Corduroy Frog

Thanks to all who have hung in there with me. DANV you took the time to paint a very good picture of how such a situation should be treated, and I am very appreciative. Much of the cobwebs in my head were removed as a result. A great discussion for "inside and outside" basis/capital.

I am fully capable of looking up "where to file" on the IRS website. But it is a small inconvenience when there is a tab on Drake which says "Filing Instructions" and the address doesn't exist. This year, I have had to file a few paper returns. But the Drake filing instructions still say "Your return will be e-filed once your signed and dated Form 8879 has been received by this office. Do not mail your return to the IRS." The return I am working on now says "This return must be paper filed". Taxpayer is disabled, has no picture ID, and is a EIP2020 return only.

Tom, I happen to agree with you - the bank is not wrong, but it is an "either/or" situation. Either incurred or paid. Payroll is a special situation, and your bank could be right, but if you choose to report "paid" and choose the "alternate payroll periods", I believe you were doing it correct to begin with.

Thanks for the responses - I've been out for a few days. I'm not sure I gave out the perfect example, but please just assume mainstream events. Assume amortization is correct and goodwill was properly calculated. No additional information for exotic events. The subject matter (it seems to me) is convoluted enough as is and I don't have a clue. I might access the enrolled agent exam if I knew where to find it. I passed that thing 12 years ago...

This came up in a seminar a couple weeks ago, and no one could wrap their arms around it. The presenter spoke confidently but was not successful imparting anything clear. Even my multiple choices above are all over the map.

I don't know how to ask this question quickly without creating a test sample: BarryCross,Surveyor joins a real estate development partnership, and brings with him all his assets, including $40,000 of unamortized goodwill. Eight years later the partnership is sold for a substantial gain, and during the eight years the unamortized goodwill has dropped to $28,000. Which of the following, if any, best describes the treatment. Barry's K-1 should indicate his proportionate share of the gain, his basis includes the $28,000 of unamortized goodwill. Barry's K-1 should indicate his proportionate share of the gain, his basis includes $40,000 of goodwill, because he has not been able to deduct the $12,000 amortization which has transpired. There is no recognition of the goodwill because the sale has exceeded the five year statute for "hot" assets. Barry could not have transferred the goodwill into the partnership to begin with because it is not a tangible asset. Any gain/loss on the goodwill should have been calculated upon entry into the partnership and no further recognition. Goodwill cannot be transferred into the partnership, and any gain/loss upon entry is forgone. None of the above. Sorry for my ignorance, I could never research this subject on my own. Thanks to any of you who volunteer an opinion.

Max, if you've followed me, you know I'm outspoken. I will not hesitate to present something fuzzy if it invites clarity. So in this situation, thank you for your opinion, and presentation of factual information.

This has been the general rule for a long time, but just Wednesday, on IRS notice 2020-240, confirmed that expenses covered with PPP loan forgiveness are not deductible, since the proceeds were not taxable. There are plenty of people waiting on Congress to act and allow deductions for said expenses. And many people think it will happen but at this point it has not. By nature of the subject, this should be captioned under the Coronavirus heading, but I thought the subject matter should be brought to the attention of as many as possible. Move if you wish.

i have a hard time dealing with people who give me whatever information suits them the best at the time. Facts don't change if the times don't.

In many cases, I didn't have a thing to do with my clients receiving this free money, they worked it out with the banker. However, now comes the time to apply forgiveness application, and the banks all-of-a-sudden want nothing to do with it. I have a few clients who are banging on me to apply because their hero banker doesn't want anything to do with it. Are we stuck with the 3508S instead of having the loans automatically forgiven without application? I thought congress and the SBA were going to go down that road.

Yes Gail - they are looking for ironclad documentation that will save the egg on their face if something doesn't work. Even if there is no possibility of that happening. One of the things that has surfaced in the last 10-12 years in Tennessee is the idea of a "medallion notary." Whereas the signature of a notary would be sufficient, now this "medallion" notary is bonded, insured, and has to large fees to cover liability insurance and other increased costs. Compared to 30 years ago, administrative work is five times as more necessary, staffed by low-paid personnel who are not accountable for performance, and generally part of a morass of sludge and inefficiency. It's no wonder that in the skilled trades, those people are plenty busy, hard to find, and are now making a ton of money because of the law of supply and demand.

Success. Finally Googled the question and got great answers. Thanks so much to all of you.

You are all great help. I'm back after an absence of a couple days. Reddit was promising and I was able to post. But then a moderator removed my post because the title "failed to state the problem". Didn't know I was supposed to put 150 words into a title. I'm not going back. Some people think they are supposed to be Gabriel guarding the gates of Heaven with a flaming sword. Forget it - people like that need to take a good look in the mirror. A couple other sites want to add personal information to login credentials. Prerequisites to setting up an "account" which is required before you can ask a single question. Under the guise of security. I believe some websites want to datamine for information so they can sell it to others. In fairness to the above sources - I am looking for free advice and should probably not expect others to the trouble to spend time and effort for nothing. I don't enjoy doing this either. This board is great but I was happy to send Eric a little bit a few months ago. I'm going to revisit Lion's post above and try again. Thanks for listening to this rant. Most of you know me to be outspoken.

Thanks to Lion and Judy for helping. All I want is a blog where I can enter a question and receive advice from other fellow users - skill level can vary. Most of the links promote their own courses and topics - even though most of them are free, it is hard to simply ask a question from their website. I will keep searching, though, from the links you have sent me. Thanks again.

My excel problems are deep into the programming and complex. Can anyone recommend a blog where I can get input from others who have dealt with the same problems? Thanx in advance -

The Alabama resident will be in Missouri 90 days hiring and managing 30 employees until turning the management over to a local. Employer already has employees working in Missouri, but has no physical location.

An Alabama client is going to send one of their Alabama residents to Missouri for 90 days. How long can he stay in Missouri without having Missouri SIT to begin? If he has MO SIT withheld it won't affect his state taxes because he will have a credit to apply as an Alabama resident. However, there is administrative cost for the client as well as the guy will have to file a Missouri non-resident return.

I'm sure I am not. 9 years ago, somebody probably covered that in a Seminar. If you can provide a citation I will read it. Notices usually begin with the year #.

After reading the responses, and looking at the Reg, it seems like the regular monthly stipend would make this taxable. Has more to do with the periodicity than the amount. Thanks to all.

Dan this is good thinking. Fact is, however, that people would prefer using their own smart iphones than to carry around basic phones that only allow phone calls. Today's phones will take you to the moon and back, order lunch from Zaxbys, and book your next vacation in Mozambique. It would be less grief on the employer to just incur the tax than to deal with employees trying to separate the charges on an expense report. Employer could simplify things by "cloning" a monthly expense report, but that is not what an expense report is supposed to be.

A client of mine is confronted with the need to provide cellphone service for 8 employees. All of them already have cellphones. It will be cheaper to pay a stipend of $20/month directly to the employees than to furnish phones and service. The question is: This is $240 per year. Is it taxable? or does it fall into a "deminimus" category than the IRS would ignore? Asked from a different perspective: Is there a "safe harbor" dollar amount where such a stipend crosses a threshold from deminimus treatment into taxability??

Thanks Max. This is good information. I believe the person doing only EFTPS could be immune for most practical purposes. But if the IRS can't find anyone more central to management who has any money, they will go down the list until they find someone who does. Items 6 and 7 are usually synonymous. And if they had intended for #7 and #8 to be exempt, they wouldn't have put them on the list.

You shouldn't sign on the company's bank accounts because the IRS could actually hold you responsible for unpaid trust fund taxes. I borrowed the above quote from Judy on another thread, and thought this topic was significantly different - hence the new topic. I have long wondered about electronic filing with EFTPS and various state websites. States have passed laws which now require electronic filing plus a requirement to PAY electronically as well. Some states are really aggressive - won't let you file at all unless you pay simultaneously. Whoever completes the process has enjoined a withdrawal to the taxpayer's bank account, having the same effect as a check. Question: Does liability attach to the person who pays electronically? Even if that person is not a signatory to the bank account? Is it the same liability that would attach as if a paper check had been signed? Thanks in advance for responses.

Me too - got a couple. They keep wondering what is wrong. One is holding up a $7500 refund - but they did get a stimulus of $2900. I don't think they can complain about the circumstances too much if they eventually get their money.

If you go back and follow the thread, it started with a simple question - Is tax depreciation a valid election under GAAP? I would think this would be as simple as "yes" or "no" and that could have ended before the cannons came out and the discourse degenerated. We all have minimal exposure to GAAP - I have about 12 entities which require a "book" presentation on the Balance Sheet and disclosure of differences on the M-1. Most of the customers present bookkeeping and will not pay a couple thousand of dollars for a review. Crossing the line is not well-defined until representations are made to a third party.