Margaret CPA in OH

Client has informed me that the LLC formed recently has a rented property that they want to sell to tenant. I don't yet have a copy of the contract but info sent shows $3000 as down payment on lease option and it appears as though an additional $380 monthly over the previous rent will be payments. I looked up basic info on accounting for this, seems fairly straightforward but is there anything I should look out for? Maybe specific questions will bubble up when I get the contract and I'm in no real hurry. I'm leaving for Australia and Papua New Guinea next week for a month of scuba diving. They didn't get their final data for 2015 to me until last Wednesday. It seems they are ahead already this year!

Methinks this end of (thank goodness) tax season is making us all a little blithering uh accountants.

Thanks for asking! Yes, they all survived albeit with dirty water and very messy cages. My sister said they were quite traumatized but settled down quickly. The trees in the yard lost some branches but seemingly there was no damage to the house itself - thankfully. I am encouraging her to think about moving more inland but doubt that will happen.

Oh my, prayers for your sister and for you, too. Take care of your return, the clients have had 6 months. And without your license, you couldn't help them.

I was so grateful that my sister, husband, daughter and family and son and family were able to evacuate from St. Simon's Island in time. They had to go to Montgomery AL to find a place, over 500 miles. They are back in Brunswick GA now but can't get to the island for another day or more. My sister could take her 2 dogs but not the several finches that she raises. She is so worried that the extra food and water she left may not have been enough or there may be damage to the house. At least they are all safe though it has been very costly for them. Scary....

My sister and family are in St. Simons Island GA. No one answers there now so I am hoping they have evacuated. Someone on the radio said she doesn't expect her home to still be there on return. Scary!

This was from 'Limited Liability Company & Partnership Answer Book,' third Edition, Alson R. Martin, Wolters Kluwer pub. I forgot I had it and, even then, had no clear idea of the search terms so began paging through. It was under Property of the LLC. Although it is in a 2012 supplement (why I forgot about it), I am counting on it to still be valid and am going with it. Makes life easier and the client will be much happier, too! Thanks again for the point in the right direction!

Thanks again for the new direction, Ron. I went back to an old book I have on LLC and found just what you said. "Property is presumed to be owned by the LLC if purchased with the LLC's funds, even if acquired in the name of a member, manager, or other person." I have to amend the 2014 return for another reason (new data arrived this year - surprise!) so will remove that member loan. Everyone will be much happier now!

That is exactly the case. Any cites? That would make my life ever so much easier! Their's, too! I can't even think of search terms to find this sort of thing, though. Ideas? And thanks! I just do want to be sure about this and document it with something.

LLC formed by mother and daughter for flipping properties jumped the gun, so to speak. A property was found at end of 2014 and bought in daughter's name with LLC funds. Remodeling began with LLC funds and continued until rented (not flipped) in March 2015. I booked a member loan to daughter at end of 2014. Property was rented through July with all funds going into and out of (insurance, maintenance, etc.) LLC account. In early August deed was finally transferred to satisfy the loan to the LLC. I have all the crazy calculations and allocations AARRRGGGGGHHH as to what daughter reports for income and deductions but do have a question about depreciation on daughter's personal return. As it was placed in service then ownership was transferred in the same year, I'm not certain whether that is a short tax year or nothing is taken as both things happened the same year. Then I begin depreciation under LLC ownership in August. Oh, I am charging plenty for this and have duly chastised them but they did what they did. Brain straightening thoughts appreciated. I so do not want to do this but we've all been here in a way, right?

Got one like that now and it's making me crazy. I just want to be finished!

I haven't called back yet, no time, but the number I have is 216.539.0790. That's a Cleveland area code. The message left in my voice mail was pretty dire. It went to my 'zero' box though, not box 1, CPA, box 2, spouse and I or box 3, diving and music business. Someday I may return the call to, you know, yank some chains.

Thanks, Gail. Our committee meeting is Aug. 17. The person who raised this possibility for participation will be bringing criteria. He just emailed members asking if the church had one. I was trying to be proactive and explained how it wasn't needed, etc. even sent links showing that churches were exempt and the incorporation document on the state website. We shall see what next to do, if anything. If only our EIN letter is really needed, we do have that. But I doubt, from 1867, we have a determination letter or that it was ever applied for not being needed.

Ummm, the fundraising 'group' is Kroger. I suspect Kroger has at least one qualified, knowledgeable tax professional on staff. But I will pass along the suggestion. Thanks!

Jack, I am aware that churches do not need a determination letter - for most purposes. However locally there is a fundraising possibility for nonprofits that require it even for churches, no exceptions. My church would like to participate. For a variety of reasons, many churches have them. If my church doesn't already, I doubt they would try due to the expense and the requirements for the application.

My error was going to irs.gov first. Just the other day someone else said to always google first. "If it isn't on Google, it doesn't exist."

Thanks! I guess I kept using the wrong search words. This seems to be exactly what I need.

The board of my church wonder if they have ever received an IRS determination letter. No one seems to know. The church has been in existence since 1867 and, being a church, isn't required to have this. But some churches do. My research attempts to find out how to get a copy (if it exists) have been futile. Any ideas? Thanks!

But she has very long arms from wearing pink furry handcuffs, don't you know.

Thanks, Lion. Daughter has no additional investments to sell and has nearly exhausted savings which led to the sale of stock in 2015. I am certain that future will always be dependent on mother. Her SSI is fairly low and not taxable. She will have no taxable income in the future to offset the remaining losses. In 2015 she had about $1800 in dividends but that will be zero in the future as there are no holdings to provide divs. I am aware of payments directly to health care providers which mother has done and does take as deduction. Yes, getting advice before acting is a good thing but their previous preparer (who may not have been much help anyway), suddenly retired in January so they came to me - after the fact. Now if only someone could help with the Bermuda investment mother inherited from her mother.....What a mess! Forms 926 and 8621 all for less than $3 income! She claims she can't sell it as she keeps getting the runaround from her advisor. Sheesh!

Thanks for the replies. I did have them complete a support worksheet and it seems clear that daughter paid more for her support in 2015 than did mother. She used proceeds for medical bills, car repairs, travel, new clothes, etc. Mother has listed and I have included those medical bills that she paid for daughter. They keep very detailed lists of who paid how much for everything outside of food. My question is whether, just by looking at the 1040 with negative AGI, she could be considered mother's dependent. We know that she had much cash and spent more on herself than did mother (support worksheet) in 2015 but they look at the negative AGI and say how can daughter not be dependent? I have assured them that this is likely a one-off and mother loses only the exemption for one year. I'm just not sure how IRS would crunch the numbers showing gross receipt from stock sales of $55,000 and yet being a dependent in rural Ohio. Sadly, she loses the carryover losses as 2016 she will be dependent again I'm fairly certain.

New clients, mother and daughter, have filed for several years with adult daughter on disability as mother's dependent. In 2015, daughter sold stock for $47,000, basis $55,000, to aid in support. Tax return shows loss of course and she otherwise wouldn't have to file with taxable income below requirement. Question is, with AGI in negative territory ($3000 loss, SSI non taxable), does she still qualify as dependent on mother even though she used the proceeds for her own support? I say yes, they are not so sure. What say you?

I've already deleted the email but they are doing maintenance this weekend. I think it was sent out yesterday or the day before.

Yes, sometimes, nearly always, leave such things to professionals. Uh, Gene, you did mean ouR house, not ouT house, right? Or not

Now how cool is that! I love it. Thanks Randall and Gene.