jasdlm

Wow. Thanks, both of you. I have some work to do.

I have done this client's taxes for several years. This year, among the usual information he drops off, there are stubs from checks totaling over $30,000, payable to him. He is out of town; wife says these are 'factoring' checks from his brother in law's company. The checks are each attached to a sheet entitled 'factoring schedule'. It lists 'amount of invoice, which is huge in each case (around $150,000), 'factored principle', which is around $7,500, and 'amount of invoice advanced', which is the amount that matches the check stub. If this is income, it's a large amount of untaxed income, I'm assuming, and my client is going to be in for a big surprise. If it's not income, what is it? Thanks in advance.

Why wouldn't it be subject to SE tax? What am I missing?

I was completely done with the return with the exception of the rental, but I think, JohnH, that your solution is the only viable one. Thanks, all.

This was rollover data. It was there initially, but it has, literally, vanished. I've tried closing and repoening (without saving), and I've tried clicking around. Aaargh! This is so frustrating. Not how I want to spend my time.

Literally . . . the 'asset entry' screen, all prior depreciation, etc. is simply gone. A blank 4562 is still there. I can't even re-enter the information, because it won't let me back to an 'asset entry' screen. I've tried adding a Schedule E, a Schedule C, anything I can think of to get the Asset Entry screen, but it won't come up. Has anyone experienced this before? Aaargh!

Thanks so much, gentlemen. I just received the bankruptcy filing faxed from the Courthouse. I feel like an idiot for not thinking of it. Thanks again for your great help.

Client dropped off tax information; included nothing on rental house (has owned since I've been doing return) so I called. Client said the house was 'lost in bankruptcy . . . maybe sometime in May'. No more information (except that no rent was received for the year). I called the bankruptcy attorney, who said 'just show it at 0, because they were upside down in it anyway'. Great. That's helpful. I started to explain about basis not equaling debt, etc., and gave up. Questions: 1) I have no idea what 'value' to use for the disposition. I did some reading which indicated that the total value of the 'sale' would be the auction price less legal fees. To my knowledge (and from what I can find out from the TP and attorney), there has been no 'auction'. According to the County's website, the house is still owned by Wells Fargo. Any ideas on how I can close this out? TP is going to be shocked to find out she owes tax. 2) My guess is it will take a few years for the 1099C to roll around. I guess I should just warn TP about it and deal with it when it comes? Thanks for all advice.

Client 'thought' if he was in 15% tax bracket, his Cap Gain tax rate was 0 (sort of true) so he realized a $500,000 gain thinking he was getting one over on the Feds. Now wants me to fix it. (He doesn't want to pay $75,000 in tax!) I told him there wasn't anything I could do, but he told me to 'think about it' for a few days and then get back with him. ***Sigh*** I guess I'll lie awake at night waiting for a brainstorm.

Thanks much.

I don't have any clients who qualify for EIC, so I'm not very familiar with the calculations, qualififications, etc. I am trying to help a student (struggling single Mom), pro bono, of course. She only has $1,512 in W2 income and 1 child. She brought me (along with her W2) a list that appears to be from SRS itemizing the monthly cash assistance payments she received in 2007. Is this relevant to the EIC calculation? I can't figure out why she brought this list to me. If someone who does work with EIC has a quick answer, it's much appreciated. Thanks.

Thanks! I'm going to give it a try.

I'm locked out of my account, also, and the 800 number is just constantly busy. Joanmcq, did you get any help? If so, is it by chance a universal fix that you could share? Thanks. jas

Thanks, all. Very sound advice, as usual.

I just renewed my ATX software yesterday; I have been dragging my feet and playing with other software for months, but the calendar kept moving and forced my hand. I did not find any other software that had a comparable price that I was comfortable with. I did quite a bit with the Drake 2006 software thinking I would use it, but I never did get comfortable with it. I don't think I can, during the busiest time, handle a software that doesn't allow me to prepare a return directly from the form. I didn't mind the Dos look/feel, but the inability to 'bunny hop' and start with the form ultimately made my decision. Of course, it took all day yesterday to get my transaction completed with ATX, and they still haven't been able to manage to send me my installation code. So much for the disk they sent out early which was suppose to allow us to make a last minute decision. ***Sigh*** No point to my rant; but I feel better.

A note: I have read the information on 1040H, but my client has 3 full-time employees and he is withholding Federal/State taxes from their checks. It doesn't seem to me that 1040H is the best way to handle this. Again, any advice is appreciated.

Client is a new client. He is paying people round the clock to care for his disabled wife. In reviewing his year-end information and preparing W2s, W3s, 941, etc., I discovered that the EIN he is planning to use (just started paying people 4th quarter after bringing wife home from nursing home) is the EIN of an S-Corp he use to run some consulting business through. I think that I need to apply online for a new EIN before preparing the required documents. This is the first time I've ever had a client with household employees who were not independent contractors. Any advice would be appreciated. Thanks. jas