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It might have been a requirement of the p/s plan to have the payout in the form of an annuity since this wasn't to a spouse. I agree with FDNY that it sounds like the annuity was already in place due to the father's retirement and your client chose to receive a lump sum. Client should check to see if the funds can be returns and if rollover is an option.

Check to make sure the EIN entered is correct. Did you roll this return forward or have to reenter that number for any reason? I would also look to make sure the S election date is entered in box A of the 1120S.

You still didn't give us, or don't have, enough information to answer the question. Were her shares in the S corp redeemed by the company? Was her ownership gifted or sold to husband or someone else? Exactly what happened to her ownership? Once you determine that, you should know how to record the transaction.

From this IRS page, in plain language: Participation requirements are in IRC 408(p)(4)(A) and 408(p)(4)(B) here: https://www.law.cornell.edu/uscode/text/26/408

I think it shouldn't be on the return at all. I'm not the welfare office that should screen people for this benefit. We all know that it will never go away, so I think the IRS should hold the refund until it has verified the W-2s with the SSA and employer filings whenever that happens...sometime in mid-summer. This two week wait is a joke.

Oh Catherine, how tragic. My condolences to you, this young man's family, and all those that love him. I will keep you all in my prayers.

McAfee (a total hog) and paid versions of Malwarebytes Anti-Malware and Anti-Exploit, and CC Cleaner.

Because they don't care about their customers. They've been doing this for years. The company also has a disconnect between the marketing and sales depts. They should give out those free toasters books to everyone that's already renewed.

How much were the phones? I'm guessing the cost exceeded the $500 deminimus safe harbor for 2015. With the IRS raising the safe harbor to $2500 in 2016 and offering audit protection of not challenging earlier implementation of the threshold, I might be inclined to expense these. "Effective for taxable years beginning on or after January 1, 2016, the Internal Revenue Service in Notice 2015-82 increased the de minimis safe harbor threshold from $500 to $2500 per invoice or item for taxpayers without applicable financial statements. In addition, the IRS will provide audit protection to eligible businesses by not challenging the use of the $2,500 threshold for tax years ending before January 1, 2016 if the taxpayer otherwise satisfies the requirements of Treasury Regulation § 1.263(a)-1(f)(1)(ii)."

Isn't it around this time that they'd start the contest entry with a renewal to win something too, like an ipod ?

Congratulations!

So we've beat up the Win 10 upgrade pretty well on here, but what about on a new machine? My computer has been giving me troubles since Sunday and I think it's the graphics card, doesn't matter anyway. This machine has been in service since mid 2011, I've gotten good service from it, and now it's time for a new machine. Once I lose faith in the equipment, even if repaired, I usually don't trust it completely and move on. Luckily for me it's a slower time of year and I'm between large projects. I have current backups of all data files to 3 different types of media so I shouldn't lose anything important. For perspective, my current machine is Win 7 64-bit, i7-2600 processor 3.40GHz, 12GB RAM, one 22" monitor. My quandry is what to shop for and where. For OS - I see that Win 7 is still available, as is Win 8.1 also. How bad are the reports of Win 10 on new machines? For hardware - What should really be on my wish list besides the responses I expect of SSD and dual monitors (I don't *need* two but since we're dreaming here). DVD drive? Some older programs and files are on disks, so I'd need that. I'm considering adding in a new HP printer too. Lastly, where to shop for this dream machine? So if I seem to disappear off the interwebz for a while, you'll all know why. **Waves goodbye** now just in case.

When he said carryover basis, it means that whatever those balances are on the books of the Sch C on the date of transfer come over exactly at those same values without adjustment to market value. If the Sch C was a full calendar year and the S Corp began on Jan 1 of the next, the fixed assets would transfer in to the S corp at their cost basis and accumulated depreciation would also transfer in at the value on 12/31. If the transfer happens part way through a calendar year, the depreciation isn't calculated as 2 short periods. You would have to calculate the full year as if it was one ongoing entity and split the full year depreciation expense for the year of the transfer into its 2 periods. Start with accum deprec at beginning of the Sch C's year and add the depreciation expense for that part of the year that the Sch C would report and add that in to get the accumulated depreciation at the date of incorporation. Then, on the S corp books, recognize the rest of the depreciation expense that relates to the remainder of the year. You might have to enter those periods' depreciation expense manually as overrides to get your program to report the correct expense, depending on what program you are using. In the S corp's first full year, your program should then be able to handle the calculations without overriding.

Adding to my post above, we aren't lawyers. Your client should call her attorney to determine the status of the transaction.

I think you have a completed sale in 2015. The only things missing are formality of transferring the stock certificates and signatures on the documents that should read effective this date _________in 2015. It seems to me that all of the main elements of a completed contract are here: offer, acceptance, consideration, intent, certainty, and capacity. You can't have an installment sale because that requires payments in more than one tax year, and you have a payment only in 2015.

Because sole proprietors already own all the assets of the business, there is no tax consequence of property distributions from the Sch C to the owner. There is no sale in your client's case. Mark it as withdrawn for personal use so that depreciation ends on the date it stopped being used in the business. The basis carries over from your client to the sister.

Perhaps she took the advice from watching Ed Slott during her local PBS fundraising campaigns. I've heard him say to do this exact thing.

There appears to be a way to filter that, although I haven't tried so ymmv: At the top left, click on "Activity" and then "Unread Content" from the submenu of items shown on the next lower horizontal bar. That will bring up additional ways to filter the unread content. One of those selections is "Following" and it appears that if you were to choose the first option "Content posted in areas I follow" AND choose to only follow certain of the forums while not following others, I think that would accomplish what you want. You might have to click on that "Activity" when visiting the forum, not sure about that, and you always have the default if you want to look at the entire page. Users can also customize the type of notifications of followed content and notification frequency from within the user's profile, specifically within the account settings section.

Do you envision something of a "Reference" forum? In that case, they wouldn't need pinning if they were all reference-type topics that were mostly static anyway.

I moved 2 posts to a separate topic to discussion what people would like to do with this additional information and the pinned topics so please take that discussion to that topic so we can stay on track with this one. Thanks. The one on "Pinned" topics and possibly a separate reference forum for those is found here:

The above was moved from an e-services question, and since some readers here complained that the pins at the top of the page caused unnecessary scrolling to read the active topics, I recently unpinned one for that very reason and was considering whether or not to unpin the one on states' EINs also when the above was brought up. If anyone would like the states' withholding retrieval process or contact information in a pin, we could set up a separate thread for that so that the information isn't mingled in with discussion that would cause the user to have to scroll through a lot of text and discussion to find the useful information. That information could also be incorporated into the existing pinned topic about the state addresses and EINs. I could easily do that by modifying the title and editing the one top post to include it there.

I would so that if the IRS does pick up on the error, that it doesn't think the company changed its accounting method.

Also see this IRS page on the WOTC and additional requirements on the employer to verify that the employee is in one of the targeted groups: https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit-1 Because this was retroactively extended, there's transitional relief with extended dates for Form 8850 described in Notice 2016-22. Links to those are also on that IRS page. The deadlines differ by target group, but all are coming up in a couple of days or about a month depending on which group it is. Form 8850 is used by the employer to request certification from the state agency for each employee that certifies that the employee is a member of the targeted group.

I went back to the Never10 and also used it to delete the Win 10 files it found and I haven't encountered any problems yet.

Ugh, yes, I have it, created last Sept. File properties show 5.68 MB and Never10 is reporting ~ 6.1MB in 20K+ files and folders.