Recent content by ColinCPA

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    USA Serious Question Need Help

    Why are they unable to get this corrected? Did they contract to provide services to you or your company? Provide to them a completed W-9 and get them to file a corrected 1099. This should not be a big deal. What business form are you operating under? If you are operating as a C-corp or...
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    USA Didn't Know About the Nanny Tax

    Don't call yourself stupid. I'm sure a lot of household employers screw up on the nanny tax rules. Be glad you are now cognizant to take the appropriate action. You may be okay anyway (see below) other than a late W-2 filing. Yes, you should apply for an EIN, as you need it to file a...
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    USA what tax return need to file when multiple partners drop down to one

    A single member LLC is not permitted to file 1065. You need to file a short-year 1065, and use Schedule C (or E) for the remainder of the year. Then, file the 8832 and 2553 before March 15 to get in the S-election for 2015.
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    USA what tax return need to file when multiple partners drop down to one

    I'm a little confused. Are you saying that we were previously a partnership, and now are electing to be treated as an S-corporation starting in May? Filing a 1065 for the whole year would not make sense. If so, yes, I agree that a short-year 1065 needs to be filed for the short year period...
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    USA Sect 179: puchased 2014 placed in service 2015

    Von Kalinowski, Julian O., (1993) TC Memo "An asset subject to depreciation is considered to be placed in service when it's in a condition or state of readiness and availability 1 for a specifically assigned function 2 whether in a trade or business, in the production of income, in a...
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    USA Business use of Home - Expense Carryover Rules?

    That's correct. My suggestion is just that a rollover to Roth would allow you to avoid a nondeductible IRA contribution. No income would be generated by the rollover since you are rolling from one after-tax account to another. But then you won't have to worry about tracking the basis and any...
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    USA SE tax on S-Corp income

    If they want to be audited.
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    Question about engagement

    This sounds like a forensic engagement, and more of a management consulting service than an audit attest service. This would change if the work was to be relied on by any outside parties, but it sounds like this is for management use only. You should try to get a signed engagement letter...
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    USA Business use of Home - Expense Carryover Rules?

    If I understand your question correctly, you are asking if you can optionally postpone a portion of the deduction of your 8829 carryover loss from a prior year? I don't believe so. I don't think this has been specifically addressed by the IRS, but there doesn't appear to be a way to make...
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    Independent Contractor Pay Question

    You need to issue a 1099 to both him and the company and file them with the social security administration if the compensation is over $600. The IRS has ramped up enforcement on these forms. It sounds like his nonprofit should be treating him as an employee, especially as he is an officer of...
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    A little help with understanding these steps in preparing an income statement

    I do not understand what you mean by "trading account", but let me see if I can teach some Accounting 101 and clear up some obvious misconceptions. There are two kinds of accounts. Temporary (income statement accounts) and permanent (balance sheet accounts). The "sales" and "purchases (cost...
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    Independent Contractor Pay Question

    How is the individual contractor doing business? Is he performing services and invoicing you under his personal name, or the name of the nonprofit? Does he file under an EIN as a sole proprietor or single member LLC? How have you issued the 1099 to him in the past? Obviously, it's on him...
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    With the PTP loss, you would still file a Schedule E, with zero loss deducted and a worksheet attached to show the disallowed loss to be carried over. But I agree, there is nothing to require filing to establish the carryover. The IRS will just send you a notice requiring you to submit proof...
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    USA LLC loss deduction

    This depends. Are you in the business of buying and selling real estate? If you are, there is a justification for this as a business bad debt which could be applied as a loss against other ordinary income. I gather this is likely not the case, and as such, this is really a nonbusiness...
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    USA Prior Year Unallowed Losses - Unfiled Form 8582

    Maybe. Problem is, if you didn't file returns, you didn't establish the loss. However, there were tax court cases that led to this ruling: Rev. Rul. 1965-96 "For purposes of determining the portion of a net operating loss to be carried to the second preceding taxable year, the...