OldJack

>> sign up to e-file, just in case, and then never ever really e-file. << In a moment of weakness I signed up one day before this last tax season. I expected to receive some sort of confirmation with some kind of magic number to use. I received no such thing from the IRS so I paper filed everything again this year.

Daughter is doing fine and glad that the 2 month long ordeal of fear looking over her shoulder is over. He kidnapped her at work and had a gun at her head in my car. She knew he was going to kill her in the garage so she bolted from the car and ran down the street. He chased her and fired one shot but missed. She rounded a corner of a house and barged into a neighbor's house without knocking. He did not know where she went so he stole my car, shot thru the roof, and drove to a state park to end it all. His family thinks that since she was leaving him, that she is the villain while the rest of the small town recognizes she was the victim. She is having trouble putting it in the past as ever one that comes into her business wants to talk about it. I tell her to give it time and it will all be history. She is looking at a 2010 yellow Camero. Oh, my checkbook! Thanks everyone for the nice comments.

>>By filing the extensions as soon as the returns come in, you eliminate Apr 15 as a date having any significance. << Of course that would work for you, but what about the client that will end up paying a penalty for not having paid-in enough tax. Many clients have no idea what their tax will end up being and filing an extension creates a risk of penalty even if the client has paid what they think is enough tax to cover for the year. If you can't reasonable expect to prepare the tax return before the deadline, you should not accept the client. I have always had a policy of no extensions unless the client requests one or the client has not provided complete information. This was a hell of a tax season for me as I lost a couple of weeks right in the middle with family problems. My son-in-law tried to kill my daughter but his shot missed as she got away and ran down the street. He then stole my 4 week old Toyota Rav4 and committed suicide in it. Anyone want to buy a 2010 Rav4 with 2 bullet holes in it?

>> entity can use the "Check the Box" regs to elect to be taxed as a corporation.<< But electing to be a corporation does not solve the liability issue of a partnership. If they want to act like a duck why not be a duck. Liquidating a partnership is easy and contributing all the assets in exchange for corporate stock is tax-free so why not get it done the right way.

Remember, some states may not allow more than a 2 year carryback.

Then I would account for the assets as abandoned on the individual's 1040 form 4797 showing sale price as zero.

Unless you elect to forgo the carryback you have to carryback 2 years unless you qualify to carry back further. If there is no tax refund in the 2nd year you then carry forward to the 1st year. I would use form 1045 instead of 1040X. Form 1045 is designed to do a carryback. I actually take the NOL to the prior 2 year software and enter the NOL on line 21 and let the software calculate the tax to compare with the original tax. It makes life much easier.

>>Previous accountant has depreciated everything so all of it is Income..? << Assets from a proprietorship that ends are considered as distributed tax-free to the owner with the owner taking the tax basis of the asset. If that asset is then contributed to a corporation owned by the same person in exchange for stock of the new corporation the asset still has the same tax basis in the corporation even if it is recorded by the corporation at FMV.

>>I personally would never contact another CPA, tax preparer, enrolled agent; etc at this time of the year. << CPA's and other tax pros are in the business of serving the public and their present or past clients. We are running a business and that should include answering simple, quick, questions about our service even if it is on a busy day. We give an implied guarantee on our work and that doesn't end just because our client ends our business relationship. And we don't charge for explaining our work. There have been many CPAs that have been disciplined by their state boards for not providing documents and information to prior clients for whatever reason. Professional ethics and statutes require such from professionals. To ask a CPA a general question as why he did something he did is not something that normally requires the clients approval. If it does require such approval the client should also be on the phone.

Lawyers and Politicians should be required to do their own tax returns.

My point in my post was that not everyone that might read our forum knows what acronyms mean. Therefore we should be careful how we use such in our posts to not confuse others. Everyone knows what an LLC is but not everyone knows what a PLLC is as that term is not in most tax books.

Well... I am going to Branson and Silver Dollar City tomorrow and forget about taxes. I even did my own yesterday. :)

He is going to lose as 108(f)(1) is exclude gross income "by reason of the discharge". This income had nothing to do about discharge.

I filed 2 extensions for clients that did not have all their info ready for me to do their tax returns, otherwise I am done and I did my own tax return today. I am so tired that I am going to retire. :wacko:

I deducted my dog as an "other" dependent last year, but someone told me I couldn't deduct "Old Blue" this year. Is that correct? He lived in my house all year and ate me out of house and home so he is an expensive dependent.

Why would you need to reference it? It's just a division/department of the C-corp and should be included with other numbers on the 1120. You could prepare a worksheet/attachment to the 1120 showning the separate activity of the LLC, but it is not required and probably not wanted by the IRS. Separate accounting, however, should be reported on financial statements for the company.

I'll bet you think we all know what a PLLC is and how it is taxed.

>> the other CPA << For crying out loud.. call the CPA and ask why he filed as he did.

Since this is a 1065-LLC, check last years tax return to see if the profit/loss was treated as self-employment income. If all k1 income is being reported as SE income you have only $3,000 net subject to SE tax, otherwise you have $8,000.

It seems to me that he was working for the University as a trained medical person in a field of his profession and this would be a Sch-C with income and expenses.

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>>A raised cow (female that has produced a calf) is treated as breeding stock and sold on the 4797.<< Also, to qualify as breeding stock for 4797 reporting the horse or cow must have been held for more than 2 years.

>>However, how do I report it on Sch E since the taxpayer can't receive K-1 any more from his dissolved company? << The same way you would report other expenses such as partner reimbursed expenses... on a line of Sch-E identified as a business bad debt. Form 4797 is for specific assets held as code sec. 1231 and higher code sections, the form itself is titled "Sales of Business Property". I don't think form 4797 is appropriate as the shareholder did not hold the note receivable as a business asset under code sec 1231 (business asset), rather he held it under code sec. 1221 (shareholder capital asset). A code sec. 1221 asset can be held for business and still not be used in a business with the disposition therefore being required to be reported on form 4797.

In the ATX program there is a check-box at the bottom of each 1099-R input screen that must be checked as public pension. You must check it to flow the 1099-R to the MO tax return.

Business bad debt is deducted on the same tax form where the income would have been recognized. Assume the note was from the corporation in the case of a S-corp that would be on 1040 Sch-E, page 2. If he sold his S-corp stock the note would be from the individual and a non-business bad debt reported on 1040 Sch-D.