User talk:TheTinCook

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Sale of Rental Property

Hi, this is CHMontgomery. I file 4562 and E every year. My question wasn't worded properly. My question is -- and I've read the instructions for 4797 -- what is my basis, the appraised value or the 32,500 mortgage? Since this was my residence converted to a rental property, I would have used the appraised value, but then I got the mortgage. I am 100 percent involved in the management of the property and the maintenance, et cetera. I'm trying to figure out how to figure out the capital gains/loss. I was going to go to a tax person, but then my son decided he wanted to come home for a visit with his family (a family of five). He hadn't been home in over four years. He's in the Army, stationed at Scholfield Barracks in Oahu, HI. He's getting deployed in November back to Iraq. Of course, it was quite expensive to fly them to Maryland!! Not your problem, I know, but my taxes are late now and I would really appreciate it if you could just get me started in the right direction. I filed an extension to file and I haven't filed!! because I'm hung up on this one thing. Even if you could refer me to a website where I could get some guidance, I would be very grateful!!CHMontgomery 18:59, 10 August 2007 (CDT)

Congrats on the EA exam!

Just saying congrats, I passed the EA the first time out and got real lucky and some questions got tossed out, putting me over on corporations. Anywho, I enjoy seeing your posts on TA, and I'll talk to you soon!


Donnie Castleman, EA


Hey congrats on getting the exam passed! Wanted to tell you, that the most nervous I ever was, to the extent of nausea, was when I finally got the unofficial answers and was going through checking my answers, I had done fine on all parts except for one, and I knew some questions were going to get tossed which would put me over the passing side, anyway it's a great thing to get that exam out of the way and a great thing to be able to go to the IRS website and download client tax information to help them get caught up on prior years! Couldn't have done it without being an EA, speaking of which, what do you go to get your CPE credits? CPE Depot or someone else?


THANK YOU FOR LENDING A HAND. I don't know how complex this could be, but I did buy a book and write my own divorce papers when I divorced a few years ago, so I can handle some magnitude of difficulty and I'm not a slacker looking for a freebie.  :) I have a feeling this stuff may be much worse, however. The cancellation of debt occurred 7.1.2005 FYI. We are so stressed out so thank you again from the bottom of my heart.


Your Opinion

TC: if you're around, I'd appreciate your opinion on the post I just made re: Sole Prop. or S. Corp. for start up. If you have time. Thanks. CrowJD 18:18, 7 November 2007 (CST)

Your EA designation

Tin: Your knowledge is much more in depth than mine in the tax field. You need to send Tdoyle a note and ask him to decorate your user page with the EA designation. I've thought of going through the EA process myself, just to get a more systematic review of tax. But, right now, I already have to satisfy (i.e. pay for) my continuing legal education, bar dues, and CPE for my National Society of Accountants membership (not that they ever check), so it gets expensive. CrowJD 20:08, 7 November 2007 (CST)

Excellent response

The client I have is a start-up sole prop. He does not need anything fancier than the sole prop. right now because he has no idea if he'll even make a go of it! How this popped into his brain to even ask me, I dont know. But, your answer is going to help a lot of people in the future, because if you look at the posts above mine, I don't think most preparers are even aware that an indiv. could still be on a fiscal year. CrowJD 14:53, 10 November 2007 (CST)

Forum Award

I hope you will accept the forum award I put on your user page. You have earned it. It is an overdue recognition. I am sure all will agree. You are one of Aunt Emmy's very favorite nephews.

Miss Sadie

Aunt Emmy aint no Image:oink.jpg. Me and Miss Sadie kin share and share alike. You a good smart boy and everybody very proud of you. You have fun and that means you an artist instead of a worker. Any fool can do a job.

Thanks for the reply. I am taking my position under sec 162. I've been trying to find a court case or other information to prove that these expenses are Deductible.


I am taking my postion under sec 162. I'm glad you confirmed what I was leaning towards. I'm just having trouble finding proof that the lease payments are deductible. Thanks again for your reply.

Mmm13 17:56, 18 November 2007 (CST)Matt




Anyway for me to see a copy of that newsletter?


The New Tax Guy

Additional capital contributed to S corp

No corp resolution or sec of state filing?

Hi TinCook, Do you agree with my assessment in the revised post here: [1] Thanks, Viking Viking 17:25, 26 December 2007 (CST)

H&R Block EA's

Hey Tin Cook, You appear knowledgeable in all things H&R Block. Any idea what they pay their EA’s to represent clients that are audited and have purchased POM? Thanks!

Snowbird 19:59, 31 December 2007 (CST)

Good home found yet?

Hey....just wondered if you found a home for the Gleim materials yet. I would love to make use of them and would gladly pay you something for them. I have my CPA but I want/need my EA and due to financial reasons at the present I am so wanting to get them either used or at a price I can actually afford.

Let me know and thanks!!


Gleim CD available

TinCook-Is the offer still available? My wife would be interested as she is presently studying for part 2 - she's already passed parts 1 & 3. If still available - I'm interested in part 2 CD. Thanks.

And just to let you know - she's used Gleim for the other two parts and very satisfied with it.

Colliding in the Outfield----IC's

TC: I swear I don't mean to come in at the same time like that! LOL. Your answer is better, but we came to the same conclusion.CrowJD 12:25, 16 January 2008 (CST)

Registered Domestic Partners

Our Gear Up instructor just gave us the highlights. After he asked how many of us (approximately 100) had RDP's and only one hand was raised. He did not cover anything about non conformity with the mortgage law as that was covered in the 1040 update given in the afternoon.

1099 for Drug Screen and Physical providers?

Thanks TinCook.

We also pay for Drug Screening and Physicals for potential employees. Normally these are Corp.s providing the services but the instruction for box 6 seems to expand the population of who should get a 1099 for medical services to be everyone except hospitals. Do you think we need to issue 1099's for Drug Screens and Physicals also?

Thanks Again.

CA taxation


I have a new client from CA, Celebrity Photographer flies between LA and NY. How fluent in sales tax issues are you? Might need some guidance on some thiings.

Oh Boy

TC, this must revolve all around the SE tax issue. But, it troubles me when I see people say, well the "managing" member of the LLC is the general partner, and others are (maybe) limited partners. I've seen people talk this way. I think much of this will end in chaos, but I understand the need to get the returns out! We shall see. CrowJD 00:23, 27 March 2008 (CDT)

Night Owl

I just had to see where you're from since you're still up.Natalie 04:21, 4 April 2008 (CDT)Natalie

must be H&R Premium!

Do you do all this stuff at H&R?????

"The other month I charged a client $500 for 2 quarters of delinquent federal and state payroll tax returns, the annual FUTA, w-2s' for less then 10 employees, and the 1099's."


I was actually a guinea pig. Tim offered to try a new style for the profile page, and I think I was the only one to take him up on the offer. Let him know you like it. He might change yours, too.Natalie 14:51, 4 April 2008 (CDT)Natalie

Hi, I was reading your notes on the 357 converstion sole prop to s corp and would like to ask you some more questions on it. I have a client who was a sole prop previously and filed to be an S corp as of 1/1/08. His liabilities on the balance sheet (truck loans and one bank loan) are greater than his assets by approx. 40,000. I realize this could be taxable. I have done some research and was throwing around the idea of doing a shareholder personal promisarry note but it sounds like this is pretty complicated and now it is April and no payments would have been made on it. I am wondering if I can choose to keep the liabilites on schedule C and just report enough income on the schedule C to cover the interest expenses of the loans. And then report all else on the S corporation. I am figuring I am not able to pick and choose like that, though. Do you have any suggestions? I really appreciate your input.

Tax Court

Sure. I just need to know how.

Are there a couple of options?

I have use Blackboard before, and I think you can setup a "private area". cheap.

Do you want me to check?

TC Exam

That is okay. However, I wanted to work, in such a manner that at the end of the day, I would have the material for an on-line training course to take the exam. With that in mind the "material" would be given away. The current available courses are way to expensive for me and I wanted to provide a cheaper alternative.

Gratuitous grammatical correction


I hope you don't mind, but I can't stand your mispelling of the word "its." "It's" means "It is". "Its" is a possessive pronoun, as in "The man cleaned the house and all of its windows."

Thank you for answering the question


I realize it seemed like a dumb question and I thank you for helping me. I don't know if you saw, but I posted that I became ill the end of tax season and unfortunately, the illness I have is along the lines of MS and I am undergoing treatment. As a result, late in the day, my mind starts to go blank and it's a real pain-in-the-you-know-what. But this client needs this answer and I thought I was right but blanking out and could not put my finger on it. Thanks again and I will see you around the forum. TomTaocpa 17:39, 20 May 2008 (CDT)

Reply from Lizzit


I'm not logging in so frequently any more, so I expect this is getting to you too late to be of any use.

>>>the NRA (Japan) has a brokerage account in US. Has divs from US companies, some foreign companies (with foreign tax withheld), interest on bonds from US companies and US treas interest. Japan treaty is 10%. Am I correct in assuming the following?

>>>US divs taxed at treaty rate (10%), capital gain distributions not taxed, other foreign divs no tax (no credit given for foreign taxes withheld),


>>>all corporate bond interest taxed at 10%? what about US treas interest?

Zero rate on these interest items.

>>>the treaty is worded in such legaleze that it makes no sense to me. does portfolio interest which is not taxed at all only include bank interest?

Zero rate on all interest except interest directly associated with running a business. So, if you Japanese guy had a K1 from a US-based business, the interest income on that K1 would be taxable. But if it's just a portfolio of corporate bonds, junque bonds, and US Tbills, no tax on the interest. It's why so many foreigners buy Tbills.

HAHA Tincook

You know, at first I thought this was ridiculous, but Dennis has mentioned some fees on here for some of this fiduciary work that really surprised me, for some reason 11K sticks in my mind.

What I thought was funny about the IRS time estimate was that they only give you 24 hr 3 min. to learn the whole area of law, but then allot 44 some odd hours to do the return. Heh.

Now, I'm going to see what the paperwork reduction notice is for the 706. CrowJD 10:30, 25 May 2008 (CDT)

Of course

Of course, I think Dennis is up New York way, and was speaking of some of the attorneys up there. Need I say more? CrowJD 10:33, 25 May 2008 (CDT)

Tin.....If you could confirm my thinking below I would appreciate it.

This is my total scenario... - So, in NY, I have unused losses from 2006 and 2007 that total $38K.

- In MD, the above losses have been wrapped up in the Federal AGI so therefore already taken in MD.

- In 2008, my client sold the NY rental property. Federal gain will be $160K.

- In NY, he should pay NY income tax on $160K - $38K = $122.

- In MD, he will pay tax on federal amt of $160K.

Will he also be allowed a credit in MD for taxes pd in NY???


QB & Tax Help for S corp in CA

The Tin Cook


I am needing help ASAP and am looking to hire someone to help me set up an S Corp which has very few transactions, but does have to set up an initial investment. I thought I could quickly do this, but after reading several posts I decided I need someone who is knowledgeable. I know this is probably very short notice and if you don't have time in your schedule can you point me to someone that might.


Bout time showd up. Bin missin yore smarts round here and havin to put up with the moanins and groanins of them not so brights. Glad to see you boy and hope you is doin well.


you have a problem with my posts???? taxea

Re response

No problem at all.

I was just checking in after a long day, and I was in awe to see that you had dealt with almost the entire first page of threads.

my posts

You must have logged on just as I was logging off. I visit the site to relax after a long day. Doubt I could ever catch up with Kevin5...taxea

Your response....

Your response in the discussion Discussion:Interesting Question about Modelling was absolutely a gem! Gave me a great laugh this morning! Thanks.

Thanks for all your great contributions to this board.

TomTaocpa 06:23, 20 March 2009 (CDT)

tipping out

Hi what did you mean about an above the line adjustment (above what line or where is that noted on the tax return) for a server that tipped out other staffers, but did not have that reflected on their W-2.

tipping out-one more thing

I received info to write in Sub-Pay TRA and put the tipped out amount in line 36 of the 1040. I see you are an HRBlock Pro and that was info supposedly from HRBlock (second hand to me)is that where you make your "above the line" adjustment? Spilson 15:07, 25 March 2009 (CDT) thanks againSpilsonSpilson 15:06, 25 March 2009 (CDT) 15:05, 25 March 2009 (CDT)

are you still with hrb?

Food discussion

No, I'm not offended. Just joking around. Natalie 02:18, 14 April 2009 (CDT)Natalie


I had to look up what that meant, and I see that it means underwear. I didn't know that. I don't believe Natalie was really offended. She does try to keep this board clean, which we all appreciate. But I've met her in person and she's no prude, just a nice person. Kevinh5



Saw your post regarding the starting up of a PEO. Have you done much research into this at all. I looked at the requirements of setting one up last year and it is still something I am eventually interested in doing.

Just curious as to how, if and when you are planning to set yours up.


More PEO

Yeah, we've done a bunch of research here in NY. The reason for all the regulations here is because there was a bunch of PEO's that took the clients money and then never paid the taxes or the employees. So now you need to show that you are financially stable and/or need to put up a bond of either $50,000 or $100,000.

It is something that I will look into again in another year or two as I am still in the midst of recovering from a financial setback from a different business deal gone bad.

I am definitely interested in hearing how and what you decide. If you want to take this conversation off the board, hit me on my business email. add an after my name.


Hi "the tincook" had a great post on your PLR issue in 2010 for the late S election. Did it work? What was the fee? I have a similar issue now and would you be willing to share the final narrative of your PLR request. Thx, Sam

Hi, I was researching private letter rulings with regard to late s-corp elections and saw where you were submitting the same type of letter a while back. I was curious how this turned out for you?

add fringe benefit to W-2

you posted the following to a question I had

Journal entries: Your proposed j/e is looking backwards. I'm not sure where you are getting confused, so I will start from the top.

Given: You recently discoverd that a former employee had personal use worth 5000 of a company vehicle.

Your j/e would look like this if you grossed up...

dr Wages Exp 5414

dr FICA Tax Exp 414 FICA Tax Payable 828 Auto Exp 5000

See how it balances? To correct the w-2 you would add 5414 to Box 1, 3, and 5 wages. You will also add 346 to Box 4 SS withholding and add 68 to Box 6 Medicare withholding. Don't forget to include this in your 941.

What if you didn't want to gross up? Then your j/e would look like this...

dr Wages Exp 5000

dr FICA Tax Exp 383 Auto Exp 5000 FICA Tax Payable 383

It still balances! To fix the W-2 you would add 5000 to Box 1, 3, 5 wages and you would add 320 to Box 12 under Code A and 63 to Box 12 under Code b.

The gross up one works but the JE for non gross up doesn't add up because the FICA EE is not credited in you example only the ER part is here

I just saw your post on writing a PLR. You posted that the cost is $275.....?? I found that the cost, minimum is $2000. Did you confirm your information yet ? Thanks. if you would email me back.

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