OldJack

Wow! I had not noticed the ATX Master for Jainen either! Of course the designation really fits the poster, well done Jainen. Congratulations Jainen.

It makes perfect since to me that all these items are a reduction in the purchase price which is the taxpayers tax-basis. There does not appear to be any fund setup for rehab nor any requirement that the purchaser ever spend any money on rehab. I also do not understand the Genesis Fund but it again appears to be just a reduction of the purchase price because someone is paying some body for it.

>>Single purpose structure which gives him a 10 year life<< I question that classification as I don't believe this meets the definition. I read the original post as "concrete flooring BY his barn" not in a barn. This might be better considered or described as "drainage facilities" or considered a part of the barn improvements. Maybe find out more specifics from the farmer.

>>yapping about the 'good old days'<< Now that I am older I know the good old days were not a year or era, rather they were when we were innocent.

I am way older than dirt also! I also remember the country party line telephone that hung on the wall. Our telephone number was 3 long rings and 1 short ring. If you were calling us you just gave the operator our name. I was in high school in those days. Yep! We had a milkman delivery up to about 1965. The wife still teases me about the milkman and our 4 kids. I remember the shortage of sugar during WWII and the work in our "victory garden". Maybe that is why I love sugar so much today.

There is NO net operating loss carryover on the S-corp tax returns. All net operating losses are passed in full to the shareholders and the shareholders determine their tax basis for deduction or carryover any balance they cannot deduct for future years deduction when tax basis will allow. Tax basis for deduction is always determined at the shareholder level which may or may not be the same as shown by the S-corp books and records. Shareholders are allowed to take distributions in excess of their individual tax basis, however, the distribution would then be taxable as though shares of stock had been sold (1040 Sch-D).

>>So whether the taxpayer considers it a business or not is a moot point. If it's SE taxable income from 1099-MISC it goes on a C. << Well... not all SE business goes on 1040 Sch-C, if its a farm business it goes on form 1040 Sch-F.

Shareholder loans to a C-corp in excess of $10,000 are required to pay/impute interest at the minimum of the federal published rate applicable to the terms of the loan with a 1099-INT issued. Loans can get paid back tax free, but it is not easy to redeem shares of stock if the company becomes successful as redemption is usually with a taxable gain or taxable dividend to the shareholder thereby creating the double tax. Capitalization and issue of stock is a tough call that must be left up to the shareholder.

>>relationships are as listed in Section 267, so if she is not a beneficiary then she can claim the credit.<< After review I have to agree with Jainen that the property appears to have been sold by an estate or trust and as such the sister is not related for this purpose.

>>first time buyers credit<< Does sister want another loan. The first time buyers credit is just a loan that has to be paid back to the IRS. Related party rules generally apply to losses of the seller (brother's estate) and include member of the seller's family (see code sec. 267a) and in this case the sister is a member of the sellers family. If sister later sells the property at a loss it would not be allowed.

>>I would assume on a 4797 - how would this be shown and is this the correct form? This is from a C-Corp. Or should this go on a Sch D?<< It would be reported on form 4797, part II. Be aware that the loss may limit any capital gain treatment reported on 4797, Part I, for this year and the next 5 years. If you have gains this year in Part I, see instructions for 4797 line 8 "Nonrecaptured net section 1231 losses from prior years".

Latest news says both nominees mentioned in this post withdrew today.

>> are they NUTS?<< @jainen No such employer type is probably paying illegal aliens that are not going to file any claims.

Normally you would not go from the 1099Misc to page 1 of the 1040. There are exceptions such as when the taxpayer did not receive the proceeds as a self-employed person because what they did was not considered a trade or business. Examples such as hobby activity can be found under the heading of "Other Income" on page 4-15 of the 2008 1040 Quickfinder Handbook.

I would think twice about taking the credit as it is nothing more than a loan that has to be paid back each year over 15 years.

Daschle should not pass go and move direct to jail.

Wow!! For some of us that would probably be the end of life as that would take so long to do. :D

Bart, you really didn't slide down those slides or crawl thru those tunnels DID YOU??? :)

And again Congrats JB! Good job.

Thanks. I am looking forward to the move to KC as soon as our new home is finished. As to Anheuser Busch, we no longer claim foreign corporations in STL. LOL I did not list the St. Louis City Museum as most would not understand that this is a "play museum" for the kids (and seniors that think like a kid). It is without doubt the greatest indoor/outdoor playground ever created! Kids can crawl thru mash wire tunnels that are suspended 3 stories high outside of a building. If you are ever in St. Louis you must visit.

Home town: Suburb of the "Gateway to the West": The arch The Zoo Forest Park 6 Flags over Mid-America The home of OldJack --- After tax season it will be: "Bart's" home town- Kansas City, MO Bar-B-Que Fountains Jazz Liberty Memorial Home of OldJack

And a first-time preparer probably has no idea how to properly prepare page 4 of the corporate tax return let alone the adjustment accounts. Page 4 balance sheet should be required for any size corporation and I'll bet a first-time preparer may not even know what a balance sheet is when instructions say they don't have to do one. I have always (40+years) attached a depreciation schedule to any business tax return (1120,1120S,1040,1041,etc) even though the IRS does not want one. Such depreciation schedule showing all assets owned including fully depreciated assets and all factors that determined how the depreciation was calculated. It should be a requirement. I also attach details such as other asset account information so that if I drop dead the next preparer does not have to call me to ask any questions. I want to rest in peace. :)

Like KC says, "I am not at all sure that is really what you need to do". I would file each S-corp separate to maintain good accounting and tax filing.

I would think that your first corporate tax return should be one that has filed a previous tax return so you can see how it was done before.

Now, Now, guys. You know all taxpayers are tax experts. Our government has simplified our tax laws so many years that all the public can give you an accurate answer regarding any tax question. Why even the IRS can tell you what is deductible on the telephone. :)