jasdlm

I'm confused. I thought the 2 year period began with the 1st day the TP contributed to the Simple. What does the reallocation to money market in April 2005 change?

Sorry . . . not tracking tonight.

It's funny how different we all are. I have been calling clients I haven't seen yet to encourage them to get their stuff to me ASAP. I try to file as few extensions as possible . . . perhaps I should switch methods!

Thanks so much!

Client has a visiting professorship in another State this academic year. Left in September and will return in early July. Client rented his house (for far less than market rent) Sept - Dec (and actually through June 08) mostly to have someone living in the house. Client is living in a faculty apartment at the University he is visiting.

Is there any legitimate way to report this income other than Schedule E? Client has mortgage interest deductions and property tax but no other expenses (other than $100,000 remodel that he wants to deduct, but we've already crossed that "NO" bridge).

I really don't want to apportion RE tax, Mortgage interest, etc. and do depreciation if I don't have to, but I don't want to do something that's not legitimate.

I'm really tired; this is probably just wishful thinking.

Thanks for your thoughts.

Pacun, that is funny.

Glad to have a chuckle this morning.

They can't file MFJ. Attorneys (I can say this because I am one) often fail to consult outside professionals when they are working in an area they 'think' they understand.

Sheesh!

If it goes on schedule A, wouldn't it be subject to 2% adjusted gross? That doesn't seem right in this case. I'll get the instructions for schedule A and Line 21 and see what I can figure out. Thanks to both of you for responding.

Rock Chalk, Jayhawk! I actually took my kids downtown last night. They loved every minute of it . . . especially my 2 year old. (Left before it got too wild, of course.)

Client's wife died, and client is receiving pension from Wife's employment. Gov't accidentally paid client initially for his wife's death benefit AND the death benefit of another unrelated person with a similar social security number. OPM called my client, explained that he had been overpaid, and suggested that they take the money back over 36 months out of his current monthly survivor benefit. No interest charged by the Gov't. Client agreed.

1099 shows entire amount paid (including overpayment). Where should I show the amount my client has actually paid back as a deduction?

Thanks.

Thanks for the suggestion. So, jkl, are you agreeing that the depreciation should not be recapped at this time?

Thanks.

I live in Lawrence. It was wild here last night. Why do they have the Final 4 during tax season?

Rock Chalk!

I am trying to do a return where, for the first time since I've been practicing, I am converting assets currently being depreciated to personal use. I used the disposition tab, chose the 'converting to personal use' option, and entered the original basis as the sales price (thinking that this would recapture the depreciation, which is all I think I have to do).

The depreciation recap is not flowing through to the 1040. I have tried to research the issue and am not coming up with much (read IRS pubs, etc.).

I asked the CPA downstairs who said he wasn't sure, but perhaps the depreciation shouldn't be recapped until the TP actually sells or disposes of the property. If that is the case, is the IRS going to question why next year there is no depreciation but no sale/recap has come through?

Thanks in advance for any advice.

Is it secured by real property? His primary residence or second home? How much is the principal on the line of credit?

Bump

I just got disconnected from the tech support hold cue after holding for a very long time. Blip . . . it just cut me off. I can't e-file (some 'contact your ATX administrator' error), I can't get on myatx, and the phone recording keeps telling me to go online for tech help, but I can't, because when I click the link, it takes me to the log in page and tells me to contact ATX.

I am so grouchy that I want to say things that aren't nice at all.

I'm going to dinner.

Does anyone know what happened to the bill that passed the house, I think, in 2006 regarding artists being able to donate their work and deduct the fair market value rather than their material cost?

I've tried googling but haven't found anything.

Thanks.

'ATXTech who has asked questions/solicited information but has not actually answered a single question asked at this point'.

3 people posting on this thread today who are new to the site (as of today) and have posted only on this thread.

Anyone suspicious?

Client has been doing his own taxes on turbo tax. Wife died in early 2007 and he came to me. Now I am doing taxes for 2007. He has been filing a Schedule F (Horses) every year. The years I have copies of show $12,000 to $16,000 losses and 0 income. This year he actually has $1200 income from a horse sale. However, after discussion, he has decided that it really is a hobby, he has no intention of working hard enough to make a profit, etc., so I am trying to convert the assets to personal use.

Problem(s): He can't get turbotax to give him a depreciation schedule (which means nothing to him, anyway). What I was finally able to get was a list of the 4 assets on the schedule, the date each was placed in service, the original basis, and the depreciation allowed for the 2006 tax year. It reads as follows:

ArtCat Sprayer 7/1/2003 $6,662 $1,110

Metal Building 6/1/2005 $33,594 $6,427

Breeding Stock 10/08/2005 $490 $184

Computer 2/1/2000 $2,162 0

The computer is easy. I think I can figure out the ArtCat Sprayer (don't even know what one is, but I hope it has a 5 year class life). I'm struggling with the metal building. How could the depreciation be $6,427 in 2006? I'm not sure how to enter this.

Breeding Stock. Not sure what to do here, either. He has no idea what animals are included in this category. (I think his wife must have done the return.) I really don't think client can give me any more information.

Any suggestions? I haven't done this before, and I'm pretty confused.

Thanks.

What a great way to start the 'final countdown'.

IRS pub 936

From IRS FAQ on Stimulus Payments:

Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

A. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. This includes situations where a person dies after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. Any issues or concerns involving a decedent's filed return or the related stimulus payment should be addressed by the legal representative of the decedent's estate. See Publication 559 for more useful information for survivors and personal representatives. [updated 3/17/08]

***

Looks to me like they're going to issue the check in the decedent's name, no matter what, and that at that point you can return the check along with 1310 to request reissuance in name of estate so Executrix can endorse. Sheesh . . . sounds like a real pain. Does anyone else have differing information? It sounds like all of us who have clients who died leaving spouses are going to have to go through this charade, also, as the checks will be issued jointly. Please somebody tell me I'm wrong.

From Publication 559:

Form 1310. Generally, a person who is filing a return for a decedent and claiming a refund must file Form 1310 with the return. However, if the person claiming the refund is a surviving spouse filing a joint return with the decedent, or a court-appointed or certified personal representative filing an original return for the decedent, Form 1310 is not needed. The personal representative must attach to the return a copy of the court certificate showing that he or she was appointed the personal representative.

If the personal representative is filing a claim for refund on Form 1040X, Amended U.S. Individual Income Tax Return, or Form 843, Claim for Refund and Request for Abatement, and the court certificate has already been filed with the IRS, attach Form 1310 and write “Certificate Previously Filed” at the bottom of the form.

***

At the end of the pub, it does say the final return can be efiled by the executor; it doesn't say anything about how you get the Court appointment that is supposed to be attached to the return in that situation. I agree with JKL . . . efile it, and attached the Letters Testamentary to your 8879 for your records.

I don't think that you need the 1310. You need to attach a Court Certified copy of the Letters Testamentary to the return. Executrix signs the return.

Janitor Bob -

Powers of Attorney are void at the death of the grantor (of the POA).

Can she sign as personal representative? Does she have letters testamentary?