taxbrewster

Do I need to do something special in ATX to make sure it rolls over to 2009?

Thanks for the comments. So are you stating, if I determine there is no reason (tax wise) to carry back, I do not need to make an election on 2008 to carry forward, correct? I just file as is....

Question for the great forum. I have read some old posts as well as some IRS pubs. Here is the situation. 2 younger clients bought a restaurant, first year of business, have a huge loss on the 1120-S, the loss carries over to their 1040, thus creating a negative agi. They have small w2 for the 1120, nothing else. From what I have read, it makes no sense for them to go carryback the loss because of low agi from the previous years. So do I forgo the carryback of net operating loss (election on this yrs return) and then be able to carry forward the loss in future years to offset future income (is there another election, I need to make)? What is the play here, I have little experience with NOL...I need some help. Thanks.

Well, how about this... I could look at the numbers next year and see if MFS would work. Because they just found out they are having a kid and she might not work the full year so maybe the numbers will work next year.

yeah, not bad, eh? they are in one of those dental "chains" were all they do is see clients everyday, non stop....5 days a week

oh, yeah, totally spaced that one. thanks.

Here is the situation. Married couple, young dentists, first year working. Filled 08 tax return AGI 193k got a refund of $6369, just w2, nothing else. Just purchased a house. Can I go back and amend the returns for create the following scenario? MFS Husband - AGI 125k - refund $580 MFS Wife - AGI 68k - refund $4701 (overall mfs would cost them $1088) But then file 5405 for the wife for $4k credit, therefore increasing the overall refund to $8701. Therefore they would receive $2912 more because she gets the home buyers credit in comparison to the original return. They both qualify as first time home buyers however, does the husbands income disqualify the wife on filling for the credit? I don't think I can do this but have not found any examples or language to say you can't...

I so agree!!! THIS DRIVES ME NUTS!

Thanks for all the input...it is awesome weather here in Michigan...OFF the golf course!

Thanks for the thoughts. Yeah, I agree. The lawyer is just making this a sticking point saying they want to file MFJ (of course because it helps her client) The ex husband is not and will not be happy with this decision... I am just making sure I don't get myself into a bad situation. This is my first experience with this type of case and just want to be careful... Thanks again.

wow, lots of questions, i know, I have them as well... He "told" her they were filling joint, then when the divorce hit, she figured out he had been filing MFS...He was lying and signing her name left and right... They lived in the house together, and did so till about 6 months ago. He took all sch A deductions. Going back and filing MFJ, of course helps her and her tax liability, screws him because he has already filed and collected refunds. If she were to file the back years (MFS), would owe at least 3-4k a year, based on quick numbers by me.... She has $$ to pay me and pay her lawyer...She has just been kept in the dark for a long time and now is just seeing the light. I know, my gut says let them walk... I am more curious for future clients...Would going back and filing the years open up a IRS audit box I would want no part of. Thanks again, it is a very sticky situation...This woman has been screwed by her husband and just thinking I might lend a helping hand because she came as a referral.

I have a new client that came to me today. She has not filed since 2005, however Husband filled MFS for all those years. They are in the middle of a very messy divorce. Her lawyer thinks they can get a court mandate to go back and file those years MFJ because it would help the wife because she is SE, the husband has pension income and small SE from selling real estate, (they have 1 kid) I believe he also took all the write offs for the year, house, taxes, etc. Basically, he behind her back in a lot of areas, including taxes.. The thought is they would get some refund money and that would be used to help pay the wife the large amount of $$ she will be receiving when the divorce is final..as well as get her caught up on taxes. 2 birds with one stone. Is this a good play? Is it possible just to go back and amend his returns with now his wife on the return? Any help or ideas would be nice, thanks...

I would also like the thank the board, it has been a good season...This is a wonderful resource!! Keep up the good work! Many thanks!

Is there an easy way to track the clients who paid AMT in 2007?

Yes, of course, I know I wanted the bldg in the LLC and it is, so I can just get the EIN and use it for 2008? If so, half my problems are solved. Thanks for the input!!! RE: Julie's answer, no the s corp and LLC were new and created before the sale...but yes a LONG conversation is need, no doubt. Thanks again!

UPDATE - The LLC purchased the building and the assets of the bar. 2 members of the LLC. Turns out the "rent" being paid but it is rent paid on a land contract to the previous owner, paid from the S Corp. That is fine. So, question is still there. What do with the LLC(partnership) with no EIN and all these assets? And why are the assets on the S CORP's balance sheet? When the LLC purchased them?

Well the LLC is registered under a business name, however, you don't have to list the members in the state of Michigan...That again is the problem. No EIN, no way to tell if it is a single member or not. Bart is right, it is something that we need to be corrected after tax season.

It bothers me as well... Yes, I found it on the state of MI web site, so it has been set up with the state, but still no info about the EIN... I feel like the problem is fixable once i get over a couple of hurdles, the clients are nice and it will be a nice fee, I hate to turn away business, but they just have no freakin clue...

I believe the building's title is in the LLC's name (still checking) It was created with the State of MI, but again, can I now go back get an EIN? It really is a mess and I am not sure I am going to take them on as a client...I am starting to see holes in the book keeping. Hole 1 - I don't think rent was paid during the year of 2008, however, it is on the books. The old accountant said that is the way the old owners did it and continued the process...So, whats my next move... If the bldg is titled in the LLC name, but no rent is paid? What happens. There can't be any depreciation?

Ok, I received a new client today from a referral, but "red flags" started 5 mins into our conversation. Your thoughts are welcome. T/P purchased Restaurant/Bar in Jan 08...The accountant doing the previous owners books, continued to do T/P books for 1 month (jan). They had a huge falling out. Big mess. T/P did most accounting on there own. However, T/P noted that there is an S-Corp (bar business) and a LLC that the bar rents the land/building from. There is no trace of the LLC ever being opened, but rent is paid on the books. S-Corp is legit. I am assuming there is no LLC, and no rent expense.(I think T/P was just going off, 1 month of the profit/loss created by the other accountant). But here are my questions. ---Found the answers to my depre. question. Now... I guess the main question is if the LLC does not have an EIN now, can i apply for one now and have it work for 2008? I know I don't want the building in the S Corp, just wondering how to fix this problem.

Thanks KC for talking me off the cliff....everything is running back to normal.

Ok, I am freaking out a bit. I tried to file some ext today for 1120s... (By the way, No problems efiling all year...smooth as can be.) The program keeps getting stuck on verifying customer info and waiting for server response!! I have force quit the program several times and keep running into the same problem. Any words of wisdom would be nice. Thanks

Anyone having problems today efiling, the system is usually slow...Just checking to see if I am the only one...

Ok, thanks for the info.

I agree. Things are a little different. Here in Michigan, things are tough and people more then ever are looking for breaks and shopping prices. They want it done quick and cheap with much more information, we can't afford to lose clients. But I am thankful for this board, there is no doubt about that.