Michael T Wing CPA wrote:
- quote -

Then you probably wouldn't have liked my very first computer
25 years ago. It was a Radio Shack Model I with 1 k ram.

it has absolutely no lower case.

IT DID HAVE HOWEVER ONLY UPPER CASE.

The general ledger programs I started writing back then when
there was no commercial general ledger software still demand
UPPER CASE characters. I still use the general ledger
programs and payroll modules cause they're really fast.
And hardly ever notice when I mistakenly use a lower case
instead of UPPER CASE.

Cheer$,
Harlan Lunsford, EA n LA

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Okay, I'll go back and type using appropriate caps, thanks
for the feedback!

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Stuart O. Bronstein <spamtrap[at]lexregia.com> wrote:

- quote -

No. More likely I'm accusing his message of being difficult
to read. <g
MTW

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"Michael T Wing CPA" <mtwingcpa[at]yahoo.com> wrote:
- quote -

Are you accusing him of being shiftless?

Stu

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NumbersGuy46 <numbersguy46[at]aol.com> wrote:

- quote -

Is there something wrong with your Shift key?

MTW

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i have a client who switched from s to c corp on 1/1/03. at
12/31/02 the corp had a negative retained earnings of
$200,000. looks like the corp may end up with net income of
$400,000 for 2003. on 4/1/03, the corp's sole shareholder
sold 7,500 of his 10,000 shares back to the corp for $40 a
share. the sale agreement called for corporation to pay for
the shares over time, based on a formula tied to net income
earned by the corporation. also, an interest rate for the
unpaid balance was included in the sale agreement.

i believe that when a corp buys back shares from a
shareholder the money received by the shareholder is
considered dividend income, rather than capital gain, if the
coroporation has income not yet distributed.

my client will probably only received $15,000 or $20,000 in
year 2003, due to the formula used to pay him for his
shares. in this situation, does the $200,000 negative
retained earnings at 12/31/02 get used up first in
characterizing the income as either dividend or capital gain
to the shareholder?

under the new tax law, it appears that dividends will only
get taxed at same rate as capital gains until law sunsets in
year 2010 anyway. i believe this was an acceleration back
to 5/8/03 of law that was supposed to take effect in year
2006.

if the payments received under the stock repurchase plan
were considered dividend income, would payments received
after 5/8/03 be considered dividends, or is the 4/1/03
agreement date important?

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