OldJack

As RoyDaleOne points out the two options should result in little difference since there is less than a month in time. Number of days owning stock is the default and the close of the books is an election. You should present and document the option/election decision to your client and stay out of the lawsuit.

The only time SE tax would not be calculated for any age would be where the minor is working for his parent's non-corp business. That should be a W2 verses a Sch-C.

I note today that the website will no longer take comments. http://www.thetechgap.com/2008/01/cch-small-firm.html I guess they decided there may be too many of us posting if they left it open.

Its scary to think that some in this generation might not know who Shakespeare was.

I added my comment today. Good work gang.

Shoot! With the new rules and tax pro penalties, plus ATX software ending, I may just decide to retire after this tax season. I had always said I did not want to work for the IRS. :)

I expect it would be FMV of $12,000 since the house was not a business asset. edit: Meaning the house is a capital asset v. a business asset (ordinary income asset), therefore FMV as it was to a qualified organization that used the house in its purpose. 2007 Quickfinder 1040, page 5-14, points out that it would be a 1040 Sch-A, 30% limitation of AGI type deduction.

Oh Please! The fire department "USED" the building after they had accepted it as a donation. I guess you would think the same if they had moved it to the firehouse before burning it? No doubt the fire dept would or has given a letter acknowledging the donation. I for one have NEVER seen a paper title for only a building. Does it look like a car title or a land title? How many on here have see such? Lets have a poll. As to the clean-up? Nothing was said about a cost of such only that the landowner did it. I would expect that if there were any costs it probably has to be added to the cost basis of the land. As to deemed income for anything... ridicules.

Well... just for the heck of it I will take the opposite view and say it is deductible. The taxpayer/owner of the house did not donate any land or use of land, rather they donated a building to a qualified organization. The fact is that the fire department took possession of the building and it is irrelevant that instead of removing the building they burned it. The gift with FMV of $12,000 was completed in full when the fire department accepted the building and took possession.

If you had ordered Quickfinder series you would have had them weeks ago.

Could it be that the social security number is not a number, rather it has a space before the numbers, or there is something wrong with the numbers as entered. It could be that the word "name" in the error means something wrong with the number and has nothing to do with the name of the taxpayers.

How could anyone top Eli's comment!! LOL

John, If you did a search on the tax book forum you would find that I complained about my 2006 deluxe copy of the tax book not being able to provide the necessary tax facts on all subjects needed by tax pros and was told by "whats his name" that it would never be 2 books. Last year, however, they decided to split the 2007 big book and make 2 books with only a little added so others could not say it was just rebinding. The fact is John, their books just do not compete on subject details with the Quickfinder series of books or for that matter with CCH and other summary tax books. I give them credit for having a thin tax book with thin information. As to a burr under my saddle.. no I have not even thought about that forum except for a couple of posts since then.

>>are there any other boards<< I like Quickfinder.com message board and this forum. I also post on small-business-forum.com where it is mostly the general public asking questions. The Quickfinder forum is mostly all experienced tax professionals and as such there are not so many nonsense posts and inaccurate posts as you will find on the tax book forum. I posted on the tax book forum for several years and was banned because I voiced disagreement with the moderator over his deleting a post for no offensive reason. I do NOT miss the tax book publication or their forum. Needless to say I would not recommend thetaxbook publication as in my opinion Quickfinder has the best desk references. I subscribe to 5 Quickfinder books and 1 book from thetaxbook just doesn't cut it for a practicing tax professional.

>>The sales people seemed unconcerned about me expressing these thoughts when I talked to them.<< Same with me. So why should we think they would be concerned since those sales people are not ATX employees. ATX telephone calls have been dumped on TaxWise employees! What would you do if you were a TaxWise employee?

>>how can the corp be selling it and reporting it as a corp sale?<< No free lunch and no bargain untaxed distribution of property. If the S-corp wants to give me the auto at zero cost they could get away without reporting a gain. yeah sure.. you know they would do that for a stranger? So if they would not do it for a stranger what makes you think they could get away with doing it for the owner?

>>The Audi is a distribution to this S-corp SH, fully depreciated, right?<< Right... but it is a sale of an asset at FMV reported on form 4797 with gain passed to the shareholder on form 1120S-k1 to pay taxes. Books: Debit- Accum Depr $ COST Credit- Property Cost-Vehicle $ COST Debit- Due from Shareholder or Property Distribution account $FMV Credit- Gain on Sale of Assets (income account) $FMV

Dumb!

If your client purchased shares of Ford Motor Company he would receive stock certificates or he would not own Ford Motor Company. The owner of a S-corp receives stock certificates or he does not own the S-corp. The stock holder of the S-corp MUST pays something in cash or property for the stock certificates. This is usually the amount or partial amount that he initially invests in the S-corp bank account. It is sometimes temp recorded as a receivable due from the shareholder until paid. If the S-corp has par value the shareholder must pay at least par value for the number of shares he issues certificates. If he pays more than par value for the number of shares it is shown on the balance sheet as line 1: Common Stock issued at Par $ [par value] and line 2: Capital Surplus or Paid-in-Capital $[excess amount over par] If it is no-par value shares (your client) it doesn't matter how much he pays or the number of shares he issues. Of course he may not issue more shares than the state has authorized for the S-corp to issue. The only time Common Stock Issued or Paid-In-Capital accounts are changed is if additional shares of stock are issued, shares are redeemed or the corporation is liquidated. You may not reclassify such accounts to anything but what they are.

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Maybe William can tell us if ATX has lost many of its customers since last year due to the CCH blunders? Is that maybe part of the reason for such lay-offs?

Schedule I

The 20% partner had his capital account that represented his book tax basis and was due him on liquidation. If he abandoned his equity he has a tax transaction on his 1040 Sch-D as though he sold his interest in the business with a capital gain or loss. The 80% partner has purchased such equity at no cost (with no increase in outside tax basis but with an increase in his book basis) and nothing is reportable.

What happened with the dissolved capital accounts? Did the 20% partner get his fair share of the business or did the other partner have a gain from his leaving?

I have not read it but from the TV news it appears it is only a fix for the year 2007. After all the Dem's would not want the other party to get credit for such a thing.