Tax Prep by Deb

I have a question. I have a client who formed a S-Corp in California several years ago and worked exclusively in California as well as lived in California. A couple of years ago client and all the other shareholders moved to Oklahoma. Shareholder #1 does go back and for from Oklahoma and California, however shareholder #2 is strictly in Oklahoma and only does administrative duties from home in Oklahoma. Shareholder #3 also lives in Oklahoma and does nothing towards the corporation. Shareholder 1 and 2 are employees of the corp and receive W-2's. Which state should withholding be taking out, California, Oklahoma or both? When it comes to their personal taxes both states are wanting paid, California because that is where the business is located, and Oklahoma because that is where they are residents. Any thoughts would be greatly appreciated.

Just finished installing the full release. Everything went smoothly!

I believe what Judy says is correct. I think you are reading a little too much into this. What it means is that each year you will have to add that year to the app, not re-download the actual app.

I use MS Authenticator and have zero issues with it. I use it both on my desktop as well as my laptop using Drake with zero issues. I have it set up for the Admin as well as my own personal log in. Once you get use to it, it really isn't that difficulty just a bit annoying!

Take a look on your account. Mine is showing 2024 is available.

I wish I could say I was done, I had close to 20 that still didn't bring me their work. Looks like I will be still working for a while. Have a great rest of the year everyone!

Thank you!

So, forgive me for sounding dumb, (I really think I should have passed on this one, but he is a long time client) because these are capital expenses, are they depreciated and if so for how long? Everything else is clear to me on the purchase ect... these are the two things that have me stumped! Never had a client who bought an existing business and feel I am over my head.

I have a clients (C Corp) that purchased a business. He spent money on an appraisal as well as paid a broker a commission. How would this be entered on the balance sheet?

I am not seeing a form 8594 but there is a detailed breakdown that clearly shows the 700,000 as goodwill. I thought I had seen it early on when I set the books up bit couldn't remember where, but fortunately I had scanned all documents in and it was an attachment to the closing papers.

Yes

What was left was the actual business, location, name ect. I am assuming goodwill. The total deal was about 1.6 Million and when building and other assets are accounted for the 700,000 is what was left.

New corporation, C Corp,. It was actually two different sales. Building and assets where done on one closing and the actual business purchase on a different sale. I have pretty detailed records, just wasn't sure to handle the 700,000 portion.

I have a client (Corporate) that purchased an existing Froster Freeze restaurant in 2023. I have the complete purchase agreement and have the break down of the purchase. A good chunk of the proceeds was to purchase the existing building and land. The building I assume is depreciated over 37 years. The equipment and fixtures was also part of the purchase and also depreciated. There is a 5000 no compete clause that was paid not sure to handle that, also the remainder of the sale over 700,000 was for the actual business, no goods associated at all. I have never done anything like this so need some guidance. Is the 700,000 depreciated/amoritized or just considered the basis of the business and not deducted at all until he sells? Also what about the 5,000. It was listed as non compete but not sure how this fits in at all. Any help will be greatly appreciated.

If you are using the Windows Mail App, it had a similar issue sometime back. Can't remember what I did, but it finally started working again. It would not let me log into my mail. I think it had to do with an update and sometime later it updated again and fixed the problem. I know AT&T added some more security at the time and it may not have been compatible with the Windows Mail App at that time.

I agree! At first I didn't know if I was going to use it, but when I tested it out on a couple, it was perfect. I have never had to file so many extentions in my 30+ years doing taxes as I did this year. I was very happy to see the bult extentions and that it worked flawlessly.

I switched and have had no issues that couldn't be resolved with a quick phone call. I did the practice returns when I first tried it and by the time tax season started for the most part I was up and running at about the same speed as ATX. It just gets a little getting use to, but overall I am very pleased.

Anyone get a renewal offer yet?

I have a client who took out an SBA Loan to purchase a business/property. The Settlement paperwork is showing they were charged an SBA Guarantee Fee of 37,075. My research shows this not to be deductible, but how do I enter this in Quickbooks so that I don't mess anything up?

I called the account administrator and he pulled up everything on my brother's account and my beneficiary account and according to him I have ten years to take it out. So I am still not sure what to do. I really don't need the money, would rather wait till I have a slower income year to pull it, but at the same time I do not want to have to pay penalties on not taking it.

But when do I have to start taking them?

I have a question, the more I read the more confused I get. My brother passed away in 2020 and named me as his beneficiary on his 401K. He was 60 years old when he passed away and I am two years younger than he is. When do I have to start withdrawing from the 401K? Do I have an RMD now? If so I am in trouble because I haven't touched it. Any thoughts would be appreciated.

I have a new client who paid the taxes she owed last year before the filing deadline, but for some reason did not submit the tax return via turbo tax. She asked me to prepare and submit the return, and my question is how do I show that the taxes have already been paid? I do not believe she paid them thru an extention, I believe she went online and paid them thru IRS Web Pay. My concern is if I show it paid as an extention payment they will not be able to find it, and same if I show it as an estimate payment. Right now I am leaning on leaving it as owed and hope their computer catches and applies the payment correctly. Any thoughts or other suggestions? Thanks!

The full release of Drake tax software for 2023 is now available. Let the fun begin!

Splashtop