kcjenkins

Useful for some salesmen who just need to show the customer some prepared slides, etc. My insurance guy used one for that, for example. Handy in that he could type in my info, then take off the screen and hand that to me for me to 'sign' the resulting form, a copy of which I got back in the mail. But no way I could imagine using it for tax work. Keyboard alone would nix that.

Wish I could "like" Lion's post three or four times. That is so true, and SO important in any partnership or LLC. NO MATTER HOW IT IS TAXED. Taxes are only a small part of the issues that can arise.

Well, yes, it's POSSIBLE, given specific facts and circumstances, but not even close to an automatic answer. But with employees and multiple trucks, it gets much easier FOR US to give a positive answer to the original poster.

Actually, there is NO WAY to claim ANY dependant for half a year, friends. That was what I found so funny. And that was 'back in the days' when the IRS DID look at the decree as a basis, but only for children. So the decree was doubly ridiculous.

I KEPT A COPY IN MY FILE of a divorce decree that stated "Mr C______ may claim the dependency exemption for Mrs C for 1/2 the year, and she may claim herself for the other 1/2."

Yes, but in practice, the IRS accepted them in non CP states, Had 3 that I used that box with, for years, and never a peep from the IRS.

Ray and Deb, I sincerely hope that's right. Still about three times the quoted $95, tho.

VOTED AND SHARED ON FB

Just remember, it's not just $95. The penalty is the greater of: For 2014, $95 per uninsured person or 1 percent of household income over the filing threshold, For 2015, $325 per uninsured person or 2 percent of household income over the filing threshold, and For 2016 and beyond, $695 per uninsured person or 2.5 percent of household income over the filing threshold. So a couple making $80,000 total, the penalty would be 1% of $60,000 or $600. Not $190.

No sales tax, but I STRONGLY recommend that you provide them a Form 8594. to help them arrive at the price, and the allocation. Here is what the IRS says about it. Allocation of consideration paid for a business. The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. Except for assets exchanged under any nontaxable exchange rules, both the buyer and seller of a business must use the residual method (explained later) to allocate the consideration to each business asset transferred. This method determines gain or loss from the transfer of each asset and how much of the consideration is for goodwill and certain other intangible property. It also determines the buyer's basis in the business assets. Consideration. The buyer's consideration is the cost of the assets acquired. The seller's consideration is the amount realized (money plus the fair market value of property received) from the sale of assets. Residual method. The residual method must be used for any transfer of a group of assets that constitutes a trade or business and for which the buyer's basis is determined only by the amount paid for the assets. This applies to both direct and indirect transfers, such as the sale of a business or the sale of a partnership interest in which the basis of the buyer's share of the partnership assets is adjusted for the amount paid under section 743(b ) of the Internal Revenue Code. Section 743(b ) applies if a partnership has an election in effect under section 754 of the Internal Revenue Code. A group of assets constitutes a trade or business if either of the following applies. Goodwill or going concern value could, under any circumstances, attach to them. The use of the assets would constitute an active trade or business under section 355 of the Internal Revenue Code. The residual method provides for the consideration to be reduced first by the amount of Class I assets (defined below). The consideration remaining after this reduction must be allocated among the various business assets in a certain order. See Classes of assets next for the complete order. Classes of assets. The following definitions are the classifications for deemed or actual asset acquisitions. Allocate the consideration among the assets in the following order. The amount allocated to an asset, other than a Class VII asset, cannot exceed its fair market value on the purchase date. The amount you can allocate to an asset also is subject to any applicable limits under the Internal Revenue Code or general principles of tax law. Class I assets are cash and general deposit accounts (including checking and savings accounts but excluding certificates of deposit). Class II assets are certificates of deposit, U.S. Government securities, foreign currency, and actively traded personal property, including stock and securities. Class III assets are accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. However, see section 1.338-6(b )(2)(iii) of the regulations for exceptions that apply to debt instruments issued by persons related to a target corporation, contingent debt instruments, and debt instruments convertible into stock or other property. Class IV assets are property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held by the taxpayer primarily for sale to customers in the ordinary course of business. Class V assets are all assets other than Class I, II, III, IV, VI, and VII assets. Note. Furniture and fixtures, buildings, land, vehicles, and equipment, which constitute all or part of a trade or business are generally Class V assets. Class VI assets are section 197 intangibles (other than goodwill and going concern value). Class VII assets are goodwill and going concern value (whether the goodwill or going concern value qualifies as a section 197 intangible). If an asset described in one of the classifications described above can be included in more than one class, include it in the lower numbered class. For example, if an asset is described in both Class II and Class IV, choose Class II. Example. The total paid in the sale of the assets of Company SKB is $21,000. No cash or deposit accounts or similar accounts were sold. The company's U.S. Government securities sold had a fair market value of $3,200. The only other asset transferred (other than goodwill and going concern value) was inventory with a fair market value of $15,000. Of the $21,000 paid for the assets of Company SKB, $3,200 is allocated to U.S. Government securities, $15,000 to inventory assets, and the remaining $2,800 to goodwill and going concern value. Agreement. The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value of any of the assets. This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Reporting requirement. Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. Generally, the buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. See the Instructions for Form 8594.

I agree with Judy, it's not big enough to make it your 'deciding' factor.

Then, yes, he absolutely is on solid ground to take OIH, and all the truck mileage is business, assuming he has another 'personal' vehicle.

Well, there are also some good 'legal' reasons as well. But yes, we used to have a box we could check for a 'joint' Sch C, and it did one C and two SEs, splitting the income between the two. No more.

Which is why we are still waiting for an answer to # of employees and trucks, etc.

I agree with Judy. Doesn't happen often, but it can. Need to do a worksheet anyway, so that you can defend whatever you determine is the correct tax treatment.

More info, please. You mention "trucks", plural. How many? Employees? If he has employees and multiple trucks, then there is real justification for an 'office', and all truck mileage could be business.

It still needs to be treated as a sale. In fact, you [or your client] need to do some extra work in this situation. You are not moving "his" property around, those corps are legal entities, no matter that both are owned by the same person. He needs to pay for a professional appraisal, in writing, from a respected realtor, and then record the sale accordingly.

Marco, I don't have a dog in this fight, strictly Windows here, But I'd still be interested if you could expand on that answer.

October 13, 2014 By Jeff Stimpson You’re having a perfectly fine time at a party, reception, barbecue, ballgame, meal or any other gathering, when out of nowhere you’re bombed by a taxpayer with that most loaded question: “Mind if I ask you something?” Conventional wisdom says rules vary state to state over whether a professional can be sued for casual advice; even-more-conventional wisdom points out that in our litigious society, defending even a frivolous lawsuit consumes valuable time and money. Though casual questions about taxes – not to mention your answers – usually fall short of igniting E&O lawsuits (Accounting Today), respond carefully. “Off-the-cuff or ‘cocktail party’ advice is never recommended,” said Bill Thompson, president of insurer CPA Mutual in Gainesville, Fla. “Any advice should be in writing after receipt of an engagement letter.” ‘Provide for my cats’ Surely people don’t actually expect specific, valid, actionable professional advice in 30 seconds? For nothing? Wrong. “ ‘Can you tell me how to set up my will so I can provide for my cats and the person I give the money to will not have to pay taxes?’ ” recounted Enrolled Agent Martha Nest, of Westview Tax Services, in Bardstown, Ken. “ ‘How much money can I give my kids this year so they won’t pay tax on it?’ ” “People are very creative when it comes to asking complicated tax questions without being a paying client,” added Steven Pargo, an EA at CSL Tax Advisors in St. Charles, Mo. “My most recent encounter was with a person who has an S corp, sold properties and had a few rental properties. This person has been incorrectly filing the 1120S and their 1040 for years, handwritten. I gave it a complimentary glance and explained that their tax situation is more complicated than it appears, and that I advised a professional complete it, even if [that professional] wasn’t me.” “This person declined,” Pargo added. “I couldn’t believe it.” ‘Free tax machine’ “I get confronted for tax advice all the time because when people know what I’ve attempted to do for a living for 27 years, they think I’m some sort of free tax machine,” said EA James Christenberry, of 1040 Rapid Tax & Properties in San Antonio. “Normally questions about tax planning and audits. A lot about Social Security.” Seekers of free advice also frequently ignore warnings. Hawley, Pa., practitioner Robert Flach said he isn’t asked for tax advice in social settings, but does get hit up via e-mail or comments from his blog, The Wandering Tax Pro. “This,” he added, “even though the following statement is prominently placed in the margin of my posts: ‘Before contacting me with questions about how a blog post relates to your specific situation, please be aware that I do not give free tax advice to non-clients by e-mail, comment response or phone. So don’t waste your time and mine.’ I usually ignore the e-mail or comment.” “The best one was the pharmacist,” Nest said. “I went in to pick up a prescription and the owner of the pharmacy asked if he could discuss a tax situation with me because if he called his accountant, he’d get a bill! He wanted me to explain how salary would work with a pharmacist he was planning to hire who had incorporated himself. This is a small town, so I took the 20 minutes and explained the situation.” Good responses “You can’t come to a professional and ask them to work for free,” writes entrepreneur and consultant Adrienne Graham on Forbes.com. She recommends replying to the advice-seeker, “How would you feel if your boss came to you and said, ‘Hey, since we can get this done from information from the Internet, I won’t be paying you today’?” She also recommends carrying your practice’s fee schedule with you; declining lunch or coffee invitations that you sense are just fishing expeditions for your advice; and referring questioners to your free resources, such as published articles or blog entries.

All t/p's have the right to choose to itemize or take the std deduction, except when filing MFS, where they have to itemize if their spouse did. That is not the same as miscalculating AGI.

You must have your main home in the United States for more than half the tax year. The United States includes the 50 states and the District of Columbia. It does not include U.S. possessions, such as Guam, the Virgin Islands, or Puerto Rico.

I think you can only use IRS e-file through October 15. After that it's paper.

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete." Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.