Terry D EA

Thank you to each of you who responded. KC, I am not using ATX so I am not sure if there is a bulk sale option unless this is something available in form 4797. I sure hope so as using this idea will definitely save me a lot of time.

I was hoping someone has been in this situation that could give me some insight as to how they handled it.

S-Corp manufacturing client of sold and disposed fixed assets that totals around 200. Is it possible to make one entry on form 4797 for the total and attach a worksheet that shows the dispostion breakdown of all of these assets with the tax return? I have spent a very significant amount of time making journal entries in thier QB file and really would like to reduce the amount of time needed to make the entries on the tax return. The worksheet that I am speaking of is an excel spread sheet with all of the detail.

Yes, the gain is reported as short term as it was held for less than one year.

Don't kick yourself too hard Tom. I would think a program would be designed to do just that and not allow two returns or saved files with the same name.

I never liked Drake either. I guess it is because I never really gave it the time it deserves for me to learn it. I like easy learning curves not ones that seem to re-invent the wheel.

>>>I didn't get money I put money in during the year.<<< I am waiting to hear from one partner this to contact me when he sees the reduction in his capital account due to the loss in revenue this year. They enjoy the loss on their individual returns but don't come close to understanding why the capital is reduced.

Thanks John, your suspiscions are mine regarding the NC contact giving out incorrect information. Fortunately these folks are very understanding and what to be sure this is done correctly. They were fairly convinced they were entitled to the credit based on the information they received until I pointed out some things regarding the intitial qualifying.

Yep credit gone and I bet KC is right on this one. Sort of like those barbershop preparers and mechanics.

I did take the time to watch this video and it is very disturbing to say the least. All I can say is my prayers are with this family and I do hope they prevail in the end. While the ultimate goal is to regain custody of their child, and once that is met, I hope they are able to sue the pants off of all who were involved in this tragedy.

I have a client with a directive from the NC Dept of Revenue giving instructions about the qualifications and how to claim the child with disabilities credit. My confusion is with the fact these folks appear to qualify for the credit because their child has been home schooled. The part that really throws me is the paragraph regarding the "Initial qualification" which mentions everything about public and private school but not home school. While my client has been told by an agent from the NCDOR that they qualify, I want a little more proof and the facts ready in case they are questioned. Just someone on the inside saying so would appear to open the door for alot of controversy. Any help would be appreciated.

I agree with both KC and mcb39. I show both the in and out for the same purposes. Maybe I am a little anal about tracking the partnership basis, but I attach a worksheet to their individual K-1's that shows both outside basis and capital. That way there are no questions.

I am a little late here responding but I am on board with the others. I am sorry for your losses and do offer my deepest condolences and will keep you in our prayers. And it goes without saying that anything you need just ask we are all here for you.

I hope this process is easier than going thru e-services. Geez that was a real serious PIA.

Me Too

Well that just kinda takes the fun out of things. Can you do the same thing in the higher levels of Spider Solitare?

You guys make my day!

Well put KC and no doubt the best way or at least the most interesting way for the son to get started.

I agree with both of you and that is exactly what I told this client. I guess what really irritates me, and maybe it shouldn't, is how they word the letters stating that the taxpayer incorrectly calculated the tax. This return was really simple and straight forward so I don't know how THEY screwed it up. Gotta love that guilty till proven innocent thing.

I have never seen one of these notices. One of my client's received one today. The IRS claims we calculated the tax on the taxable amount of income minus the deductions and exemptions incorrectly. I did not calculate it incorrectly and the amount entered on the return is 100% correct. The IRS has recalcualted the tax and is claiming the tax was $20.00 less and adjusted the client's refund. The IRS said this could have been caused by incorrectly entering the amount for the repayment of the first time homebuyer credit. This client is in the 4th year of repayments at $500.00 per year for the next fifteen years. This amount too was entered correctly. The mistake is clearly on the part of the IRS. I ran the tax amounts from the tax tablea and percentage method and again no error on my end. What to do with this?

>>>Can't they determine that each member has a 50% interest in profits and losses?<<< This type of proportioning is permitted and is determined by the partners. But if a partner has no basis, then he cannot share in the losses. Losses can only be taken up to the amount of the partner's outside basis. This is why I'm saying he needs to make some type of investment or the father gifts him something or 50% interest in the property.

If I am reading your post correctly, this would be a new LLC and quite possible doesn't have the financial stability to take on a mortgage. With that said, the partner would be personally liable for the mortage and it would be listed as a recourse loan and added to the partner's outside basis. As for the son, is the father gifting him anything or is the son paying in any capital? There needs to be some type of transaction here to make it a partnership. A partnership is a pass thru entity and any income/loss would pass thru to the partner's at their specified percentages which is 50% in your case. The son would pay tax on any income that pass thru to him and will also report any loss that passes thru to him until his outside basis reaches zero. Hence the reason for the outside basis account and capital account. The mortage can stay in the TP's name and the only reflief would be if the partnership would purchase the property from him which by your post that doesn't look like it would happen.

Yep and I believe that was a change when the 8949 came about. I almost got caught by telling you to look at Schedule D but PaulH is correct.

Joan, Try this to see if it helps. http://www.hhfri.org/uploadedFiles/HHFRI/Home_Page/Mortgage%20Assistance%20Payments%20Form%201098-MA.pdf

Glad to help.