I have a proposal...

[DTS]

Would it be possible for us to participate in some sort of a group-study here on the board concerning entities (1120S, 1065, the mortgage interest limitation issue, etc) and very common problems that are associated with these entities?

We could start with the comprehensive examples in the TaxBook, complete them, then tweak them a bit, again and again, so many of these returns become second nature to many of us. Maybe, we could do an entity every week or every two weeks, whatever works for everyone. I don’t think I’m the only one who would benefit from something like this.

There should be some of the “heavyweights” such as Bees, Armando, Bob W, Old Jack, Matt Sova and Jainen, just to name a few (Sorry if I omitted anyone. It’s not my intention to offend anyone!!!) who would act as moderators. Each one could throw some problem at us that we could incorporate into these returns then tell us where we went wrong and why, what was right, etc. I know, for a fact, this will not work unless the moderators are there to participate. They are a must! We need the interaction so we learn the “why”.

I just thought I would get the discussion started with some random thoughts, see what’s possible. This off-season would be a great time to do something like this and I don’t think it would not take too much preparation on the moderators’ parts. I know we can come up with something that will work for everyone!

Thoughts?

Dennis

[Bees Knees]

It would be good to get opinions on any common situations not covered in the comprehensive examples. For example, maybe add a retirement plan to the example, like a SIMPLE IRA or SEP plan, to see how the various entities report the employer and employee contributions, and how to calculate the maximum amounts allowed for the owners contributions. Any other ideas on how to change the examples?

[DTS]

Bees Knees

We have to start somewhere. I will start with one of the plans you suggested. I will do a return and tell you what I did and the bottomline I came up with. Hopefully, all will be fine, but if it's not, you tell me where I went wrong??? Maybe, some others will jump in and critique, also.

Dennis

[oceanlovin'ea]

Count me in

I would be very willing to participate in something like that. I know I can use more practice on those kinds of returns, but haven't found the right way to get it.

I'll keep checking to see how you are going to do it.

Linda F

[BOB W]

Dennis.......

...... it is hard to know where to start.

S Corp returns are basically simple to do but the trial balance has to be ready with all info captured correctly.

Partnerships, on the other hand, can have the best trial balance ready to go but one may have to do many allocations to get the partnership capital accounts where they need to be.

Partnership LLC can get even more involved due to allocations that have nothing to do with percentage of ownership.

So where would it start, I don't know. Some may need bookkeeping/accounting help first. Like all tax returns, you need to know the catagories to be captured before you can setup a proper chart of accounts.

One thing is for sure, I never do an entity return and not complete page 4. Page 4 is how I make sure all is correct, not only for the current year, but previous and future years.

If this is a good start for what you are looking for, then great. If not, well, let someone else chime in.

[veritas]

I would like to participate after I get my final 30 some tax returns that are on extension done. And after the 16 hours of continuing education I have to get this month. That should make it about November.

[S T]

Study Group

I think it would be a great idea. So how to set up the problem, so we can try to complete a return and then post results so we find out if we are completing the returns correctly.

Dennis, where are you starting from. There has not been a common Tax Problem posted yet? Like Bob W stated where to start. We could just assume that the Accounting is correct for a start and have to produce a tax return. Use the examples in TB and add another tax issue.

shareholders or partner Basis problems would be good, loans from shareholders, etc. Also the retirement accounts.

Sandy

[DTS]

Starting point

I'm starting with the 1065. I'm slightly more familar with the partnership return than the other entities. They will be next.

I am trying to duplicate the return, then I will address page 4 as Bob noted. Right now, I'm just studying the example, using the information sheets provided in the example (like a client would give to me) and trying to incorporate it into my software so the numbers match. At that point, I'll add something as Bees suggested and see where it leads me.

Dennis

[Gretel]

What a great idea. I really, really would like to participate as well but won't have the time before July. I think any starting point is good and will lead us forward or backward. Meaning, it will show once we get going.

I am sure our real "professionals" will not let us down. It's too much fun for them to watch us struggle along. Just kidding.

So, Dennis, since you are the eager one: Can you hold off a little?

[DTS]

Gabriele

Yes, I can wait. What I will do is recreate the returns and save them in the program. It takes a little while to do this anyway. In July, I'll post and see if you're ready.

Dennis

[OldJack]

In the mean time take my poll 50% meal test.

[DTS]

Bees Knees

I am reconstructing the return for the partnership example. Every line on the 1065 and her personal are in. However, I am off on the Sch E by the $1,285 nonpassive loss. Everything is input correctly throughout, except for this.

Where is this coming from? I must have missed something, but really don't know where. Can you tell me?

Thank you,
Dennis

PS I found the answer in the other tab (corporations), as was suggested. When I looked at the K-1, I thought the $1,285 would be unreimbursed expenses. It is.