Terry D EA

JohnH, I am so sorry for your loss. many prayers for you and your family

Well I am setup to try it. I copied all the broker sheets and will scan them into .pdf format. I'll post the result

Thanks for all the help. I did see the worksheets which answered my question at the same time Jainen and others had posted. I am glad to see that I am not the only one who got stumped on this for a while. I could have sworn there was a software problem here, deleted the return, re-proforma the return (I am using TRX) and even re-created it manually before I got the answer. I posted this on the TRX discussion, has anyone attached a pdf to the e-file to submit a broker statement that has 21 pages of transactions? If so, was it successful? I am getting a signed 8453 just in case.

I have a client who has numerous barter exchanges both short term and long term. Too many to try to type all on the 8949. I see in the instructions to 8949 that we can attach a broker statement and if we e-file we have to send in a signed 8453 with the statement. Question, has anyone tried to attach a pdf of the statements and send it with the e-file in TRX? I am going to try this but will get a signed copy of the 8453 as well just in case.

I have now realized you both are correct and I should have realized this before I began to think there was a problem. I guess my wife is correct that I am stressing too much which is clouding my ability to think clearly.

Me too, Jack look at my other post about the 101 year old. I think I now know there maybe a problem in the software.

This is interesting. My grandmother is 101 years old, in a nursing home and we have cashed in CD's, stocks etc to pay for the nursing home expenses. Yes, I know this was the wrong way to do things but I can say much for the planning the family has done. Here is the situation. On her 1040 pg 2, line 43, taxable income is 18,909. Line 44 is blank! I have been trying to find any information regarding why line 44 is zero. Are folks releived from paying any federal taxes past 100 years old? She is in Ohio and Ohio is taxing the income so I assume I will need to complete Sch A which will reduce everything to zero. If anyone has a citation to support this, I would like to see it. I have always understood that age has nothing to do with paying taxes. I certianly know the filing requirement is there regardless but no tax???

I am sure I have the answer to this basic question but then again it is April 14th and the brain is running very low. Kid, 17 did some type of work for UNC. Received 1099 MISC for 1600.00. 1099 MISC has income in box 7. I say this goes on line 21 subject to SE tax correct? It is triggering a balance of SE tax due of 197.00. Just need to be sure.

Joan it is a son who inherited his father's IRA. It has been done as a trustee to trustee transfer and I did find documentation supporting this and it is tax free. Can't remember the pub number but it did answer my question. Going forward, any distributions he receives are taxable to him but are not subject to the 10% penalty, hence the code 4 designation. Thanks!

I am trying to understand a calculation made by a previous preparer regarding a 1099R. My client received a 1099R for 2010 from his father's estate in the amount of 115K. Taxable amount in box 2a, 115K box for taxable amount not determined is checked. Distribution code 4. The previous preparer listed this as a trustee to trustee tax free transfer from an inherited IRA. I see no form for this and could only find a statement from the preparer that says this. The 1099R is in my client's name and SS#. Without doing some research on inherited IRA's is this a legitimate way to handle this? Too tired to think

These are the exact reasons that I stopped being a QB Pro Advisor. The fees became astronomical,and I personally didn't care to have to keep all previous versions loaded on a computer. For all the money that Intuit charges, one would think the accountant version would have the capability of working with several versions.

http://www.irs.gov/publications/p529/ar02.html Read the above publication as it clearly addresses your issue. While it seems unfair, employee bad business debts are deductible as a miscelleanous deduction subject to the 2% floor. The bad debt is deducted as an unreimbursed employee expense using form 2106.

If this income is reported on line 21, it would not be subject to SE tax. But, if this was earned income for providing some type of service, and the funds earned were sent to the educational institution then the total amount is subject to SE tax. There would be zero tax liability but a small amount owed due to SE. Still should be able to use the Education Credits depending on the question of dependency.

Okay, it appears the best treatment of these delivery routes is they are an intangible with 15 year amortization. The numbers that were given to me were purchase prices for the routes themselves so I now am convinced that goodwill doesn't apply simply because there wasn't any mention of goodwill during the transactions. While I would agree the routes may have been purchased at a value higher than they may have actually been worth, there isn't any supporting documentation. If there are any other suggestions, I would be happy to entertain them.

The time frame you mention is probably true for alot of us. I am like you and Crank, mostly have afternoon, evening & weekend hours. I do like the drop-offs, faxes and e-mails as well. Stopping in the middle of something is a pain. Even though I use notes, and my secretary will tell a client that I will be with them in a few minutes allowing me time to clear the desk, I still don't like to break the flow of my concentration.

I agree the tax effect would be the same and you do raise a set of interesting options. Hmmm

After doing some research from the ISB, it appears the routes acquired can be listed as an intangible and doing so would require them to be amortized. Still unclear as to whether they can be classified as goodwill.

Thanks for the information. That may help my decision

You guys are right on the phone number. I do stand corrected. My problems have been resolved and quite amicably I must say. However, my concern is with TRX not being available after normal business hours. Many of us, and probably more than TRX knows, work many many hours past closing time. Sometimes, waiting until the next day can be a problem. I still have reservations about renewal but will re-evaluate my decisions after the 17th.

If your client is no longer a shareholder, did the others buy him out? How did they part ways? If this was treated as a loan from a shareholder, I don't see how it is determined as non collectible if the business has assets and still exists. A lot of additional information is needed here to try to answer your question.

I once again agree with Lion. This income may be subject to SE, but even if it isn't and it is apparent the funds were spent on eduction. Other than the question of dependency, he should be able to use one of the education credits.

Agree with Lion

Have a client that sub contracts FedEx Delivery routes. This is the first year for this business. The business is an S-Corp with all elections being made timely. He purchased a few established routes that generate income and the purchase price of all routes totals 120K. In my opinion, these routes are intangible assets and are not depreciable. I have classified the routes as Goodwill intangible that is non-amortizable.The routes have the potential to produce revenue with the possibility of increase. If I am not classifying this correctly, please give me some other direction to take.

Again as the earlier post regarding this subject, it is a bunch of crap that TRX has chosen to close down their offices to regular business hours before the end of the tax season. Now I understand payroll hours, expenses and all that comes with running a business but offering sub level customer service will kill that business. How many of you are seriously considering dumping TRX? I have a problem that is preventing a return from being transmitted that is clearly a software issue that appeared Saturday while working with a client, I couldn't and still can't get it resolved becase TRX is closed. My returning to TRX is most unlikely at this time. :angry:

This thread is beginning to scare the mess out of me. I posted some problems like this last year only to discover there were no ways to get the returns back and I had to go to my clients and get their copies to duplicate the original return. Bunch of crap to say the least. I hope this is not something like that. I haven't experienced any of this for 2011. I too changed computers and hope all remains well. Good Luck!!