Margaret CPA in OH

:bday: and many more!

Yeah, I just read the relevant parts. I think I will either retire or go back to paper..... Weekly vulnerability scans? Accreditation? How much will that cost? How much will my clients be willing to pay? I suppose it is a good idea but at what cost?

Thanks much, Taxbilly! Why didn't I think of that? Actually, I've never used Wikipedia so this will be a good experience. I think I should dig out my old accounting books, too, to see if there is some applicable, basic info. Thanks again!

A new client sells bottled olive oil imported from coop where grandmother sells the oil pressed from family olive groves. I am setting them up on QB but am a bit uncertain about inventory. They have liters of oil and 2 sizes of bottled product. I believe the bottles, caps and labels would be supplies not really components. They may sell larger quantities of the oil, not just the bottled product. They also will be preparing baskets for the holidays with oil, chocolates, etc. I think those other items would also be supplies but they would like to have a count on hand of the completed baskets. So I'm thinking to have as inventory those items ready for sale as well as the bulk oil but am not sure how to do that when the oil is also part of the finished products. The only other clients I've had with inventory had products for resale. Any hints and guidance are welcome!

:bday: and many more!

Welcome back! How was the ride? It's been a challenge keeping Booger happy but we've done our best.

:bday: and many more!

I agree about the emotion aspect. This is a serious case, too. The link is a good one and I will forward it. There are over 100 names so a printout isn't a great idea. They also are on the county line so may choose someone closer to their home rather than center city. Thanks again for your excellent, as ever, advice!

I know the LLC doesn't have sons but the instructions seem to deal with just this situation under Passive Activity Reporting Requirements, #4: Identify the net income (loss) and the partner's share of partnership interest expense from each activity of renting a dwelling unit that any partner uses for personal purposes during the year for more than the greater of 14 days or 10% of the number of days that the residence is rented at fair rental value. (I interpret the personal use as the use by the members/partners son at less than fair rental value. Is this incorrect?) They are "evicting" the son if they haven't already and it was rented previously at fair rental value. What is the decision criteria for "business property" when the clear intent is to rent for profit? The son was paying full value for several months, lost his job and couldn't pay. How is this significantly different from my other clients who have apartment buildings and far too often go 3 months or more without receiving rent from non-paying tenants while they go through the courts for eviction? Thanks for the push on this. As the temperature rises, I really don't want to think so hard!

Thanks, KC, that's a very good point. Unfortunately, I don't know any bankruptcy attorneys, good or bad. We'll see what happens. Unfortunately I think he is more concerned about keeping his son, an employer, earning money than watching out for himself. He tells his wife that he can't quit until the trucks are paid for (one that his son drives). Oh, it's a long story.....

If you determine that, in fact, 2 partners left, the partnership has ended so a final 1065 would be in order. The remaining member of the LLC would need a new EIN <http://www.irs.gov/businesses/small/article/0,,id=98011,00.html> but, depending on the state, may not have to change anything at the state level where organized. Perhaps an amendment to the articles of organization would be in order, but an attorney should be consulted. I agree with Maribeth about the filing requirements and forms. Would the remaining member want to be incorporated? If so, as an S-corp? More questions than answers.

Duly chastised, RoyDaleOne. I have now read the instructions through but still have a concern about allocation of mortgage interest, etc. It would seem a straightforward cutoff after April when the last fmv rent payment was received would be the clearest. All expenses and income from May onward would be treated as personal use. Thanks for the nudge... Any other nudges or chastisements most welcome. mlinder42, they file default partnership with Form 8825 per instructions on page 11 foro Form 1065.

Nice clients decided to form an LLC, purchase a house within it, fix it up and rent...to son. But for market rate. So far, so good. About mid-year, son begins slacking off and finally stopped paying altogether. Parents initially "gifted" rent to son but after a couple of months, only added enough to bank account to meet bills. Market rate would be $6000 per year, LLC "received" $3975. Easy enough to handle on Sch E for personal use but how to do this on 1065 and 8825? Thanks for direction.

I use Paperport 11 but move my client data to folders that I have set up. I also create (print) pdf copies of client returns and save them in their respective client folders. Just for fun, I exported a file to a client folder and then tried to open it. Of course the message was to go to the source and print the document as a pdf. It's a 2 step process but it's another backup that I use.

Thanks, Tom. I appreciate the quick reply. You may have misread my intentions, however. The ONLY advice I would give would be to see an attorney or other next steps such as contacting the state for dissolution. I don't understand what "kind of advice" you are assuming that I am giving besides to contact an attorney. I suspect that although the cc's are in the corporate name, he would be personally liable. The rental property is an LLC but she/wife's business is not incorporated. I encouraged her to at least form an LLC but, as an insurance agent, she said she was not permitted to do so by Allstate. That may or may not be the case; as I am not an attorney, I did not question her personal research on that issue and let it go. The wife was, I believe, asking about what sorts of things to expect as she is very concerned about her business. This is a second marriage; he was barely scraping by from the beginning and things obviously have just further deteriorated. She seriously considered divorce a couple of years ago. Maybe she should have done so.

A client is giving up. He has had no new bids accepted in weeks and has significant outstanding credit card debt and owes on 2 trucks. I expect the trucks will be repossessed. The only other assets are a computer and printer. He is a sole shareowner and has no basis any longer. His wife is quite worried about potential claims on personal assets despite the corporate status. They do own rental property together but she owns her own business and building. Quickfinders states the "The courts may disregard the so-called "corporate liability shield" in the case of single shareholder corporations." This seeems cause for concern. What are the next steps for him to take? I assume engaging an attorney but he has no money to pay. Fortunately he has kept up with payroll taxes because we handle it for him. And he owes me just a small amount. The major debt is nearly $100,000 to credit card companies. Several years ago, after an IRS audit when he became a client, I convinced him to incorporate to protect assets. Wife was 50% shareholder initially but, as she saw debt mounting, sold out a couple of years ago to him. Any guidance will be appreciated. I've only had one other client this bad but that was about 3 years after I "fired" her for nonpayment. Sadly, I have another teetering on the brink. And they stubbornly refused to be bought out 5 years ago for a couple of million...

Congratulations! I am so happy for you having just gone through a son's wedding myself on May 16. Unlike you, I don't have pictures yet. The photographer has 1,864 on their preview site, though, but even I don't really want to wade through that many pictures. When they whittle it down to about 500!, then I can be ready to share.

This sounds like a great idea! I would hope that the posters make sure to put a title that makes sense, too. Eric, you are the best!

I agree with Marilyn. This is wonderful as is but if you choose to make improvements, well, we'll let you know our opinion but it's your baby that you graciously share with us. I sort of think that you really enjoy tinkering with websites, etc. Hmmm, mine needs work! Thanks again for ALL you do; we wouldn't be here without you.

Thanks for the suggestion. He has never mentioned a union; is it possible that he is not a union member since he is, as he says, among the last of the civil service employees? I will pass this along to him. Thanks again.

My mail carrier is the last of the civil service folks. He needs to increase his withholdings but there is no longer an HR department or even a local office to handle such things. He said everything is out of Langley VA now and he cannot figure out how to manage this. He is nearing retirement and wants to buy back some time that he used during his national guard weeks. He cannot figure out how to do that, either. He isn't particularly computer knowledgeable so that may contribute to his problems. If anyone has a client or personal experience and could provide some hints and guidance, it would be appreciated. This is the same guy whose son died of brain cancer a couple of years ago. His wife is now experiencing what may be some mental issues in not handling the grieving process so well. My heart just goes out to them...

35 seconds - a musician and former molecular biologist but a wannabe engineer

I'm glad things are (mostly) working for you now. It's puzzling about the EIN, though. That is one problem I haven't had, once the info sheet was added and completed. Let me know if there are other problems; perhaps I might help you or at least be alerted to an issue that might confront me in the future!

For 5227 you have to have an "info sheet" to enter the data. ATX has jerry rigged this CRUT reporting for several years and this is the latest iteration. If you haven't entered much data, you may want to begin fresh by simply creating a new return and type in 5227. It will open along with the Info Sheet. Choose the Company Tab for data entry. If you don't want to do that, go to Forms and do not check any of the boxes even though a logical person would check Fiduciary. With no type of form checked, type in Info Sheet in the box to Find and select it when it appears. I think you have to retype the information in but then can discard the 1041. Add the other forms/schedules you need if beginning all over. Otherwise, the data will carry. To add the Sch K-1 (which will be for 1041), if starting with a new form, you can go to page 7 of 5227 and click on the name of the recipient under PartII-A. The K-1 will appear. You cannot efile 5227. You have to edit the federal letter to type in the address to Ogden. I hope this helps. Been there, done that!

A bit...seems to be happening more frequently since tax season. Our minds begin to wander and pick up on some little item to pursue. But then, this is Chit Chat and those of us with some spare time are just chit chatting. Next topic, please!