Margaret CPA in OH

That was, indeed, amazing! I am lead coach for a group Sit to Fit, helping couch potatoes in 8 weeks training get to the finish line of a 5 km race. Our race is the Jingle Bell Run next Saturday so I forwarded to all for more inspiration. Thanks!

KC, know that you have never left our hearts, thoughts and prayers so they continue to support you as you face another challenge.

And when she gets her own, if the 1099 is issued in her husband's FEIN (although there is surely time to correct that for 2012), you can always include the income on her Sch. C (or appropriate business form) and state that it was reported under xx-xxxxxx. The reverse goes on his return. How have you reported this for the previous years?

Alas, how do we end bank fraud, mortgage fraud and investment fraud, among others? Would that some of those folks were jailed with lots of publicity. Without checking details, I think the amounts of money involved with far fewer people were considerable. I guess so long as we have people who want something for little or nothing no matter how much or little they already have, there will be fraud. I am glad that I don't usually have any EIC clients. The one I had one year was a contractor who fell off the roof mid year in an already bad year. Thankfully he has recovered as has his business for the most part.

What a beautifully expressed sentiment, Catherine. I beleive you have captured what we all feel about this group, for each other here. We are certainly blessed with this forum and each other on so many levels. This year will be a bit sadder here as we just buried my husband's mother Thursday. She died suddenly at lunch with friends of 75+ years. A good reminder to treasure your loved ones each and every day and be thankful for those near and far - and let them know. We seldom can tell when that last chapter will be written.

No, Magic Rub for sure.

Suddenly I could get in and post again and read replies. Initially nothing was posting so I was not aware that they eventually did make it through somehow. I do have patience but could not see that anything was happening and thought it was just my little warped world. This is my comfort zone and when I can't access it, I feel kinda lost and lonely...sorry for my anxiety. I'll go for a run now in this 70's weather.

I now see that the title to my post managed to make it and there are replies but all I can see are more of the same messages. Is there some cosmic being playing dastardly tricks on me? Maybe someone will reply to this post as it seems I can access only this one. Thanks!

I am trying to post a new topic without success so am trying now to see if I can post anything.

I am trying to post something without success so am trying different things to see if anything works.

I now see this when logging onto this site whether in IE, Chrome or Firefox and on different computers: Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/base/ipsRegistry.php on line 486 Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/base/ipsRegistry.php on line 486 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 114 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 127 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 136 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 137 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 141 Jump to content

Anyone else experiencing strange things appearing at the top of the screen? This is what I see in Firefox, Chrome, and IE: Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/base/ipsRegistry.php on line 486 Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/base/ipsRegistry.php on line 486 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 114 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 127 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 136 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 137 Warning: Cannot modify header information - headers already sent by (output started at /home/atx/public_html/conf_global.php:1) in /home/atx/public_html/admin/sources/classes/output/formats/html/htmlOutput.php on line 141 Yesterday I could not even access the site but can even post a topic now but it is really hard to get around. Maybe Eric knows how to fix? It is on both my desktop and laptop computer so I think it isn't computer related. No other website is like this, either. Thanks! Jump to content

ATX Business E-file and Business States 11/6/2012 Updated 11-6-2012 94x efile offline IRS issued a Quick Alert Nov 1 which affects 94x efile. We will update this site once IRS is back online for 94x efile. The Electronic Management System, located at Memphis, Tennessee and Martinsburg, West Virginia is currently experiencing problems and is unavailable

Thanks, KC, for sharing this. I had no idea... In an already divided society where so many of us search out only things which support our already decided opinions, it is not at all productive or educational to have the internet tools we use further this. How will we ever even consider that there may, in fact, be some validity in another point of view when we shield ourselves intentionally and otherwise from them. Much food for thought and now we are alerted.

So THESE are the reasons! I've been wondering for more than 50 years about this - so great to have it all summarized. Thanks, Elrod!

Thanks for more thought, jainen. No, I cannot cite any authority and am not averse to making the remaining interest nondeductible. The clients will be more than a bit dismayed, to be sure. The original business plan was, in fact, to purchase and fix up houses in challenged neighborhoods for resale. It happens that the first 3 properties wouldn't sell (market was already declining) so they rented those. This last one was purchased and fixed up then sold to son. I haven't asked whether that was the original intention (I suspect so but no proof). I was told that the plan was to pay off the mortgage with the sale proceeds and that didn't happen. The selling price is fair for the market, though. I don't believe there was a bargain price. They did gift equity of "$15,150 plus seller's concessions of $4033.81 but an earlier discussion on this board seemed to agree that this was not an issue - although it did increase the selling price listed by those amounts. Sorry I used the word 'inventory' in error. It was to distinguish this property from rental properties. If there is a better term, please let me know. If the interest to date of sale cannot/should not be capitalized as basis of the asset, is all the interest non-deductible for any purpose? That will be tough to explain when I am grasping already. Thanks again for the discussion and more to consider.

Thanks to you both. There has, to date, been no cash out to the partners. The LLC owes so much money... The members will probably never see full repayment of all the funds they have loaned to the LLC for operations let alone the interest accrued on those loans. When I wrote 'cash out to the LLC', I meant that the LLC received some cash but it was not distributed to the partners. It went into the operations account. The other thought I had was that the entire mortgage proceeds be treated as operations funds with some/most going to the investment in the inventory of the subsequently sold property and the rest of the funds (not truly traceable, however) towards materials, subcontractors, etc. to make the property suitable for sale. But I then keep going back to what I know: the LLC bought this property with the mortgage proceeds on the one rental for the purpose of fixing up within the LLC then selling to the son of the members. So I know that the 90.3% (and maybe 100%) of the funds went to the purchase and remodeling of the inventory house. So tracing rules... I just wish they had paid the frikkin' mortgage off with the sale proceeds as they said they were going to do. There was certainly enough - $86,000+ for a $56,000 mortgage. But they didn't so I have this issue with the interest. jainen, I believe all the proceeds ultimately went to genuine business purposes. So that makes the remaining interest (following the sale of the inventoried house) deductible as operating expense, right? I have created classes of each property and a class for operations in QB (based on what they said were there business plans several years ago). Until the inventory sale, the mortgage payments were classed with that property. Now subsequent payments (principal and interest) go to operations? Retirement is lookin' really good now...

I believe the difference here is that, in my client case, the member/partner was incorporated, received wages as an employee, and also used subs at times. He/S-corp properly invoiced the LLC and payments were made to the corporation. If the op situation was simply an unincorporated sole proprietor trying to wear two hats, then I agree with Lion and Jack from Ohio.

I have had a contractor (S-Corp) do remodeling work on rental property owned by an LLC of which he and his wife are the members. Invoices were properly prepared, 1099's issued where needed, prices were reasonable for an outside company. I saw no problem with this. The wife wasn't always thrilled that husband was working so many more hours but he did most of the work on weekends when not working at other jobs.

I finally have all (I think!) the data from LLC and am going a bit crazy trying to figure this out. LLC bought Property A for cheap (cash, no mortgage), fixed up a lot and is renting. Then bought another property B by mortgaging Property A. That mortgage paid for B but cash out to LLC was 9.7%. B was inventory and then sold to son. My thought is that the mortgage interest payments to date of sale were all capitalized with inventory property but what about the 9.7% cash to LLC? And subsequent interest would be operating expense, correct? The cash was used for general purposes and (darn it!) they did not pay off the mortgage with the sale proceeds so a significant balance is outstanding. Thanks for direction. I think I will 'fire' this client after this. They keep shifting money from one to another of 5 accounts and tracing is making me crazy.

That was the most valuable lesson I learned in graduate school. There are, of course, basics but it is often better to know where to find the exact information needed than recalling approximate information that may be outdated.

My deepest sympathies, KC. This extended family of yours here holds you and your near family in our collective arms, thoughts and prayers.

Actually the LLC mortgaged another property for $56,000 to buy and fix up this one. Then they put another $20,000 plus the interest into it. That mortgage was not paid off. I am now in the process of determining how much of the interest is to be capitalized. The original plan, they said, was to pay off the mortgage when this property sold but that wasn't done. The balance is still on the books and is owed. I really don't care what the buyer son's basis is. I am just trying to get the selling price correct (and clear in my brain) in order to determine the gain or what may end up being a loss. Somehow something just doesn't feel right to me. Thanks for the 80% figure, though. It wasn't a replacement loan but does avoid pmi. I think you are correct that the selling price will be what they received, $86,708, and all the rest is make believe, more or less. Thanks again, jainen.

I actually don't care about the basis for the son but the tax basis is the or $101,000. My main concern is that, perhaps, the LLC parents boosted the selling price because it was market value. Son couldn't afford that so a gift amount was included. With that action, the recognized gain will be understated. The LLC parents received $107,923.29 of which $15,150 was the equity gift, $813.32 seller prepaids, and $4,033.81 seller's concessions (whatever that is). The mortgage proceeds were $86,708.00. This is just a tad bit confusing to me, frankly.

Anyone care to chime in? Please?