Maribeth

Finally got the last 4 of my extensions (including my own) acknowledged this morning (Thursday 4/18/13). All of them were submitted before 5:00 PDT 4/15/13. All of them sat in the queue with a transmit to agency date of 4/16/13. All were accepted with a status date of 4/15/13. So all appears to be well.

So true. Years ago used a tax program, believe it was Tax Shop or maybe Digitax. Bought out by whoever Creative Solutions is. That first year they offered me software at an outrageous price. Of course I went elsewhere. Can't remember if that was the year I found ATX or not.

KC, I am on the other side of the fence from you when it comes to politics and probably some other social issues. However, I know that when I meet you, for one day we will meet, I will sit down with you, drink a cup of coffee and we will like each other. We will talk about taxes and family and baseball and we will joke a bit and we will like each other. We people in the US are more alike than not. All of us want the same thing in life: for our children to be healthy and educated, to have food in our bellies, a roof over our head, to have friends and family that love us. I come to this board for the comaraderie of my fellow tax preparers. I get so much of the divisiveness of our country from other sourcess that I simply do not look for that divisiveness here.

Learn something new everyday!

Well, back in the old days, I could sign the extension for the client when the 4868 required a signature. Now, I just efile the extension. I figure I still have the right to sign for the client and I am simply not going to go through the hassle of having the client sign. All of my clients going on extension know that I am putting them on extension so I have their 'virtual' signature anyway.

Don't know if this would help, but I tried a bulk disposition at the start of the year. It did not work right. I discovered that I could not combine Sec 179 and regular depreciation assets together. They had to be two separate bulk dispositions. It wasn't an ATX problem; it was an IRS requirement.

Which is what I said. I was trying to show you the difference between the 1045 and the 1040X. The 1045 can be only used within the 12 months after the loss year. The 1040X has to be used thereafter. You can use the 1045 as a supporting schedule to the 1040X. It will help if you have intervening years.

Agree wholeheartedly

If the year of the loss is still open, you can carryback the NOL to the prior two years. 2010 is open until at least 4/15/14. You do not amend the 2010 return. You amend the 2008 and the 2009 return (using 1040X) to carryback the NOL to those years. You can only use the 1045 within the 12 months following the end of the loss year. For example, in your case, you would have had to file the 1045 by 12/31/11 in order to use that simplifed method.

Happy Birthday KC. Hope you get to do something fun today, instead of just taxes.

Thanks so much. I appreciate the prompt response. It is that time of year when I seriously start to doubt myself

Have a potential client come to the office. Just finishing pharmacy school. He is creating an S-corp and will be buying an existing pharmacy in August. He tells me that in the pharmacist conventions that he has attended he has been told by "others" that his S-corp can hire him for 5 years and then pay off his student loans. I told him that yes, the S-corp could pay off his student loans but that the amount would show up on his W-2. Now I am wondering. I know that student loans can be forgiven if you do national service. (Anyone remember Northern Exposure?) But is there a way that your solely-owned company can pay off those loans for you and it be tax free?

Oh, it sounds wonderful!!! We can do a road trip!! RitaB, you are the trip master. Let's get this show on the Road!!

Oh Boy!!! Can we all come too??

It's the difference between your regular tax and your AMT tax. Look at Page 3 of the 1041, Schedule I.

Yes, if they are coming from a K-1, then the assumption is whoever did that K-1 prepared it correctly.

Line 17 is the line for adjusting between regular tax & AMT for disposal of assets. Say you have a piece of equipment. Cost is $10,000; regular a/d is $7,000; AMT a/d is $5,000. You sell it for $10,000 to keep it simple here. Your gain for regular tax is $7,000. Your gain for AMT tax is $5,000. On line 17 you would put $2,000, which is the difference between the regular gain and the AMT gain.

And I would be happy to help you with further questions. You can PM me if you wish.

You need to start with the tax year of the loss. Your first client had a loss in 2010. First you determine the net operating loss for the year. There is an NOL worksheet in ATX but you can also get a copy of Form 1045 and it will walk you through the steps to determine how much of an NOL there is. The hard part is that if the election to carryforward was not made on the timely filed returns, then you have to carryback the loss to the two preceding years. Let's see, 2010 is still open until 4/15/2014. You cannot make the election now but since the loss year is still open, you can amend (1040X) 2008 and 2009 if there is a tax benefit to the carryback. Start with that. Use the 1045. If there is NOL's unused after the carryback, then you can carry those forward to 2011, 2012 and on for 19? years. So, first determine the NOL, then determine how much of that NOL is going to be carried back to prior years. Then carry what ever is left over forward.

Okay, so the new assets are being depreciated correctly on 4562 but the pror years' assets that are still being depreciated are not coming onto the 4562. This late in the game could you print out the depreciation schedule so that you know what it needs to be and then use the "discard fixed assets for direct input" on the 4562. Just enter the numbers where they need to go, make sure it is okay on Sch F and run with that? Then maybe after 4/15/13, you can go back, with a clear head that isn't tired, maybe get through to support, and fix it? Just a thought . . . .

Not sure what you mean. Only the current year depreciation should be showing up on the 4562 and on the Sch F.

Are they assigned to the Sch F? On the fixed assets tab, look on the left and see if they are unassigned. If so, assign them to Sch F and they should populate.

Can I marry that person?

Well, I just went back into my files for ATX 1999. It was called the "CEO Free Trial Program". Can't remember the name of the new CEO but if he wants us to stay with ATX, he better look at how Glynn did it in 1999.

I think that what CCH should do is what Glynn did back in 1999. Back then, I received a postcard in the mail. Actually it was a bunch of little postcards, wrapped up in cellophane paper, and sent to the professionals. There was a postcard from ATX and it said something like this: You will love my software. I will give it to you free, use it until February. If you don’t like it, simply return it to me, there will be no charge for the returns you have filed. If you do like it, you can pay me the $500 and use the cash flow from the returns you have already filed to pay me. Does anybody else remember that? Well, I took him up on his offer and I have been with aTX every since. Through the bad and through the good. I will look at other software – that is something I do every year and I keep coming back to ATX. But what I will say this year – no early money – you had my money for almost a year and you have cost me cash flow problems this year. I want the same deal as Glynn gave me in 1999. I take your software, pay you in February 2014. Or I go somewhere else.