mircpa

Is outgoing partner not require to recapture depreciation previously claimed on asset ?

I completely agree with janitor bob. This software is so annoying and disgusting, fed up with rollover issue. May i ask what other options for tax software people are thinking to switch.

Same problem. I wonder does ATX do a trial run before releasing to clients. We are facing initial hiccups in rollovers, I dont know whether if we have smooth tax season, preparing & transmitting returns.

One important aspect for us to distinguish between contractual and employee services is Control. Since TP provides all the materials per spec sheet. I am more inclined towards employer-employee relationship rather than independent contractor.

KC My deepest sympathies and condolences to you and your family

Hello friends I am filing VA corporate tax return for a client who is domiciled in CT which has multi state presence, provides software services and hired an employee in VA. I am using form 502, 502A. I am able to properly apportion income on 502A. My question is on form 502A it is showing properly payroll and sales factor under section B lines 2b and 2c and multi factor percentage on line g which is 1.3845%. Form 502A Section C line 1 & 4 is 101,803.00. On VA sch VK1 $ 101,803.00 is populated on line 1 and 6. Is this correct way or is software not required to calculate VA's net apportioned income (101,803 * 1.3845%) which is $ 1,409.00 and show in line 4 of VA sch VK1 and income which is not allocable to VA should go on line 5. Are shareholders require to manually calculate and report income on their VA individual tax return. Any VA tax preparers please clarify thanks in advance for you help mircpa

Got a question for our seniors I am preparing Final 1120 for a client who discontined business in dec 2011, business has $ 7,232.00 of accumulated retained earnings from past years. Paid around $ 1,200.00 IRS payroll taxes related penalties in 2011. My question can this amount reduce accumulated earnings under schedule M2 and issue 1099-Div for $ 6,032.00. I know this cannot be written off against business income.

To Jack thanks for your help

Hello I have a client who filed 1040EZ with turbo tax for 2010 with 35,000.00 wages income, forgot to include schedule D with stock sales worth $ 109,272.00 and cost basis of $ 111,969.00 ST loss of (2,697.00). He paid federal taxes of $ 3,485.00 with effective tax rate of 13.4% I am preparing amended tax return and including SCH D, my software is not reducing AGI from from 35,000.00 to 32,303.00. Can I replace originally filed 1040EZ with 1040 and amend so that it picks up loss?. $ 2,697.00 * 13.4% = 361.00 If not is this loss benefit forfeited. somebody please share their experience.

I also have similiar case with a taxpayer client. It is 6 member LLC which owns real estate was provided with local town grant of 90K for building development with a rider they should keep ownership for 5 years. I need to know to know if this would be subject to self employment taxes or i can include as other income on line 5 on 1120S. Can someone who has experience please help in this matter

You want me to explicitly state that $ 4,500.00 spent by taxpayer got property back in original shape ?. Spending $ 4,500 for repair will get back property to its original shape. I did emphasised in post 1, that this is repair money. Money spent on repairs if not original but will definitely get property close to original, If you have my way, I would say it will be better than original. Based on the facts stated, what do you think should be correct interpretation, or what would be your approach to properly record this transaction.

Yes in fact IRS agent cited me pub 547 to figure gain or loss. Dont you think the situation you described applies in case when there is total loss to property, this was partial loss and we cannot consider adjdusted basis of complete property because property is still in use, it is not condemned. Therefore I think it is more realistic to figure loss or gain through this route, when money is being spent to get property in original shape what it was before it is getting its lost value back on top of that owners received more than what they spent to repair, therefore it is gain. $ 4,500.00 what is spent to get its value back and $ 400.00 is gain because owners got paid $ 4,900.00. $ 400.00 is excess money they received to get its value back to original shape.

What i believe might have happened is it might be a good insurance company and based on their adjuster's advise who might have estimated repair cost to be around $ 4,900.00 and gave the check to building owner, now building owner in turn might have found less skillful labor and inferior material to fix roof as you suggested. Your point about would I include income or gain of $ 4,900.00, yes only in circumstance where taxpayer might have got money from insurance company and pocketed without spending for repairs. Now value lost in property due to hail damage is quickly being restored to its original value by way of insurance proceeds

Jainen Here in this context, when I say replacement cost, it would be cost to repair.

In this case insurance proceeds $ 4,900.00 minus replacement cost $ 4,500.00 leaves you with $ 400.00 gain on 4684 flows to Sch D

Hello Seniors/friends I just got down on phone with IRS, the correct treatment is to report this transaction on form 4684. This is FYI thanks

Hello Seniors I have a question for a client who owns single family residential rental property. Last year due to rain/hail damage, insurance company paid him $ 4,900.00 and taxpayer in turn spent $ 4,500.00 for roof repair. My understanding is to show $ 4,900.00 as other income on 1040 line 21 and capitalize/add to value of building for $ 4,500.00 for depreciation purpose. For all previous years taxpayer expensed insurance premium against rental income. Filing Sch E. Can somebody correct me if i am wrong. thanks to all who responds mircpa

I am glad we are able to wrap up this topic with a lesson to learn, never comingle business and personal funds, I would definitely would get a new card or get additional supplementary card attached to my current card as one of the member suggested. thanks

I thank and respect for all who responded, from the IRS perspective, at end of every month i would be having invoices from various vendors who has sold product or services to my company to support deductions what i take on corporate tax returns, the issue is whether it matters to IRS who pays i.e. through business bank account or personal credit card account. Don't you think IRS will insist for invoices for deductions taken on tax returns, if then why would they be caring who is paying for as long as the services provided or product sold is in fact in the company's name. Let's say for example purpose when i receive telephone bill invoice, i would go to my bank withdraw money to make money order in phone company's name and mail them andkeep copy of invoice and money order to support my deduction on tax return, you think IRS would question this position also ?

I was approved for a capital one venture credit card which will allow me to accumulate 2 miles every dollar i spent and redeem for for any airline miles. Obviously i would be paying all my personal bills through this card and payoff credit card within grace period every month so at to avoid interest charge. My question Can i pay office expenses like rent, telephone bill, utilities and office supplies through this card and get it reimbursed from my business, I am asking this in perspective to whether IRS will accept this approach in case of audit, and of course lease, utilities, telephone is in business name. The offer by credit card is quite tempting, going with exepenses what i have i can end up accumulating enough miles for round trip within US for me and my family every year. mircpa

Hello I received email from IRS to complete return preparer job analysis survey. Did anybody else also received. I want to know if this in fact email generated from IRS or is a spam thanks mircpa

"On your short posting, you used the word "repair" twice, so I would expense it." Looks more like psychological evaluation response.

Hello Can somebody please help. Box 20 of W2 shows PA WNRTN. I tried to look up online and narrow down my search to Warrentown PA, I dont know if we are require to file Montgomery County taxes (Thats where Warrentown falls in) or Warrentown PA locality tax forms. Any PA tax preparers provide me guidance. thanks again for the help mircpa

Rich guy was not only paying for 'his' cost of food but was also paying for other guys food cost. Well then if he was paying more then his part of food cost, obviously when it come savings due to cost reduction he should be one who should save more because more of his money were at stake.

I think yes, he needs to have PTIN. Isnt the rule that anybody who prepares a tax return for a fee required to have PTIN