Max W

The 20% would apply to the Schedule C, not the SMLLC. Income and expenses do not flow from the LLC to the Sch C, but rather the other way around.

I have had a few clients over the last year that asked me if I could refer them to a company that specializes in Credit Card Debt Settlement. I don't know of any and would like to know if anyone here, or their client, have any information they could pass along. Most of what I have heard in general about these companies in the past, has not been favorable. TIA

If you are thinking a SMLLC, that won't qualify for a pass through, as it reports its own income. Maybe an S-corp would work. Besides you'd save the $800 fee on the 1st year.

Yes, I definitely think that this is one area that has been abused, time and time again.

For years, California has been allowing dollar-for-dollar credits for certain charitable organizations, such as California Sea Otter Fund, Fireighter's Memorial, Special olympics, etc. They number over 40. Page 4 of the form 540 is dedicated to it. https://www.ftb.ca.gov/forms/2017/17_540.pdf?WT.mc_id=HP_File_540form If another charity, properly structured, were added to the list, maybe some sort of General Education Fund, it might have a chance to survive the IRS and court challenges. Just MHO.

Don't know about ATX, 'cause changed to Drake 3 years ago, but Drake holds all Efiles in queue until they can be transmitted. No need to resubmit.

The state with the highest sales tax allowance, $3745, for incomes over $300K, is .............. TN. Mississippi's is $3613.

Business returns (1120, 1120S, 1065, 1041, 990) can be Efiled starting Monday Jan 8.

If client gifts stock (transfers to son's name), it has to be done through a transfer agent, otherwise it could result in a taxable transaction. https://finance.zacks.com/transfer-shares-stock-another-person-2598.html As for the mother, there is no gifting between spouses. The money can be transferred back and forth without any consequences. However, for the mother to gift to the son, the funds would have to come from her own separate bank account, not a joint account with the father. So if there is no separate account, it should be set up before transferring from spouse to spouse.

Client rented commercial space for a restaurant this year. Should he be sending the landlord (LLC) a 1099? Box 1? TIA and wishing you all a very happy holiday season and a prosperous 2018.

Well, at least one thing hasn't been tried - form 3911. https://www.irs.gov/pub/irs-pdf/f3911.pdf This will put a trace on the refund. I have had, on more than one occasion, returns that were assigned to someone who either was moved to another location, resigned, or died. In every instance, the returns were lost including 12 of one client's 941's. I'm assuming that you got the transcripts confirming the refund. At least you can show these to the client so they don't think you are doing nothing. One thing I would have done after the second stall, is to ask to speak to their supervisor. The supe of the guy who said he couldn't do anything might have been able to do something as they have access to more info, and have much more experience than the phone people.

SVS asked about penalty abatement. Use Form 843, write "FIRST TIME ABATE" across the top. As long client has a clean record going back 3 years, it should work. https://www.irs.gov/pub/irs-pdf/f843.pdf

" But I can't think of anything that hasn't been tried." Edsel, it would be helpful for us if you told us what HAS been tried, so we don't cover the same ground twice.

Just because the client didn't receive a K-1 doesn't mean there isn't one. The first thing I would do is pull the Income transcripts for that year. It is always possible that the 1065 was filed, but the TMP didn't bother to send out the K-1's. I'd also try to get a transcript of the 1065. If no K-1, I prefer reporting netting the income on Line 21 with any SE tax going on to the SE form. However, be careful that the client's partnership basis is not exceeded by the losses.

For years, there was an 80/20 rule that was a good approximation for most of the country. That was when RE prices grew at a rate of 1% above the rate of inflation. However, beginning in the 1980's with land conservancy trusts, which took a lot of buildable land off the market. the added expense of environmental impast studies, and then the easy financing policies from the 90's on, price growth became skewed particularly in the East and West coastal areas. On the one hand there were actions decreasing supply and increasing costs and financial and lending policies increasing demand. Now, it is not possible to make estimates of the Building/Land ratios because they are all over the place. So, now, as Catherine suggests, it is best to use property tax statements to get the right ratio. A good example of both methods is found in a return I prepared recently. The client had lived on the East Coast and was transferred to SF, in 2015, where he bought a rental property. He had his usual preparer in CT prepare the 2015 return and this preparer used the 80/20 rule. However, his property tax statement for 2016 was nearly the reverse of this. It was 30% Building and 70% Land. There is an interesting interactive chart that shows the relative price changes, from 1980 to 2016, for 3 US cities. You can have a little fun with this clicking on the other cities to the right of the chart . The east and west coast cities showed the largest bubbles; mid-western cities not so much, but Pittsburgh was a straight line, meaning it was barely affected by the housing chaos. https://www.economist.com/blogs/graphicdetail/2016/08/daily-chart-20

Opera browser now incorporates a free VPN. I have been using it for about a week now and have no complaints, yet.

What makes TRAC leasing unique is the treatment of residual value. At the end of the lease, if the equipment sells for more than the predetermined residual value, the lessee gets the difference. If it sells for less, the lessee pays the difference. Here is a very clear explanation of TRAC leasing and an example of how the residual is handled. http://financewithafp.com/2010/01/what-is-a-trac-lease/

I think it is going to be on how lenient the auditor is. I have had direct expenses accepted with only 3 or 4 odometer readings, from maintenance receipts, spread over a three year period. With another audit, expenses were accepted, even though the odometers on both vehicles used for business were broken. The client was a musician on tour most of the year and used a motor home.

Please see my response in bold in the Quote.

Tom, thanks for your hypotheses. They certainly provide some avenues to pursue. The house was re-fied in 2005 and spouse's name was on the loan papers and it was paid out of a joint account, although there are no longer any records to substantiate it.

Yes, that is what it would probably turn to. What I have been able to find out is that if the client and spouse had split up before he died, he would have to go to court to claim community property. It is not automatic. Essentially, she gifted him half, but there would be no basis as it would have between spouses.

Client sold home last year that had been purchased in 1986. The following year she got married, but did not change title to house. Husband contributed to mortgage payments effectively making house community property (CA). He died in 2009. Is there any way she can claim stepped up basis? TIA

"she just wants him to get her SS when she dies " Interesting, since the SS stops when she dies, or better said, when her death becomes known, as there have been cases where the death was covered up and the SS checks kept rolling in.

I use Paypal for most of my internet, store and restaurant purchases. I get an immediate email on my cell phone. If someone tries to use my Paypal account, which happened once, I know right away and cancel the card and get a new one.

You might be locked out of E-services when you are required to make the 6 month change in password? Or, when you renew your PTIN.