his situation with publications such as the Small Business Quickfinder Handbook, tab M, "Starting a new business", and the business entity comparison charts starting on page M-2.