michaelmars

maybe i am not clear, atx is calculating normal amortization and flowing it properly, it doesn't have an option anywhere to take the elected $5000. as a current deduction.

you will see a dupl file with an ext of .mdb or .mbd that has to be deleted, a very simple fix. call tech support and they will talk you through it.. there is also a kb on it but i am locked out of myatx for months now and haven't bothered getting unlocked

yes, its an election but there is no way to imput it

anyone know how to get this deduction in the program without overriding? I see how to make the election statement but i can't get the deduction on the 4562. -thanks

agree with Daune, I have food deliv clients too but you should be aware that both the irs and Workers Comp are going after these arrangements.

yes you can and i can't remember where but there is a schedule somewhere to allocate any estimated payments between the spouses

IF ITS JUST the returns they want they can get them just as easily from the irs. You can suggest this to the attorney too.

YEAH, deal with it! just another stupid printing issue with atx!, i haven't gotten them to address it in 4 years

i'd file a 1065 for the entire year, allocating the income properly of course for the period each was an active member then switch to a sch c for 2008. no difference in taxes due, no red flag since there will be 2 k-1's either and just because the partner "walked out" was there a legal dissolution of the partnership? Bet you have an argument that the there was hope till 12/31 that the partner would return and continue in his capacity as a partner. If he showed up now he might even still have a claim on his share of the partnership unless he "legally" "walked out". I'd discuss this option with your client and how its a good argument for filing the 1065 and avoiding penalties.

I'D RATHER have your weather jan to apr maybe i could commute to you! got extra room?

I am still looking for an ATXer to work in my office during tax season. I would like someone to start now so we can get used to each other working on some of my extension returns. Days and hours are totally flexible. During tax season I think 15-20 hours a week would be a min and you could work as much as you want. I am in Great Neck, NY

you are not required to use an 8/31 year end, thats just the latest you can use. You need to look at the investments and see what year you want the income in etc. before deciding, perhaps a calender year makes more sense [doubt it]

Are you sure that all that he claimed he claimed was paid to you and not to others?

We use it here too and one of my guys is a FX expert if anyone needs help I'll gladly pass on the program issues for response. 99% of the time the old imput method works best and avoids most of the glitches btw.

the issue is that the sale is an installment but we have to decide whether or not to recommend reporting as an installment or electing to report the whole gain in 2008. Sort of flipping a coin on what congress will do in the next few years.

We can't decide whether or not to recommend installment sales, hard to predict what will happen to cap gain rates for the next few years or if current installments will lock in todays rates etc. Amending to opt out of an installment most likely will not be an option. Tax planning has now become a game of throwing darts at a dart board. This is a 200 million cap gain!

how much? how material is it?

if the daughter does wind up paying the interest the mom will receive a slightly lesser amount as interest income - sort of a wash.

IN THIS case i would pay the se tax on the net income but you should definately spin off the salon business from the real estate for a vast number of reasons.

how much is this 10% penalty that we are talking about? i bet the hearing office will simply accept the court info. I wouldn't worry about a potential court case until after meeting with the appeals officer. If you work in a different area than the client i would move the case to your area which would mean a different irs office and thus different person to deal with if its not too late for that.

1. The IRS issued their temporary and proposed regulations ( you might want to get them and read them) that will reduce the extension of time to file tax returns from six months to five months for certain entity returns that generate a K-1 form. The change is effective for extension requests for returns due on or after January 1 2009 and apply to form 1065, form 1041 and form 8804 for any entities that have a tax year ending on or after September 30, 2008. 2. For as long as anyone can remember- start up costs and organizational expenditures were permanently capitalized and non amortizable unless you made the proper elections on your tax return. This week the IRS issued temporary regulations that make the start up costs and organization cost elections automatic when the taxpayers have those costs. The regs were issued this week but they can be applied to all expenses paidor incurred after October 22 2004. You still need to make sure you pay attention to these costs. You still have to comply with the rules on when and how they are deducted but the separate election no longer has to be made. The "deemed" election under the new regs should be a plus to those clients who were affected by having a dedcution permanently disallowed because a preparer failed to make the election. 3. The IRS over the years has softened on allowing late filing of S elections. Now the IRS just allowed an S corp that inadvertently terminated by having an LLC as a shareholder to "redo" their forms and treat the individual members of the LLC as the shareholders thus preserving the election. A kinder, gentler IRS perhaps??

here i go on my soapbox again but way overkill here in my opinion. report the $5m, thats a given. As for the expenses, he either purchased them, stole them, received them as a gift or found them. If we take the assumption he purchased them you can get the cost out of any music equipment catalog. Your only issue of debate is if he purchased them in 2007 or prior, perhaps the store or mfg has records if he filled out warrentee info. If you are too conservative to assume 2007 without real proof then assume 2005, get a fmv as stated above and take depr for 2007. As for mileage, if you are reporting the income from a job then take the mileage to/from the job, use mapquest! If the irs throws out the mileage then they do but your method is reasoned and logical and defendable. don't forget all other expenses even if the client says there aren't any, he isn't a businessman obviously. Did you discuss where he makes his demo's etc, does he have a home studio, does he advertise, etc? -Just my 2 cents

talk to the irs re: the problem and show proof that the client sent the money to CA, and did not profit by keeping it in his bank acct. He never intended to not pay his taxes and had the funds available and simply mailed it to the incorrect gov't entity. I have almost always got them to abate any late payment penalties in this situation but its best to deal with someone live @ the irs. I had 3 this season alone.

TAXCPANY, where are you, i live in eastnorthport, and till 3 years ago had my office on larkfield and then on jericho in dix hills.

Thanks I just discovered how to clear my cache and it did the trick. the site is back to normal ---- well as normal as you clowns always make it. Thanks again for the imput.