kcjenkins

Clearly they did have a partnership, since the other couple was able to recover in court. That judgment must have been based on the partnership relationship. So I think you have to do a 1065, and the other couple's payments would properly be shown as GP from the partnership. Which may help your clients balance their losses a bit. I think you need to see the court decision, as that should help you determine the relationship, as ruled on by the court. Which is a good basis for determining the 'partnership agreement', if it was not in writing. Which it did not have to be, to be valid and legal.

Foreign income may or may not be excludable. As he's getting a 1099, odds are this is income from a US business, and thus not excludable. You need more info. Start by reading Pub 514.

Unless it was a major kitchen remodel, I'd expense them, myself. Unless the client does not need the writeoff, of course. But if you depreciate them, it's 27.5.

Thank you all. Don and I truely appreciate your prayers.

I would, just to document the sale in case he later gets anything.

Tom, six years is all they normally ask for, or want, unless huge sums of money are involved. My guess, a fairly educated one based on my years in this game, is that the reason he never got a letter before, given he's been largely a W2 income guy, is that he had refunds coming most of those years. It's only when they owe, based on what was reported, that the feds bother to contact the t/p. CA, of course, is more aggressive, since they have penalties that do not rely on owing before they kick in, unlike the feds. I'd follow your plan, do the most recent three, to lock in any refunds, then go back three more, at most. If the three show refunds, you might not even need to bother with the older three.

He's smart and lucky, and we're in our 46th year of marriage, and I'm not nearly ready to lose him yet. Your prayers are very much appreciated. I count myself very lucky to have so many cyber friends helping me through this time.

http://www.ntu.org/main/press_papers.php?P...mp;org_name=NTU Like old age, tax complexity has been creeping up on us. We may not notice it one year at a time, but a review of older tax documents compared to today’s forms and instructions reveals just how shockingly complicated taxes have become. In the most recent Fiscal Year (FY), the Treasury Department reported its paperwork burden, which consists almost entirely of tax forms, at 6.97 billion hours. That is the equivalent of 3.35 million employees working 40-hour weeks year-round without any vacation. The projection for the Fiscal Year following is over 7.2 billion hours. Individual taxpayers alone will spend an estimated 3.55 billion hours complying with the income tax laws this year, up from 3.18 billion hours last year. Using an inflation-adjusted estimate from the Tax Foundation for the average total hourly compensation rate ($26.09), this time is worth $92.6 billion. Seventy-four years ago, the Form 1040 instructions were just two pages long. Even when the income tax became a mass tax during World War II, the instructions were just four pages. Taxpayers today must wade through 155 pages of instructions, nearly quadruple the number in 1975 and nearly triple the number in 1985, the year before taxes were “simplified.” Today’s short form, at 47 lines, has about double the number of lines on the 1945 version of the standard 1040 tax return.

I would recommend that the corp become an S Corp for 2007, since that is how he actually operated anyway. And under the new rules, it's not too late for a retroactive election.

Clearly Tom must be talking about inner beauty. I thank him, and Gail, anyway. Please, friends, start up the prayers again, my husband went back in hospital yesterday with a small seizure. I need your strength and support right now, because this is really scary. He was doing so much better, and this is a real setback for us.

Know Your State's Motto ... Alabama - Heck Yes, We Have Electricity. Alaska - 11,623 Eskimos Can't Be Wrong! Arizona - But It’s A Dry Heat. Arkansas - Literacy Ain’t Everything. California - By 30, Our Women Have More Plastic Than Your Honda. Colorado - If You Don't Ski, Don't Bother. Connecticut - Like Massachusetts, Only The Kennedy's Don't Own It Yet. Delaware - We Really Do Like The Chemicals In Our Water. Florida - Ask Us About Our Grandkids, and Home Of The Early Bird Special Georgia - We Put The Fun In Fundamentalist Extremism. Hawaii - Haka Tiki Mou Sha'ami Leeki Toru (Death To Mainland Scum, Leave Your Money) Idaho - More Than Just Potatoes... Well, Okay, We're Not, But The Potatoes Sure Are Real Good Illinois - Please, Don’t Pronounce the "S" Indiana - 2 Billion Years Tidal Wave Free Iowa - We Do Amazing Things With Corn Kansas - First Of The Rectangle States Kentucky - Five Million People; Fifteen Last Names Louisiana - We’re Not ALL Drunk Cajun Wackos, But That's Our Tourism Campaign. Maine - We’re Really Cold, But We Have Cheap Lobster Maryland - If You Can Dream It, We Can Tax It Massachusetts - Our Taxes Are Lower Than Sweden's Michigan - First Line Of Defense From The Canadians Minnesota - 10,000 Lakes...And 10,000,000,000,000 Mosquitoes Mississippi - Come And Feel Better About Your Own State Missouri - Your Federal Flood Relief Tax Dollars At Work Montana - Land Of The Big Sky, The Unabomber, Right-wing Crazies, and Very Little Else. Nebraska - Ask About Our State Motto Contest Nevada - Prostitutes and Poker! New Hampshire - Go Away And Leave Us Alone New Jersey - You Want A ##$%##! Motto? I Got Yer ##$%##! Motto Right here! New Mexico - Lizards Make Excellent Pets New York - You Have The Right To Remain Silent; You Have The Right To An Attorney... North Carolina - Tobacco Is A Vegetable North Dakota - We Really Are One Of The 50 States! Ohio - At Least We're Not Michigan Oklahoma - Like The Play, But No Singing Oregon - Spotted Owl...It's What's For Dinner Pennsylvania - Cook With Coal Rhode Island - We’re Not REALLY An Island South Carolina - Remember The Civil War? Well, We Didn't Actually Surrender Yet South Dakota - Closer Than North Dakota Tennessee - The Edyoocashun State Texas - Se Hablo Ingles Utah - Our Jesus Is Better Than Your Jesus Vermont - Ay, Yep Virginia - Who Says Government Stiffs And Slackjaw Yokels Don't Mix? Washington - We Have More Rain Than You Do West Virginia - One Big Happy Family...Really! Wisconsin - Come Cut The Cheese! Wyoming - Where Men Are Men... And The Sheep Are Scared

:wub:

I have three HP 4050s, and they are several years old, no maintenance at all, and are all three still operating so well that I can not justify replacing them. Fast, good, and I added extra paper trays to them that I bought on eBay real cheap, so that I can put two reams in at a time, so little down tome to replace paper.

I think if it does go under, there will be enough warning to give us time to make a move to another provider.

I got one, but have not had time to look at it yet.

Mine is my 'office dog', Little Bit, doing some hunting. I wish I was as pretty as she is, actually.

Better go ahead and call the trapper, wild coons bring in fleas, ticks, and even lice sometimes, as well as sometimes damaging wiring, which could be a fire hazard.

You are correct. Must be 55 or older when you leave the job, for that exception.

If it was sent and rejected, you still have time to get it acked. I think we have 5 days to 'fix' a reject, and have it acked.

Linda, 'wages' is earned income that can be used to qualify §179 expenses. Unearned income such as interest or dividends can not.

Actually, it's just a level you reach by making a lot of posts, or replies to posts. The more you post, the more 'advanced' you get.

Eric, we all thing you are a great guy. Are the donations covering your costs? And will they cover them for the rest of the year, when a lot of the users forget all about this board? If you need more, please at least let us know that, because we value this resource and will dig deeper if you need it.

I believe you can change the date, and retransmit, and it may go OK. I'd sure try that first. If it gets rejected again, then you print it, and mail it and the check, with a print out of the Ack History.

http://www.esopservices.com/faqs.html http://dept.kent.edu/oeoc/OEOClibrary/Coop1042Rollover.htm "The Prohibited Allocation Rule Under Section 1042" The prohibited allocation rule applies only when an ESOP has purchased employer securities from a shareholder who has satisfied the requirements for a Section 1042 rollover. Consequently, when there is only one selling shareholder, the shareholder and any related parties can fully participate in the ESOP if the shareholder does not make the Section 1042 rollover. However, if there are multiple selling shareholders, the situation can become more complicated if even one of them makes the Section 1042 rollover. The more-than-25% shareholder rule (discussed below) can prevent even a shareholder who does not make the election from receiving ESOP allocations attributable to the Section 1042 shares. What happens if a selling shareholder attempts to make the Section 1042 rollover, but fails, for example, where the 30% ESOP ownership requirement of Section 1042 is not met or where the shareholder fails to make a timely 1042 election? The prohibited allocation rule is applicable by its terms only to assets “acquired by the plan . . . in a sale to which section 1042 applies.”3 If Section 1042 does not apply because of a failure to meet its requirements, the prohibited allocation rule will not apply either. If the Section 1042 rollover is partly effective and partly ineffective, the prohibited allocation rule will still apply, because Section 1042 would still be partly applicable.

Boy, you really are new to the board, aren't you? Mel lives in Hawaii now, but he was one of the guy who started out with Steve and Glynn Williet, when they were developing ATX at a card table in their living room, then moved it to the garage, etc. He's a programmer, not really a tax person, except by osmosis. But he's been on the old board and then this one for years, helping out with computer questions, rather than with tax ones. He's a sweet guy, and he's thinking about doing the same thing the Willets did, starting a new program that would serve the needs of those of us who are fed up with the big companies lack of concern for their customers. A bunch of us have offered to buy into it, if he decides he is willing to do it, and provide capital for the startup. It's still an open question, but we are hoping. He sort of wants to move back to Maine, so if he does do it, we might even end up with a bunch of the old ATX crew working in the new business.