Terry D EA

Your post is a little confusing. You state your client sold the business organized as a corporation. How did he sell the business and still keep the corporate structure? In order to respond with a good answer, more information is needed. Which business did he sell gas station or real estate? What type of corporation is this? C-Corp, S-Corp? Indeed, if an S-Corp is organized for rental real estate, then the 8825 form would be used. Sounds like there is alot more here to consider. Terry D.

"my client did not conduct any business in 2008 and may not resume that business. However, she had bought furniture in 2007 that she has not sold. This should have been inventory. How can you count this as COGS when they were not sold? The previous preparer included these purchases in "supplies." I am not 100% sure if the furniture would have been listed as inventory on the Sch C that the income/loss would be the same. If it would, I would't try to reclassify and amend. Convert the furniture back to personal use and the gain will offset some of the loss. Terry D.

Welcome back Wayne! I am glad you got everything up and running. Good to hear from you Terry D.

I have looked and looked and looked for an answer to this question and have not found anywhere the questions as to how or why the 2008 military service determines eligibilty. I have done it the way Chowdahead explained. Only thing I have cleared the mud out of the water on is the taxpayers MUST have valid SS# to get the credit. ITIN's don't get it.

The costs of rent, utilities, supplies, etc are operating expenses and are not considered organizational costs or startup costs so they would not be capitalized nor amortized. I would deduct them as expenses on Schedule C with no income. Terry D.

I know it is early in the season and I have plenty to do and the S-Corps are still coming in but I am not ready to burn the midnight oil yet. May each of you have a restful evening and a better day tomorrow. Blessings, Terry D.

Been okay so far with me as well. I do very few bank products and have not had any trouble with the few that I have done. The only time I called support was when the 2007 files were not able to opened after rolling over to 2008. Support identified the problem and fixed it quite quickly. A quirk they are not sure why it was happening. I agree Tom, that looking at other programs is always a good thing to do. I want to see the Drake direct entry as well. I must admit, I have been using ATX since 1998 and really don't want to go through any learning curves. I have looked at some and still come back each year. Terry D.

haven't heard of it yet here in my area of NC. It does make sense though. I don't like wasting time either. I usually review a return for free and if the consulation takes longer than a half an hour than I charge 65.00 per hour after that. Hopefully during the consulation, I gain a client. Terry D.

Well KC you are right this board has not been around for ten years. I guess I was thinking about the whole time I have been involved with ATX and all of the fine people on this board and the old ATX board. Looks like I made to advanced member, now onto the atxaholics. Might take me three or four years but I'll get there. The rest of you may be grand poobah by that time. Terry Drummond

I am feeling a little left out here. I see all of these people gaining new statuses on this board. shoot, I am still trying to become an advanced member. This is post 100 and I am wondering if that gets me there or not. Oh well, I guess I'll have to post like crazy to catch up. Been here 10 years and still only a member. Geez! Terry D.

Thanks, I thought it was a form customization task. No problem, I'll change mine to save some paper. Terry D.

Eli, I know it has been a while ago that you posted this, but if you still need help, give me a call! I hope tax season is going well for you. Terry D.

I had one that was announcing her marriage last year. I asked where her husband was and the response I got was he was at home and had already filed his taxes with another preparer and filed HOH. This is a young hispanic couple and I tried to prevent them from getting in trouble with the IRS. She said she would get her husband and bring in his return for me to amend. She did ask what would have happened if she wouldn't have told me she was married. So, I gave her the script. You would have lied to me, I would have processed the return, you would have received a large refund that you were not entitled to. You would have enjoyed this refund until the IRS catches your lies and tells you to pay back the money plus interest you weren't entitled to and will kick you out of the EIC program for 10 years for committing fraud. I haven't seen her since. I think we all can guess what she did. Terry D.

He He!!!! Bstaxes I thought the same thing. Maybe he meant mom was "pickled" The worst one that I had was a kid that ate my business cards!. At that time I couldn't afford a printer and made them myself on an inkjet printer and you know what that ink does when it gets wet. Told the parent that letting their child eat those might not be a good idea. They didn't seem to see a problem with it. Haven't seen them since and I didn't get sued so I guess I am in the clear. Terry D.

You know the IFS and their infinite wisdom. They probably want to make sure you got it or some guy couldn't get his finger off of the send button. Sticky stuff from crispy cream donuts cause me to stick to the keyboard once in a while too. Terry D.

Agree with Don totally and I have done more than a few of these already. Terry D.

Thanks, and I am sure I will need it. I plan on a refresher course before I sit. Before I spend 1k on the exam I want to be sure I will be in the 16% who pass it. Terry D.

It is possible they received the SS# in late December which may not show up on the IRS master file yet. I would ask to see the SS card and verify the name and number if you are registered with the SS administration to do so. If it is valid, the only course of action left is to amend the return which I would not do until the client has received their refunds. Terry D.

Thanks for your help. I am not dealing with any clients who have a patent issue. This is a question for an exam from and Intermediate II accounting class. One more class and I will have the required hours for the NC CPA exam. I have a 3.8 GPA and tend to spend too much time on questions that I can't find a clear answer on. It only made sense to me that if you own the patent period, and you defend it, then capitalize the costs. Had to be sure. Thanks, Terry D.

I agree, they are MFJ regardless of which country they were married in which will return the best refund. If she does not have an ITIN. Then apply for it with the tax return. I am not sure, but I think you can now e-file the return with the W-7 attached. Someone will correct me if I am wrong. Terry D.

Good question and I am sure it will be interesting to see the responses. I have been using the website. But if it is down, what other choice do you have but to trust either the letter or the phone call? I guess I would trust the phone message. Terry D.

Thanks for the response. I am aware of how to handle the purchase and the developmental costs involved with patents. The question is the legal fees for a future defense. Are they capitalized for both internal and external patents. Thanks, Terry D.

Had the same problem last year and ATX could not tell me why either. So far, this year has been good and I have not received any rejections yet. Terry D.

I got the same marketing kit a while ago and didn't know why either. I did get the 1040 express answers which is a part of the MAX purchase. Terry D.

If a patent is developed internally or purchased externally from another inventor and is later successfully defended in a law suit, are the expenses for both types of patents capitalized? I know the initial legal and filing fees for both are capitalized and it makes sense to me that the costs of a successful legal defense would be capitalized but I have found conflicting answers. What say ye? Terry D.