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StevenL

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  • State
    MI
  • Gender
    Male
  • Interests
    Detroit Tigers baseball.

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  1. Her daughter is handling her finances for her. She said the $26,000 was what she had for medical expenses. I will have double check, with her, but it is consistent to what she's had in the past. All this interest was reported on 1099-INT box 3 so with no medical or senior citizen exclusion it looks like she'll have to pay. Thanks everyone for your help.
  2. I think I know the answer to my question already but I figured I would put it on here and see if anyone with more knowledge than me would have a different answer. Any how, here goes: I have a senior citizen client (85 years old) in need of constant medical care. Last year she cashed in all of her savings bonds to the tune of $86,000 in interest to help pay her medical expenses (which only totaled $26,000). Is there anyway she can exclude all or some of the income on her tax return? If not she she will have a hefty tax bill to deal with. Thanks for your help.
  3. I've used a drop box for years. I think it is one of the best things I have ever done for my business as about 95% of my client take advantage of it. Then there"s the 5% who insist on sitting down and going through every single piece of paper...and it's the same ones every year. Anyways, I think it's a great ideal to give a discount to those who use the drop box. I will definitely consider it for next year!
  4. Could you please tell me, where on the 5329, you can waive the penalty? Thanks for your help.
  5. Thanks for all the replies and comments. In this situation, I'm most inclined to agree with Gail in Virginia and file the return without the penalty and request the waiver at that time. My client did write a rather pitiful letter that I plan to include with the return when I file it. I really hope it helps her in this situation as the penalty would amount to about $3500!
  6. Client has inherited Roth IRA from her father who passed away in 2008. She was not aware that she had to take RMD within 5 years and now faces possible 50% penalty. She would like to request a waiver of this penalty. Should she request the waiver when the return is filed with the penalty amount as part of the return or should we leave the penalty part off the return and wait until the IRS assesses the penalty before requesting the waiver? Your advise is greatly appreciated.
  7. Thanks for the replies. The total tuition was $45,233.00 (Fordham University), There was scholarships and grants totally $10,100.00, plus 1099-Q gross distribution of $9,300 so I agree with Gail that there is plenty of expenses left over for AOC. I just wanted to be sure. BTW: they're not eligible for the full AOC, due to income, but they will get a portion of it and with that kind of tuition every little bit helps!!
  8. Clients daughter has tuition expenses for $35,133.00 (after grants and scholarships). Client receive 1099-Q with $9,300 in gross distribution. Can he still claim the Education Credit? Thanks for your help.
  9. Does anyone know anything about binary options and how they are taxed? Would you consider it regular income, gambling income or capital gains? Some one asked me about this and I had never it heard of it. I did some research but couldn't find anything conclusive as to how it should be taxed. Thanks for your help. I greatly appreciate it.
  10. Thanks for all the great answers. I appreciate your help on this topic; but I'm still trying to determine if the IRS requires us to keep a copy of our clients identification and/or social security cards in our records. I've looked through Circular 230 but didn't see anything (but, knowing me, I probably read right past it and missed it completely! ) If there is such a requirement could someone please provide a link or let me know where I can find this information. Thanks again, for all your help!
  11. I have been preparing tax returns for about 18 years now and have not required my clients to provide any kind of identification or their social security card (except in certain situations i.e. EITC). However,now with all the problems with identity theft and increased IRS scrutiny of tax preparers I felt it would be best to start asking for picture ID and social security cards to verify client identities and to keep a copy with the clients records but I had a new client ask me why I needed a copy of her social security card because her previous preparers had not ask for this information and in fact, when I looked up IRS requirements for clients providing this information I found nothing that says we're required to provide it or that we have to ask for it. So I'm asking; do you require your clients to provide picture id and social security card and do you make copies of them to keep with their records? also does anyone know if the IRS requires us to get and keep this information from our clients? Thanks for your help
  12. They can call me or email me at: Steven LaForest LaForest Tax Service 313.274.5096 [email protected]
  13. Great! Schedule A...2% misc it is. Thanks again for your help!
  14. Thanks for the replies. There were no transactions for the business. He only applied for the LLC. He abandoned the business when he got a new job in his field.
  15. Hello Everyone, I have a client who tried going into business for himself in 2011 without any luck. He did incur expenses for filing for an LLC. He made no money on the business. He wants to deduct the expense for the LLC which I believe he can as a capital loss. The thing I'm not sure about is where would I report this loss on his tax return. Thanks for your help on this issue. I really appreciate it.
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