http://www.nnseek.com/e/misc.taxes.moderated/ Posts for misc.taxes.moderated Mon, 21 Jul 2008 07:24:17 PDT http://www.nnseek.com/ http://www.nnseek.com/img/64.png 64 64 NNSeek http://www.nnseek.com/e/misc.taxes.moderated/cch_tax_news_headlines_july_21_2008_108530762t.html http://www.nnseek.com/e/misc.taxes.moderated/cch_tax_news_headlines_july_21_2008_108530762t.html
Access topics here: http://tax.cchgroup.com/news/headlines/2008/nws72108.htm#1

FEDERAL NEWS
IRS Commissioner Studying Controversial Private Collection Initiative
(IR-2008-90)

IRS Referrals of Criminal Tax Investigations at Eight-Year High

STATE NEWS
California --Multiple Taxes: Relief Available to Taxpayers Affected by
Fires, Floods in Inyo County

Wisconsin --Multiple Taxes: Flood Relief Deadlines Extended

Missed a headline? Review last week's tax news -


http://tax.cchgroup.com/NewsHeadlines/default.htm?NRMODE=Published&PageID=4&NRORIGINALURL...

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]]> Mon, 21 Jul 2008 07:24:17 PDT http://www.nnseek.com/e/misc.taxes.moderated/buy_and_sell_rules_108406602t.html http://www.nnseek.com/e/misc.taxes.moderated/buy_and_sell_rules_108406602t.html and selling all as one transaction. Thus, it doesn't
matter if I was using FIFO, designated lots, or any
other method.

Right now I want to sell some partial lots of various
stocks. I'd like to use FIFO for one because it will
generate a long-term capital loss and designated lots
on another because it will create a minimum long-term
capital gain.

My question is may I pick and choose the accounting
method per stock or must I be consistent across stocks?

Dick

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]]> Sat, 19 Jul 2008 18:26:35 PDT http://www.nnseek.com/e/misc.taxes.moderated/questions_re_treatment_of_long_term_capital_gains_on_108389194t.html http://www.nnseek.com/e/misc.taxes.moderated/questions_re_treatment_of_long_term_capital_gains_on_108389194t.html on long term capital gains for the sale of the home they have lived in
for over two years.

If one should die, am I correct to assume that the surviving spouse
will now only be entitled to only a $250,000 deduction of the capital
gains?

Also if a person inherits a home what determines the adjusted cost
basis for their inherited property should they live in the house for
two years and then decide to sell the house?

Thanks for your help!

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]]> Sat, 19 Jul 2008 10:47:26 PDT http://www.nnseek.com/e/misc.taxes.moderated/_1040ez_exemption_108355914t.html http://www.nnseek.com/e/misc.taxes.moderated/_1040ez_exemption_108355914t.html dependents and take the 8 thousand dollar option how many exemptions
total do you have?

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]]> Fri, 18 Jul 2008 21:55:08 PDT http://www.nnseek.com/e/misc.taxes.moderated/changing_decision_to_amortize_bond_premium_108341834t.html http://www.nnseek.com/e/misc.taxes.moderated/changing_decision_to_amortize_bond_premium_108341834t.html premium.

According to IRS publication 550:

"You can change your decision to amortize bond premium only with the
written approval of the IRS. To request approval, use Form 3115,
Application for Change in Accounting Method."

I

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]]> Fri, 18 Jul 2008 17:29:12 PDT http://www.nnseek.com/e/misc.taxes.moderated/cch_tax_news_headlines_july_18_2008_108301386t.html http://www.nnseek.com/e/misc.taxes.moderated/cch_tax_news_headlines_july_18_2008_108301386t.html
Acces the headlines here: http://tax.cchgroup.com/news/headlines/2008/nws71808.htm#1

FEDERAL NEWS
Levin, Subcommittee Find Extensive Tax Evasion Using Offshore Tax
Havens

Applicable Federal Rates for August 2008 Released (Rev. Rul. 2008-43)

STATE NEWS
New Mexico --Personal Income, Sales and Use Taxes: Governor Proposes
C.A.R.E. Package

North Carolina --Multiple Taxes: Budget Bill Enacted; Provisions
Address Bonus Depreciation, Credits

Missed a headline? Review last week's tax news -
http://tax.cchgroup.com/NewsHeadlines/default.asp?PageID=4

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]]> Fri, 18 Jul 2008 07:45:30 PDT http://www.nnseek.com/e/misc.taxes.moderated/short_term_loss_rules_today_108297290t.html http://www.nnseek.com/e/misc.taxes.moderated/short_term_loss_rules_today_108297290t.html term gains, still offset ordinary income dollar
for dollar up to $3000? Or is it some other rule
today.

I'm wondering if it's worth selling before a year
to protect the short-term nature of the loss.

I've been out of this for two decades and who
knows what's been changed.
--
rhhardin@mindspring.com

On the internet, nobody knows you're a jerk.

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]]> Fri, 18 Jul 2008 06:21:38 PDT http://www.nnseek.com/e/misc.taxes.moderated/cch_taxnews_headlines_july_17_2008_108197194t.html http://www.nnseek.com/e/misc.taxes.moderated/cch_taxnews_headlines_july_17_2008_108197194t.html
Access the below listed topics here: http://tax.cchgroup.com/news/headlines/2008/nws71708.htm#1

FEDERAL NEWS
Fannie Mae, Freddie Mac Reforms Could Be Added to Housing Bill

IRS Proposes Amendments to Regulations Governing Stock Option
Transfer Reporting (NPRM REG-103146-08)

Proposed Regulations Issued on Comparable Contributions to HSAs and
Excise Tax Return Requirements (REG-120476-07)

STATE NEWS
All States --Sales and Use Tax: 2008 Sales Tax Holidays Just Around
the Corner

Missed a headline? Review last week's tax news -
http://tax.cchgroup.com/NewsHeadlines/default.asp?PageID=4

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]]> Thu, 17 Jul 2008 08:00:14 PDT http://www.nnseek.com/e/misc.taxes.moderated/tax_implications_of_llc_corp_member_removal_108142922t.html http://www.nnseek.com/e/misc.taxes.moderated/tax_implications_of_llc_corp_member_removal_108142922t.html
Nuts & bolts...

Own a Cafe with a 50/50%% partner (LLC)
Own the building/Land for which Cafe resides on with same 50/50%%
partner (S-Corp)
Own another commercial rental property with same 50/50%% partner

All business is being done in the state of Connecticut.
Partner and I have decided to divorce on all business dealings.
Agreement as follows:

I will buyout partenr on Cafe (LLC) and Building/Land (Corp) for
$50,000.00
$15,000.00 Cash, and $1,000.00 per/month for 35 months (Promissary
note, 3rd position on Building/land)(The Corp)

I will also "transfer" my interest in the commercial rental property
to partner.

The Bank holding the 1st & 2nd mortgage on the building/land (corp)
has agreed to "remove" partner from
mortgages.

Private note holder for the commercial rental property has agreed to
remove my name from that privately held note.

I have an attorney that has drafted documents that will/would
accomplish the above.
In those documents there is no specific mention of capitol gains
taxes, only that each partner will be responsible
for any and all debts associated with this transaction.

My question is:

Does anyone know if the IRS will view these transactions as a buy/sell
where by capitol gains, or for that matter, any other tax
implication(s) may affect us at closing?

Basically, we are removing my partners name from LLC and Corp, and I
am removing my name from privately held mortgage on commercial
property.


Thanks in advance for any replies...

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]]> Wed, 16 Jul 2008 16:28:23 PDT http://www.nnseek.com/e/misc.taxes.moderated/how_to_tax_a_nonprofit_108137546t.html http://www.nnseek.com/e/misc.taxes.moderated/how_to_tax_a_nonprofit_108137546t.html protect the participants, but I assure you that the facts as stated
are accurate.

There is a very old organization that was chartered by the Maryland
legislature on February 8, 1822 - YES, that date is correct 02/08/1822
- Long before MD SDAT ever existed.

It is a non-stock, non-profit organization that is NOT tax exempt.
I'll not get into why it isn't tax exempt, just accept that it is NOT
and NEVER will be tax exempt.

There are many local chapters of this group which have organized
(opened and closed) over the years. All of the local chapters come
under the care and guidance of the parent organization. None of the
local chapters are allowed to form via the Secretary of State nor are
they allowed to file for or obtain Federal or State ID numbers. I
know this sounds odd, but trust me this is allowed by the Maryland
when the parent organization formed back in 1822 - before we had all
the hoops we jump through now.

Many of these local chapters formed Holding Companies for the sole
purpose of owning the land and building where they held their
meetings. The vast majority of these holding companies are all
organized as nonstock, nonprofit entities and they all have Federal
and State ID numbers. NONE of these holding companies are tax exempt
- they do NOT enjoy 501(c)(3) status.

The local chapters owned their meeting houses but over the years
they've turned the real property over to the holding companies to
manage - I won't get into why so don't ask, just trust me that it is
perfectly legal.

The holding companies usually have very little income - they lease the
use of the buildings back to the local chapters under a triple net
lease agreement, thereby shifting all the costs of operation back to
the local chapter. The local chapter is supported by dues and
donations from the membership.

Most of the local chapters and their associated holding companies have
had so little income that they have never, ever had to file an income
tax return. For the vast majority of these groups the income - income
is too strong a word, really - let's say the money that changes hands
- is in the $10,000 OR LESS per year range. So they have never filed
an income tax return because one was never required.

NOW we get to the meat of the problem -

One of the local holding companies has recently sold the building that
they owned. It was in a historic district and fetched a very nice
price for the group - just shy of $1,000,000 dollars. Here's the
problem -

The building that they sold was (supposedly) acquired in a tax free
exchange many years ago, but no one knows exactly when. There are no
documents supporting the exchange.

No one knows when the old building was acquired or what it cost. The
old building was owned by, controlled by or in the hands of (take your
pick) the local holding company for well over 100 years before it was
exchanged for the new building.

So -

I can do the math to calculate the gain - assuming I can find
something to use as basis -

BUT ON WHAT FORM DO WE REPORT THE GAIN AND PAY THE TAX?

Form 990 seems to be for tax exempt entities which this group is NOT.

They clearly are NOT an LLC or a partnership so 1065 is OUT -
Similarly, we can't use Form 1120S.

I always thought Form 1120 was for "For-Profit" corporations - which
this holding company is NOT! Also, as a side note, the group
understands that tax may be due on the gain, but they are hoping to
pay tax as long term capital gains and Form 1120 has NO SUCH provision
- C Corporations don't get the LTCG tax bracket break.

I don't really do much work in this area. And even though I'm an EA
and have been practicing for more than 25 years, for the life of me, I
cannot get my head around this one.

Any ideas or suggestions on what form to use to report the gain?

I'll answer the questions I can and try to explain why I can't answer
the ones I can't. While this is a well known organization, I am
trying my best to keep the players as confidential as I can.

I assure you that this issue is on the level,
Gene E. Utterback, EA, RFC, ABA
If you like, you may contact me off the NG at gene at alliancetax dot
com

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]]> Wed, 16 Jul 2008 14:12:39 PDT