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I have an S corp that disposed of Equipment for which Section 179 deduction was taken. Total Gain was $20,511. Of this amount, $16,011 was attributable to depreciation ($10,000 was Section 179). How should this transaction look on the individual shareholder's return? I thought I understood how to report but am confused now. the shareholder owns 100% of the corporation. None of the above transaction is transferring when I import the K1. Thanks, Bonnie

Any ideas on when Form 1040 ES will be available? I have several clients that are subject to estimates that have already brought in their data. Thanks!

The tax bill that was signed on 12/17/10 had a unique part to it that might help your client. If they do a trustee to charity transfer, they can still take the RMD for 2010 during January 2011. Of course, this only applies if taxpayer is over age 70 1/2. This helped my mom who forgot to take her RMD in 2010.

the taxpayer is age 60. He has a traditional IRA that was a rollover from a 401 k. Wants to take a distribution of $180,000 for purchase of personal residence. Once existing residence is sold, will replace most of the money. For example, say $160,000 is replaced. Is the full 180,000 taxable or just the $20,000. Assume the replacement is done within 60 days. I cannot locate in my research that money can be withdrawn then replaced within 60 days and not be subject to income tax but other professionals are telling me that is the case. I have researched Pub 590 and it does not indicate such a provision exists. Please help!!!!!!!

Thank you so much. The tax classification report is exactly what I need. This is why I love this board! It just saved my a couple hundred dollars. Hope everyone is having a wonderful day!!!!

Did you purchase this additional software and how much did you pay for it? I really do need it. WV required a detailed asset listing to be provided with the personal property returns. I always used the asset history. It was so simple, until CCH took this feature away. Is there another program that would provide this or could I export the 2008 Asset history to Excel? I'm a sole proprietor who wants the best deal.

Taxpayer cashed in whole life insurance policy. Total investment $22176. Amount received after cashing in policy - $16522. Is there any means by which to deduct the loss? If the numbers were reversed, the taxpayer would be expected to pay taxes on the income. Thanks for any guidance. Bonnie

My client had a very sick child for all of 2009. One of his coworkers donated some sick leave to my client so that he could be with the child at Children's. Client received a 1099-Misc reporting the value of the sick leave as Box 3 Other income. Is this correct? Could it be treated as a gift and backed out? I know I have to report it on Line 21 but if it could be backed out that would be great. As an aside, the child passed away. Do I need to report date of death for dependent? Will there be any problems e filing this return? Thanks! Bonnie

Server is backup and working.

Thank you for calling and sharing this info. I was having a problem but wasn't sure if it was just me. Fortunetly, I had e filed all my extensions all ready.

Per the refund cylce chart, the direct deposit is to be sent on Friday's. Second person called saying where's my refund is giving them a date of Tuesday. Did something change? Is anyone else having this problem? I do not give a concrete date but do tell them when to expect it. Thanks! Bonnie

I have a client who was paid back wages from 5 years ago when he was a California resident. He was paid $6368 and it was reported on a W-2. Is he required to file a California tax return? His total AGI is $111,682 of which 109,000 is wages. ATX is calculating zero tax but I don't want to advise my client incorrectly. He is MFJ with 2 dependents. Thanks for the help. I do a CA return about every 1 out of 5 years. I find their instructions to be confusing. Bonnie

I also use Tenenz. Whenever I have called, I have gotten a live person, not a machine. Website is tenenz.com

The system will not allow me to create e file becuase the clergy worksheets are included in the return. Is this a temporary problem or will I not be allowed to e file this return at all? Thanks!

Child is home schooled and taking courses at local community college that qualify for college credits. The box is checked that she half time student. Do these costs qualify for education credit since she has not "graduated" from high school? These courses will count for her degree and in theory will reduce the amount of time needed to attend college. I say in theory becuase it may still take her 4 years, who knows? Thanks!

Thanks everyone. I will read Pub 908. The client is providing me with all the documentation regarding bankruptcy. Then, I can finish the return.

Client filed Chapter 7 bankruptcy during 2009. It was also finalized during 2009. Included in bankruptcy was rental property. However, client recieved a Form 1099-A for the property. I thought if part of bankruptcy, no 1099-A was to be issued. Do I need to show sale of Rental property on tax return or just remove the rental property from the return? Where is the best place for guidance on this topic? Thanks!

A friend of mine's 2 1/2 year old is very sick and in need of a heart transplant. I have been asked some questions relative to fund raising and am not sure of the answers. People in the community are interested in giving donations to benefit the child. Can a tax exempt entity be set up to receive the donations? This would provide the donators with a tax deduction and provide the family with means to pay the large medical costs. What type of entity should it be - as in 501 c 3 or something else? Their is now an immediate need to have some serious fund raising. The costs in the next few months could be quite high. Any guidance would be appreciated. Thanks!

I have an individual tax client that had a large loss in 2008. The loss was on the rental properties. The large loss was allowed due to large capital gains. The rental loss created an NOL. I'm confused by the new law and whether I can carryback the loss 2 or 3 years. The law states for small business. Where is the definintion of small business? It would benefit to carryback to 2005. Thanks for your input.

The taxpayer was in his 80's. There were no assets in his name. The daughter received some money that was in a savings account. That money was used to pay burial expenses and some medical expenses. There is no money left. What will the IRS do to try to collect this money?

Taxpayer died during 2008. On the final Form 1040, there is a balance due of $750. The taxpayer's return is being filed as single. There is no money in the estate. Who, if anyone, is responsible to pay this tax? Thanks!

Client received correnspondence from IRS regarding the decision after they were required to complete the form ss-8. Of course, as I had originally advised, the individuals have been reclassed by the IRS as employees not sub contractors. The SS8 division does not send a tax bill. You need to calculate first and take care of yourself. Then the bill will come. My question is will the IRS catch up with this. Meaning, the client does not want to file the forms. For 2009, they are doing it correctly. I recommended the client have me prepare the forms to make things correct for 2006 and 2007. If the emplyment forms are never filed, will the IRS ever catch up with it? Thanks, Bonnie

Client invested $75,000 in a travel club in Las Vegas during 2007. There already was an LLC in existence. My clients actually invested through one partner who owned 33% of the LLC. The K-1 for 2008 is issued in the original partner's names but provided to my client. It shows a large loss. The partner who my clients invested through took the money and disappeard. The business went belly up. How do I treat this loss? they never really owned any of the LLC per the document. Is this a business bad debt with 100 % fully deductible in 2008? There is a warrnet out for the partner who disappeard and a police report was filed. Thanks for any guidance.

Thank you everyone for the birthday wishes. I had a wonderful day!

Good Job JB. I am officially done for "tax season." I will be back next week but I am leaving in the morning for some R&R with my children. They are on spring break this week and we are going to enjoy it. Thanks to all for the great help this board has been to me.