User talk:Michaelstar

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Statute of Limitations

Michael, filing an amended return does not affect the statute of limitations in any way.

Sale of Home - Capital gains

Michaelstar -

Couldn't these individuals "move back" to Detroit ... occupy the home in Detroit (have an apartment in Chicago for the convenience of working 9 months out of the year (they are techers)) and it would "appear" that this is still their primary residence ?

I look at all tax issues such as this that in the end it must pass audit. So to answer your question, I believe that it is the intent of the t/p that will determine the answer to your question. Did the t/p file their t/r's using the Chicago address. Did they give all appearences that they officially changed their official place of residence. They certainly can move back to the Detroit home, reestablish their residence there and move the time line of the 2 years/5 years forward to best fit their situation. They can also move back into their home in Detroit, rent the apt in Chicago for the convenience to not need to commute and that could work. Bottom line, they need to have owned and used the residence as their principal residence as that is the key condition in order to qualify for the homesale exclusion. Occupancy of the home is required. Short tempory absences are counted as periods of use.

Things can not be done to "appear" like that is what they are doing to make it work.

Basis spreadsheet

Hey Michael. Thanks for offer. Yes, I'd like to see your spreadsheet. Could you Save As some Excel file and then email it along. Curious as to how you made it work... Send to...well, let's use my public address just in case some idiot comes along... Thanks, Jeff.

Form 1099-Misc

Real Estate in a C Corp

I just saw your response to Kaya directing her to the Real Estate in a C Corp article. Since we launched TaxAlmanac a year ago, the discussion forums have taken off like wildfire, but users have not yet discovered the benefits of the articles. I've been trying to get people to add to existing articles or edit existing ones such as the Real Estate in a C Corporation article, but with little success. I just can't imagine everyone answering the same questions over and over, and at some point someone is going to start creating these 'quick tip' pages so people with common questions can be easily directed there instead of having to answer the same question yet again. I've been jumping in and trying to set an example of how to direct users to this page, and you're the first to follow suit! Thank you!

If you'd like to help out, try the following:

  1. Find a topic in a discussion that gets asked about frequently
  2. Click the Start a new Article link in the left panel
  3. Type in the name of the topic and click the button
  4. Fill in the page with a little bit of information about the topic - any little bit helps

I will follow along and link it in to the menu structure. From then on, you can just point people to these pages. As related questions are asked, additional pointers can be added to these pages making them richer and more valuable.

I hope you can help out - thank you!

- Tim Doyle, TaxAlmanac Moderator - Talk to me 12:50, 12 July 2006 (CDT)

Your post


Very interesting! You should add that to your user page... perhaps even upload a picture of it to make it more interesting.

I know that computers are a tool for you and probably not a hobby. What I am looking for are a few people to give it a try - create a few pages - and let me know what was easy, what was difficult or confusing, etc. Any attempt you can make would be great.

Thanks again,

- Tim Doyle, TaxAlmanac Moderator - Talk to me 13:08, 12 July 2006 (CDT)

Janakpatel Changed your Post

Michaelstar: I noticed that User:Janakpatel changed your post at Discussion:Stock basis in privately held company. I wanted to let you know that I left this user a note on their talk page explaining why this is not the correct way to handle a situation where you think another user's reply is wrong. Take a look at User talk:Janakpatel.


- Tim Doyle, TaxAlmanac Moderator - Talk to me 07:54, 29 September 2006 (CDT)

Thank you!

Thanks Michael... Users can edit pages, delete content, and notify me, all of which are a great help. As system administrator, I can delete pages (which I have now done) and block problem users (which I have also just done).

Thanks for helping out! I like seeing the community stepping up to help to police the site.

- Tim Doyle, TaxAlmanac Moderator - Talk to me 13:43, 10 October 2006 (CDT)

cash donations

Sorry Michael. When I use the term "cash donations," it means any donation made via cash, whether a receipt has been received or not. Natalie 14:49, 7 November 2006 (CST)Natalie

PI attorney costs


There was a recent post about PI attorneys and their case costs, can't remember where though, you discussed those issues...I've got one PI as a client...and have looked for info on how to treat case costs incurred on cases not yet settled, I have expensed, you have any specific references that you can point me to?


Mike McKee

Michael, always appreciated

Micheal, I have always benefited from the things you have to say here. Pretty new to the income tax side here myself as I come from the 1041, 709, 706 side. But I am a student of tax policy, which I think is absolutely critical today. I look at it this way, anyone under 36 can use a computer program as well as I can. I have to offer that client "strategy" and tax planning. Now, there is strategy and planning under AMT, but, lets be honest, not a lot.


Hi, Michael -- now I know who you are! I'd be glad to get together with you sometime. I'll be teaching an undergraduate class at SDSU on Tuesday evenings for 10 weeks beginning Jan. 23, and I'll probably have to have office hours on campus for an hour or so before class each week. I might be able to stop by your office in the late afternoon some Tuesday before my office hours.

Log Out Issue - Still a problem?

A while back, you indicated that you were affected by the "log out" issue - where TaxAlmanac would "forget" you and you had to log in again, fairly frequently. We think we found the solution, and I wanted to find out if this has been solved for you or if it is still an issue. I know you're busy with tax season, but if you could leave me a quick message, I'd appreciate it.

Thank you!

- Tim Doyle, TaxAlmanac Moderator - Talk to me 14:25, 17 February 2007 (CST)

Session Log out

Are you manually logging out when you leave? If not, you shouldn't have to log in again. Try going to Preferences and clicking the "Remember across sessions" checkbox under the password area and clicking the save button and let me know if that fixes that or not.

- Tim Doyle, TaxAlmanac Moderator - Talk to me 14:35, 17 February 2007 (CST)

Do Doctors that are PA or Corporations get 1099MISC?

I picked up a new client – a group of radiogists that don’t want me to 1099 them under their social security number NOR their EIN (under their PA). Their old CPA never did. But I disagree. I think I should 1099 the PA. Am I correct on this? What are your thoughts?


No need for the apology, but thank you Michael. I think at this stage of tax season, we are all a bit short and if I did anything to offend, please consider it a "moment"...thank you again!!


tax return organizational spreadsheet

Hey there,

I would also love to have a copy of your spreadsheet.

If you could click on my user name and use the send email link there, I would appreciate it. I guess Tim said not to leave emails here.


Fred Stein, CPA



I'd really appreciate a copy of your worksheet. It can be sent to:


Tom O'Connor



I would love a copy of your worksheet. My email address is

Thanks and have a great tax season!


SDSU Classes

Michael, you can enroll in any of the graduate level tax courses through Open University, no matter how old you are! I believe they do require that you have a BA, but several years ago I pulled some strings and got an acquaintance (she worked for a client and was very competent) into my class although she did not have an undergraduate degree. The other requirement, of course, is that there be space available in the class, but that hasn't been a problem in recent years.

Gene Whittenburg teaches the tax research course. I taught it in the fall of 2005 when he was on sabbatical and would love to do it again, but alas, he's younger than I am and isn't likely to retire any time soon -- and he's used up his sabbatical leave time for a while!

You'd be more than welcome to take my class. I'm sure there'll be room. My philosophy has always been, if we fill up the room, we'll find a bigger one. KatieJ 23:14, 4 August 2007 (CDT)

5500 EZ Form

I noticed on Tax Almanac where you said you had the 5500EZ Forms ... do you have the physical form or just the PDF ?


John Oldshue

Much Thanks

Excellent point Michael. It's easy to get distracted. He came in to talk to me about his next steps in life, and forming his own business next year. I need to look backward before I look forward! It's 2006 he's got to think about too. I just changed the gender of the person on the board because I was using such specific figures. CrowJD 16:52, 8 November 2007 (CST)

Hi i wonder if you can help

I have client who is in a 2 member llc partnership. First year of business they had 1200 dollar loss. Second year they had a profit of 16000 and they r in there 3rd year now. Partner A is 90% holder and Partner B is 20%. There outside basis is same as capital accounts (are on income tax basis) as they have no assets and liabilities and only have cash in business. They have only had losses and cash distributions to their basis. Partner A's Basis is $784 and partner B's Basis is 1500. Partner B just contributed to the business about a month ago cash in the amount of $30,000. Her basis now is $31500. Partner A need the money for some personal reason and took out $30,000 with the permission of Partner B a month after. They dont want to classify as a loan. they are going to have a loss of $1000 this year. I see that partner A will have ending basis of $-30116 and partner b will have $31400. The question i have is that partner A will have a capital gains tax on personal level, but is cash distribution treated as long term gain or short term gain? Also another question is when the partnership is wanting to change to a sch. c and the partner leaving has a negative capital account due to cash distributions and loss, What happens with the Negative balance and if condsidered income on personal level, where is it reported. is the negative balance is considered a gain at the time of the partnership changing to one member llc

S-Corp Health Insurance

Thank you for bringing this to my attention.

This makes a lot more sense than that Headliner.

--PVVCPA 19:53, 13 December 2007 (CST)

deleting discussions

Deleting discussions does not actually remove them. They are still available for viewing under the history tab.Natalie 14:17, 14 February 2008 (CST)Natalie

Apparently not a fan of the Beatles

History says he deleted.

Help with my Offers In Compromise

Hi Michael -

   I saw that you commented on this posting about an OIC for payroll taxes:.

I would like to speak with you about a paid engagement to review two lump-sum Offers in Compromise forms 656 that I have prepared myself: one for me personally and one for my S-corp. I was supposed to submit the latter by yesterday, with the personal OIC to follow soon after. Would it be possible to speak sometime today? I apologize for the short notice.

Thanks. I can be reached at 215-713-0378 or at

Spidell LLC Letter

Thanks for the assistance. I wholeheartedly appreciate it.

My email is

Review of 1045 Submisssion


I have never filed a NOL Form 1045 before and I have two filings this year for 2007. I would like to use the 1045 since my clients are very interested in receiving refunds as soon as possible. Also getting an independent review could eliminate any potential problems.

After reviewing many of your comments on NOL posts, I am very much interested in getting your review of one of my proposed submissions.

I have already completed all calculations. For a "quick review", I could send you a .pdf file that would contain a draft explanation letter to IRS, Form 1045 and Schedule A. One of my key questions is which forms should be attached to the submission; I do identify the proposed attachments in the draft IRS letter.

If you desire compensation for this quick review, please identify your requirement.

Thank you for considering this request.

Re:Review of 1045 Submisssion

Did not sign my last request. Here it is Dave --Dave 14:45, 22 May 2008 (CDT)

was jd joking around?

hey important

Was JD joking around?

19:30, 27 May 2008 (CDT)~Basspro55

hey important

JD is not being serious again. whats up with him?

hes trying to suggest that IRS does warrantless searches on this website.

take a look at the topic lol

hey important

JD is not being serious again. whats up with him?

hes trying to suggest that IRS does warrantless searches on this website.

take a look at the topic lol

Basspro55 21:52, 28 May 2008 (CDT)Basspro55

Need tax form

Could you please tell me where to get a free printable 5500EZ form.

Thanks, Kaye Vickers

llc/partnership distributions in excess of basis

Hello, I have llc member in a 50/50 llc that has distributions in excess of basis. One member has taken more distributions than the other after allocating net profits to each. Can this be treated as a loan (which I am hoping for)? There is a provision in the operating agreement that says excess distributions shall be trated as a loan receivable due the llc by the member. There is also a promissory note to that effect. I am trying to avoid income treatment on the disproporationate distribution to the member. Any citiation would also be helpful. Thanks for your help Tony

IRA value

Michaelstar - i was searching on decedent IRA's as reported on 706 and I see you have quite a bit of insight on the topic.

I'm a little confused on the term "basis" with respect to what's included in the gross estate.

Decedent's IRA is traditional. Wouldn't it's value on DoD be subject to estate tax? That's what I assumed but after reading some of your posts, I'm not entirely sure.

Thanks for your help.



Michael, thanks, I was not as you know angling for your kind acknowledgment.

I was trying to say improve the quality of your postings, if necessary, and, everything else will follow.

RoyDaleOne 07:28, 11 February 2009 (CST)

Thanks for the input

2006 W-3

Michaelstar, thanks for the offer to e-mail a 2006 pdf file. Could you e-mail it to That would be perfect.Actionbsns 16:49, 4 December 2009 (CST)

LOL (edited)

Hi, Michael - coming in to replace my last message with a new one. I've moved your ERO/PIN question over to the Practice Management/Business Growth forum; let's see if the people that read only that forum have any new info for you. It was well down on pg 2 of the tax forum, but over on PM/BG it'll stay on pg 1 longer. Also, I think the topic fits better there since there's a lot of interest in software and how to make it work the way you want; also PINs PTINs, etc. Let me know if you want it moved back to the tax forum, though.

Trillium 21:08, 3 February 2010 (CST) - edited Trillium 11:23, 6 February 2010 (CST) to replace w/info about moving to PM/BG

1045 vs. 1040x

Client had NOL in 2008 from Partnership investments. Did not file form 1045 by 12/31/09 which means it can't be filed anymore. Would like to carry back the loss 5 years to 2003. Can 1040x be filed using 2003 forms at this time?

Thanks in advance for the reply and any other guidance you can give me (any new revenue procedures, etc. to handle this situation the best way possible) given we are in the midst of the tax season.

Looking for accountant for San Diego area Estate - in probate

Hi Michaelstar, My client in San Diego seeks an accountant for her deceased father's intestate estate. There are three equal beneficiaries (client and client's two brothers), one of whom is the administrator and he is being guided by the probate attorney. The father passed in Aug. 2008 and no 1041 has been generated on the estate that is still going through probate.

If you're still active, would you be available as the accountant for this estate? If so, please let me know so i can put the administrator in contact with you.

Much thanks, Phoenix

Natalie Choate

Thanks so much, Michael

Death&Taxes 00:52, 24 November 2010 (UTC)

Discussion history

I imagine that you know how to do this but in case not: if you ever get the feeling there was more to the discussion than you now can see, go to the top of the page and click the history tab. You can then compare versions, or even click on an old time-stamp to see what the discussion looked like at that time.

No need to go "darn" (or even the other 4-letter version of that word!).

Trillium 20:04, 6 July 2011 (UTC) - edited cause I thought that "rn" was an "m" until I looked more closely

Nonprofit Potential Client

Hi Michael,

I received the e-mail below this morning. Would you be interested? If so let me know and I'll refer him ( I don't know this fellow or the organization, so this is totally blind. He's an alumnus, not an alumni, unless he's plural <G>. He does seem to know the difference between "principle" and "principal," though, so I'll give him credit for that.

I'm off to New York on Tuesday (after class starts Monday -- not laid off yet!) and will be back Sept. 11. Let's get together for that long-postponed lunch after I get back. We need to catch up!


Forwarded Message -----

From: Jose Navarro <> To: jose Navarro <> Sent: Friday, August 26, 2011 9:20 AM Subject: Non Profit Taxes


My name is Jose Navarro, I am an Alumni of San Diego State University. I am a volunteer for a local Non Profit Organization in San Diego called SHARE Ministry.

SHARE built on the principle that in order to make a difference in people's life and minister effectively, we have to find the part of their life that is lacking and fill that need with resources that are available from the community. We share the donations that we receive through our donation-generating-programs - whether that is money, clothing, furniture, services or time - to the people that will most need it.

We are currently seeking a CPA that does taxes for Non Profit Organizations. Is there CPA that you can recommend and provide me with his or her contact information?

Thank You,

Jose Navarro

moving topics

If we don't move practice management topics (like emailing returns and setting up portals) out of the tax forum, we tend to end up with people writing unhappy posts about why that topic is in the tax forum.

If we do move them, we may end up with people writing unhappy posts about discussions being moved.

So what we tried to do was put some info at the bottom of the "4 steps to posting a tax question" that would allow people to post their questions in the right place to begin with. Unfortunately, the OP on that recent discussion didn't read that, or the Discussion Forum Index that defines those things.

Some times, when I've got a lot of time on my hands, I actually post a note about the move on every person's talk page. Last night, I didn't have that kind of time. But I apologize that you were inconvenienced. Clearly this is a reminder that I need to take that extra step, each time.

Trillium 12:14, 2 November 2011 (UTC)

also - a quick way to find things

If you've posted to a discussion recently, you can find it quickly if you click on the "my contributions" link in the upper right corner of your screen. It lists them by title, and they'll be there even if they've been moved from one forum to another.

Again, though, sorry for the inconvenience.

Trillium 12:16, 2 November 2011 (UTC)

A new point of view

I had never really thought about the perspective that cites (or code sections/regs) equate to something being a tax question or not. It's an interesting point of view, and I'll have to mull that. Thanks for sharing that! My off-the-cuff reaction is that that definition would bring back into the tax forum (for example): all the PTIN stuff, all the practitioner regs, a lot of the circular 230 stuff, etc., in addition to some (but not all) of the e-filing questions. I'm not sure that's going to go over well with the vocal band of members that wants the tax forum to be technical tax issues only.

But like I said, it's interesting. Also, it might be a more objective measurement for where things belong. And we'd just have to update the Discussion Forum Index accordingly. I am swamped this week, so I may not be able to get into any depth on this issue until the weekend, but thanks for letting me know more about your initial reaction about the move. I did misunderstand - I'd thought it was the inconvenience of finding it again that was the issue, and I now see that it's a generally different viewpoint about what a technical tax question is. To be settled later!


Trillium 01:48, 3 November 2011 (UTC)


I want to convert my appreciation of your presents here. Thanks. RoyDaleOne 06:15, 31 December 2011 (UTC)

Form 2553 and Community Property State

Hello Michael,

I saw you response to a post back in 2006 about the filing of Form 2553 for shareholders in a community property state. I like how you said that you list the spouse's name and "husband and wife as community property" in the address on the Form 2553. My question is do I need to list the shareholder percentage as 50-50? The stock is in the husband's name and he is the sole shareholder. Any input would be greatly appreciated.



Yacht Charter Income

JR1 suggested that you may have experience with yacht charter income. I need some guidance and wondered if you could steer me in some direction. Let me know what I need to do if you are willing/able to assist. TIA Brandy


I was doing a search on sole practioner reviewing and found a discussion where you said you'd share your worksheet. I was wondering if I could get a copy.

My email is

Thanks for sharing!


S-Corp Salary

Hi Michael,

thanks for the response...with my profile stating I don't prepare S-corps, there I go posting a comment on it! But any income previously taxed would have been reported on the shareholder's individual return, line 17, regardless whether it was physically distributed to the shareholder.

I just want to clarify then, using the word 'distributed'...I was using it in terms of a taxable distribution rather than a physical transfer, and talking about the tax return, not the S-corp books. So I don't have a misunderstanding, being a pass-through, S-corps must report any net profit rather than accumulate earnings, correct? If I'm wrong, I've really had a misunderstanding on S-corps.

(Yes, the remainder of my comment was on the advantage of an officer-shareholder taking a reasonable salary, the rest not subject to s/e tax.)

Thanks, Joe Taxaway 06:07, 10 December 2012 (UTC)

Other forums

Not really. Accountant's World from time to time, but that forum gets very little use.

Dennis 20:11, 18 April 2014 (UTC)

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