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User talk:GregC8579

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Hi, Greg, which firm do you work for in Lexington?

Thanks on Fed Thrift

Hi Greg: Nice to know they will actually talk to you on the phone.

Fortunately, I just got off the phone with my client and he decided to stay in the plan.... but I know where to go now when I need it. Thanks.

Mbaqb-Disposition of asset

Hey Greg, I'm still trying to wrap up my issue. I noticed that the prior CPA firm did in fact place the older truck that was wrecked in Part I of the 4797 form (for involuntary conversions) on the 2005 return. The truck that was wrecked was purchased on 6/26/01 with a 3 year life, so there shouldn't be any 179 recapture, correct? (wrecked on 12/1/05) The $24,000 from the insurance proceeds was placed on the books as a receivable, which the taxpayer gave directly to the bank owning the note on the replacement truck (he never deposited it, so the entry on his books was debit Note Payable and Credit the receivable). I don't understand why the prior firm wouldn't have just showed the $24,000 as income upon disposition and do a 179 election on the entire amount of the replacement truck ($48,000), but then again, if the client filed an extension (which he typically does) then his 05 taxes wouldn't have been finished until Oct 06 and the firm may have known about his disposition of the truck. I'm trying to close out the client's books (he discontinued the trucking business in July 06, deeded truck to his son on 4/24/06) and I've got the $24K truck, $24K in AD and $34,485 in a note payable to the bank (this was assumed by the son in exchange for the truck) and I don't know if I'm properly recording the disposition. I appreciate your help, I know it's your tax season, too. ThanksMbaqb 18:05, 25 February 2008 (CST)


The second truck was purchased for $48,000 but the prior accountant only booked it at $24,000. In order to do this he had to have elected involuntary conversion treatment. He deferred the $24,000 gain (179 recapture) from the insurance proceeds and reduced the basis of the replacement truck by the amount of the deferral. The problem is that if the truck had been around for longer than a year when it was wrecked, he probably recaptured too much and the basis of the second truck should be higher. It should be $48,000 - whatever the actual amount recaptured was. If you choose to ignore that, then I agree totally with Death and Taxes' calculation.

Lunch?

Hi Greg,

Now that the 4/15 crunch is over for you would you have time to go to lunch with me some beautiful spring afternoon? I don't often get the chance to go downtown and visit the various eateries. Give me a call if you can (273-9741).

Thanks,

Howard

Zonker 18:08, 6 May 2008 (CDT)

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