User talk:MWPXYZ

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Contents 1 Illinois LLC 2 Rev Proc 84-35 3 Working from home 4 Forfeited Options - Tulsa Atty article 5 Tulsa Article 6 Yes, I did blow it 7 They are too smart 8 The ladies in question 9 I wish I could 10 I agree 11 Bramblett 12 Deer?

Illinois LLC

Sorry, Mike, but you are whistling past the graveyard, unless the LLC has elected to be taxed as a C corporation. An LLC taxed as a partnership is a flowthrough entity, and nonresident members are subject to tax on their distributive shares of its Illinois source income. A 1998 survey by the law firm of Baker & McKenzie found that virtually all states (other than those that impose no individual income taxes) assert jurisdiction to tax nonresident members of LLCs on source income, regardless of whether the member is a manager or a passive investor. As for Illinois, see ILCS § 5/305. Since the income arises from Illinois real property, it is clearly Illinois source income.

Your client can opt out of the withholding requirement by providing the LLC with a certificate stating that she will file returns and pay tax on her distributive shares of the LLC's income, and will be subject to personal jurisdiction in Illinois for the collection of taxes, interest and penalties. See ILCS § 5/709.5 [Eff. 1-11-08.].

There is an argument that an LLC is more like a corporation than like a partnership, and that states should not have jurisdiction to tax nonresident LLC members that are not managers but merely passive investors, any more than they tax the dividends paid to nonresident stockholders by Subchapter C corporations. However, so far, as far as I know, nobody has sustained that argument in court, and I doubt that your client wants to litigate the issue (which she would have to do). Withholding provisions such as the new Illinois law not only solve the practical problem of collecting the tax before the earnings leave the state in the form of a distribution, but also make an end run around the jurisdiction issue. States clearly do have authority to require an entity over which the state has jurisdiction to withhold tax on income distributed or distributable to a nonresident; that goes back to the venerable case of Wisconsin v. J. C. Penney, 311 U.S. 435 (1940). KatieJ 02:16, 14 May 2008 (CDT)

Rev Proc 84-35

MWPXYZ - regarding your post on Rev. Proc. 84-35, you noted that in your responses to the IRS, you include a copy of the Commissioner's disagreement with TIGTA's recommendation to remove the 84-35 safe harbor. I was able to find the TIGTA recommendation (reference 2005-30-048). However, I am not able to locate the IRS' official response. Will you provide me with a link to a pdf of the letter that you referred to?

I appreciate your help.

Pcc-cpa 18:07, 13 November 2008 (CST)

Working from home

Hi Mike,

I have worked from home since late 1981. Before that I worked for a few years for another CPA who also operated from a home office, so I have never practiced public accountancy except from a home office setting. At this point I am probably too old to change, and, except for the shortage of storage space, I have no desire to change. I plan to make some adjustments next year so that this office can continue to work for me. I will put in a back-up generator, a new sound-deadening ceiling, and either find more storage space or learn to use a scanner. Everyone's situation is unique, so while this is working for me it may not be great for you. Keeping business life separate enough from family life is difficult at times. My kid was always a distraction, but she is gone now. My husband had knee replacement and has been home for a month. Fortunately he will go back to work on Monday. My house does have a dedicated office with its own entrance, so that helps keep things somewhat separated. And I do have a separate office phone line. On the other hand, because I work alone, I answer the business phone whenever I am here. I take business calls on weekends all the time, but that is by choice. I do not answer the house line when I am working. My dog is allowed in the office but I can easily send him packing if someone is allergic to him or otherwise does not welcome his presence.

I encourage you to try to catch up on CPE and regain your licensed status. Forget about Peer Review and financial statements. I still do it, but there will come a time when I bow out of that part of the business and just be a tax CPA. Right now I do only a handful of compilations and reviews, but one of those clients is important to me. They may grow to the point of needing an audit, at which point they will need someone else for that. When they do I will probably give up the attest portion of accounting. I may be able to keep the tax prep aspect of that gig.

Hope this helps you with whatever concerns you are having about your home office.

CrowCPA

Forfeited Options - Tulsa Atty article

Thx for your contributions to my Option topic. I googled and could not easily find the April 2006 - 1234A article by the Tulsa Attorney. Could you please post a link for it?

Many Thanks,

Ozzie

Tulsa Article

Thanks so much, Mike - I found the Tulsa article!!

PS - I used to be certified in both FL and TX ... now only TX b/c FL required 10-20 hours per year of GAAP CPE ... YUK! I finally gave up FL.

Yes, I did blow it

Yeah, I blew it, and I feel doubly bad because it came out during the campaign that Palin had her taxes done at Block, not Liberty.CrowJD 16:26, 13 January 2009 (CST)

They are too smart

I think Philia and Natalie are too smart for me. They have some suspicion that I may not be a legitimate artist! CrowJD 16:53, 13 January 2009 (CST)

The ladies in question

Being from New Hampsha, you probably haven't seen too many of the Southern church ladies. Let's just say that they don't miss too many of the Wednesday night suppers over to the Church, if you get my meaning. They get prickly heat on their inner thighs, and I usually tell them to make ice cubes out of Hawaiian Punch, and keep their legs iced down to prevent the rash. CrowJD 10:36, 25 February 2009 (CST)

I wish I could

Mike, I wish I could practice medicine! I think they are enjoying a profit margin now that we can only dream about. It's not good for the Country though, as so many are uninsured. However, I do practice on myself, I keep a few (legal) herbal remedies on hand. Take care!CrowJD 18:09, 25 February 2009 (CST)

I agree

There's some debate on exactly what Jesus thought of himself. There seems to be some evidence that he thought the Kingdom of God would come in his lifetime. As you probably know, there is still some debate on what he meant by "Son of Man", etc., etc..

At any rate, I agree with you that Jesus certainly thought he had a unique relationship with the Father. It seems that Jesus had a personal relavation of his status over his lifetime.

Oh, by the way, you probably know that all the Gospels were written some time after Jesus died. The writers had a better sense of who Jesus was when they were written. Luke is my personal favorite. As you know, he was a friend of Pauls', and he wrote Acts also. So, you are very much seeing Jesus filtered through Paul in the Gospel of Luke.

Of course, I wasn't there to know exactly what Jesus said, and the Gospels paint somewhat different accounts, and reasonable people can disagree! CrowJD 11:44, 9 April 2009 (CDT)

Thank you very much for your comments.

Bramblett

I don't know much about the Bramblett scenario nor have I been through an audit involving that issue. My real estate clients either hold multiple residential rentals, malls or other commercial properties. The most complex thing they do is use 1031 exchanges. I also assist both tenants and landlords with triple net billings. I've never had a developer client. KathiJud 20:19, 4 November 2009 (CST)

Deer?

No, Mike, we went to Mexico! Someone has to stimulate the economy! We went for our 25th last year, and said, what the heck...let's go for our 26th! One of our deer partners dropped four by himself a couple weeks back, we were giving him ammo since we share meat! Next round in two weeks. But the wolves are back, so not hopeful if they stick around.

And then, and then...the frickin' tidal wave breaks again. Well, it's money, right? Where do you hunt? Jeff