Bart

Client is a general partner in a partnership. Client has no basis or at-risk basis in the partnership. K-1 shows ordinary loss on line 1 of (40,000) and guaranteed payments of 14,000 on line 4. Form 6198 is not allowing any of the 40,000 loss to flow thru but all of the 14,000 is being taxed. Is this correct or should some of the 40,000 ofset the 14,000 for income tax purposes?

If I ever try to go paperless I will supply the CD free and charge people who want a paper copy.

Did you mark somewhere that they are a reservists, performing artists, or fee-basis government official.

You are not past the 3 year date

She posted on another site on Jan 24

If it weren't for texting I would probably never hear from my children.

I have a client who spoke to his state department of revenue. The state asked him to have his tax preparer call them to explain some things about his tax return. Do I need a consent to disclose from the client to talk to the state?

Gailtaxed - I do not have time to research this more but I think that if the activity does not rise to conducting a trade or business the income is not subject to self employment taxes. I found this in code section 1402: c) TRADE OR BUSINESS The term "trade or business", when used with reference to self-employment income or net earnings from self-employment, shall have the same meaning as when used in section 162 (relating to trade or business expenses), except that such term shall not include-- (1) the performance of the functions of a public office, other than the functions of a public office of a State or a political subdivision thereof with respect to fees received in any period in which the functions are performed in a position compensated solely on a fee basis and in which such functions are not covered under an agreement entered into by such State and the Commissioner of Social Security pursuant to section 218 of the Social Security Act; (2) the performance of service by an individual as an employee, other than-- (A) service described in section 3121( b (14)( b performed by an individual who has attained the age of 18, (b service described in section 3121( b(16), © service described in section 3121( b(11), (12), or (15) performed in the United States (as defined in section 3121(e)(2)) by a citizen of the United States, (D) service described in paragraph (4) of this subsection, (E) service performed by an individual as an employee of a State or a political subdivision thereof in a position compensated solely on a fee basis with respect to fees received in any period in which such service is not covered under an agreement entered into by such State and the Commissioner of Social Security pursuant to section 218 of the Social Security Act, (F) service described in section 3121( b (20), and (G) service described in section 3121( b(8)( b; (3) the performance of service by an individual as an employee or employee representative as defined in section 3231; (4) the performance of service by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; (5) the performance of service by an individual in the exercise of his profession as a Christian Science practitioner; or (6) the performance of service by an individual during the period for which an exemption under subsection (g) is effective with respect to him. The provisions of paragraph (4) or (5) shall not apply to service (other than service performed by a member of a religious order who has taken a vow of poverty as a member of such order) performed by an individual unless an exemption under subsection (e) is effective with respect to him.

If the bank does not issue a 1099-C then they have not forgiven the debt. How does the corporation know that the debt was forgiven?

2009

The sign is going to remain in the yard for a few months after the job is completed. The roofer does not want to decrease his price. He wants to list the discount separately and have the ability to track the advertising expense. He is not worried about making the homeowner pay tax on phantom income. He is concerned with supporting his advertising deduction and following the 1099 rules.

Client is a roofer. He gives the customer a discount if the customer lets him leave his advertising sign in the customer's yard. Does the roofer have to give the customer a 1099?

Residential Rental

Passive activity is sold. How do I get ATX to release all suspended losses?

When the fecal material hits the oscilating rotating device

Ask them how 5 people lived on 10K.

Sorry guys. I would have told what program before but I cannot recommend it because I have no idea if this program is good but it worked for me once. It has a 14 day free trial and then it costs $100. It is called pdfconverter and if I figured out how to upload a file here is the install program. I found it at http://www.pdfconverter.com/ Ok never mind I cant attach a file damn it.

I just got a PDF of a clients' statement from one of those stupid/incompetent brokerage firms. I found out there are a whole bunch of programs (some free) that will convert it to an excel spreadsheet and the one I downloaded and used worked well and was pretty easy to use.

Elections statement has a Deprec and Amort tab that has election to not claim first-year special depreciation for 3,5,7,10,15,20,27.5,39, and all property. Click "add forms" and type elections in the find box.

What was the 10K used for by the corporation? Was the corporation cash or accrual?

It depends on how the taxpayer used the tuition in the prior year. Read Pub 970. If you took a deduction in the prior year you pick up the difference as income on line 21 in the current year. If you took a credit in the prior year you recalculate the credit in the prior year and add the difference to the current year tax on line 44 of form 1040 with "ERC 588" written to the left of the tax amount on line 44.

Statute of Limitations or Sh*t Outa Luck

Now I see why Booger likes you so much.

Your client should show receipts of 100% and then 1099 the buyer 100% to zero out his schedule C. That would report the income to the correct person and your client could then report his receipt of of cash on the installment sale. I would not worry about if the buyer is doing his bookkeeping correctly by claiming 100% income or by claiming the expense/purchase of the 25% cash he never receives.

I am not sure I can answer as well as this person did but I will add my two cents. My understanding is that the IRS can pick any five years in a moving window to see if there is a profit in THREE out of five years (code sec 183(d)). That is just the safe harbor rule. As rfassett stated, if you do not satisfy the safe harbor you can still prove you are a business by facts and circumstances.