Terry D EA

What happens to the 3 year record retention requirement? Is it our responsibility to maintain records further back than 3 years? According to circular 230 I don't think so. This is interesting that this has come up. I do have tax returns back to 1994 on CDs and am in the middle of removing the old ATX programs from my old desk top. 1st thought is to move everything to the external hard drive and store it in the safe. 2nd thought is to retire the machine entirely. The ATX programs date back to 2001. Opinions please.

I agree here totally. I have had mortgage companies, insurance adjusters; etc try to get information. I don't even accept a faxed consent form that a client has signed. Other than the subpoena, the client has to sign the release form in front of me no exceptions. No e-mail from client's requesting me to forward copies to a lender either.

Might want to give removing this forum a second thought. I just received two e-mails from TRX, one personally from Doug Hughes asking me to demo their software and give my opinion. Maybe due to the number of people who have used this software in the past, and if the stated improvments are indeed fact, then maybe some will return. Is TRX making a comeback??? I don't know but maybe they are trying to. Personally, I don't have time to beta test another product as I am testing one now and ATX in August. It is fact that TRX failed miserably this year but everyone should get a second chance. Just my thoughts.

You don't know how many times I have tried to get away from this client. She insists that I stay. I have even increased my fees in an attempt to part ways nicely and I. do have an engagement on file with a fee schedule but no mention of limiting my role. I do know these are general questions and most of the time I know the answer but like to get more opinions to confirm my thoughts. I have cautioned her about the creditors and have insisted she obtain legal advice with some of the issues surrounding this situation which she has done. Thanks for looking out for me with this.

Cleint is an S-Corp single shareholder. As in my previous posts, this corp is in the process of dissolving. The owner wants to take possession of a company owned vehicle that has been on the books for a few years and has been completely depreciated out. This vehicle still has some value so how do I record the removal of the asset and show the conversion to personal use? This shareholder is owed money from three different loans given to the company. Can this conversion be a return of capital?

I agree KC. I have come to the conclusion that the only good way to do this in QuickBooks is to delete the deposits and re-enter then via the general journal input as cash directed back to the original checking account and then all of the other entries will balance perfectly. Only fifteen items to do this with. Oh well it is what it is.

Exactly, no gains either so no loss.

Thanks MAS that is exactly how my JE's look. It is undoing what has already been done in QuickBooks that is my concern so it reflects exactly as you say.

Yes.

I've looked at this a few times. The reason I suggested deleting the deposits so the gross proceeds would go to "Cash" with that being the checking account, remove the asset and accu depr with the gain/loss going to the "Other Income" account titled gain/loss on asset disposition. This would allow the financials to be correct with the gan/loss showing as a below the line item on the P&L and the balance sheet would be correct as well. I do have a worksheet with all JE's and explanation. things get a little stickier here as the total amount for the sale of each asset was not received at the same time. If this bookkeeper would have contacted me prior to these transactions she wouldn't be doing extra work.

Judy I don't mean to be a little dense minded here but what is NBV? New Book Value? I'm a little confused.

I could be wrong but I am not aware of any where that a loss of rental income is allowed. I do know that SC does not require one to pay capital gains tax on property sold in another State.

I had a trial with BNA and it was really good. But you are right it is pricey.

I think he should do inventory as well. Might see a lot of stuff coming and going. Bookkeeping may be a bit challenging as well.

No offense taken at all. I guess I didn't remember Eric's post. He may have been thinking something else as well.

I'll look at what you are saying Judy. I created an other income account to record the gain or loss. I tried to edit the deposit transactions but in doing so, my journal entries to remove the asset and accumulate depr won't balance that way. I tried to change from the nude posited funds account to the asset account but again the other entries don' t balance. Mas is right with the entries which is what I am using. I' ll see if others will respond before I have the deposit entries reversed.

Using QuickBooks 2010. Client is selling off assets. I fully understand the journal entries required to record the sale, gain/loss on the sale, removing the asset and debiting the accumulated depreciation accounts. If I were the one entering these sales at the time of sale, I would have used a journal entry instead of using the undeposited funds accounts to record the receipt of the cash and all of my entries would balance. Client has already entered the deposits using the undeposited funds account as the "account from" and did not create an "Other Income" account for the gain/loss on the sale of the assets. I have created this account and the only way I see to do this is to delete the deposits and use journal entries. Any suggestions? Also, client used and paid an individual commision to obtain buyers for the sale of these assets. Would this be recorded as a separate expense account or add the amount of the commission paid to one of the larger asset's basis as a expense of the sale? Either way, the impact is same on the bottom line just need to know the proper way to do this so it is GAAP compliant with the financial statements. One more bit of information. The books have not been reconciled nor any bank accounts since 12/31/2012. All sales were in 2013 so undoing any reconciliation isn't an issue.

Thats interesting. I am a member of the AICPA and don't remember anything about it. But then again, I usually just scan any newletters;etc and stop on the articles that interest me so I may have missed it.

Lion, Jainen & KC all have given you the best advice possible. I deal with trusts and I flatly refuse to discuss anything or even begin to prepare the tax returm until I have the trust document in hand. As jainen said, copy it so you can make your own notes on it. And yes, follow KC with your advice in 'WRITING". I recently have had to insist that one of my clients not only has a note taker but records our meetings because of he said/she said back and forth stuff. Then when any resolution is reached it is put in writing. It may seem like a PITA but it is worth it in the long run. Just my 2 cents worth.

<<<<I can never remember what is and isn't related.>>>> I am with you totally here. Matter of fact, I bookmarked this site. I also agree this is a tax rule.

Wow, I agree. I know here in NC, and when the paper tests were still being given, there were folks at the testing site warning you that if you passed the exam, you could not use your credentials for such purposes. A the time, I didn't think it was the State but the NC State Board of Accountancy. I hope this changes here as well.

I wasn't talking about eliminating the software issues forum, I think that should stay simply for the reasons Joel has stated. The one with TRX is the one that I am speaking of.

My take was exactly what Judy said. I am taking your comments Jainen under consideration and will study the "complete liquidation rules". At this time, the owner is undecided as to the final outcome of this business. In my opinion, and only because I know all of the circumstances, to dissovle this business is the best thing to do. As I said, there is a buyer for the building ready to make an offer and once the building is sold there maybe some options of utilzing an office for the owner to continue to broker recyclable raw products, but it doesn't seem like that will happen.Thanks for the replies

An S-corp is in the process of selling off assets to pay it's vendors and eventually will probably dissolve. The assets in the company are numerous and I am in the process of calculating the gain/loss on the sales as well as removing them from the books. Many of these assets have been sent to the dump. What happens to the remaining depreciation on "leaseholds" mostly for building repairs. The building has a strong buyer at this time but as I mentioned in other posts, the building is not owned by the S-Corp. But, the S-corp paid for any building repairs. The only depreciation that has been taken on the building is the actual acquistion cost by the owner of the building who is of course the same owner of the S-Corp. What a mess

Gail, I couldn't agree with you more. matter of fact, I like your suggestion the best. I jsut thought the space would be better used on something current then something that doesn't exist. If you visit that the TRX forum, I think you will see it really doesn't get much activity any more and because of the multiple problems with TaxEact/TRX I don't think you will see anyone use it at all. Eric does do a huge amount for us and I for one greatly appreciate it.