User talk:JR1
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Your User Page
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- Tim Doyle, TaxAlmanac Moderator 09:45, 9 March 2006 (CST)
--Addision 14:35, 10 October 2007 (CDT)
Thanks for your comments,
Ya I know there is no benefit to having my corp in NV financially. I also have a business here in CA, and I wanted to distinguish them from each other for a variety of reasons. So thats why I chose Nevada. So do you know how I might find people on here from CA. Is there a profile search that may list thier state as a filter? Or should I just put out the word on the board and start interviewing?
Thanks again
Frank.
Hey, I am a tax professional who now works for this Payment Solution company, that is now specializing in provided a products specifically for tax professionals. I have been an ERO for over 7 years. I would like to share this business opportunity with you and others. Check out our site www.neemaweb.com please. Thanks Neemaweb.com 16:30, 17 October 2007 (CDT)
Don't know if that
Don't know if that was helpful or not. Hate to see him have to hire a lawyer, but on the other hand, sounds like the discovery is going to start flying. The issue for him in the divorce case will be no problem, as the local judge will have no patience for trying the bully the accountant. He's got some potential worries for sure outside the divorce, especially if the business flops and everyone is looking for a scapegoat to recover thier losses.
Ahh forgot to sign
JR, the reason I would say he loses both clients is because he had one engagement with H, then took one with W, and they were in essential conflict, but the conflict was waived (does not sound like he got it in writing but, by their actions). But, then, when she says keep something from H, the essential (and huge) conflict arises again, and it's obvious at that point that it cannot be waived as the clients are in litigation. These conlict cases are so tough because, as you know, even the most experienced and well meaning practitioner can get lulled into them. Take care.CrowJD 14:55, 19 October 2007 (CDT)
Deductiblitiy of second home
Can you point me to the other discussion?
Thanks
Can't find any case law. JRJRohle 10:52, 6 November 2007 (CST)
Hi
THIS CONCERNS MY INHERITANCE TAX FREE
I have a nonresident relative who wants to leave his US-based assets to me, what is the best way to get away from paying so mauch tax?
JR1 Tax Court
JR1, I think it's ridiculous that you have to go through the EA thing to begin with. But, be that as it may. Since I think you've mentioned that you are getting the EA, why not turn right around and take the Tax Court test when all that boilerplate is fresh in your mind? I don't have a scanner, but if someone here can get you that article I mentioned if you don't already get the CPA/NPA mag. CrowJD 15:05, 14 November 2007 (CST)
HA
Yeah, those employee benefits do start looking better and better as time goes on! CrowJD 15:42, 14 November 2007 (CST)
LLC with a foreign member
I woud like to form a US LLC (a partnership) with a foreign member. He will be an owner member and active in the management of the company. The company will be engaged in consulting, training, and channel partner recruitment for European software companies in Europe and the United States. My partner (a Norwegian) will be domiciled in Luxembourg and licensed to do business there under our corporate name.
The nature of the business is project based and personal income will be split 50/50 after business costs on all revenues generated internationally or domestically.
After reading much of the discussion on this site and others it seems the tax implications of this architecture may be complex depending on where source income is generated and how it is disbursed to the partners. Can you provide any general guidlines on the tax implications of this structure?
If you need more information let me know.
Thanks - any contribution will be appreciated--Hwiconsult 08:25, 24 November 2007 (CST)
LLC taxed as S Corp.
JR1:
Tom O'Connor here, aka taocpa on the board. You are the resident board guru on small businesses. Client setup an LLC. It's a retail store pulling in $200K approximately. Most of the costs are inventory and utility bills as he owns and operates the store. My question for you is (after perusing the board): I am thinking of having it taxed as an S Corp so it can generate salary for him. Or is it just better to go with Schedule C and do the tax-free distributions to pay his taxes? I am debating this because his expenses are going to be low for the store overall except inventory, rent, etc. that I mentioned earlier.
Just wanted to run this by you for thoughts, opinions, etc.
Thanks for the help.
Tom O'Connor tao.cpa@verizon.net
Interest on tax due
Hi JR: My client receivedd CP2000 for tax year 2005. I did not prepare this client 2005 tax return. Client forgot to file and include Sch D income.
I have calculated the amount what shoud have been reported. That will reduce client's refund amount (already received). Should I calculate the interest on this extra tax or let IRS do it?
CP2000 instruction spefically says that not to file 1040X, just provide the explanation for the changes. Which is OK with me, I will put difference looking at 1040X.
This is my first time case to get involved with interest on under reporting tax in my last 20 plus years of doing business. Also ProSeries did not calculated the interest. Which I think I do not have entered anywhere. Please e-mail me your thought to inagpurwala@yahoo.com
Thanks
IshaqInagpurwala 17:56, 5 December 2007 (CST)
But, if there is an OA
I agree with your Ahem.. many times there is no OA. What I think Prof. Stokes is trying to get across is that if there is an OA, then when the OA talks of allocating profits among members, it is profit net of the GP's taken out. The GPs are, in that instance, a lot like a pure expense. However, when it comes to the capital account for the indiv., the GP is added back in along with the portion of net profit allocated to that member. Of course, the amount GP that was added to increase the capital account of member is a wash, because since there was an actual distribution of the GP (most likely) the capital account is decreased in the same amount.
In a way I was trying to remind people (Anne1) that getting the tax return done does not necessarily remove the need to take a look at the OA, as there may be consequences later on.
Your Newsletter/Website
Nice newsletter, with great color to keep the eye moving, and terrific graphics. The Website says what you need to say and I like the changing photos. Suggestion: the one for construction does look like a board up house to me, not a house under construction but maybe that is me!
Death&Taxes 16:47, 3 January 2008 (CST)
Blue
Wanted to tell you, I used to be skipper of the KatyLady. She was a little 17' MacGregor on a big lake up in Minnesota. Did sail out of Milwaukee Yacht Club once. Used to do a lot of sailing here in Florida - both racing and cruising. Since I moved here, not as much. A shame, isn't it. Thanks for being here. I really appreciate it. Hope this message is not inappropriate. Katy (Bluewater)Bluewater 11:56, 6 January 2008 (CST)
Wanna really get GREEN? 24 of us from the Minneapolis did a little trip (flyover) to Tahaiti and bareboated 2 cats (40') and one monohull (40') for two weeks. Had two day boat problem so had to stay at Bora Bora Yacht Club for New Year's Eve 2000! PLEASE don't shun me!Bluewater 12:15, 6 January 2008 (CST)
Organizer
Thank you very much. It's much appreciated. I'll gladly email you a copy of mine when it's complete. My email address is rgtaxservice@msn.com. Again thank you.
It seems clear to me that a minster should in most cases be reported on a W-2, but from a practical matter since the penalties related to classifying a minister as an independent contractor versus an employee would come down to being responsible for the withhold taxes and a minister is responsible for these anyway (whether an employee or contractor), I am wondering if there is much exposure to the church issuing the 1099 and it is obviously better for the paster, since he can deduct his nonreimbursed business expenses on schedule C? Any advice?
up late?
Working on TA on a Saturday night? I'm wrapping up and then it's off to the grocery store.Natalie 22:38, 12 January 2008 (CST)Natalie
Question for JR1
JR1 - I am a lawyer in California and my practice is unrelated to taxation.I am writing you because I've read many of your posts on this site and you seem quite knowledgeable on the subject of not owning real estate inside an S corp. I retained a new tax accountant recently who had done a good job for a friend of mine. I am concerned because the advice he has given me, which sounded so great, appears to be unsound.
I have some investments in two limited partnerships that are private equity funds that will generate passive income to me. I am also planning to purchase rental real estate for investment purposes. My new accountant advised me to form an S Corp and move my limited partnership interests into the S corp and then to have the S corp purchase the real estate. The advantages, according to my accountant, would be that the depreciation and other expenses of the real estate could help to offset the passive income from the limited partnerships. All of that sounded great to me, until I heard Ray Lucia say something about not holding real estate in an S Corp because of the problem of transferring appreciated real estate out of an S Corp. When I searched the web this evening to check into this, I saw many of your posts on the subject.
Another thing my accountant told me that sounded great was that my deductions for depreciation wouldn't be limited because I could take the position that I am a real estate professional on the basis that the S Corporation is in the business of investing in real estate (this is despite the fact that I am a partner in a law firm which is my full time job). Too good to be true?
Sorry to bother you with this personal email -- do you think I should get a new accountant based on the above?
I hope the Packers win this week because my son and I are hoping for a Packer - Patriot Super Bowl.
Thank you.
Randall Doctor randall@doctorfamily.com Nontax Lawyer 00:59, 16 January 2008 (CST)
Inc'ing and taking back debt
JR, I am baffled by your comment, and to embarassed to expose myself on that thread. Sec 351 does not allow you to incorporate with a debt & equity mix? I never heard of that. And what is that one distict? It must be 9. That would explain why I aint never heard of it.
1120S Line 7 or 8
Which line should salary for an officer and shareholder go who works everyday in the business. Even though the salary is not for being an officer. He has yet to make enough to get as much salary as he should. Should I put part on officer salary line 7 and part on line 8? Our son also works in the business and is only a shareholder not an officer. Should his go on Line 7 or 8?
Packers
I hate to admit this, but I don't really follow the games. There's just not enough time in the day. I do, however, have a #4 t-shirt.
My husband just informed me that the Packers played in < 0 degree weather! Our local paper had a picture of a guy with icicles hanging from his beard and glasses!! Natalie 19:21, 21 January 2008 (CST)Natalie
thanks for the information . . . please give me detailed instructions on how to minimize the tax implication of quite a bit of distributions throughout the past two years in conjunction with a "reasonable" salary.
Wow
Jeez: Fixers biting heads off tonight. I wonder if he had a bad day in court. I give up. Ah, another day. CrowJD 21:03, 23 January 2008 (CST)
selling real estate in an s corp
JR, I appreciate your discussions on the problems with s corps. I am the 4th generation of a family business in CA. we own real estate in an s corp and we desperately need to sell it to allow our business to survive. Unfortunately, we are hindered by the 10yr election rule and are hoping there is a way around this so we don't lose everything. I would appreciate any help you can give. Thank you in advance for your help.
The Silk Stocking Analysis
Hey JR1: Here is something I ran across from a DC silk stocking firm, you might have seen it, look toward the end of it. If this lawyer (no doubt a top dollar tax lawyer), can't make heads or tails of the issue, how are those experts so sure?
Figured you had
JR1, that was actually from me, I forgot to sign. I figured you had seen it. CrowJD 19:18, 7 February 2008 (CST)
Undistributed Profits Versus Shareholder N/P
Hi JR1,
I've been reading quite a few discussions about S-corp distributions, and I read a lot of your comments about distributing the profits at year-end to "Notes Payable to Shareholder" instead of having undistributed profits. I understand that I would want to do this so that the distributions don't appear unequal someday. Could you please explain the entries for this? Does this money get recorded as a distribution and put on line 7 of the M-2 and also show up on the K-1s? Does the S-corp have to pay interest on these notes?
If the corporation didn't do this, would all future distributions have to be based on the percent of ownership on the day of the distribution (and thus not take into account past profits that were allocated to shareholders on their K-1s and not distributed)? I'm curious how not doing the N/P method would affect an S-corp where there's been a change in ownership percentages and they want to do a distribution. It seems like the distribution would have to be based on that day's ownership percentage and wouldn't take into account past undistributed profits.
Thanks for your help!
SandySea
JR, I messed up with my post on the R/A summons discussion, and now I fear she will not come back to TA. I have sent her an email to the address she has on her website. Would you also send her something?Natalie 12:39, 14 February 2008 (CST)Natalie
Thanks Jeff. I tried calling her, but there was no answer. Natalie 13:01, 14 February 2008 (CST)Natalie
All's well.Natalie 14:22, 14 February 2008 (CST)Natalie
post on 280
can you take a look at my post on 280a and below market rent. Thanks
Does the S-corp have to file form 5500 or 5500-EZ?
SMLLC with MMLLC as single member
Hi,
I have 2 SMLLC. One holds my primary residence and one holds my rental property. The memeber of each LLC is my 2 member LLC. How do I file taxes for this scenario? The rental property has a huge loss and my primary residence has a home office that's it. my email is alldmx@yahoo.com
Thanks Alldmx 13:36, 4 March 2008 (CST)
So, the multi member LLC wouldn't file the rental loss and all? I thought that the disreagarded LLCs profit or loss would go on the MMLLC and then flow down thorugh to the K-1. Just want to make sure I do it right.
Let's go buy some real estate...
Dear Fellow Domer, Thanks for your answer to my inquiry "Let's go buy some real estate..."
Could I bother you explain what you meant by your comment "Since it's an LLC, there's no compelling reason to separate them necessarily. Most of us would prefer to..."
Turns out the only property still being held is being rented to one of the partners son's. So it's not likely they'll plan on selling it anytime soon, or even being that active given how the market isn't as robust. I just didn't want to file a return that would come back to bite me ... or them... if in fact the real estate wasn't titled in the LLC name.
thanks, Jim F (Anchorman)
Anchorman 13:44, 4 March 2008 (CST)
tact fully stated
I'm about 10 miles from the Virginia Beach oceanfront, so sailing terms are entirely appropriate, sir.
thanks for the amazingly quick response Go Irish Anchorman 14:46, 4 March 2008 (CST)
JR1,
Back to my questions regarding the dividend distribution to shareholder, the client covert the C corp to S corp, the S-corp in the first three years has more than 25% passive income. So in order to avoid to loss the S status, he need to pay dividend to himself as shareholder. You inidicate that issue a 1099-Div from R/E. I would like to know how do you what entry would you made to record this transaction. (Debiting R/E and crediting what?) According to Riley2 (as in the disscussion, the dividend simply reduces R/E and would not appear on Sch M-2. If you reduce R/E, what entry would you increase that's the part I dont understand. I understand that if you paid cash for the dividend, you would decrease the cash by crediting it and decrease the R/E by debiting it. BUt if it's a deemed dividend distribution. What is the other side of the entry you would make?
Can the shareholder take just a partial of distribtuion as dividend by making the election and treat the rest as regular S-Corp distribution. For example, he has 50,000 that can be distribute to himself in 2007, he make the election to pay 10,000 as taxable dividen and issue an 1099-Div and the rest (40,000) as regular S-corp distribution. Is that Ok or is there a minimum amount the s corp have to pay each year as dividend distribution from C-corp's earning.
He has about 100,000 sat on the RE before covert to S-corp. Is that once the 100000 distribute to him as taxable dividend, then he should be ok , he does not have to worry about the passive income rule.
I appreciate your help.
Thanks for the answer. I have few other questions. Do you provide professional consultation to tax professionals? If yes, please call me and I would not mind paying you for your services.
Kamal Butala 512-680-8199
S/H loan to S-corp Reporting Interest Expense
I read your reply regarding this subject. (By the way I really like your posts. You have been very helpful to me in the past.) I was just having this same discussion with my assistant. I finally found the how to record it on the schedule E. Is there a place where I can report the S/H realted loan expense which would flow to sch E? I'm guessing no, but I'm not sure. I also just realized that I didn't record the expense for my client but did record the interest income. I need to amend their return for 2006. Do you think this will raise a red flag?
Going forward, I told my client to document something in the corporate minutes stating that the corp would make all loan payments directly to the loan company on their behalf. Would this let me get around the need to cross report the interest income and expense?
Thanks for your help!
Last message
sent by cindylee.
ISO - Incentive Stock Options
Greetings JR1,
I asked you a questions last year, and I am glad that you are still here so that I can ask again!
Short but sweet.
Client was issued both a 1099B & W-2. ISO Stock Sale, 1099B = $46,589.00 W-2 (1)= 48278.00 / (3)=36,280.00 / 14/v) = 7006.00, client has statements reflecting original Option cost, I believe client excersied ISO correctly.
Reason for confusion is because client has tax after option cost is applied. After reading some of the topic sections many stated that a tax should not be recognized. I also believe this a a qualified ISO. Still trying to understand the lanuage. Or do you want to do the return....hahaha
Any help or suggested reading would be dynomite. Plus I can then get to sleep!!
Thanks for your time and talents. iaccount4u@qwest.net
F*k the EA, you shoula, and still can
JR1, you are a natural lawyer. Likely a born lawyer. I have no idea how you know more about a legal POA than most lawyers do. CrowJD
It's nutz
This is the craziest profession I've ever known, the tax profession. I am a babe in the woods compared to you guys. Do you know that in all my years of practice, no CPA, EA, or anyone has written to me for referrals? I had to find them when I needed them. I got into this in a small way because my clients asked me to get into it. Can I recommend to anyone to go into law? I don't know. From what I see here, you guys are cleaning up the messes. CrowJD 19:44, 24 March 2008 (CDT)
On another topic
Hey, JR, much as I fool around here, you would be surprised at how serious I am at work. I am actually very relgious too, except I'm not sure I trust the religiosity that goes around these days... Let's say, I take great stock in the Gospel of Luke, and leave it there. You ever wonder why most folks feel uncomfortable with the Gospel of Luke? Oh well. Hey, we have been chosen to live through interesting times. CrowJD 19:52, 24 March 2008 (CDT)
and as Witness
Chosen to live in interesting times, and to serve as witness to Christ our Lord. Hey, I listen too CrowJD 19:58, 24 March 2008 (CDT)
I was thinking of this
"And there was handed to Him the book of the prophet Isaiah. He openened the book and found the place where it was written. [Isa 61:1,2]... "The Spirit of the Lord is upon Me, because He has anointed Me to preach the Good News to the poor. He has sent Me to announce release to the captives and recovery of sight to the blind, to send forth as delivered those who are oppressed...." Luke 4:17. This is MY Jesus and God; a God with concern for the poor. A God of mercy. Wow, how this has been forgotten in this age of money, money, money! JR1, your witness on the taxalmanac site has inspired me, and I'm sure others too. CrowJD 21:25, 24 March 2008 (CDT)
oops, I forgot the final line
"Today, this scripture is fulfilled in your hearing." Luke 4:21 Peace. CrowJD 21:51, 24 March 2008 (CDT)
Thanks
Thanks for the book recommendation JR, I will do that. That is my addiction: reading. You have heard of the Ides of March?, Boy, I have had mine. My mom of 76 was involved in a car accident this month, and she just is not capable of handling her affairs, so I've had that subtext to take care of as well as work. She will be fine, but me? HAHA Stress. I have no choice but to keep on truckin. Ha. Hang in there, and God bless. Peace. CrowJD 16:13, 26 March 2008 (CDT)
Gambling income
Jeff you are correct, the law says that ALL winnings should be reported. This could result in AMT for many clients because of a high AGI, and, as you are well aware, a huge Illinois tax liability.
I would think that this would be a GREAT question to pose in the ethics portion of your Illinois classes or state societies (join NAEA as soon as you can, I know you already joined NATP).
I would also think that this would be EASY MONEY for a state audit: just look for those with high reported gambling income, audit them to 'prove' their losses; end up proving much more winnings that were never reported.
I would say that you cannot ignore the information your client provides to you: if he gives you a total or gives you his log of wins, that is his record, even if the 1099s are a hundred thousand less. Sometimes we don't want to know the truth, or as Jack Nicholson said in A Few Good Men: "You can't handle the truth!" Kevinh5
Pray
Pray, MT - Southwest MT, north of Yellowstone National Park, (Gardiner entrance), Absaroka-Beartooth mountain range. Paradise Valley, near Chico Hot Springs resort. Near Livingston, Bozeman.
Yes, we have big mangy dogs. Pierce 07:53, 28 March 2008 (CDT)
Anti C-corp
Hi JR1:
I just posted a message about being "forced" into a C-corp and I've read you are virulently anti C-corp. Do you happen to have another suggestion/work arounds?
Regards,
BK36
Dual (U.S. and foreign) citizen living abroad wants to form an U.S. company. Tax lawyer in the foreign country where he resides instructs him that he must form an independent non-flow through entity to avoid the company being considered being managed and owned as a foreign entity and recommends a c-corp. I've read many entries saying that a LLC taxed as an S-corp or S-corp are the best overall solutions for U.S. citizens for tax purposes. However, the foreign tax lawyer says it won't work - the entity must be completely separate. Is a LLC taxed as a C-Corp the only option or are there any others?
BK36 17:14, 1 April 2008 (CDT)
Thanks for the Advice on Contractor/Employee...
Hi,
Thanks for your answer to my question. I can't really deduct anything from my 1099 because they paid for my hotel rooms, food, and transportation. I only traveled with them 3 times last year. I am so confused. I guess I just take the loss and don't work with them again unless I am working with them full time because at this rate it really wasn't worth what I was making.
One more question you seem to be very helpful. I live in Maryland and have since Sept 06' but I still have a Michigan drivers license. I grew up there and went to school there. Last year I had to pay both states taxes because I worked in both states. This year I only worked in Maryland. Do I still have to file in Michigan? Again totally confused.
Thanks,
JD
from brainbug
JR1, thanks for your answer on the board. If you don't mind my asking, how far into the suburbs are you? Right now I am basically trying to figure out whether I could forget all the tax stuff for the next month or so and leave the country on a consulting assignment immediately (=tomorrow), or whether I should stay around for another week, find an accountant and do a 1040ES. From what I read it seems to be possible to just make up for tax shortfall through extra withholding on W-2 once S-corp starts paying wages later in the year, but it would be nice to make sure. I would strongly prefer to just start working at the moment. Thanks, Brainbug 14:59, 2 April 2008 (CDT)
Wow you just made my day...
I thought I didn't have to file in Michigan but my mom sent me the forms twice so I was so confused. Thank you for clearing that up thats awesome not to stress about
...As luck would have it too I live in Downtown Annapolis. I actually worked coaching sailing in the northern suburbs off Chicago for a summer too...
Still I am a little confused on where I am suppose to put the 1099 income. I am using turbo tax so there aren't really forms you just plug in the amounts. I'll try to look into it tonight any more advice on that would be great though.
JD
Taxes and blowing town....
JR1,
thanks for your answer. Just like you guessed... 2007 personal taxes are done for my previous regular job, I quit the job and started the S-corp in 2008. Now that you took the burden off my mind, I'll go and do some contract work! Brainbug 17:34, 2 April 2008 (CDT)
Action
I just wanted to let you know Action's name is Paula. I don't think she took offense to your post, however.Natalie 18:36, 2 April 2008 (CDT)Natalie
1099-C Cancellation of Debt
Maybe you could answer a question for me. I have a client who paid off a credit card and a motorcycle. He received a 1099-C from both these creditors, but is not bankrupt or insolvent. I have a feeling most of this is interest, but the forms do not designate that, do you think it goes on line 21? Seems unreasonable to me. Thanks, cnmmau
Your help is appreciated
Would you please review my post and comment/reply? I can see from other posts on this forum that you are knowledgeable and helpful and I would appreciate your insight into my question.
Thanks, Luke
Lukerand 09:58, 7 April 2008 (CDT)
Cancellation of Debt - Form 1099-C
A client of mine received two 1099-C forms. One was when he paid off a motorcycle and one when he paid off a credit card. It doesn't seem logical that he include these amounts in his taxable income, however, everything I have read says it goes on Line 21. He is not insolvent and has not filed bankruptcy, he just paid off these loans. Can you help me? cnmmau
Hi,
This is still Jenny from Annapolis, Is there any way you could email me I am really having a tough time with my taxes. And, my parents won't talk to me so I just don't know what to do about my 1099, I know I am getting ripped off. I am sorry to ask but my email is jennydaudlin@gmail.com...
Thank you.
2 W-2 Excess Contribution 401K
Client had two W-2 from two different employers. On one client maxed out 401K ($15,500) and on another W-2 contributed $9,000.
By reading regarding this at IRS web site for excess contribution:
"Additional limits. There are other limits that restrict contributions made on your behalf. In addition to the limit on elective deferrals, annual contributions to all of your accounts - this includes elective deferrals, employee contributions, employer matching and discretionary contributions and allocations of forfeitures to your accounts - may not exceed the lesser of 100% of your compensation or $45,000 (for 2007, $46,000 for 2008). In addition, the amount of your compensation that can be taken into account when determining employer and employee contributions is limited. In 2007, the compensation limitation is $225,000; for 2008, the limit is $230,000."
I undestand that client does not need to report 9K as an income for 2007 tax year and withdraw the money before April 15th. Am I correct on this? Bad part is that client came in on 4/13th and was not possible to initiate withdrawals.
I tried to search Taxalmanac, and could not find for it. But I am sure there was a discussion to this effect, and some contributors suggested that total from different 401k plans cannot be over $45K.
If he had to report, then it will be directly on 1040 (without any other form)? Do I need to file 1040X to correct it? Return has been accepted via e-file on 4/15/08.
Your help is greatly appreciated.
IshaqInagpurwala 16:56, 16 April 2008 (CDT) inagpurwala@yahoo.com
Tax Court Examination for Admission
JR: I posted one of my old Tax Court trial transcripts on "Tax Court Examination for Admission" (Wink). You don't suppose it's going to upset any of the EA's on here do you? Ahhh, just some after tax season follies. HEHE. CrowJD 08:58, 17 April 2008 (CDT)
For yesterday
JR: I wanted to apologize for making an *ss of myself yesterday. If I ever have the urge to engage in such idiocy again, it won't be on the Tax Forum where it could be misinterpreted. Once again, please accept my apologies. CrowJD 12:02, 18 April 2008 (CDT)
Contacting irs
I am new here and totally lost. Hope i didnt interupt your discussion but you seem to know what you are talking about. I am in a huge situation with IRS determining whether i was an employee or non employee. A few months ago i filed a SS8. How can i followup to know whats going on with my case. I have been on hold with IRS for hours at a time on the phone and nobody knows where to direct my call. All I want to know is what is going on with my case, how long does it take to get a response and who do i call? I have others issues going on too, so this isnt all. If you need full detail to help me please let me know. I just hope i will beable to get back to your post because i have no idea what i am doing in here either.
tina72065
Thank you JR
Thank you anyway JR. I dont know how to respond to the posts so I came back to you somehow. lol
They do have another number for SS8 but they dont manually give it you. They connect you through from IRS. However, the wait is extroardinary long and unbearable. I just need to get on and wait it out i suppose. Thanks anyway. Do you know approximately how long it takes for their decision to see whether you are employee or not an employee status?
Debt Assumption
Good Morning JR, I am writing to follow up with you regarding this topic. I know you had contributed to it when it was posted earlier. I have a client whose debt was assumed by that the person is insolvent. Can you advice as to which IRS form to use for reporting?
Thanks Sam Wonbu
Debt Assumption
Thanks. I was able to find it at the IRS website. It is form 982.
Discussion:Hot news on S corp Health Insurance (Notice 2008-1)
Hello JR1,
I read your posts regarding this subject. There is so much information that my eyes a bit crossed at this point. I hope you don't mind, but I want to run this by you so that I can be sure that I understand what needs to be done.
I have a client, like so many others, that used an outside PR company which didn't know that the more than 2% SH was receiving the health insurance benefit. Thus, the insurance premium is not in box 1 of the w-2. Based on what the posts say, the W-2 needs to be corrected. What about the 940 and 941s?
I'm concerned about the cost of the amended forms that the PR company will charge for them. What did you have your clients do for 2007? One of the posts said the PR company wanted to charge somewhere in the range of 600 or 800, I don't remember, but that is a lot of money. Did you prepare the W-2c forms for your clients? If so what did you charge? Did you amend the other returns too?
Thanks for your input. You always have many great insights.Cindylee 22:22, 5 May 2008 (CDT)
Lock the topic or get someone to lock the topic or even delete the topic all together.
I get it sorry for asking a stupid question.
Converting S to C
Thank you for your response to my questions... The stockholders in the S have a negative basis. They are not able to take advantage of the losses as a result. Does this negative basis have any effect on the conversation from S to C. Also, so I just transfer the assets at their balance sheet value and continue depreciation as if nothing has changed?
Hi, I am am an ordained minister,currently an independent contractor with the county (effective 01/01/08)for providing pastoral services as a correctional chaplain. I receive a flat rate and responsible for my health insurance, all taxes and any expenditures (supplies, business cards,etc.) How will I be able to claim a housing allowance when I file my taxes?
I am an ordained minister self employed by the county as an independent contractor serving as a correctional chaplain. I receive one flat amount per month and responsible for my own taxes, expenses, healthcare, etc. The county did not designate an amount for housing since I am not an employee. How can I claim that on my 2008 tax return?--Rev55 19:34, 7 July 2008 (CDT)
Question about a entry you posted.
Hi JR1
I've read a few hundred of your posts. I was wondering if I could trouble you for your input on something I was searching (kind of unsuccessfully). Here's your post:
Yes, most of us are recommending that RE go into an LLC, which would be disregarded for tax filing on the joint return. Just a Sch. E rental property. As to the prev. part of the year, if what they've paid is close to what the rent should be, just call it rent...on the Sch. E, then, you'll pick up the interest, depreciation, and unless the corp pays them direct, the prop. taxes, assoc. dues, and insurance...many of us have the corp pay those directly, tho' to get more cash out of the corp. Or raise the rent to cover, either way's the same I guess.
(End quote)
I just had a very experienced tax preparer look at a return and disagree with me on a point. I have no idea where to research it.
The owners of a building rent said building to a corp they own 100%. There is $190k actual rent income, and it is reported on 1040 Schedule E. There are no expenses on the Sched E; they were all paid by the tenant, which is their 100% owned C Corp. The C corp operates a light manufacturing business and pays market rent. Their rental agreement also specifies the corp pays all expenses like repairs and the property taxes. My "friend" says if the corp is audited, all those expenses will be disallowed. I disagree. Is there any guidance you know of on this issue?
Thanks, Greg Fey "greg91020"
Thanks for your reply, I thought it was fishy. I agree on the mortgage and depreciation; this property happens to be paid off and depreciated out, so it looks funny on the Schedule E, income but no deductions. Greg91020 13:38, 17 July 2008 (CDT)
You're very helpful, thanks. Sometimes I just need to bounce the question off someone else to get a clue...
While I'm at it, I've had two people tell me two different ideas about transferring depreciated-out rental real estate from personal ownership to an LLC (same owners, husband/wife, maybe son as well. One says you can re-start depreciating if there was a real sale at FMV with an installment note. Another says you can't re-depreciate if the ownership is the same. I've tried researching elsewhere but no luck...
Greg91020
S Corp net assets (deficit) to LLC - for 1/2 of membership interest
JR Thanks for your post - what I need to address is why you believe the S will pick up gain - I have not been able to identify any area of the law or a similar PLR or case indicating the S will need to pick up a gain on the disposition of the net Liabilities - any code or reg support would be appreciated
Agree?
You agree with Barb?!?! :-) (S-corp compensation discussion). Nice of you to try to help the guy.
Packer update
The flag is still flying as much as it was before! As far as Favre, well, he's getting up there. Natalie 15:46, 3 September 2008 (CDT)Natalie
Hello
JR1,
Hello, I tried to send you an email and I am sure if you got it. I was wondering if I could have an offline discussion with you. I am form the southwest suburbs of chicago, a CPA and a hunter. Let me know if we could talk offline. .[[User:LCASSOC |LCASSOC]]
Thanks for your help. An F reorganization appears to fit my situation. My client has suspended losses in his S corp and instead of just changing the name of the company, his former CPA told him to start a new S Corp, so they have been doing business since the first of the year in the new corp. Will my client be able to carry forward these losses into the new S corp under an F reorganization?
Off-line contact.
JR1- It would be an great if we could talk. I'm a CPA, have worked alone for 25+ years in South and Central Florida. Chicago is my favorite city- in spring and summer. My contact number is 407-327-9935. I will be available tomorrow after 10:30 EST. Thanks.
General chat q.
You might want to take a look at that forum.Natalie 04:22, 19 September 2008 (CDT)Natalie
Welcome Back!
Setting up deer blinds? That's a lame excuse!
I feel like you: this board has made me better. I work harder to be smarter before I respond to anything, especially to clients.
Kevin and I had a conversation last week about the offender. He said the two of you have cleaned up after this person a lot. Well, I took a moment to send them a message. I did my best to display my diplomatic skills. They have not responded, but I thought I would give it a shot. I also wonder if they have any clue. I get the feeling they don't.
Anyway, glad you're back. Hope all is well. TomTaocpa 10:55, 23 September 2008 (CDT)
Help
Hi JR1,
I could use your help on a few issues. Would you email me at duneracer@gmail.com
Thanks.
s corp distributions
So your saying you think the best approach is to report the activity even as unbalanced as it is and just focus on the problem for the future. I thought the IRS would come back to me as preparer saying I took an unreasonable position
What I really can't stand
We are closer in agreement than you may think! Frankly, it's hypocricy that just kills me. I can't stand it. I think it's sad the country seems so divided now. It too shall pass. However, I see so, so many getting further behind, that I think it's time for us to hang the greed out to dry for a while. It just got too overextended. Neither Party is immune from it.CrowJD 14:47, 8 October 2008 (CDT)
Hi .. just read your response on the ethics of reporting or not reporting all the possible deductions when considering EIC. You stated that it would be against the rules of EIC not to report all possible deductions. Could you direct me to the particular reference you are referring? Thanks a lot. Nbrcruncher 15:59, 24 October 2008 (CDT)nbrcruncher
Indian blood
JR, my cousin has appearently done some reserach into the family tree and has discovered that my father's side of the family might have some indian blood (Cherokee). I had heard this for years, but I had dismissed it until I had read that it actually was rather common for the Cherokee to marry in with "white people" before the time of the Trail of Tears. Anyway, it will be interesting to see how this turns out. I am supposed to go with this cousin to meet with another distant relative this year or next, whenever we can arrange it. My paternal grandfather certainly looked like he could have had indian blood. CrowJD 14:28, 27 October 2008 (CDT)
In my youth
Well, I had gotten pretty good in drinking the firewater, and smoking the peace pipe in my youth. The only problem now is that if I turn out to be a half-breed, I won't know what part to blame, and could end up with the whole battle of the Little Big Horn going on between my ears. Take care. CrowJD 16:41, 27 October 2008 (CDT)
Hi JR1--
You always give the most sensible answers in my opinion, so I thought I would PM you. I so appreciate your willingness to share your knowledge.
Anyway I wondered if you knew of any problems with a SH loan to S-corp, via a personal credit card, where the S-corp had then been making the payments directly to the credit card. In other words, the personal card was used, the corp got the goods, now the corp pays the credit card bill.
Thanks Greg91020 14:49, 20 November 2008 (CST)
Non Profit donation/investment
Aloha JR, I am having a search problem in coming up with the answer to this question: Can a 501C-3 organization make a donation to a for profit LLC? That's the simple question and, in following up your answer to someone quite awhile back, it sounds like you might be able to help me clarify the answer. Rather than continue this discussion in the open forum - there is considerable money involved - I wonder if it would be possible for you to e-mail me so I could then ask better and more direct questions. My e-mail address is: actionbsns@aol.com. Your help is always appreciated.
Now I'm going to tell you I'm Paula with the name Actionbsns, then add 4 tildes like the instructions say and see if you get that information automatically. Actionbsns 19:47, 25 November 2008 (CST)
Sorting Search Results
I think that this is potentially possible, but not something that I am able to do myself. I will have to look into if and how this can be done, and what it will take to get it implemented. Good suggestion!
- Tim Doyle, TaxAlmanac Moderator - Talk to me 10:43, 4 December 2008 (CST)
JR1
Thanks for the reply. Can you site a tax source reference?
Thanks
tom
JR1: Thanks for the reply. Can you furnish a tax reference source?
Thanks
Tom
Jeff, I had emailed you a while back and wanted to send you another email. Apparently the address I had before is no longer good. Would you mind me emailing you?
Converting an LLC to an S corporation
JR1
I noticed in your comment regarding the conversion of an LLC to an S corporation regarding not doing so if the partnership had a negative capital account. Is this because upon becoming an S Corporation they would have a beginning negative basis that they would have to include in income as capital gain income?
Thanks
John62John62 07:34, 12 December 2008 (CST)
s-corporation and simple IRA contribution
Thanks for your reply, but maybe I did't make myself clear, the 9800.00 was payroll from March of 2008 and then in June the corporation made the IRA contribution of 9000.00 two seperate checks. Does this make a difference in your answer, because the w2 will not match the 941 form filed for the first quarter of 2008.
thank you for any suggestions sebrofs
