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I put a blank cassette tape in my tape stereo last night and turned the volume all the way up....the mime next door went nuts!

That's the only reason I mentioned it

Very well stated!!!

Disagree with Jack. If you intended to be unmarried, and did not sleep under the same roof as your spouse for ANY night of the year, you were separated all year. Millitary deployment, hospital stays, etc do not count for anything in this situation. Did he spend 1 night under thse same roof as her is the only question. Tom Hollister, CA

Well that makes sense. I use several different devices and had wondered why I see this inconsistent behavior among them. Now I know.

Use form 8949 and click on the "Sale Principal Residence" worksheet. Here you can account for the depreciation of the rental and put in the days of non-qualified use as a residence. It will prorate the Sec 121 exclusion and carry the proper amounts to the form with codes appearing in col f indicating what was done. No need for 4797.

Another point: SS income, whether for disability or not, will be taxed at 85% if he does MFS. All SS income is subject to tax if other taxable income is high enough. On the other hand, Veterans Disability (not Social Security) income is not taxed. Be sure you know the difference, and be sure he knows what he is telling you.

I am not sure how the MFS comes into play here, unless there are children involved. You always have the choice to file MFS, but just watch for the itemized rule (if spouse itemized, you must also itemize). Generally, filing a tax court petition does not get you to tax court. What you get is a very advanced auditor who will review the case and try to settle. I have had 4 of my clients file a tax court petition and none of them went to court. Everything settled out in the tax payer's favor every time. However, I did have rock solid documentation every time and the issue was that the the clients did not respond in time to other notices, and the tax amount due was really not in question. I would definately preserve the ability to go to tax court by having the client file the petition. It is only a $60 fee and you preserve all of his rights. But first, make sure that the tax return as filed is correct. This is the most important thing. The IRS cannot arbitrarily change his filing status, so if the return is correct and filed as MFS, this should be a no change review that will save him $1,100, minus the filing fee and your bill. But something is bothering me about the facts as you have laid them out. I would look very carefully at the 2011 return. It doesn't sound right that the IRS only changed his filing status. Good Luck. Tom Hollister, CA

I think I'll just stay within driving distance of home.