User talk:Jdugancpa

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Comment for Jim?

Hi. If you have a comment for me, I would much prefer to receive it by email than through this User Talk page. You can email me from my website: (I would give out my email address, but before when it was listed directly on my website it resulted in tons and tons of spam.)

S corp Home Office Deduction

Hi, JD I just finished reading the home office PLR and 280A re home office. 280A seems to say no deduction for individual and S corp. Therefore S would not get a rent deduction. yes /no? bye WesR

"Certified" as Chronically Ill

I'm currently researching this issue(and surrounding issues) for a dementia patient in a Board and Care facility. I'm not sure this will help but I located a SAMPLE CERTIFICATION OF CHRONICALLY ILL INDIVIDUAL UNDER INTERNAL REVENUE CODE §7702B. See Alzheimer’s Association – serving Northern California and Northern Nevada. Your client may be able to adapt/use this example to obtain a the doctor's certification.

The organization also provides additional discussion in "Are the Costs of Caring for A Person With Alzheimer's Disease Deductible?" After researching this subject in a number of sources and not finding an exact answer, I was comforted with their statement: "This area of the tax law is unclear and very complex."....Ruthtx 18:04, 17 October 2006 (CDT)

LLC property/paying of note

am hoping you can answer this. 

Purchased a rental-got a personal loan that is unassumable. We formed a LLC and are contributing the property (filing a Quit claim deed). How do we pay the note that is our name? Do we personally pay and then get reimbursed by the LLC or can I just pay the note directly from the LLC? --Alice216 19:01, 3 December 2007 (CST)

Retrieved from ""

Hey Jim!

You and your son look just alike on your website! I'll have to wait a while for my sons to be as tall as me, just now 5 and 1! Anyway, thanks for the chat on TA, I'm learning a lot from you guys doing this twice as long as I have, see you around the Almanac pages!


solo 401(k) more than 1 employer

Jim I read your response on the "ABC" and sideline XYZ consulting corp. The question is if ABC is owned 50% by EE and has a SIMPLE plan in effect can he have his own solo 401(k)plan in XYZ. And according to your response he would be able to contribute $5500 (max in the aggregate). However, can the XYZ still contribute 25% towards p/s for EE? Thanks for your assistance in understanding this very technical areana. WayneC


Thank you for your response. Obviously, this plan must be considered an asset to the particpant, not the employer. Thanks again.

Thank you for your response. I didn't know you could do both.



Hi Jim,

I am asking you a direct question since you seem to be very knowledgable.

I asked the question on the forum but didn't get any response.

I setup S Corp beginning of 2006 and started contributing to SEP-IRA. I am paying myself salary through S CORP and sending a S COPR company check for 25% to my SEP-IRA account. The SEP-IRA account is my name and not company's. The SEP-IRA company told me they cannot keep it on company name.

I have been showing the amount paid into SEP-IRA on 1120S as pention and retirement plans.

These are not shown on Schedule K1 or on my personal taxes anywhere.

However the payroll company that does my payroll (i.e. pays me salary and produces W2) doesn't show it on the W2, like W2 for people who contribute for 401K show the contribution on their W2.

Is this ok? Is there any other paperwork I may be missing?

Thanks in adavance.

--Nitin Naik


I am seriously considering bringing this post in tommorrow to show around at the Juvenile CLE seminar. I guess it is possible to anticipate a kid with a tax fraud case in this increasingly insane world in which we live! I do remember working a lot harder during my summers off school to come up with $800, don't you? CrowJD 23:13, 28 May 2008 (CDT)

Not that dark of grey

It may be a new take on the law, but not that grey. Plumbers do construction. The statute says "construction". In the right case, I'd have no problem at least presenting a case before a judge. That's what we pay judges to do: make factual and legal decisions. CrowJD 15:05, 16 June 2008 (CDT)

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 21:58, 6 February 2009 (CST)

Discussions that turn "political" get moved

Hi, Jdugan - First, please let me say that it's been a real pleasure to see you posting again. I would have posted that earlier, but for the note on your talk page that you don't really like getting random talk page missives.

I'm going to leave this one here, anyway, just to go on record in response to your question about how that IRA discussion got moved to Chat: I moved it out of the tax forum.

Here's why: Discussions that turn a bit too political/ideological get moved over to the Chat forum based on the group consensus that emerged from this discussion last year: Discussion:Politics - 'tis the season. Your post makes me see that it could be a good idea to leave notes for all the people who have been participating, to let them know that the discussion moved; will keep that in mind in future. For now, I've gone back to the discussion and posted an explanatory note up at the point it was moved.

There's a school of thought that you can't discuss Roth conversions and/or decisions about tax-deferred investments without talking about the ideological politics underlying possible future changes, but it seems to me (for whatever that's worth) that your latest post in Brock's discussion, and LH's post over on the Life ins vs Roth discussion, plus handfuls of older discussions on the topic, show that you can talk about the chance that future tax rates change (for the individual as well as for the country), and that future tax laws might change, without even getting into the reasons why.

I was about to post this comment to Brock's discussion, but your post was such a good analysis of the reality of the conversion decision, and also took the discussion back to its original purpose, so I hated to risk deflecting it again with my comment. Still wanted to answer your question, though.

Trillium 12:59, 13 November 2009 (CST)

Fringe benefits & other income

Hi Jim, I've noticed a couple of discussions in which you mentioned that when you have personal use of an auto issue, e.g., owner/employee, you put the personal use/fringe benefit portion in other income rather than reducing the auto expense account. I was wondering why you do this. I was also wondering if you treat the health insurance premiums for owner/employees the same way, i.e., put the fringe portion in other income rather than reducing the health insurance expense account. Natalie 02:44, 1 February 2010 (CST)Natalie

Can a 1120 S Issues Dividends

I was reading you comment on a 1120 S (converted from a C Corp)issueing qualified dividends on the C Corp previous year retained earning and AAA.

One of your comments states that a 1120 S can distribute qualified dividends. Is this possible if the 1120 S was never a C Corp?

If 2009 is the 1120's first year, can net taxable profits of $150,000 be divided into on the K-1 as $50,000 on line a and $100,000 on line 5a and 5b?

Or are you just refering to prev C Corp retained earnings and AAA?

Thanks for the advice.


End of the forum

You may have heard by now that the Tax Almanac ( ) web site forum is permanently closing its doors effective June 1. Perhaps you have seen the pink bombshell “Important Service Announcement” when logging in.

Long-time TA user ChrisV2 has volunteered to set up a new website where TA users may continue the discussion. The site is up and running now and has an active base of contributors.

We invite you to take a look and join your fellow TA refugees.

Frankly (TA member and new member of TaxProTalk)

Frankly 05:12, 4 May 2014 (UTC)

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