Maribeth

If the activity that created the honorarium for your taxpayer was a once-only or limited activity, then i would place the amount on line 21 and not subject it to SE tax. See Rev. Rul 77-356 and Rev. Rul 55-431. If the taxpayer is not engaged in a trade or business, then no SE tax. It's a facts & circumstances test. My taxpayers have honorariums, for instance, a pharmacist lecturing to a senior club about drug interactions, a second-generation American doing translation work for new immigrants. These honorariums go on line 21 and are not subject to SE tax. If your client is continuing to do this type of work for his employer, then his job duties have changed and the income should be reflected on the W-2. hth, Maribeth

His basis in the stock is the same as the basis that the trust had in the stock. It is not FMV at the time of distribution. Maribeth

Terry, the §179 deduction is passed out separately on the K-1. Are you looking for it on Page 1 of the 1065? It won't be there. Also, there cannot be a loss in the partnership in order to take the §179 deduction. Maybe that could be the problem . . . Maribeth

My experience was the same as yours, 2 minutes, if that, and then "thank you for responding". My answers: Accounting, 3 employees, 21 years, 1 office. Not much difference than yours. I did not even get the chance to decline the opportunity to win $1,000. Maribeth

KC, Does Monkeyman have a ponytail? Maribeth ]

And . . . . Ogden is sending out notices disallowing the sales tax deduction on Schedule A for 2006 because "the itemized deduction for state and local sales taxes is no longer allowed." It appears that the IRS computers need to be burped because they are certainly being cranky! Maribeth

"I have done enough research to conclude that the actual therapy costs from the educational thereapist, specialized software and transportation expenses are deductible for my client's child. " I can only give you my opinion on this and I don't have a cite, but I would deduct the computer. If the family had no computer in this home, then its cost would be part of the therapy module with the software. If the computer is going to be used only by the child and with the specialized software, why not deduct it? Maribeth

I'm confused. Aren't we all saying the same thing? The rent income from the IT guy will be shown on the Schedule C, either as other income or a reduction in rent expense. The bottom line in either scenario will be the same. What am I missing? Maribeth

And I would conclude just the opposite -- that the translator has just entered into an office-sharing arrangement with the IT guy and the IT guy's rent reimbursement will reduce the amount of rent that the translator will deduct on his Schedule C. No Schedule E entries, just a reduction of Schedule C expense. Maribeth

Catherine, I do a lot of planning also in my practice and I duplicate the return and then rename it as "Planner - John Smith" and in the status column I put "planner". That way, when I am just looking for different scenarios, I can sort the return manager to "planner" and pick the one I wish to use. If I have several different options, then I name"Planner - John Smith 1", 2 and so on. Maribeth

"the 2006 has been filed for one. Can i change the election to forgo the Carry back and just go forward?" There is a reg (301.?????) that indicates that you can make an election on an amended return as long as the amended return is filed within six months of the due date of a timely filed return. I know that this election covers §179 expensing and startup costs so I believe it would cover your NOL carryforward election. If I'm wrong, someone please correct me! Mary

I have looked at several different packages (Drake, Taxslayer, two others) and I still believe I will renew with ATX. I do not care for the input sheet method of data input, as Drake uses, and to be honest, I just don't wish to go through a conversion again. This decision might bite me in the butt in the future, I'm aware, but we'll just have to see. I am going to renew by the 6/30/07 deadline -- only because I use TTO and the package this year includes the document manager and the trial balance. We need to be able to get the document manager up and running long before December, even though ATX has indicated it won't be shipping the document manager until late summer or early fall, that is still better than December. Maribeth

Tom, Yes, if none of the NOL will be used in 2005 because 2005 is already a loss year, then on the 1045 there will no changes in either column. You are not using any of the NOL in 2005. Maribeth

AND the election to carryforward the NOL can only be made on a timely filed return. Your 2003 return is delinquent so you do not have that choice. You will need to carryback the 2003 NOl to determine how much would have been used even though you won't have a refund from those carryback years. Then you will have the amount that is available for carryforward. And the carryforward does not go on Schedule D. It is included on Line 21. Maribeth

Tom, I just went to an NOL seminar yesterday so i hope that I can help you with your question. The instructor said that the IRS now wants us to figure the intervening years calculation and place just the amount of the NOL that will be used in that specific year on the 1045. So in your second year, which already was a loss year, none of the 2006 NOl will be used. So I would make both columns the same to show that none of the carryback was used in that year. I hope that I answered the question that you asked! Maribeth