User talk:Death&Taxes
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Miss Molly
I love your brainstorm!!! Molly is a feisty girl and might rough up the auditor if she thinks I'm uneasy. There must be some Code section disallowing that. :) BethAZ 20:26, 24 October 2007 (CDT)
PDCPA
Sigh. Some days I feel like a potentially dangerous CPA every time I pick up a pen. BethAZ 12:49, 25 October 2007 (CDT)
It's not the time...
Hi David - My tax practice is small enough to manage the awkward timing of the audit, so that isn't really an issue. Spoke with old boss. He agrees there may be something more here due to the auditor's credentials, so close to the SOL, Nat'l Heritage Foundation, the size of the transaction, etc. He thinks the IRS might be trying to disallow the entire transaction back to 2000, not just the tiny amount used in 2004. That's why I think an attorney would be a better bet, and from the start. You are wonderful for helping me with this perplexing issue and are a great source of knowledge and comfort. Thanks BethAZ 11:35, 26 October 2007 (CDT)
My Email
D&T,
Thanks! My email is troupe55@mac.com
re: Home Sale Exclusion for newly married taxpayers
Thank you for the information. It was quite helpful. It sounds like I don't have enough good facts at this point to claim the exclusion. I'll probably advise they stay in there for the full 2 years to exclude the gain. Your link was very helpful.
Thanks, SoelbergCPA 15:36, 8 November 2007 (CST) Soelberg
Mystery message
Hi David - also a mystery to me. I don't recognize the user Eduardo(?) and don't know why he left this for you. That audit is in the hands of an Ex-IRS guy who is an old hand at this and will be meeting with the auditor in early Dec. He said he'd keep me informed and I'd be happy to share the outcome with you if you're interested. Thanks again for being so wonderful! BethAZ 12:33, 9 November 2007 (CST)
curiouser and curiouser
I'll keep you informed. Maybe we've stumbled onto a conspiracy. Hush hush.
"the message"
David, I hope you don't mind me commenting on this, but I happened to see the posts regarding your mysterious message. Personally, I don't think that information belongs on a public website.
I went to a seminar once in which the Heritage Foundation made a presentation. As best I can recall, the Foundation helps people set up charitable trusts in which they indicate how funds are to be distributed but they do not have to administer. Perhaps this person thought you were somehow related to the people in the message. It also seems like this person is at the bottom of the barrel as far as trying to resolve the situation. Note the date references at the end for November 2006. It seems like previous communications have gone out with no responses.
BTW, the sender's profile is just the standard default, and it was set up the day he left the message for you.Natalie 04:48, 10 November 2007 (CST)Natalie
Mystery Message
I've been watching - no need to alert me. ;-) The person who submitted that message created an account, left you the message, and hasn't edited anything else. I have no idea who it was.
- Tim Doyle, TaxAlmanac Moderator - Talk to me 10:16, 10 November 2007 (CST)
Eduardo Alarcon
I don't know why Mr. Alarcon keeps posting information regarding NHF, but googled "Alarcon NHF" and found that he has done the same thing on various forums. No explanation as to why he continues to copy and paste legal proceedings, and the other forums seem as puzzled as we are regarding his intention. Perhaps he has a beef with NHF. I imagine it would easiest to just delete the message. Sorry you are receiving these. You helped me, and no good deed goes unpunished :) I will leave him a message on his message page and ask that he stop posting legal briefs on your message page. BethAZ 08:58, 16 November 2007 (CST)
turbo tax
hi death&taxes,
i've recently looked up a couple of topics and you seem to coincidentally be on the posts and have the answer i'm looking for. since you seem to have clients in the same situation as me, i was wondering if you could answer a question about turbo tax (or any other software program, tax cut, etc.). can turbo tax handle my return - i've been doing it by hand forever - i have an average of 20 pages of schedule d-1 pages (manually written), and have an investment in a couple private equity funds (goldman sachs) which issues these very lenghty k-1's where i connect the dots and put the information on other forms such as schedule d, e, 4797, etc.
thanks a lot --Daqdaq2000 12:01, 26 November 2007 (CST)
Acronyms
When I saw EBE, I was thinking employee expenses, but I got stuck on Unreimbursed Employee Expenses. And MLTN really threw me. I had no idea about that one. Thanks for all of your translations! Natalie 21:26, 5 December 2007 (CST)Natalie
Update on Audit
Hi David - appears the IRS is targeting participants in the NHF program. There is abuse going on with these foundations, but my client isn't abusing so looks like he's off the hook. Whew! Beth 11:28, 20 December 2007 (CST)
My Newsletter
Hit my page www.jrobertsaccounting.com and the Newsletters page for the newest version...scroll down for it. Jeff JR1
Volume of returns
DT
How many tax returns do you do from a home office?
Just curious, if too personal a question, I fully understand.
Please respond to southparkcpa@----------.com
It is Yahoo. I hate spam. This seems to help.
Matt J in Charlotte NC
Hawaii visit
David, you know if you ever visit Hawaii, I'd really like to meet you! I just read your post about the astrological signs. You bring so many interesting things to TA! Natalie 02:23, 7 January 2008 (CST)Natalie
You're welcome!
No Properly Filed 1099 = Disallowed Deduction?
I saw your reference to a court case involving a disallowed deduction for expenses that should have had 1099's filed for them and wanted to try to get more info from you.
I have a client who is currently under audit for 2005 and did not file 1099's at the time. We have prepared 1099's (have advised client regarding late filing penalties, etc.) but do not have complete information, specifically missing some federal ID numbers. The agent is saying that the deduction amounts will be disallowed for recipients we do not have numbers on, but we have backup to support deductions (invoices, etc.). He says that's not good enough. Any court citations or precedents would be appreciated.
Write up
Hi D&T, I really enjoy reading your posts. I was looking at your profile and saw that you focus on taxes, having done the writeups way in the past. I thought I'd touch base with you and say if you get any writeup/bookkeeping requests that you don't want, maybe you could throw them my way. I'd be glad to pay a referral fee. You are more experienced at this than I am and I'm sure we could work out an arrangement agreeable to both of us. For the past four years, I've not done any marketing and my practice (from home although I use 19 Main St., TR for mail, meeting clients, etc.) has taken a back seat to Town Hall in Toms River. Now that I've been emancipated, I'd like to rebuild the practice. If I'm way off base, just let me know. Thanks, Paul Brush
This is so simple, I figured I would have seen some replies to my post SOLD DEED OF TRUST for LESS THAN FACE VALUE Perhaps it was too convoluted?
Maybe you can help?
Thanks
Whoops I forgot the blessed tildes
This is so simple, I figured I would have seen some replies to my post SOLD DEED OF TRUST for LESS THAN FACE VALUE Perhaps it was too convoluted?
Maybe you can help?
Thanks
Cmts707 09:32, 12 January 2008 (CST)
Acronyms
The acronyms are flying all over the place. Help! What is PTD? Natalie 15:50, 14 January 2008 (CST)Natalie
I enjoy your writing
D&T - One occassion you've linked to some of writings. Your way with words is always a pleasure to read. Can you provide me with links to more of your writings?
Rick - rgtaxservice
BTW, is there a way to link my Username instead of me typing it?
Penalties and Amended returns
Hi David - For 2006, client gave me the wrong backup file of Quickbooks that only included detail for half the year. There is a substantial understatement of tax. You once said "You practically have to shoot the commissioner" before IRS will impose penalties on a voluntarily submitted amended return. Do you think that will also apply to an accuracy related penalty? I'm not taking responsibility for the penalties. Thanks so much. Beth 10:30, 18 January 2008 (CST)
Parrying Explanation
The explanation I gave is as follows: TAXPAYER REPORTED INFORMATION TO PREPARER THAT WAS CONTAINED IN AN OLD "ACCOUNTANT'S COPY" OF HIS ACCOUNTING SOFTWARE (QUICKBOOKS). SINCE HIS ACCOUNTING SOFTWARE SHOWED "ACCOUNTANT'S COPY EXISTS" IN ITS HEADING, TAXPAYER MISTAKEN ASSUMED THE PREEXISTING "ACCOUNTANT'S COPY" WAS AUTOMATICALLY UPDATED. THEREFORE, TAXPAYER ONLY REPORTED A PARTIAL YEAR'S ACTIVITY TO PREPARER. AMENDED RETURN WAS PREPARED IMMEDIATELY UPON DISCOVERY OF THIS ERROR. What do you think? Thanks as always for your kind advice. Beth 11:34, 18 January 2008 (CST)
Appeal
You sure do have a way with words. If I had to answer that question about pain, giving birth is an easy 10.
Anyway, thanks for the reply. I guess I'll just wait until we hear from them again. Natalie 12:37, 21 January 2008 (CST)Natalie
Get thyself to...
The thread about officers of a non for profit. It's actually about musicians....he needs you there.
airline crew
D & T what is your personal email? Nancy Shoe
Partnership 179 carryforward and guaranteed pmt
can you look at my most recent post. Not sure about NJ letting me get full benefit of my 179.
thanks
Thought you might have run into this. In my software i was able to put in the extra depreciation and it looks like it nets it out on the NJ K1s. So i think it is ok.
S Corp employee fringe benefit
Thanks your your input on my question about the fringe benefit for the son. NC Gil 11:25, 8 February 2008 (CST)
I'm Just Dense
David: I think I finally got the point trying to be made. I did put a few states that I think may have this "Decree of Separate Maintenance" or the like, but I did it by a undependable websearch. I was never able to pen it down to a specific statute in my state, but I know we have it, whether we have it by common law, or whether it's a sub-part of something, I don't know. CrowJD 19:03, 9 February 2008 (CST)
Ran Across this
David: As you pointed out, this is a rare and strange bird. FYI, I ran across this and pass it along to you, from all places, the local Ft. Mac Newsletter, note how it does not even start out as a Divorce, this is what I understand my client has (no doubt this is of Catholic origin, when the annulment would not do lol):
What is a Separate Maintenance Procedure or a “Bed and Board Divorce?” Perhaps the most frequently spoken of, but least understood form of marital separation is the “formal judicial separation” which is sometimes called a legal separation. The “formal judicial separation” or legal separation is initiated as a lawsuit by one spouse against the other. The name of the lawsuit that results in a formal judicial separation varies in different states. It is often called a “bed and board divorce” and in Georgia is called a separate maintenance proceeding. The legal assistance office will not be able to assist you with a separate maintenance action other than to advise you of the benefits and procedure involved in this action. From a Ft. Mcpherson Newsletter. CrowJD 11:31, 10 February 2008 (CST)
NJ gross receipts for minimum tax purposes
D&T, I'm copying this from an exchange I had on m.t.m. today ... just curious to know if you have any more information or insight into this issue. NJ certainly doesn't make it easy to find the information! But it seems like a common question.
On Feb 10, 11:45 am, (deleted for privacy) wrote:
> A New Jersey S-Corp sold its only asset, rental real estate located in NJ > in 2007. For purposes of calculating the minimum tax for the CBT-100S should > the sales price of property be classified as all other business receipts > earned in New Jersey?
> Is there any source were the definition for NJ Gross Receipts is given?
The definition of NJ gross receipts is in N.J. Admin. Code 18:7-18.1, and it isn't a lot more detailed than the list on the form. The form instructions are no help either. The only place where a sale of real (as opposed to tangible personal) property would fit, as you suggest, is under "other business receipts earned in New Jersey."
The best reference I found for this is in a Q&A issued by the NJ Department of Revenue on January 1, 2004. The response to Question 42 is that for purposes of the alternative minimum assessment, the Corporation Business Tax sales factor numerator rules will be used to determine NJ gross receipts. New Jersey Corporation Business Surtax and Minimum Tax Changes, 07/11/2006, says the new minimum tax definition of NJ gross receipts is the same as for the AMA. Sooooo....it appears we should look to the CBT apportionment rules. N.J. Admin. Code 18:7-8.12 lists sales of capital assets and sales of real property under "other business receipts," so we must be on the right track.
For sales of capital assets, that reg refers to N.J. Admin. Code
18:7-8.9, which says:
"(a) The gross receipts from sales of capital assets (property not
held by the taxpayer for sale to customers in the regular course of
business) either within or without New Jersey should not be included
in either the numerator or denominator of the receipts fraction. The
net gains from such sales which are included in entire net income are
the amounts which are properly to be included in the computation of
the receipts fraction."
"(b) Where the taxpayer's business is the buying and selling of real
estate or the buying or selling of securities for trading purposes,
these assets are not deemed to be capital assets and the gross
receipts from the sales thereof are included in the same manner as
other includable receipts."
If the property sold was a capital asset in the hands of the S
corporation, the net gain, not the gross receipt, is "NJ gross
receipts." If the corporation's business was buying and selling real
estate, the gross receipt would be "NJ gross receipts." Either way,
it goes under Item 5, "Other business receipts earned in New Jersey."
Whew!
KatieJ 15:11, 11 February 2008 (CST)
translation assistance requeste
What is DIF?Natalie 14:14, 13 February 2008 (CST)Natalie
From Mike - IRSFIXER
We need to have lunch sometime. I really enjoy your posts and have a lot of respectr for you.
Involuntary conversion and Like kind exchange
David, I must impose upon your kindness. Client bought >6000 lb truck in 2003 for $23k, took Sec 179 on entire amount in 2003. Totaled truck in 2007. Received $21k ins reimbursement. Bought another >6000 lb truck in 2007 for $24k. I don't see any taxable gain as long as I treat the new truck just like the old truck. Don't know which forms, if any, to fill out and am tempted to just change the description in the asset detail screen. Will you tell me which forms, if any, need to be filled out and I'll take it from there? Sorry to be such a dunce, and I know how busy you must be. BTW: Audited NHF client closed with no change :). Thanks always. Beth 11:38, 25 February 2008 (CST)
Question about artist's expenses
Hello -- I'm a new professional artist and am getting so many conflicting answers (even direct from the IRS) on whether I have to keep an inventory and deduct only costs of goods sold, or whether everything can be deducted in the year purchased.
Based on what you said in this thread, it seems to me you're confirming that all costs incurred in any given year can be written off in that year for a visual artist?
http://www.taxalmanac.com/index.php/Discussion:Artists_can_deduct_all_expense_in_current_year%3F
Am I still confused or is that indeed the case?
I sure would appreciate any help you could give!
Thanks,
KJ
It won't let me edit my previous post...
I didn't realize I wasn't leaving any identifying info or contact information. Sorry about that.
Theconfusedgiraffe 08:57, 27 February 2008 (CST)
Thanks for your help. I really appreciate it.
So we make the case?
D&T: I dont' have many Tax prep. clients, but Uncle must have only 2. How in the world are we to make a case for malfeasance along with everything else we are supposed to be doing? And as you say, you could not be anonymous then! What, are we then to lose several days time appearing somewhere to be a witness to prove the case we made for the government? Hehe. But, I definitely support licensing now too.CrowJD 11:21, 28 February 2008 (CST)
Thanks Death & Taxes, I did look in discussion, but they raised more questions than answers. If the corp deducts and then issues the taxpayers a 1099-INT then it's just a wash. Income to the individual and deduction to the corp. Thats why I am considering ignoring it altogether (no 1099) and treating it as personal.
Landon5784
10990misc to emnployee
When you use 2106, how do you input the mileage allowance, since 2106 doesn't seem to be used for that purpose from my research (it's for Box 12 of the W-2)? In other words, can you use a 1099-misc Box 3 to go to the 2106. This is what you've done before?
16:59, 2 March 2008 (CST)
Sec. 179 disposition
Would you please be willing to talk about this issue offline? Thanks
David, thought you would appreciate this
You know how our brothers in the UK can't resist a wager. Now you can enjoy the fun. Check this out http://www.intrade.com/jsp/intrade/contractSearch/ Click Social Civil at left. You can "wager" on U.S. tax rates, and a lot of other things. I found this site through reading Richard Hoffer's "Jackpot Nation" c. 2007. An interesting read. He claims these sites are amazingly precient to boot. I have not put any money down on anything, but I'm liable to do anything. lol. CrowCrowJD 06:47, 8 March 2008 (CST)
That might no be a bad
That might not be a bad bet! I get the feeling they are already broke. lol. I thought that place was interesting, but I did not go through all the possible wagers. But, I'm going to start checking it from time to time. CrowJD 10:44, 8 March 2008 (CST)
PA SUI
Do you deduct PA SUI as an itemized deduction?
Dusty 11:38, 12 March 2008 (CDT)
D&T:
I value your many contributions to this web site!
Could you offer me your opinion on a question I posted on this web site?
Here's the link [[1]]
I believe recording the trhansactions on Schedule A and Line 21 are probably the most appropriate treatment since this is probably considered all personal use without a profit motive. All the parties are joint owners of the property.
However, do you think there would be any possible way to argue that the payments from the parents to the related taxpayer (child) could be considered gifts?
Thanks!
Gsscpagsscpa aka Gerald S. Sutton
Mbaqb
Death & Taxes,
I had a quick question. I've worked my way through this asset disposition issue ("Deemed disposition of asset") and I just want to confirm one thing. I've got depreciation recapture upon disposition which has been calculated, and I've entries to close the books (see below), but as far as other income outside of depreciation recapture, I am also going to have to show income up to the amount of debt relief, correct (I'm not able to gift that amount, correct?)?
Dennis (talk|edits) said:
15 March 2008
"The gift would be the difference between debt assumed and fmv of the truck. the debt reflief itself is no different than cash received."
These are my facts:
FMV of asset upon disposition= $42-43K
Debt relief (note assumed by son)= $34,485
Asset was placed on books at $24,000, fully depreciated with Sec. 179
Dr. Note Payable 34,485 Cr. Sec. 179 recapture 16,501 Cr. Other gain on disposition of asset 17,984
Mbaqb 08:33, 24 March 2008 (CDT)
Mbaqb
Thanks for replying, I appreciate it. I understand what you mean. Good luck!
State
David, thanks to you and Katie J on state taxation issues. It's appreciated more than you know. Of course, it's Federalism at it's worst, and underlines how underpaid all tax people are. It really slows me down, and I always wonder if I'm doing it right... Thanks again. CrowJD 17:19, 24 March 2008 (CDT)
DE/PA LLC
Good morning D&T.
Hope you are making it through this tax season. I have a question regarding a PA LLC and thought I would try you directly. If you don't have time to answer I understand and will post to the board directly.
Client started a LLC in 2007. LLC holds a rental property. Registered in Delaware (of course) with a foreign registration in PA. Client is a VA resident. I am a bit confused as to what state returns need to be filed. PA 65 with a NR K1 and then a PA 40NR? VA 506 with a credit for taxes paid to another state? Anything for delaware on the LLC level? I believe he has to pay filing fees on a yearly basis to both DE and PA. I'm not sure why he registered in DE and could only tell me that is what he saw to do on the internet.
Thank you in advance for your input. This was the client that handed me all the paperwork and said....I'll be easy again this year. I find a recipt for LLC expenses in his paperwork and call on it. Oh yeah...I forgot to tell you about that.....
Have a great day.
Marcellah 12:52, 28 March 2008 (CDT)
Marcy
PA/DE LLC
Thank you for your response-
I don't know why this is so confusing to me. I used to live in PA!
LLC is a partnership, no s or c corp election was made.
Since the partners both live in VA would I file a PA 40NR? Then file in VA with a credit for any tax paid to PA on the NR return?
Is it April 15th yet :-)
Marcellah 13:29, 28 March 2008 (CDT)
Discussion:Reposted - LTD and Not Workers Comp BUH DUH
Hey DT,
When's the Montana trip? lol
Could I get your quick input on this one. My main concern now is what numbers I use for the lump sum averaging. original amounts excluding dbl payments or amended amounts that include the dbl.
Logic would dictate that I use the amounts excluding the dbl wages. If the SS was received those years as it should have been, then there would not have been w-2 dbl wages. Therefore lower income in regards to SS tax calc.
Could I argue this position?
Does that make sense? And yes, I know logic and sense doesn't always correlate to IRS logic.
Thanks
Fred
Fsteincpa 08:59, 30 March 2008 (CDT)
Below is what was posted last night in a blurred haze.
Now, let me see if I get this straight for the current year. Looks like multiple issues now. Lump sum averaging
I can still Lump sum average the SS received in 2007.
If yes, should this be based on the amended amounts with the disability amounts added in? Or should I base them on the original return amount? significant difference in tax arises.
Theoretically then, if I use lower amounts for prior year, do I back out the DBL I included in income in 2006. Logic would dictate that I use the higher dollar amount, but then this is like replacement money. My head hurts.
Claim of right -
No claim of right for 2004 and 2005 because he omitted, but, he omitted incorrectly it appears. Could claim of right be argured.
2006 I included in income thinking that this money is her money. So, legitimate claim of right for 2006.
did I say my head hurts?
client coming in tomorrow.
It's maple syrup weekend here too
Oh well, thanks for at least listening.
Lump sum for Soc security is relatively simple actually. At least now that I have researched it. when we have clients that receive lump sum amounts in one year, there is a worksheet that allows us to calculate the taxability of it as if it were received in the prior years and thus, using that agi calc to determine % of taxable soc security. then depending on what is better we can use either method.
That part is easy. I'm trying to figure out if my argument for excluding those DBL W-2's from my calculation makes sense. I think it does, but what do i know.
Fsteincpa 09:16, 30 March 2008 (CDT)
--Tedkil 15:17, 31 March 2008 (CDT)--Tedkil 15:17, 31 March 2008 (CDT)== Keyspan Merger - Stock owner dies during merger process ==
Hi: I saw some of yourresponses and name "Death and Taxes". My sister in-law is a Corporate Tax Lawyer for the Hartford Ins. Group. Her father died with the following issue:
Michael is 93yrs old, never sells his stocks. Has KEYSPAN which is merged with National Grid for all cash at $42. Stock certificates in Safety deposit box, in his name only. Merger material states "effective 8/24/07 the merger contemplated by the Merger Agreement was complete". Letter for stock tranmittal received in Sept. 07. Sent the cerificates on 10/3/07; and Michael died on 10/06/07. The check for stock is dated 10/23/07, and is deposited. Receive the 1099-B under his social sec.# with a Sale Date of 10/23/07. I want to report as a sale from the estate and report step up basis. Others are worried about the effective date being 8/24/07. What is the appropriate sale date and can it be reported on the 1041 with step up? Thank
We have searched Many Tax data bases, including my sister in-laws corporate data bases. Seems to be too unususal an issue. Any help would be wonderful!
Ted Kilbride
Madison, CT--Tedkil 15:17, 31 March 2008 (CDT)
Part IV of 4797, when sold? Or only when asset retained and bus. usage drops below 50%?
Death&Taxes,
Is part IV of the 4797 used when an asset previously depreciated using Sec. 179 is sold? Or is part IV of the 4797 only used when the business usage drops below 50% (and the asset has been retained)? I ask because I have a similar issue I'm working with and I read the discussion on the Sec. 179 Hummer disposition from a while back and still didn't feel clear about it. If part IV is only used when the business usage drops below 50% (but asset is retained), then when you sell an asset previously depreciated using the 179 election you only have to show the income amount on page 1 of the 4797 (no self employment tax), and not on an other income line with the Sch C (where you would have to pay the SE tax). What's the proper treatment if an asset has been sold? Thanks. Mbaqb 16:03, 31 March 2008 (CDT)
Thanks!
Thanks for all your help with the Phila. return(s)! I clearly see why no-one wants to live & run a business within the city.
Szptax 13:13, 4 April 2008 (CDT)szptax
Thanks for your help on NY source income.
Rental
So what positin did you decide to take on your musician with the rental property?
8814 v. 8615
Followed a few topics regarding kiddie tax that you participated in. Noticed that you prefer to report the child's income on the parents return if able. Is this because the fee for preparing a separate return for the child more than the overall tax savings to the family? D'Nero 10:05, 14 April 2008 (CDT)
Blame it on my fingers
David: I was just having some after tax season funnies there: there was no Newscaster, etc. I'll get in there and fix it with another post soon. P.S. Check out the trial transcript at the Tax Court post....There's a certain EA on the board I thought I would have a little fun with. Of course, I'm not even a member of the Tax Court bar. I've had no need to be. And, of course, I have great respect for all the EA's on here. CrowCrowJD 08:20, 17 April 2008 (CDT)
need your advice
I have two situations and looking for second opinion both surround the same corporation.
1. IRS has performed an audit on the same corp year after year with little or no changes. now being the 4th consecutive year and requesting the same areas as previously which had no changes or disallowances. I thought they could not do that?
2. IRS examined corp 2005 tax return and made virtually no changes again. now wanting to re examine 2005 in the same area as no changes took place. can they do this?
any information that you can provide would be appreciated and if you have reference as to what you might offer that would great.
Thanks in advance.
Need advice
Hello! I am a student. I am trying to understand the handling of capital gains on the sale of a collectible baseball card. The card was hel long term and is taxable at 28%. The basis of the card is $40 and the sale of the card is $400, therefore, the capital gains of the sale of this collectible is $360. Please feel free to correct me if I am wrong! My main concern and question is my professor has asked if the fact that the baseball player featured on the card is still playing ball would affect the fact that the card is a collectible. My answer is NO, but this part of the question has completely caught me off guard. Why ask such a question unless it plays a role in the answer....
Also, considering I am a student (accounting program) and someday I will want to do real accounting for a living, do you suggest becoming a CPA or is an Enrolled Agent just as good?
is new fed id needed for renewal of grantor trust with amendments
Hi,
I've posted this question on the public forums but have only recieved 1 answer from somebody who has only been preparing taxes since 2008. Would like to get a more experienced opinion which is why i am sending this to you directly. Hope you have the time and can answer this for me.
I have a client who was 50/50 trustee on a grantor type trust with his wife. The trust is expiring ( 20 yr life) he went to a lawyer and got the paper work filed for a trust with the same trust name. There were some amendments to the original trust docs in terms of adding the kids as addtional beneficiaries on the trust ( where as before it was just husband and wife 50/50 now its husband and wife as jt tennants getting 50%, kids 1,2,and 3 getting 16.6667%, 16.6667% and 16.6666% respectively).
Does the government require that a new fed id be applied for for this trust?
thanks in advance for your experienced opinion.
Ted
CP2000
Hi David, Recently, within the last month I'd say, I read a post in which you discussed the many CP2000's you deal with and for the life of me I can't find the discussion searching CP2000. I recall you had a procedure that works well for you and if you don't mind could you point me towards that post. There were quite a few posters in that post as I recall but I can't find it. There was some discussion about the various IRS fax numbers that went into a black hole. I want to avoid that since I got one for a client. Should be easy to resolve fortunately. Thanks much. Paul Brush Toms River 732-240-0600 home office 732-612-1124 efax email: paul@pcbcpa.com
CP2000
David, Thanks. The link worked. Paul Brush
Dangerous reality shows
Nice topic you started there D&T! I guess it's time to hit the hay. When I see you posting, I know it's my bedtime!Natalie 08:11, 21 June 2008 (CDT)Natalie
Hello David, I know you use Proseries and are very knowledgeable. I have a client who got 4 K1's from various limited, publicly traded partnerships. Never a NJ K1 is issued, just the federal. I key in the K1's on the fed worksheet and none of the income posts on the NJ side. I go to the NJ K1 worksheets and check the box for not receiving a NJ K1 and the data is posted on worksheet B. Everything looks correct except none of the income is posted on the NJ return. She is a resident (Berkeley Twp) and these K1's produce income not losses. Any thoughts? Thanks,
Paul BrushPBinNJ 13:02, 28 June 2008 (CDT)
Left you a message
David, i just left you a message but I may have accidentally tagged it to one that Natalie left in the discussion forum. Hope you get it ok, I have a problem with K1 not posting on NJ Proseries. Thanks, Paul BrushPBinNJ 13:06, 28 June 2008 (CDT)
K1 on NJ 1040
David, I can't find the msg I left yesterday for the life of me. I somehow thought I linked to you through Natalie by mistake but I can't find the message. Anyway, I think you use Proseries as I do and I thought my client's ltd partnership k1's were not posting on NJ but they are, so disregard my note. Thanks for the reply, tho'. Paul Brush
client questions discussion
Will you take a look at my discussion regarding how to handle client questions? I have been given a list of 16 items from the tax attorney. I feel really nervous about this now and am not sure how to handle. Natalie 14:32, 9 July 2008 (CDT)Natalie
Deduction for multiple cars used for business
Thank you for your reply. Your advice is right on the money. By the way, what type of breed was Farfel? Howardlcpa 21:48, 10 July 2008 (CDT)
Mileage issue
Thanks for the heads up! I couldn't find an accurate answer regarding the employer based credit card issue with respect to gas and claiming mileage.Im1irishman 13:31, 17 July 2008 (CDT)
Thank you sir. By the way, I read your profile. I LOVE the Jersey shore. I'm from Pittsburgh originally but now live in Tulsa Oklahoma. My parents go on vacation to Stone Harbor/Avalon every year and we try to join them when we can. Anyway, thanks. So, you've heard of that scenario before where the founding partners dont get to take any of the losses? They receive compensation/guaranteed payments so they will get a K-1, just no losses.
Attributing losses to partners
Thank you sir. By the way, I read your profile. I LOVE the Jersey shore. I'm from Pittsburgh originally but now live in Tulsa Oklahoma. My parents go on vacation to Stone Harbor/Avalon every year and we try to join them when we can. Anyway, thanks. So, you've heard of that scenario before where the founding partners dont get to take any of the losses? They receive compensation/guaranteed payments so they will get a K-1, just no losses.
Retrieved from "http://www.taxalmanac.org/index.php/User_talk:Death%26Taxes"
McLaughlin Tax Court Case
Thanks so much for your offer to fax me the McLaughlin Tax Court case. I just found your message or I would have responded much sooner. If your offer is still good, my fax number is (904) 269-9550.
It still looks as though this issue (i.e., no rental 1099s, no Sched C writeoff) will be a sticking point. Thanks again in advance. (My next project will be to fix my profile.) HAPPY TAX 04:13, 11 August 2008 (CDT)
McLaughlin Case Fax
Hi. I think you tried to fax me the McLaughlin case this morning, but my machine cut up and it didn't come through. My system shows a call from Toms River NJ @ (732) 237-9503 that didn't complete. If it's not too much trouble, could you try again when you have a chance? I'll trigger the machine manually so it should come through the next time. Thanks. Sorry for the inconvenience. Truth be told, I think it was operator-induced computer-error on my end.
Grand Jury Pay
This is a client (taxpayer) (housewife) who served for 6 months and received $800. She's received a 1099Misc box 7 Non-Employee Compensation. She has not had this before.
Tax bulletin
Hi D&T, Is this something you send out periodically? Can I get on your list? Thanks. Paul Brush
Bulletin
David, Thanks for the reply. I didn't realize your were talking about your annual letter to your clients. I don't want to pry so if you'd rather not mail it to me, no problem. Otherwise I'd be happy to receive it.
Thanks for the referral. I haven't gotten a call yet, perhaps he called the other guy up in Red Bank.
Paul Brush 19 Main St. TR 08753-7435 732-240-0600 bus 732-612-1124 fax
Is there any
Is there any sweeter language in the world that a poor translation of Spanish into English?CrowJD 00:08, 23 August 2008 (CDT)
Political Discussions
D&T:
In case you skipped Natalie’s “Politics - ‘tis the Season” discussion thinking it was about politics, you may want to weigh in. She’s asking for opinions about how to handle discussions that turn political.
It evolved from a really good exchange she and I had after I proposed that the Rangle discussion be moved over to chat. I’ve backed off on that opinion after talking with Natalie, but I am interested in getting some support for a “policy” of sorts, so that if another discussion like “Election Tax Plans” comes along, we can move it without a lot of angst on either side.
Thanks,
Smoot
David: Aha! I looked it up. Well, I am committing sacrilege in condeming free trade, I realize that, and my professors certainly drummed that into me. I tell you what we really need, and that is a worldwide minimum wage. I know that sounds almost insane to try to get something like that done, and it would have to be adjusted, but it would take the incentive away from the economic advantage of paying poverty wages.CrowJD 12:45, 9 September 2008 (CDT)
Further to my second NonQual Use post
This was originally part of my new post on the Nonqual Use discussion, but brainstorming, especially when based on so little actual info (both about your client’s situation and about how they’ll actually apply the new law), doesn’t always go over very well out in the forum. Didn’t want to be called crazy, or worse, in public, so I moved it here – in case it leads you to any ideas that might actually work.
Brainstorming: Isn't there any way you can squeeze both sales into the next three years? If she could qualify to exclude the NJ gain after only one year (e.g., with 1 year prior cumulative “principal” use), and if she rents out the condo for the year she lives in the NJ home and for two more years after that, and then sells it, she'll have used the condo as her principal residence 2 out of the past five years, and she'll be two years from the prior exclusion, so she'd qualify for Sec. 121 again on the condo. Because of that exception for any nonqualified use "after the last date the property is used as the principal residence of the taxpayer or spouse (regardless of use during that period)," 100% of her condo gain would be "excludable" under the new law.
Tearing apart my own suggestion: I don't know many home sales where you can plan the sale date to the day. Which you'd pretty much need to do, to make sure it's both (a) more than two years from the date of sale of the NJ house and (b) less than three years from the date the condo stopped being her principal residence.
Interesting problem.
How can I become a client?
Hello,
I'm in the early stages of an IRS disagreement with my classification of computer system admins that are working on US Military Bases in foreign countries around the world.
For now, it involves only two workers but it could expand and end up including over 100 people.
How can I become a client?
Thanks, Amserv 02:59, 3 October 2008 (CDT)
I thought you would
David: On your economy post: I thought you would enjoy reading the quote from Charles Mackay on the Dutch tulip bulb bubble. He captured the matter pretty well. lol. CrowJD 08:20, 9 October 2008 (CDT)
Moustache
I love your picture! Philia2 18:49, 24 October 2008 (CDT)
Roth Recharacterization Deadline
Thanks for your comments.
Client has been mine for 6 years. NOL arose from real estate TIC acquired about 10 years ago which went bad due to location and a few other factors. I was able to determine his basis.
Background: Over the years client has had a large number of real estate limited partnership investments with the operator of the TIC. Most have done very well.
As of beginning of 2006, after years of operating losses and capital calls, the operating partner bailed out the tenants in common by declaring to partners that they were taking their future liabilities off their backs because there was little hope for recovery. I treated it as the sale of a passive investment. After much research and backtracking I offset all the my client's investments and his share of the TIC assets with his share of passive losses, depreciation, forgiven debts (mortgages, etc) and other liabilites. The result was an NOL of over $100,000. Because I was unsure off the result I ran it by a number of my peers and they didn't shoot any holes in my methodology so I went with it. Result of my hesitation was that tax return was filed on 10/15/07.
Client is semi-retired and not yet taking distributions from retirement accounts. His total income is low enough that little of his social security is taxed.
I am looking to minimize the tax bite from his IRA RMDs by converting them to a Roth before the NOL is diminished.
If you have any thoughts I would appreciate them.
taxpert 13:25, 2 November 2008 (CST)
Rental loss in closely-held corp
David, I'm in a crunch to get a corp return completed as well as some 990s by 11/15 and need a little guidance. Can you comment on the "Building rental in corp" discussion? Natalie 15:18, 3 November 2008 (CST)Natalie
Thanks for cluing me in on that temporary reg. I had read right over the incidental exception.
I am confused by your reference to Sec. 263 and assume you are referring to the building. It was put into service in 1992 and is being depreciated over 31.5 years. This is really becoming quite a PIA return -- no AMT depreciation schedules, dividends received deduction not taken, cut-off issues for condo rental income and some expenses. . . Natalie 19:45, 3 November 2008 (CST)Natalie
Thanks David. I do need to look at Sec. 263a a little closer. I'm hoping that does not apply.
Farfel
I don't want to bring up unhappy memories but I just watched a 1991 episode of Seinfeld called "The Dog" where Jerry has to temporarily take in a dog named Farfel...thot mebbe u saw the same episode and liked the name..
farfel
not sure how to leave my name so......Pink Pearl..
farfel
thanks for the background...I heard the name and thought of you..I take my Min Schnauzer to work with me most days in the off season and it works out well...ok....let me try the signing, thanks for the tip. WOW..it worked LOL
Pink Pearl 08:54, 13 November 2008 (CST)
Wolfe
David, have you ever read "You Can't go Home Again" by Thomas Wolfe? I read it years ago, and I'm thinking of rereading it. If memory serves, it contains some timeless observations on the American psyche. CrowJD 18:13, 23 November 2008 (CST)
I'm easily confused
Heh. Now don't get me confused. Tom Wolfe is the one that wears all white I think.
Ycgha actually comments on real estate speculation late in the book I think. He also makes the observation that people in America have affinities based on occupation more than anything else.
When you touch on Raymond Chandler, you touch on one of my favorites. He truly is the "slumming angel", as one critic wrote in an introduction. It's funny, because when I read one of his books, my drinking goes through the roof. It's like watching an old episode of Bewitched. Cocktail hour on the hour!
I'm a gag writer myself. I can't write unless I inject myself into it. So, I'd have to invent a little town to get anywhere.
I like your style though. It's writing that takes a walk, or floats down a river. Has detail, but it keeps moving. It's not easy to do. I don't know if I'd ever have the patience for it. New Englanders can do that. Thoreau was a master of it. Have you ever read, or reread recently "The Maine Woods 1848"? There's genius for you. CrowJD 14:47, 24 November 2008 (CST)
deleted the duplicate
FYI, since two of your posts just disappeared (there was only one there when I started the process, or I might have left the whole thing alone!), I thought I should let you know that I deleted the duplicate discussion and put a note on Sandy's talk page. "cpadayton" is a one-man show, according to their website, so assuming sandy is affiliated with the guy, she's probably a front-desk person a little out of her league here. But at the same time, she's not exactly a DIY, either! Shades of grey...
Trillium 15:27, 15 December 2008 (CST)
1973 condo
David, will you help me understand what I'm missing regarding the anti-churning rules and useful life that Riley referenced in the discussion on the depreciation of the condo? Natalie 15:45, 18 December 2008 (CST)Natalie
Thank you for that explanation and example, David.Natalie 17:11, 18 December 2008 (CST)Natalie
The IRS Correspondence Racket
I wonder if you realize how accurate you are with the term "racket."
Here is how it works:
1. Notice generated and mailed for pennies 2. Taxpayer given 30 days to produce documents but in realty up to a week less 3. Most taxpayers will be insufficient in some prong of the required substantiation - the rest will ignore the notices. 4. But some will pay to make the IRS go away. The targets are middle class and the bills are $300 to $2500. Painful but not impossible. maybe just a thinner Christmas? 5. Submitted documents are either rejected, or ninety letter issues. Virtually all non-represented taxpayers have no clue to the significance of the Notice of Deficiency. Most representatives of taxpayers become frustrated. They are faced with filing a petition themselves but they can't sign it, or trying to guide the taxpayer through it, or they fight the windmills and try for appeals without the petition, a doomed endeavor. 6. Ninety days passes. Now collection notice starts. Notices may again induce the recalcitrant taxpayers to pay through intimidation by the threatening "We Intend to Levy!," etc. 7. 6330 notice issued. Taxpayers are still clueless. Representatives cannot contest underlying tax in a CDP because Stat. Notice has been issued. 30 days goes by. 8. Eventually most middle class taxpayers will have a refund due. Well guess what? No refund! The IRS is paid and they go away, leaving the taxpayer with an offset notice. Now everyone is "happy." 9. This won't work on poor people (these are certainly not the infamous EIC audits I used to see) because they have nothing to disallow if EIC is not a target. And the wealthy? They not only have returns far too complex to be classified by GS-4 employees (minimum age 16)but they can hire aggressive representation, and the amounts that would be demanded justify this. But who is going to pay an EA/CPA/attorney when all you owe is $1200 or so? (I work real cheap) 10. Bottom line: This whole process requires relatively few GS-4 employees. most of it is all automated. Great return on investment.
Not a bad fundraising project! But transfer requests and Tax Court petitions throw wrenches into this system and skew the costs, so they must be resisted.
How do like my theory?
Tim 14:27, 21 December 2008 (CST)
TaxTools
Do you want the referral for TaxTools? roy cline at cfl dot rr dot com (email)
TaxTools
If you fill out the referral form you and I can get a discount. The form is on the web site.
Hi - You suggested contracting out work regarding to foreign income issues - do you do that type of work or have a referral? I would certainly appreciate it? Thanks/j
pa state tax issue with s corp health
i know, i know, this has been talked to death...but...please bear with me...i understand that the say so came from you, so...if you s corp health insurance deducted by s corp as wages, added to w2 box 1 (only) taxed federally but not fica/med....what happens with pa taxes...withholding and sui??? if it is not taxable to the state personally, then does the corp have to adjust the wage amount deduction??? any help greatly appreciated...(naturally i have been doing this wrong for years, and at this time want to finally get it right..dont ask me why??) jeanne 15:53, 20 January 2009 (CST)jeannec
s corp blah blah blah
thanks for the response, this is getting so murky..embarressed to say, but i use turbo tax, and the program specifically lists the 2%....insurance on the line for un deductibale expenses (with 50% meals), as it confused me, i asked them..(intuit)haha..and they said you have to increase the officer wages by the amount... again, this is all for fed, no state response.. i cant imagine that you have to change the wage amount for the pa20 corp return..sounds too crazy....wonder if it would ever be caught...(somehow i doubt it)...have a number of these i need to finish and my brain is fried already !!
Moving Reimbursement
I noticed that you posted the following in a thread about a year ago regarding moving reimbursement:
"I notice that my software (Proseries) has Form 3903, Line 4 instruction: "Enter the total amount your employer paid you for the expenses listed on Lines 1 & 2 (Form 3903) that is not included in Box 1 of your Form W-2 (wages). It mentions that this amount should also be shown in Box 12, but note the word 'should.' If your client lives in a state that taxes AGI, rather than permits itemization, you end up paying tax on that reimbursement, so I would prefer to show it on Line 4 of the 3903."
The moving expense adjustment comes on line 26, so the AGI is unaffected either way.
Case 1:
Over-ride the form/software, and enter the reimbursed amount on line 4 of Form 3903 (which the employer should have entered in box 12 with code p). This reduces your moving expense deduction (line 26) by the reimbursed amount.
Case 2:
Leave the moving expense deduction fully intact, and line 4 of Form 3903 empty. Instead, declare the reimbursed amount as "other income" on line 21. While this raises your "total income" on line 22, either method results in the same AGI.
23:16, 22 January 2009 (CST) Dave
Need help?
Just wondering if you needed any additional help this tax year. I live in Pennsauken, and I am trying to get some traction in Bordentown as far as hanging my own shingle, but it's not going very well. I wanted to at least fill up my schedule even if I'm making more money for someone else than for myself. My email is anthony.mcwilliams@verizon.net, or just leave me a message on my board if you're interested. Thanks.
Formatting discussion link
Thanks for fixing my link! I have a piece of paper around here somewhere, but I just couldn't find it and was too lazy to look at other examples! Natalie 19:10, 2 February 2009 (CST)Natalie
I have read your discussions about S Corp shareholders getting paid a salary in ratio of 60/40 for 60 % W-2 and 40% distributions. My question is whether partners need to have guaranteed payments or can all salary be distributions? If they need to be paid guaranteed payments, would you recommend the same 60/40 ratio? Bdavis 22:01, 6 February 2009 (CST)
D&T, question on nj part owning TX real estate
Interested in your thoughts on this situation. I have a NJ LLC , 1065. Some members are nj residents. Others aren't. They own a couple of properties in TX and are renting them out. The managing member lives in NJ. Do you think i can allocate out of all NJ income. They have a property manager in TX. They only approve what the manager requests from NJ. They do not have a regular place of business outside of NJ except the properties which is where the income is earned. I guess the question boils down to where are they "doing business" here in NJ because that is where they live or in TX because that's where the properties are?
Thanks, Ekcpa
nj part
It is becoming an issue due to the nj partnership filing fee. 3 partners are NJ 3 are not. If i take the source income and say non of it is NJ and allocate then no filing fee. Of course the way NJ works is that you must have a regular place of business outside of NJ to allocate. I am not sure where your place of business is considered for rental activity. Is it where the property is or where management collects rent and oks items to the management company. Thanks EKcpa
Madoff info
Hey D&T - thanks so much - giving tax advice about this stuff scares me. I appreciate any help - my email is estock@taxlinkinc.com. Happy tax season - elizabeth
esop stock rollover
hi there
you answered a question for me last year regarding esop stock and distributions and i was hoping you could give me some clarification with one small issue im having this year. I bought the Life and Death planning by choate by the way, thanks for that tip.
anyway in the post to me last year you said that a person could not take a distibution of stock from an esop, sell it, and then roll over the proceeds, it would be considered an excess contribution and need to be pulled out. Could you possibly tell me where i can find that info so i can use it as a reference, i have a client who has done that exact thing this year and the bank and his employer say its fine, the bank has already put it in an ira and called it a rollover contribution. Now they are all up in arms because i mentioned this to my client, but i cant find it anywhere saying that you cant do that. thanks for any help you can give.
Scrantonians
Hey there good sir,
Hope tax season is going well. Been swamped here and been trying to avoid the addiction of the board. Got a PA question tho. I have a college kid who goes to school in PA and worked and has a W-2 with about $200 in wages and the locality lists Scranton NR.
Do I need to file a locality return for her or can I ignore it?
Thanks,
Fsteincpa 10:16, 16 February 2009 (CST)
Thanks, you da bomb.
Fsteincpa 12:04, 16 February 2009 (CST)
McMurtry on CSpan
Hi David. I don't know if you caught Larry McMurtry on CSPAN recently. He was giving a talk on the state of the book. If you didn't see it, and have time, it was a good talk. You must que past Jack Welch. http://www.c-span.org/Watch/watch.aspx?MediaId=HP-A-14870 Hope the link works!CrowJD 00:31, 17 February 2009 (CST)
esop
after some research it appears that an esop is considered a qualified plan under irc402, so i believe that a person would be able to sell their esop stock and roll the proceeds into an IRA as long as they meet all the other rollover rules (60 days, etc). Just wanted to let you know what i found out thanks scott
Roth Conversion creates excess contribution
Hi D&T - you seem to be knowledgeable on this subject so I thought I would ask you about my situation.
Per the 2007 (turbo tax) return, taxpayer and spouse had excess roth contributions (form 5329)because their AGI was greater than 100k and they did a roth conversion.
What needs to be done next? My understanding is that they should move the excess amount out of the roth, so they do not have to pay tax again in 2008. So would they just convert it back to a traditional IRa, and this conversion is reported on their 2008 return? And in 2008 the 5329 would NOT be filed. My assumption is that nothing can be done for 2007 at this point. Another assumption I am making is that the withdrawal out of their excess contributions would NOT be taxable.
Any guidance would be appreciated. Thanks so much.
BearAcct 16:30, 19 February 2009 (CST)BearAcct
DEBAK
Morning D&T...Since I'm only here from January - April, I was wondering if anyone ever heard from Debak? I know last year we wondered if she was OK...I had sent her a couple of messages, but never heard back. Do you know?
Hope 2009 will be a good year for you & yours!!
DJ DJ 09:34, 20 February 2009 (CST)
Roth conversion
D&T -
Thanks for taking the time to respond.
Maybe the best option for this is just have them take a distribution so that they don't continue to pay the 6% every year. They won't be hit by the 10% since they are in their 70's. It would just be a normal distribution, right? If they take the distribution out before 4/15/09, they shouldn't have to pay the 6% on the 2008 return, correct?
BearAcct 13:05, 20 February 2009 (CST)BearAcct
Did I mess up your post?
You gave Vijay your answer ("yes, yes") just as I moved his question to the Consumer Forum. I've seen that happen before, too, and I'm curious - does my editing of the forum name mess up any response you'd prepared, making you enter it again, or does my edit happen strictly behind the scenes, unbeknownst to you?
Welcome
Thanks for the welcome back! Still recovering from my first year on my own shingle.
TheTinCook 18:14, 21 February 2009 (CST)
Mortgage Interest Allocation
Dave,
In regard to a discussion regarding the allocation of mortgage interest payments between spouses filing MFS when paid from a joint account, your reply was:
And some think that if paid from joint account, use a percentage based on income provided by each.
Is using the percentage based on income for joint accounts to determine who paid what an allowable practice? It was hard to tell from your post...the 'And some think' lead-in made me wonder if it was just your reference to what others do, but shouldn't.
I have a client couple who's income went from 95K to 225K and could really benefit from the MFS if the interest could be allocated from a joint account as mentioned. I just needed to back it up because I couldn't find it anywhere.
Rgtaxservice 21:44, 21 February 2009 (CST)rgtaxservice
How to prove a loan is non recoverable
D&T, Your expertise has proven most helpful to me, both in your direct posts to my questions as well as your other contributions that I've read here on the site. Recently I posted regarding a loss on a loan/initial equity investment that one of my clients made to a former employer ("Thanks for the money, Goodbye"). You stated strongly your doubt that he could produce proof of the loss. Just wanted to follow up and ask what would need to be produced as evidence, in your opinion. Not in any questioning your view, just asking for further clarification so I can be sure to have all my i's dotted and t's crossed both for myself and my client. Thanks very much! Anchorman 09:48, 25 February 2009 (CST)
NJ realty transfer tax
D&T,
Since you are our state's resident expert on TA, I thought I'd pick your brain. NJ resident sold his primary residence during 2008. On his settlement statement, NJ withheld $6,900 (2% of sales price) for non-resident tax (he moved to Arizona). My question is, shouldn't he be able to deduct that $6,900 on his Schedule A, line 5? Any help would be appreciated.
Chris
A mug for you.
Dave,
I thought you might appreciate this. It would great on your desk.
Rgtaxservice 18:09, 27 February 2009 (CST)rgtaxservice
I'll bite
kevinhuston@msn.com NOt sure that I understand the massage parlor thing - packing heat/gun? Kevinh5
your post
D&T Thank you for a balanced post that maybe winds this up. I am thrown off balance by the fabulous audit - when the auditor showed up, she said she expected to be here for a couple of days, and when she got into my workpapers and reconciliations, she was quite satisfied - and this in contrast with being nailed to the cross upside down when I posted the result. Yikes. I will be much more careful and from now on only ask very neutral questions. Seriously, I am as of now severly curtailing my participation on this site. But you were one of the first people I "spoke" with here, and I have always found your conversation friendly and helpful. JAD 19:20, 13 March 2009 (CDT)
Phila Bus Tax question
D&T, when you see topics on the Consumer Forum and you don't think they should be there, feel free to put a note on my talk page and I'll either move 'em back to the tax forum or explain why I don't think they should be moved.
In the case of the Phila tax question, the OP posted duplicate questions on multiple forums and had not provided a profile (that was on 3/11). They were asked to update to indicate whether or not they were a tax pro. And their question was in the grey area - not definitely worded like a tax pro would, but also not definitely worded like a consumer would. If it hadn't been for their duplicate questions that had to be deleted (generally a sign of someone who hasn't taken even a minute to see how TA works - i.e., a DIY), the post may very well have stayed in the tax forum. So I can understand why people are questioning this one.
Actually, once I saw how much interest the discussion was generating amongst the regulars, I was about ready to move it back to the pro forum even though the OP never came back and never updated his/her profile.
Then, 10 days later (yesterday), the OP came back and provided a profile that identifies them as a lawyer, but not practicing as a lawyer (at least that's how I read it, it is a little cryptic). A lawyer asking Q for a client, that'd be moved back to the tax pro forum. A lawyer asking a question for himself in another capacity (e.g., for his own company), well, he needs to be referred to a tax pro. And that's what the consumer forum is for. But since both you and Crow believe this one should be a pro question - plus it's obviously interesting to everybody - I've moved it back. It might be an idea for one of you to make sure that Easy has enough tax chops to handle this on his/her own...
Trillium 12:41, 22 March 2009 (CDT)
Invalid Topic
How weird is that? There are seven existing discussions with "same sex" in the title, and one is just from this month. I think you should try to rename it (click the move tab, replace the "Invalid" Topic part with whatever you had originally, or a near replacement) and see if it takes this time. Maybe it was just glitching.
Trillium 12:41, 23 March 2009 (CDT)
PA phone number
Dave,
A few years back there was a special number for tax practioners to call to back door into the PA Department of Revenue and avoid the constant busy signals. Is there still such a number? I've been trying the DOR for three weeks to no avail. Until today...I've been on hold for 24 minutes - I typing as I'm holding.
- Rick
Rgtaxservice 13:34, 24 March 2009 (CDT)rgtaxservice
1099 income from UN
D&T, I saw a comment you had made about this in the past, was wondering if you could help...haven't gotten a response on the main question page.....Client received consulting contract from UN for overseas research.....UN does not issue 1099s.....I see that the no 1099 issue has been brought up here before, BUT, is the income taxable and subject to SE tax? "Employees" of the UN don't pay tax on their income but I assume that doesn't include independent contractors? thanks....Lisasig 16:20, 13 April 2009 (CDT)lisasig
Allocating R/E mortgage and interest
D&T, thanks for directing me to Code section 280A on my post last evening. I've studied it, but remain somewhat unclear. Could you please go back to the post and help me out with my follow up question there? Thanks much. Anchorman 06:16, 20 May 2009 (CDT)
Trademark royalties
Death&Taxes, I've read many of your posts regarding royalty payments and SE tax, but I'm interested if there are any unique twists to the treatment of royalties paid for trademark licenses. I've created a new discussion that I'd appreciate you to chime in on.
http://www.taxalmanac.org/index.php/Discussion:Trademark_Royalties
Thanks
Dear Death&Taxes:
I am a former attorney (and CPA) who now works for a state government in the Northwest. I am going to sit for the EA exam and start my own tax practice (hopefully). I maintained a pretty good relationship with most attorneys in my local area when I was practicing. I still live im my home town - so you would think all the bartenders in town would give me there business. Anyway, I was hoping to provide services to the local legal community. I was wondering what services you provided to the Philly attorney or presently provide to attorneys? And how do market to the legal community? Direct mail, cold call, legal functions, church, etc.
Any information would be encouraging.
Thanks.
Huskies 20:04, 13 June 2009 (CDT)
Thank you for your comments today about my cohabiting small business owner. You always give great answers, so I'm one of your cyber fans. I'm really appreciative of the time you take to help others.
Dianne P.S. Beautiful dog!
Starting a Tax Practice in May
I could not help but chuckle when i read your advice, as I started my tax practice in May of this year.
QT
I think I better lay low for the rest of the day. I risk catching incoming from both sides! CrowJD 11:19, 29 September 2009 (CDT)
Self Employment Tax
Have a client who has 14K income before 22K 4797 loss. Net is 8K loss. Is the 22K added back to determine SE tax? Thanks you.
Frontline show
David, if you didn't catch the Frontline report called "The Warning" on PBS last night, I put a link to it on your Harvard post. You can watch it online I believe. I think you might find it interesting. Take care. CrowJD 09:51, 21 October 2009 (CDT)
LKE
D&T -
OK here are the details.
Client is owner of S corp. Traded an 04 Toyota in for an 09 Toyota on 8/22/09.
The 8824 worksheet asks for FMV although that wouldn't be part of my journal entry in the books.
FMV = $13,000 per client
Trade in value of 04 = $11,130 (rather than give him cash, dealership paid off the outstanding loan balance on the auto of $11,130)
Original cost of 04 auto was $25,118. Accumulated DPR through 12/31/08 was $17,141. I think DPR for 2009 would be $1595 so basis would be ($25,118 less DPR of $18,736) $6,382.
The FMV thing and that worksheet in ProSeries is throwing me.
And then I don't know what to do with the old asset. If I just put a sold date and nothing else, ProSeries gives me an error. If I put Zero, I get loss.
And then there's all that other stuff in the asset entry screen regarding LKE. Not sure if I need to fill that in or not. I know, you're not ProSeries tech support. But I think this would be over their heads. Sections I'm questioning: "If auto acquired in a like kind exchange (trade-ine), enter total basis" "MACRS Property Involved in LKE or Involuntary Conversion"
Thanks for looking at this with me. I know you must have better stuff to do. I was going to call my NATP help line but then they don't know ProSeries or accounting as well.
LKE - additional info
Sorry, I forgot to give you the cost of the new vehicle. I got interrupted while I was writing to you before.
It's $30,426. And yes, it's a 2009 transactions. I'm trying to get the sale on his books and get it right so I can finish his 2009 tax estimate. This client is very detailed and wants to know exactly what his net income will be and his potential tax liability.
♫♫♫♫♫♫♫♫
Did you not ask to insert ♫ in your answer like Dennis?
See my test posting using special characters.
RoyDaleOne 05:36, 30 October 2009 (CDT)
Reformatted your link a little
Hi, David - I just reformatted your legalbitstream link in the annuity discussion to refer directly to the RR#, as it appears that legalbitstream links will "time out" or "expire" after a couple of days; I figured with the direct mention of the RR# and the website, those who come across the discussion later and are even just a little bit on-the-ball will figure out how to get back to the ruling if they need it.
Hope that's okay; let me know if you'd like some other wording (e.g., if you were deliberately not naming the Rev Ruling since you make the point that it's been overtaken by later code changes).
Happy Halloween!
Trillium 12:31, 31 October 2009 (CDT)
