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LIKE. (I am still out of likes from yesterday.) Also, what Jack said. She's staying in it, and I'm guessing it's not a deep spiritual conviction going on, and hoping you rescue her. Sometimes you gotta rescue yourself.

You are quite a gentleman. Well, yes, we ARE exhausted, and my mouthiness was due in part to a woman wasting 30 minutes of my time yesterday complaining about having to report $19,200 in alimony, how awful her ex-husband is that he STILL had not paid all of HER medical bills, how she has never had a job or dealt with taxes (like that's his fault), blah, blah, blah. And, yeah, he also pays child support. She was in here, because her landlord, Jessica, was trying to do her tax return for her, and Jessica does not think alimony is taxable. True story. And then, sometimes I am just mouthy for no good reason.

I don't like yellow warnings....I get enough of those from my dogs when I get busy and forget to let them out.

Yes and then the IRS will audit her. It is not who files first: The rule is that if your spouse itemizes, you have to itemize.

Me: "Ummm....In my professional opinion, it is because you are single with no dependents and, according to your W-2, you are claiming 12 exemptions....and thus, having almost zero Fed taxes withheld from your pay." Stinky Sam: "Oh yeah...I did do that...needed money to by me a home-brewing kit...last Spring...guess I forgot to change it back". "I guess now I gotta pipe the pooper." Me: "You mean pay the piper" Stinky Sam: "No....pipe the pooper....I gots a clog in my porcelain alter...time to get out my snake" "Later Bob!" Some days, I think I have it all figured out. Other days, I'm just glad my pooper is not clogged.

Ken, you are a compassionate man. And clearly trying to help each one of your clients deal with tough situations, as we all are. This year I've had crying, complaining, whining, and thankfully a lot of laughing going on in our office. I too have had my Betty White moments this morning. But now that I've had my candy bar and coffee, I'm back.

you feel uncortable because you have high ethical standards...that's what separates us from the "I'll claim anything to keep a client" preparer down the street that is a jerk with fake hair that does not clean up after his dog when it poops on your sidewalk.

Only thing to do for her is to get her to pay estimated taxes so she isn't hit with a big bill year after year. And for yourself, stay on top of the "innocent spouse" rules as I would not be at all surprised to see those come into play at some point. Finances kept this secret is a BIG red warning flag.

Then you can't use exception 3 by entering directly on sch D. You can use exception 1 that allows you to enter the summary totals on 8949 and attach a pdf of the broker statement or mail it in with the 8453.

I am glad to hear that. As you know the best tech support is the one you don't use. So my tech support has been better. I haven't used them for two years in a row. I hope it will continue for the rest of tax season.

You'll want to use exception 1 or exception 3 or possibly both. If the basis was provided to the IRS use exception 3. Enter the short term and long term totals directly to Sch D line 1a/8a. If the basis was not provided to the IRS, but you have a statement containing all the same information in a similar format use exception 1. The IRS even has an adjustment code for you to use to indicate you are doing this - code M. The statement is then either mailed with 8453 or attach as a PDF to the return. If you have some that do have basis reported to the IRS and some that don't, you can use both exceptions. Enter on 1a/8a the ones that have basis reported to the IRS. Nothing else needs to go to the IRS for those ones. Then use exception 1 and mail or attach the statement for the rest.

The outpouring of sympathy and reaching out with help that is being posted here makes me proud to be a member of this board.

Sorry to come in so late to the party, but I think Catherine is right on the money. I see it as two different possible explanations: 1. The bank did not sell the home, listed the FMV and issued the 1099 in error 2. The bank did sell the home for 200K and issued the 1099 in error. If this were my client, I would ask them to call the lender and get an explanation, and try to get them to correct the 1099 (yeah, I know, good luck with that and let me know how that works out for you). But it is part of the due dillegence process before you advise your client to take a position on a tax return. If the lender is not taking calls or is uncooperative, then a call to a congressman up for re-election might help. If it was my client and they could not get a clear explanation from the bank, I would show the home sold for 200K as per the 1099A, and include the 1099C on Line 21, and then zero it out on line 21 as well with an explanation "incorrect 1099 issued by bank". Document the position, wait for the letter, and explain it to the IRS in 2 years. It seems very strange to me that the dollar amounts were exactly round numbers? Is that you just making up numbers for illustrative purposes or was the exact FMV listed as $200,000.00? Just my take on this. Tom Hollister, CA

FWIW, I updated and have had no problems. I'm a one man shop so no server issues. An update or two ago, my sluggish performance issues diminished considerably. Hope it continues. Now, if I could just get a similar update for me!

It worked. You are my hero. Oh, yeah the reports go to Santa, I'm pretty sure.

Sometimes, Excel 97 will cause my computer to hang up. Cursor won't work in any other open applications, and it does weird things in Excel itself. The only thing I know to do is the "Three-Finger Salute" (Ctrl-Alt-Del), which gets me to the Task Manager and I have to manually shut it down, then reboot. Even the shutdown takes a couple of extra steps becaue of how Excel scrambles the computer's brains. I don't bother to report it because MS just slaps my hand & says I'm using ancient software (like I didn't know that already). I'm not suggesting you actually do that in your situation, unless someone here who is more knowledgeable than I happens to step in and recommend it in your case.

Maybe offer her the number of the local hotline for abused women. At least she could have someone to talk with to ponder options. Is she foreign? A 'bought' bride? I think she sounds like an 'economic slave.' But it seems as if she has resources (she has a job so has some skill set) and could make it on her own with a little help from agencies. It's sad when one sees situations that are detrimental and ongoing. Sometimes, though, the involved person hasn't yet reached their bottom so won't make the decision to change the course of their lives. Just keep being a supportive person, JB, within your professional limits. It seems she has few folks in her corner.

Or she could have been in the Vanguard Total Stock Market and she would have been guaranteed to do as well as the average of the US stock market. Fees would have been pennies on the dollar ($1.70 per thousand, to be exact), and she would have been exposed to zero decision-making risk, only market risk.

Yes - we have that on the agenda for the discussion with her. One of the nice parts of doing this with your spouse, is that if there is a need for a man-to-man or woman-to-woman or couple-to-couple discussion, we are all set up to handle it. My wife will be taking this one!

She was not "willing" to pay anything...this little old lady did not even know this activity in her investment account was happening....These gains increased her wealth on paper, but they also took her $227 refund and turned it into a $984 balance due. Sure, part of her is happy that her investments are worth more, but she did not anticipate nor does she have the funds to cover her $984 tax bill....regardless of how much of a fee I deserve...or think I deserve, I cannot and will not do that to her.

You are correct, there are tax laws that define the tax treatment, and part of the tax law says that if both parties to the divorce agree that it isn't alimony, then it isn't taxable to the recipient and isn't deductible by the payer. Divorce lawyers aren't writing tax law, they are merely utilizing it as a tool. I don't have a problem with that.

Thanks Rita. I think we are all exhausted. This has been a very "hard" season to date, not like last year where it was based on the software, but this year where the economy is really draining on people. I know my patience is being tested!

If the 2% threshold wipes it out, I put it on. No actual deduction, but the taxpayer thinks "I got to claim it." Usually, these same people end up with standard deductions. I print the Sch A and the taxpayer thinks they put one over on the IRS. None of those types ever look at the back of the 1040 to see the actual deduction, they just look to see if it is "claimed" on the return. I wish I could experience the sensation of living and being that clueless about everything.

I have found that in most cases with the 2.5% of gross; they usually don't actually get the deduction anyway. Of course, it is the ethics thing for us.

I wish somebody would nail me with $30,960.

If the return auto- saves while you're typing, it wipes out the cell. I had to set the auto save to less often because it was driving me crazy.

As long as the foreign tax paid is less than $300, just enter it in the box and DONT enter date sole or any of that other stuff, and it will flow directly to the line on the 1040. New for this year; no fussing around needed.

Use "Other country" and enter 12/31/13 as the date. The $33 will show on pg 2 of the 1040 without producing the 1116. If it does, just delete the form and make sure the $33 FTC remains on the 1040.

Thanks....I read that as well. I have never sent an attachment along with the e-file...Is it difficult?...any more so with larger files? I may just mail it with the 8453.

Have her file before him....using the standard deduction . Then he'll have to file the same way.

Poison might work

I have run out of my allotted "likes" for the day, or I would "like" both Tom's and Bob's last posts to the power of 10,000 suns. We are all family here, I really would love to hand out "likes" much more liberally, but they are in short supply, I guess. Wait, here are some smileys:

He needs to add "for the convenience of the employer" and he should be OK. The employer will be happy to provide that letter since they don't have an office.

RitaB...of course it was....as your posts always are....I'll give you love any day! ....I'm still sleeping in the doghouse tonight aren't I?

This lady does not have that kind of money.....and while a nice fee it would make, I do not have that much time. She also smart enough to know that she could go elsewhere and find someone to do it the cheaper "summary" method I also do not want her to have a heart attack in my office. ...also she always brings me cookies

I love you more. And no, the numbers were not $200K, they were $218,866.37. Now I will have to kill you since you got that out of me, you sweet talker.

I am so sorry to hear of your losses. I am in Hollister. Work my day job in Gilroy. My wife Patty is a CTEC preparer as well. She may have 1-2 days a week to work for you if that could help. She is in our Lodi office Tues and Wed. We travel to Lodi and Fresno on Saturday's. But we may be able to give you enough help to get you through this tough time. Distance is very managable for us. Let me know if you want to go to lunch and discuss. I work right off Leavesly Road in Gilroy. We could meet at Black Bear Diner, Denny's or Chevy's. Send me an e-mail or PM me if you are in need. Thomas R. Carlson, MST, EA [email protected] (831) 635-9414

I would carry a solar calculator. And a mechanical pencil.