Maribeth

A good time & billing system is TPS software. It was designed for accountants, not lawyers, and does all billing & accounts receivable functions. We have used it for over 10 years now and it works fine.

Also, our Time & Chaos has a billing module attached to it, which we have not used. Love Time & Chaos, so one day we might check out their time & billing.

Maribeth

I am interested in finding out what the $48,733 IRA distribution was for and what exception was used in order to get them out of the 10% penalty. There is no 5629??? (or whatever the form # is) to disclose the exception; yet no 10% on Page 2. Last time I checked; neither one of them was 59 1/2.

Maribeth

$395 regular price, $158 discount, so $237 was the post-discount price. And I was told that the renewal is 50% off the first-purchase price - so that should be $197.50 next year. Still paying for what -used- to be included, which is annoying. The claim was that there were too many complaints about it causing slow-downs and problems in the tax program, so they split it out.

How would anyone EVER figure a slow tax program was caused by the asset manager?

What-EVER.

Hmmmmm . . . . . . . I purchased the FAM for $370 in January 2010. I have subsequently been told that the nenewal price, in January 2011, would be half of the original price or $185. In less than 5 months, the price has gone up to $395, which is a 6.7% increase. That's quite a jump for an economy that is in stagnation.

Maribeth

Aw go ahead & be a smart aleck.

We're not under any deadlines right now so there's time for a little levity.

And I confess that a few weeks ago I wouldn't have been so up on my parts of speech, but recently a Bible study I've been working with has been focusing on deconstructing sentences for clarity. We even started doing some diagramming, which takes me way back in time.

But we see what we wish to see. I read your "an" even if it wasn't there. Had to go back and look at your posting to see the incorrect article.

Maribeth

Okay, all is well. Called Troy, explained I was a TRX traitor and wanted back in the fold. Renewed with MAX at the discounted rate, paid with my credit card and all is ready for tax season 2010.

By the by, still have not received any phones calls from ATX about renewal nor have I received anything in the mail regarding renewal.

Two super sales people with CCH: Troy at x1307 and Gil Watts at x5025. Both have helped me and made things happen this year. Thanks to both of them.

Maribeth

Dang, I am really feeling left out. I did not take advantage of TRX offer last year, and because I stuck with ATX, I won't get the 40% off this year. I missed the boat.

Tom

Lodi, CA

Jeeze, Tom, I am truly feeling left out. I went with TRX last year and ATX has NOT called me yet for this year. What to do?? What to do????

Maribeth

I believe that I will take them up on their offer, but not for there tax software. I have always preferred RIA over CCH for tax research. At $299 for the RIA service, that is a steal. I will demo their tax software, but I am an ATX girl, it would be very hard to go back to an input sheet entry method.

Maribeth

Client has rental property. Recieved $50,000 as depsit on a six month lease option to buy. Lease optin starts January 1,2010. But for some reason the purchasure gave her the check in november 2009 ( she said he wanted to make sure it didn['t get spent). Is this taxable now or at sale or as rent for 2010 tax year.

linda and buddy

I had a similar situation a couple of years ago. Client received a deposit in the tax year for a sale of property in the subsequent year. My research concluded that the deposit was not taxable until the sale was concluded.

My situation was an outright sale, no lease involved. I would "assume" that in your situation the deposit would be taxable if the option to buy is not exercised. But that is just my assumption.

Maribeth

The client dissolved S-corp in 2008 after selling the business assets by installment method. The client didn't receive any payments from the buyer in both 2008 and 2009. The note issued by the buyer became worthless in 2009. I am concerned where the client can claim the business bad debt on his tax return (1040). Any experienced advice would greatly appreciated.

What happened to the assets that your client sold? Was he able to repossess any of them?

Maribeth

It appears the 1120 program does not calculate book depreciation. I understand purchasing the "Fixed Asset Manager" will manage and automate this process. Does it need to be purchased each year for the corresponding tax program, or just buy it once and it will interface with any of the years?

We bought it for the first time this year. Really like the package, it does what we need it to do. It has some bugs: the rounding function doesn't work well so you will be 1 or 2 dollars off, consistently. The import function, from FAM to ATX, has some bugs in it, primarily with the carrying over of non-residential property and vehicles. Again, I believe it is all caused by not programming in the rounding function.

We kept trying to fix ATX once the import had happened, and finally we just gave up, and we are entering directly all depreciation entries into ATX, using the numbers from FAM. But for what we needed it to do, keeping book/tax and for accounting purposes, it works okay.

Our understanding of the renewal process is that next year the renewal price will be 1/2 of the initial purchase price. I do not have that in writing but that is what the sales person told us when we placed the original order.

hth,

Maribeth

Commerical real estate; 39 years, SL.

Maribeth

Wow! I'm impressed, Maribeth.

I would love to take the credit for it but I did not come up with it. It is something I learned when I started in public accounting, way back in the dark ages. It has always helped me keep track of the community property states. Then Wisconsin came along and muddled things up a bit!

Maribeth

The list of community property states is as follows:California, Arizona, New Mexico, Texas, Washington, Idaho, Louisiana, Nevada and Wisconsin.

Dennis

Louis Can't Win. (+ Wisconsin)

Louisiana California Arizona Nevada Texas Washington Idaho New Mexico.

Had to add the "plus Wisconsin" because Wisconsin came late to the party and I haven't heard if anyone has figured out a new memory jogger.

Maribeth

So I can put them on Sch E. (I do like that better than using Sch C.) Do I use a "fake" K-1 and show the old EIN and business name?

Thanks so much

I would probaby use a title such as Prior LLC expenses or something such as that. You could also put the expenses on 4797. But either way, they continue to be business expenses.

Maribeth

This is for an office in home and the carpet was changed out in office only at a cost of $1556 tried asset entry and could only come up with 39 yr life. No way carpet or even vinal flooring last that long.

Linda and buddy

Carpet used to qualify for ITC and we used 7 years.

Maribeth

Client had a restaurant business (LLC) that closed in 2009. However they are still paying back the business loans. It is business interest but there is no more business return (Final K-1s were issued). Can this be deducted somewhere on their 1040? If so, where? Can I show it on Sch E even though there is no K-1 or EIN -- or use old EIN? Start a Sch C with just interest & tax prep fees?

Thanks.

The character of the expenses does not change because the business stopped operations. Wherever you deducted the expenses before is where you will deduct them now.

Maribeth

I am a CPA and in years past, when all we had were paper extensions, I signed all of my clients' extensions. I believe if you were an EA, you had the ability to do so also, but I am not sure about that.

The first time I did an electronic extension, I saw that signature requirement, and thought that does not make any sense. Actually, I really thought something quite a bit more obscene, but this is a polite board.

I do not have my clients sign anything for their extension now and I will not have them sign anything for their extensions in the future. I have their permission to put their returns on extension and I do so.

So, it ain't going to happen. Come get me IRS for another silly, stupid requirement. Come get me.

Maribeth

PS: and don't get me started on that silly, stupid 941 signature either.

yes how does that work. So I reported the sale wrong in the first year for sale price? only down payment last year near end of year. I reported the contract price and then this year I am working on the imputed interest.

are you saying I reported the wrong sale price because I did not use imputed interest

There is no such thing as a non-interest bearing contract between two unrelated parties. If you did not take into account the implied interest in the contract when you set it up, then, yes, you reported the installment sale incorrectly in the original year.

The selling price was comprised of two parts: the principal balance and the imputed interest.

If this is only the second year, I would figure out what should have happened in the first year, determine what did happen in the second year, and adjust this year accordingly. You will find that others may advise that you amend the prior year but I would only amend the prior year is the difference in tax was a major factor on the return.

Maribeth

I think so. Don't think a partnership can be a shareholder in a Sub S Corp, but think a Sub S Corp can be a partner in a partnership. Someone who's researched this recently will jump in.

Yes, an S corporation can be a partner in a partnership, along with an individual. I see this a lot with my contractors.

Maribeth

Oh, Elrod, not even enough money for a banana or a Frago?

Maribeth

I think I would do a correct W-2 with an explanation of the changes. This not only affects the gross income but all of the withholdings as well.

It is the employer's responsibility to pay in the payroll taxes. The employee will not have any withholding reduced or social security reduced because of the bounced check.

I would take the net amount of the check and show it as a reduction on line 21.

Maribeth

>>>a boiler-plate confidentiality agreement<<<

Exactly what is this agreement? You can e-mail me a copy of it to [email protected]. Thanks so much for your input.

And for the rest of us that would like to see it, could you post it here on the forum?

Thanks,

Maribeth

When I check my return, it says that the NOL is not approved for filing? Is anyone else seeing this? Is it true or should I call support?

Yes, I update every morning.

Tom

Lodi, CA

Tom, what NOL form are you trying to file? My NOL worksheet in the 1040 comes up just fine. I do not believe that we can efile the 1045 yet.

Maribeth

this is posted on the "offical" ATX commuity for what it is worth

Business E-file and Business States info

3/16/2010

Updated 03-15-10: Missing acknowledgments – We are currently working with the IRS to clear up some outstanding acknowledgments for business e-files that were submitted over the past 3 days. All outstanding items have been identified and a trouble-ticket submitted to the IRS to have the acknowledgments re-posted.

If you can see your business e-file in the Return Query/Return Status tool on the Support site (but it does not have an acceptance or rejection date), you can assure your clients the returns are time stamped and will be considered timely filed.

Once the IRS re-posts the acknowledgment file, you will receive your acknowledgment, and the status on the Support site will be updated.

Updated 03-12-10: Extension acknowledgments – Acknowledgments for extension e-files may take up to 48 hours from the time the returns are drained to be processed, especially as March 15 approaches. If less than 48 hours have passed since your business extensions were

Yes, I saw that posting on the "official" site. We had 10 extensions that were submitted last Friday and have not been accepted yet. We sent the 7004's in the mail on Monday. Better two extensions than no extensions, with a $189 penalty a month now.

Maribeth

This is my first time with a really big NOL, and want to make sure I'm reading everything right.

The NOL is from 2008, with no election of any kind made, so I'm first carrying it back to 2006.

It's a big enough NOL so that after applying it, their AGI is 0. They itemized deductions that year, and this is the part I'm unsure of. They have medical deductions and misc subject to 2%. If I'm understanding it right, since their AGI is now 0, all of their medical and misc are now included in the aftercarryback line 12 deductions. Right?

I've got the rest of it, including refiguring any credits based on 0 AGI.

It's not as scary as I thought it was going to be.

Fill out Schedule B of the Form 1045, it will walk you through the amount of nol used and the amount to carryforward to 2007.

Maribeth