jasdlm

Initial meeting at IRS center. Auditor kept my client waiting 53 minutes. Unreal. Client is more patient than I am. I probably would have left her a voicemail (my client left several) and made my exit.

Thanks for posting! I'll ask the clients.

Item in quickbooks is labelled 'Big IP Service' purchased from vendor FS Networks. Is this computer hardware (depreciate) or outside services? I know what an IP address is (sort of), but that's about it. Thanks. I'd really like to finish this 1065 . . . aaargh.

DISCLAIMER: I have never actually worked through one of these on a return . . . my clients have been fortunate. However, here is my understanding. Hopefully others will correct/supplement what I am saying. There are two aspects to this situation. First is the amount of debt cancellation. Subtract the Fair Market Value (as indicated on the form) from the amount of debt. If the debt exceeds FMV, she would report income from cancellation of debt on line 21 as other income if a 1099-C has been issued. However, I think you can wait to see if a 1099-C is issued before worrying about the 982. (i.e. 1099-A, in my understanding, is not equal to debt cancellation, so income does not need to be recognized for debt relief.) Ooops . . . in reading the facts again, the Fair Market Value is larger, so no income in this arena anyway. The second aspect is the deemed sale of the house. Subtract the adjusted basis from the smaller of the FMV or cancelled debt, which in your case is the cancelled debt. This is reported on Form 4797. Hope this is helpful. If I'm not correct, someone will jump on it!

Thanks so much to both of you!

Is there any way to populate the balance sheet on the client copy of the 1120S when gross receipts are under $250,000? I realize that you can print the balance sheet worksheet, and perhaps that's what I should do, but I was wondering if I'm missing some obvious toggle box. Thanks.

Dealer car?

Miscellaneous itemized deduction subject to 2%. I haven't seen anything that changes that.

Sound advice, as always, KC! I will make certain that my husband is also trained in this exit strategy. ;)

At the Sprint Center tomorrow night and Sunday afternoon. I am going to work like a trojan all night tonight, all day tomorrow, early Sunday morning, and maybe alll night Sunday night. I might regret it later (although I doubt it), but from 6:50 p.m. - 10:00 p.m. Saturday and 2:00 p.m. - 5:00 p.m. Sunday, I'm going to be sitting in the 2nd row catching dirt!! WooHoo!

Get a copy of the trust document. Sometimes the Trustee has discretion re: flow-through of capital gains. However, does not alleviate the need for a 1041/K1.

There is a website . . . www.transport1040.com . . . that seems address tax issues/benefits for Merchant Mariners. I know that you would want to do your own research, but hopefully this would give you a good start!

Rita . . . I feel your pain! I hope they didn't scream at you.

Bart . . . that's really funny! Thanks for making me laugh.

Thanks so much for all your moral support. I haven't mustered the energy to call him back yet. I'm too tired and grouchy, but I'll have to get over it and call soon. I just don't want to fight with him. Also, when something like this happens, I waste quite a bit of time searching publications, searching the internet, reading the form instructions, etc., thinking I must have missed something. Sheesh. Thanks again. I'm going to try to suck it up and call him back. I just finished 2 back to back meetings that went something like this . . . 'this is my W2 (hands W2); this is the interest I got on my bank account (hands 1099); this is . . . well, I'm not sure what this is, (and wastes time trying to read it and figure it out instead of just handing the whole stack over to me and leaving)' so I'm especially testy. Aaargh . . . I'm really a wicked witch today!

Client is screaming at me because I didn't include the long-time homebuyer's credit on his return. He did not buy a new home. He refinanced. He knows he is eligible for the credit. His bank told him so. (I actually saw the piece of paper the bank gave him. I can see why he thinks so . . . it's very misleading.) He's screaming at me because he 'refinanced for nothing'. (Didn't call me when he was actually refinancing, by the way.) He just left me another message. He says he has found something on the IRS website that says he qualifies. I printed off the little piece that is on the IRS website (the part that says purchase). He says that in a refinance transaction you actually sell your home back to the bank and then 're-purchase' it . . . hence the use of the word purchase. I don't want to call him back. If I'm missing anything glaring, someone please tell me. Thanks so much!

Can't think of a thing unless you are doing Father's 1041 or Father qualified as Son's dependent. Were you thinking of anything specific?

How do you enter the foreign tax credit for dividends paid by a mutual fund? You can't use 'various' for the date or the country, and it's not flowing through correctly. What am I missing? I'm sure this has been discussed before, but I have searched this website and the ATX site and can't come up with it. Apologies for the duplication. Thanks.

Seriously Michaelmars . . . you have a bar in your conference room?

Sorry, OldJack. I posted my 'don't trust anyone' message before I saw your 'my family is safe' post. Glad you've got it covered.

Please don't trust anyone but yourself with your daughter's/grandchildren's safety until the monster is dead or in a maximum security prison. Best to you. Listen to Eli.

You are already on return #201 for this season? Eeeegads!

I think that under IRC 197 you can amortize over 15 years. I also think that you can write off clients who 'leave' more quickly, but I don't know how you would go about tracking it.

Thanks to all. This board is the best tax resource there is.

Thanks, mircpa. Do you think the fix I've suggested is appropriate?