User talk:KatieJ

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Revision as of 22:05, 5 October 2007 Irsfixer (Talk | contribs) ← Previous diff		Revision as of 05:00, 4 November 2007 Skhyatt (Talk | contribs) (Filing separate return) Next diff →
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	Thank you Katie. This is a cumbersome way of communicating. My email is mw@irsos.com. I have only been on this board a few days. I am on MTM a lot.		Thank you Katie. This is a cumbersome way of communicating. My email is mw@irsos.com. I have only been on this board a few days. I am on MTM a lot.
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		+	== Filing separate return ==
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		+	Hello Katie,
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		+	If you have a chance, could you reply to my post on "Filing separate return"? Either directly on the board or to me personally. Thanks. [[User:Skhyatt|Skhyatt]] 00:00, 4 November 2007 (CDT)

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Revision as of 05:00, 4 November 2007

Contents 1 Welcome! 2 CHANGE FROM C-CORP TO LLC 3 Answering Messages 4 Welcome aboard 5 Welcome 6 Sub S shareholder health insurance 7 gasoline sles tax 8 Sales tax on interstate sales 9 State Tax Question 10 thank you for your advise on 5471 11 Thank you! 12 re: CA 540X and 1040X amended returns 13 re: or one year after the date of the overpayment, whichever is later. 14 KITCHEN, ET AL. v. U.S., 71 AFTR 2d 93-668 15 Thanks! 16 California LLC Fee 17 Small World! 18 CA EDD 19 N Mex Groos Receipts tax 20 LLC fee 21 Sole Practitioner vs C Corp 22 GO Zone 23 Multistate LLC paid other state taxes on behalf of partner 24 Go Zone 25 Guaranteed Payments in an Investment Partnership 26 Filing separate return

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CHANGE FROM C-CORP TO LLC

Hi,

I have a question posted under the above topic and after seeing how knowledgable you are in response to other questions I was wondering if you might have an answer for me. Any help would be GREATLY APPRECIATED.

Thanks for your time!! (And your Knowledge) (-:

Answering Messages

Hi Katie:

First - I'm really happy that you're here! Please continue to join in, even if it feels like you're sometimes stumbling.

Sometimes people don't "sign" their comments, and when that happens, the easiest way is to look at the page history to see who left it. Go to your talk page, then click on the history tab at the top. That will show you each edit made to that page. It's pretty clear from that list who said what. It looks as though AMINK wrote you the comment you're referring to. From that list, just click on his name, and then from there click on the discussion tab and leave him/her a reply there. If this doesn't make sense, just holler - I'm here watching and will jump in to help.

Note: When you answer back, just put four tildes (like this: ~~~~ at the bottom and when you save your reply, that will be turned into your name and a link to your page.

- Tim Doyle, TaxAlmanac Moderator - Talk to me 16:12, 11 December 2006 (CST)

Welcome aboard

KatieJ - nice to see someone with your background posting here. I also live in SD and have my practice in San Carlos - across the FW. Also an SDSU lifetime alumni. Would be nice to meet you sometime as a contact. Your post on S-Corps and the built in gains tax was well done. If your interested, let me know. User:Michaelstar

Welcome

I just wanted to tell you that you are about the brightest and best additions here! Do stick around, anxious to learn stuff! Jeff aka JR1

Michael answered my posted question. You may disregard my question below.

Sub S shareholder health insurance

I posted a question, but decided to call the EDD for their opinion when no one left an answer.

The sole shareholder of the Sub S has health insurance paid by the corporation. I will include this amount in federal wages, but not in FICA (social security and Medicare) wages. Is this amount subject to SDI? The EDD rep told me that Pub 231EB says that all health insurance premiums paid by an employer are not subject to CA income tax or SDI. Is she correct?

Thank you very much for your answer.

gasoline sles tax

Thanks for the input. That is what I thought, but did not know the statue. Had a customer that just insisted it was. Now I have a reference. Thanks again!!

I've been offered to buy the stocks of a c-corp at a "discounted" price. The c-corp only purpose and asset is a free&clear multifamily real estate property purchased over 35 years ago at a nomimal price and has been fully depreciated. Based on what I've read, I'll have a built-in gain once I elect to switch from c to s-corp and that this BIG will be taxed at corporate rate if the asset is sold within 10 years after the election. My question relates to what I read in an earlier discussion: "I think you could do a 1031 exchange without triggering the BIG; you'd just carry the C corporation's inside basis into the property acquired in the exchange. And then, if you sold the acquired property within 10 years of the S election, you'd trigger the BIG." The effect of a 1031 may be a big factor in my decision. Do you know where I could certainty on the matter?

In addition, is it correct to say that --independent of the BIG, in simple terms, when I sell the asset and then close the then s-corp, I will pay capital gains on the sale less outside basis (the amount I paid for the stocks)?? Sorry if the question doesn't make sense.

Can you share your overall thoughts, what to be concerned with, etc. Thanks!!!

I've been offered to buy the stocks of a c-corp at a "discounted" price. The c-corp only purpose and asset is a free&clear multifamily real estate property purchased over 35 years ago at a nomimal price and has been fully depreciated. Based on what I've read, I'll have a built-in gain once I elect to switch from c to s-corp and that this BIG will be taxed at corporate rate if the asset is sold within 10 years after the election. My question relates to what I read in an earlier discussion: "I think you could do a 1031 exchange without triggering the BIG; you'd just carry the C corporation's inside basis into the property acquired in the exchange. And then, if you sold the acquired property within 10 years of the S election, you'd trigger the BIG." The effect of a 1031 may be a big factor in my decision. Do you know where I could certainty on the matter?

In addition, is it correct to say that --independent of the BIG, in simple terms, when I sell the asset and then close the then s-corp, I will pay capital gains on the sale less outside basis (the amount I paid for the stocks)?? Sorry if the question doesn't make sense.

Can you share your overall thoughts, what to be concerned with, etc. Thanks!!!

Ajabrucey 18:00, 6 March 2007 (CST)

Sales tax on interstate sales

Hello KatieJ, I was very impressed with your answer about interstate sales and sales tax, and I was hoping that you could help me find some information. I just started working for the company that sells software to schools in many states. We only have offices in Oregon (which does not have sales tax) and Texas. I understand that we only need to charge sales tax in Texas, is this correct? It looks like we have several issues here: interstate commerce, intangible property (most our sales include internet access to softwares), and sales to school districts, which are often exempt from sales tax. All of these make me believe that we do not have to worry about collecting sales tax, but I would really like to have some documents to support my opinion. Could you please recommend any resources? I would greatly appreciate your opinion!

Thank you very much, NWCPA 16:21, 12 March 2007 (CST)

Thanks for the Oklahoma info That was my thought from reading the Oklahoma booklet but wanted to make sure

State Tax Question

I appreciate your insight on the myriad of state and local questions that are posted to this board. Your posts are always a welcome read.

I am hoping you can provide insight on a state issue regarding capital loss carryforwards. I posted the question a while ago here Discussion:Michigan Capital Loss Carryforward Question .

Thank you for any assistance you can provide.

Glmpllc 13:16, 5 April 2007 (CDT)

thank you for your advise on 5471

Hi KatieJ Thanks for your comment on 5471! Quesitons: Should I have my client sign the reasonalbe cause statement under penalty of perjury? of just a cover letter explaining the reasonable cause is enough? I am a self-employed and this is my first penalty case for 5471. I woudl like to know how other professionals write a reasonale cuase letter. Do you have any information as to where I could obtain a sample reasonale cause letter? I would appreciate your comment on this. Thank you for your time. YH 19:47, 11 April 2007 (CDT)

Thank you!

KatieJ Thank you so much for your advise -- as a self-employed CPA, I think it is wonderful to have this website. I feel like I have a bunch of experts in my office. Thanks again. YH 15:01, 15 April 2007 (CDT)

re: CA 540X and 1040X amended returns

Katie:

Like I said before, I have already filed tax returns for '04 and '05, filing status as single. I was married in '04, and since have already sent in to the IRS an amended 1040X for 2004 with a changed status to Married Filing Jointly.

I have yet to send in amended returns to CA for both '04 and '05, and a 1040X to the IRS for the 2005 tax year, and yes I did file the 540 for both '04 and '05 already, as you had wondered about that in the reply to my original post.

I am living here in the Philippines. I know you told me to just let them know where I want the refund sent. Will they (either the IRS or CA) do a direct deposit if I request it in writing? If so, it won't make a difference where I have the return sent; and if so, I would rather use my Philippines address. If they won't directly deposit the amended return, then I wonder whether to send it to my mother in South Dakota who can send it to me within a week via FedEx or UPS rather than have the IRS or the State of CA send it the really slow way, as it usually takes about a month to receive something from the US.

Additionally, does the statute of limitations on tax returns in CA allow mw to file amended returns for 4 years from the date of the original return, as they say something about if tax is paid to them then you only have one year. In '05 I paid in to the State of California $109, so I was hoping that I still can file a return to receive a refund.

Thanks for all of your help. I really appreciate it.

Doug Mortimer

re: or one year after the date of the overpayment, whichever is later.

What does this mean? 'One year after the date of the overpayment?' Does that mean if I originally received a refund I have only one year in which to file an amended return?

Thanks Katie.

Doug (dmvision)

KITCHEN, ET AL. v. U.S., 71 AFTR 2d 93-668

KatieJ: Thank you so much! I'd like to access this case. Do you know in which district it was? -TaxAssistCPATaxAssistCPA 15:24, 28 May 2007 (CDT)

Thanks!

Thanks for the additional citation. I don't know why I didn't notice the Indiana reference in you original cite. Thanks again. TaxAssistCPA 23:27, 28 May 2007 (CDT)

California LLC Fee

Katie,

I am amazed and in awe of the tremendous contributions that you have made on tax almanac. I don't feel comfortable bothering you but I am having trouble with California LLC fees and I think that you may be able to help me. I have read and become familiar with the issues pertaining to the unconstitutionality of the tax and of the ability to generate protective claims for my clients, but I believe that there is a way to avoid the tax to begin with and I wanted to know what your thoughts were on this. Specifically, I have a client who had one LLC that owned and managed eight different apartment buildings. For liability reasons, I believed that it would be better to place each of these properties into its' own separate LLC. Now, he paid a huge LLC fee in the past years because it was based on gross receipts from the rental income. What I would like to do for him is to convert the existing LLC into a regular S corporation and have that corporation manage or maybe even lease the eight apartment buildings that are now owned by the other eight LLCs and then create management agreements whereby the new corporation is actually responsible for collecting the gross rents, paying all the related expenses, and then remits a much lower fee to each of these LLCS. This way the LLCs only receive a limited net fee for each company. This way even if they are under common control they would not be subject to this high Fee. Please share your thoughts with me.

thanks, Ymanela 00:59, 31 May 2007 (CDT)

Hi Katie,

Thanks for your excellent input on the subject of combined and consolidated reportings. As mentioned previously, please email me the materials at jzak519@yahoo.com

Thank you very much for your help!

Small World!

Katie,

Steve is my uncle. I set up his website and was there when he bought that cool building. My aunt (his wife) is a designer and fixed that place up. I have not seen it fixed up until you sent me that picture. It looks really pretty! Ya, I opened up a small practice here in Arlington, VA. That is pretty cool that you know him. I will tell I said hi to you.

Take care,

Brian

CA EDD

Katie,

I have been very impressed by your knowledge and contributions regarding SALT issues. I also noted from your background that you worked for the California Franchise Board. I realize that this might be a stretch but i have some issues with some temporary workers in CA that the EDD wants to recast as employees even though they hold thenselves out to others and only work on a piece meal basis with my firm. I am curious to know if you have any real live experience in this area.

Green_Hunter

N Mex Groos Receipts tax

Hi, Katie, just looking for final clarification on my last question after your post:

JR1: I have read that, Tex. Maybe what changed is that when he started, there wasn't going to be NM work. He would only work clients out of state, and it didn't apply. Now that he is doing NM deals, it appears it will. Guess I'm just looking for confirmation.

KatieJ:

11 September 2007

Yes, if he's performing services in New Mexico, he is subject to the tax.

JR1:

September 11, 2007

Only his NM deals, or on any deals he does where the work is performed in NM?

Thanks so much. JR1

LLC fee

Hi Katie, I took your class in 1996 at SDSU. Small world and nice to read your posts. I have a situtation that I have researched and found an answer to, and just wanted to run it by you for your comment.

A client formed an LLC in early August, never did business, and now wants to shut it down (more than 2 weeks after formation). I told her that it is still subject to the $800 CA tax for 2007. My research is that the mere organization subjects it to the tax, regardless of it not doing business. Is there an exception for an LLC that never did business?

Could it elect to be classified as a corporation and file an initial and final year 07 return to get out of the $800?

Thanks so much. Birdman 23:44, 11 September 2007 (CDT) Keith Peterson

Sole Practitioner vs C Corp

Thanks. Sound response.

GO Zone

Katie J

Sorry to beat a dead horse, but I need help. I appreciate your response to my post about 50% depreciation disallowance for Florida. I've researched it, agreed with your post (and 1040taxman's) and put together a response based on my research to another CPA who still disagrees with me. Our clients want to go into a joint venture in So. Fla in the Wilma GO Zone area and have been talked into being able to use the 50% depreciation here. I disagree. I would love to be able to the depreciation but I still don't believe it applies. The only thing it would apply to in my area would be noncommercial aircraft and long production period property. I reviewed the Sec 105 (P.L. 109-135) which included the Wilma Go Zone but only for an additional year. Do you have any suggestions or something written I can reference that basically excludes the Wilma GO Zone. I noted that the extension of time for the "GO Zone" covered an area where 2005 hurricanes damaged more than 60% of the housing units in the county or parish - this wouldn't cover any Florida counties that I am aware of. But he reads this as an extender (of time) not a limiter (of area). Is there a publication (other than Pub 4492) or something written that you know of that specifically states the "GO Zone". I thought Pub. 4492 was sufficient - but I guess not.

Thanks for any help.

FLAEA

FLAEA 11:40, 21 September 2007 (CDT)

Multistate LLC paid other state taxes on behalf of partner

Excellent job detailing the requirements of composite returns... thanks; I've always wondered how this worked with my attorney clients with out of state income who elected to sign off to have their income included in the composite filing.

}}}} {{{{

Go Zone

Thank you for your recent response to my Go Zone message! Just wanted to follow up with you to let you know that after further research, another memo to the CPA and a reinteration that I respectfully disagreed with his application of the special depreciation to the Wilma GO Zone, he emailed a response after a few days to state that he was in agreement with me and would notify his client likewise. My client called me to tell me that while he was disappointed he couldn't use this great deduction they were counting on - he was thankful I kept him out of hot water and let him know before he started. I appreciate being able to bounce my thoughts off of you and was glad I was correct in my interpretation. Thanks for taking the time with me.  :}

FLAEA 17:05, 30 September 2007 (CDT)

Guaranteed Payments in an Investment Partnership

I will try this again. Can an investment partnership with just dividend income capital gains etc pay a guaranteed payment to a partner and take a decduction as an ordinary business expense. There are multiple family partners but only one receives guaranteed payments so that the partners get an ordinary loss and dividend and capital gain pass through. How will I find your response. Bob Fendrick bobfend@bellsouth.net Bobfend 14:54, 1 October 2007 (CDT)

Thank you Katie. This is a cumbersome way of communicating. My email is mw@irsos.com. I have only been on this board a few days. I am on MTM a lot.

Filing separate return

Hello Katie,

If you have a chance, could you reply to my post on "Filing separate return"? Either directly on the board or to me personally. Thanks. Skhyatt 00:00, 4 November 2007 (CDT)