michaelmars

Jack, whatever you are working on, remember there are separate NYC taxes if they are located in the city.

WHY are so many posts lately -non tax related being put into this forum instead of the "off topic forum"?

Ken-they are part of the books and records since he reported his calculated depr on the return. Write again quoting the above info and don't forget to cc: NYS Office of Professional Licensing and the AICPA and the clients or your attorney. I have done this without actually sending the cc's [guess they got caught in the mail] but the CPA will realize its better to supply the schedule than deal with the regulatory stuff. It is possible that he never got one from a previous cpa and perhaps backed into it. if that's the case he may feel uncomfortable giving to what he knows is inaccurate but that's no excuse. client can also file a claim of malpractice saying that he doesn't agree with the depr claimed and force the cpa to provide schedules to back up his number. Of course if its not really material then I would just send the letter citing the rules and with the cc's on the bottom. one last thought, did you or the client contact him? he might just be pissed at the client for leaving but he may respond professionally to you.

they are the best kind, no wasted time with chit chat!

"S Corporations and Rental Income" from the NY State Society of CPAs CPA Journal Online, from 2006, includes a discussion of PLR 200339042 where the IRS ruled that the rental income received into an S corp from commercial real estate wasn't passive because of significant management services provided by the S corp. The article includes a list of those services that were provided. that's what I was getting at, and if you google it you will find case law and a lot more which states that the rental income isn't passive in regards to S corps.

IF THEY are supplying rental services, managing the property, etc then it isn't considered passive for this situation.

please tell where you found this?

1099-ETC

WHY would they go through the cost of an llc if they want a corp??? why not just form a corp?

this is udderly ridiculous and has nothing to do with the discount plan hatched by atx that their sales staff came up with while barn storming ideas

I changed to proseries and it does have its issues in number of forms etc, but I have never had any hardware/software issues in 2 years. Only rejections were for real items, not for not having the current form type stuff. I think letters suck, program manager isn't really customizable but I would trade all that for not having hang ups, non existent support, or freezes, reboots etc. After negotiations my pro cost just 2x atx but if I save 5 hours over the course of the year then I figure I made back my money in more sleep and less anxiety.

I would never renew until I see the feedback from those that start returns on 1/1. I never do a return till the end of January anyway.

O/P stated usually a refund so going on the assumption that no money is due. but even so, filing now and amending eliminates the late filing penalty of 5% per month and leaved only late pmt penalty of .05% per month

They sometimes ask for each partner/shareholder to sign the letter, that they had the info to file their 1040's. I usually add a paragraph [if true] that I prepare all the 1040's and have personal knowledge that they were timely filed.

Partnership penalty abatement letter XYZ Partnership Address City, State July 14, 20XX Internal Revenue Service Re: CP 162 Ogden, UT 84201-0039 Tax Form 1065, for 12/31/XX EIN # XX-XXXXXXX To whom it may concern: Based on our records, the Form 1065 was timely filed. However, under Revenue Procedure 84-35 there is an automatic waiver for certain small partnerships. This is a small partnership (2 LLC members) qualifying for late filing penalty waiver under the following: The partnership has 10 or fewer partners, all of whom are natural persons; Each partner’s share of each partnership item is the same as such partner’s share of every other item; All partners timely filed their form 1040 for 2008 and fully reported their shares of income, deductions and credits on their timely filed returns. Please waive the proposed penalty under Revenue Procedure 84-35 as the above requirements have been met. Please advise of the abatement. Sincerely,

IN practice yes, they rarely assess when its a refund but they can assess on the amount of tax whether paid or not. I would file with what I have then amend.

STILL doesn't matter. the bank cares about cash flow and infact the nol will increase cash flow since they won't be paying taxes on their income for a while. Same way that depreciation doesn't affect loan applications. EBIDTA

some of my biggest real estate clients have negative agi due to inflation. no problem ever qualifying for mortgages leased cars etc.

if its real estate income then the w could be additional 754 depreciation. or could be interest subject to the tracing rules. you need to get the subschedule to the k-1 or call the k1 preparer

IT does for some states like in NY

was the dad over 59.5?

since we need the December bank stmt to tie out the numbers we will only have about 2 weeks to get all w-2's done

my e&o carries a $1000 deductible so I never had to use it, even in one case where I paid $3000 in penalty, I felt it wasn't worth it to get higher premiums going forward. I always pay penalties but hardly ever pay the interest. Unless its a great client I figure the interest paid is what they earned on their having the money in their account during the period. I will also usually give the next year free is it was a blatant screw up. Also in the o/p its not up to the client to hit the insurance policy, they make the claim against the preparer and its up to the preparer to decide to make a claim or not.

just another darn freebie return.

CRS syndrome Cant' Remember Sh*t