Join the 9 million people who found a smarter way to get Expert help

Recent Investment Credit questions

I am a partner of an LLC and have Operating Losses from Schedule

I am a partner of an LLC and have Operating Losses from Schedule K-1. The Company has less than $5m gross receipts over the past 3 years (Eligible Loss). I would like to carry-back NOL to 2012 (back three years). I have completed Form 1045. What do I need to send with Form 1045 to proof that its an Eligible Loss?

Read more

PDtax

Owner

Master's Degree

7,000 satisfied customers
Expert: I have completed the C Corp Tax return. I've

for PDTax Expert:I have completed the C Corp Tax return for 2015. I've been doing C corp for over 3 decades so I'm confidentin that filing.I have also completed the S Corp Tax return for 2015 (1120S). Since this is my first S Corp filing I have a few remaining questions:Questions:1. Estimated Taxes for the S Corp were paid in 2015 by the S Corp for the shareholders (me). Tax paperwork on the est. taxes paid in 2015 has the S Corp company name and the new S Corp Tax ID.So, do I need to also prepare a 3rd tax return for me personally or produce a K-1 for myself? Even though all taxes have been accounted and paid for with S Corp est. taxes payments?I'm sure that next year all will be much simpler, but want to make sure I do this years taxes as close to perfect as possible.2. Lastly, How do I mark the C Corp filing as the last one (final)

Read more

100 satisfied customers
I am a CPA preparing a 1040 who sold a residential rental

I am a CPA preparing a 1040 for someone who sold a residential rental property purchased in 1992 for $51,200. It has tax depreciation allowed of $43,287.31 from 27.5 year Straight line depreciation. It was sold in 2015 for $57,900 with expenses related to sale of $7,479.Ultra tax is calculating depreciation recapture on the 4797 of $42,508. I came across the following under IRS Sec 1780 regarding Depreciation subject to recapture. "Residential rental property ...that is placed in service after 1986 and is subject to MACRS rules must be depreciated under the straight-line MACRS method (para # *****). Thus, there is no recapture of depreciation upon disposition of such property because no depreciation in excess of straight-line depreciation could have been taken."I believe this is my situation. I don't believe that this client is subject to any recapture. Am I understanding this correctly?Thank you.

Read more

Anne

Master Tax Preparer

3,138 satisfied customers
In 2005 my wife's parents executed a quit claim deed to their

In 2005 my wife's parents executed a quit claim deed to their two children (and spouses),reserving a life estate . In 2010, her father died. In 2011 her mother entered a nursing home. The daughters maintained the (empty) house until 2014, when the second daughter moved into the house. My wife and I and her mother (who will never be able to leave the nursing home) executed a quit claim deed to the sister, who paid us interest in the house.Is this the correct formula our capital gain income tax purposes.Basis = Donor's basis on the date of the 2005 quit claim deed + any capital improvements made since.Appreciation = FMV on date of sale - Adjusted BasisOur Capital gain = Appreciation - Mother's Life Estate Interest (figured using Table S with 2.4% interest rate based on her age at date of transaction) / 2 (the number of remaindermen)

Read more

Lev

Retired

Bachelor's Degree Equivalent

24,192 satisfied customers
I have an S Corporation that owns land. The S Corporation's

I have an S Corporation that owns land. The S Corporation's shareholders are 7 Grantor Trusts. The land has timber on it and is cut every 3-4 years as a pay-as-cut contract. Other land is cash rented to a farmer every year. The Corp will have reforestation costs - seedlings and site prep. The forester said you can take up to $10,000 reforestation expenditures as an expense each year, but what I read says that "trusts" cannot elect to take $10,000 as an expense and must amortize over 84 months.

Read more

Megan C

Master's Degree

29,966 satisfied customers
am starting a trucking business, hauling containers from the

am starting a trucking business, hauling containers from the port to the warehouses. I hired someone to file the LLC for me and it was suppose to be a Leasing Trucking business but he messed up and I am stuck with 2 registrations that costed me $1500 each and he set up my business as a trucking business. The people who will drive my truck do not want me to withhold any money from them, they say to give them 1099 at the end of the year and they will take care of their taxes. My question is, what are the fines I will get from IRS for not withholding money from their checks? The carrier we are hauling containers for provides workers comp for these two drivers because that was the arrangement we made. Please advise.

Read more

Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
RE: Form 1120, C Corp, Shareholder loan to company that cant

RE: Form 1120, C Corp, Shareholder loan to company that can't pay the interest.I am helping a friend who owns a Scenic Airplane Ride company. It is a C Corp. He started the company in June of 2002 and never made a profit, mostly due to break even cash flow before depreciation (straight line 7 year life) and interest expense on seven airplanes acquired over the past 12 years. As of now the NOL carry forward has grown to $782,783. He has put in about $800,000 of his own money, $50,000 is capital account, $750,000 is shown as shareholder loans, like many entrepreneurs he pays for coffee, gas, groceries etc with the company card. The shareholder loan account goes up and down like a yo-yo but it always been heavily in favor of the company. The QUESTION:The company has never had the cash to pay any interest. The company is cash basis as is he personally. I've been reading about imputed interest but the only stuff I see deals with "low interest rate" loans. Let's assume that the stated interest rate in the Loan Documents state an above or equal to AFR rate. On the cash basis does he need to impute interest income on his personal return and does the C Corp record accrued interest for tax purposes then show it as a Book/Tax difference?On the other hand if this were classified as Capital or APIC (negating the interest issue) could the capital be returned without calling them dividends, at least until the company used up its NOLs.

Read more

Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
Partnership A made a distribution in excess of basis to its

Partnership A made a distribution in excess of basis to its Owner S Corporation A. I know to report this on the 1120S on Sch D, however what is the entry to record the gain on the books of S Corporation A? So far I debited cash and credited the Investment Partnership A.

Read more

Megan C

Master's Degree

29,966 satisfied customers
I just sold my business via an asset purchase. The business

I just sold my business via an asset purchase. The business was sold for $75,000; which included taking over equipment, accounts receivable, inventory, signage, etc. I did 100% financing on this sale; so I actually receiving no money down. They signed a promissory note to pay off the balance over the next 30 months. I know I need to file some sort of tax form - I believe 8594. Do I file this immediately? Does my buyer as well? Am I going to pay taxes on this total sell price when I file my 2013 year return, in 2014. And, why whould I pay taxes on a sale; as my buyer may end up not even paying me a cent and defaulting. Please let me know what to do. Thanks!

Read more

5,014 satisfied customers
View more tax questions
In The News