jklcpa

I'm not suspicious of my clients at all. I've known them for over 25 yrs, from my previous firm & 13 yrs on my own. I haven't spoken with the employer yet, but he's supposedly very wealthy. I "think" that he's either to using his SS # on the W-2, or possibly a transposition in the EIN.

Handwritten W-2 (cringe) and originally EIN was missing, but was entered in the state block. Client contacted employer and employer verified this as the EIN. I really think it's the SS# and he's filing Sch H, but not sure. Client & 'er insisted this is the correct # though. Client says this employer is going to call me tomorrow. Why, he's not my client??? E-file was rejected due to EIN mismatch for this employer name. Not a surprise, is it? I did a reverse EIN match through an internet site, and EIN comes up with an emergency services group in TX. So then I did another search with portion of name & limited to state of Delaware. No matches. Now what??? Anything else I can try? If I paper file the return, will client get credit for the withholding with this EIN problem??? Any help here appreciated. Judy

jasdlm, I would use % method rather than days because in the situation described, others were also using the property on those same days as the daughter.

Yep, don't sweat something like that. There are many more technical issues that we probably all have to resolve in the next couple of weeks. Have a good night.

I finally just got a chance to look into this further. Pub 525 says that in my case, it should be reported as additional wages on line 7. ATX does have a worksheet to jump to that will detail this addition to the wages reported on the W-2s. I'm not e-filing this return, so I can add any kind of explanatory statement that I wish to. I just wish that the company had provided more details & instructions. Also, you seem to have received more in the way of instructions than my client did. If your plan's instructions direct you to report the ordinary income line 21, then you should follow that if you feel it is the correct reporting for your client's situation. I'm just so grateful to have this forum & know that others will respond during the busiest few weeks of our year. Good luck getting through and thanks for responding.

Overhead projectors, surround & popcorn. Thanks guys, I needed that laugh right about now!

Well, you've both got more than I received. I did lots of calcs & did tie into the amount of comp added to her W-2 for the disqualifying portion. That amount was only shown on her last pay stub, and was in her w-2, but w-2 didn't detail that out anywhere. I did receive lots of literature detailing how to calc on the qualifying portion, and it's very clear that, IN MY CASE anyway, that the ordinary income portion of the transaction is not in the W-2. But it didn't indicate whether to add this to line 7 as add'l comp or on line 21 as other income. That was my only hold up. Not that it matters much , as long as it gets on the return and taxed at ordinary rates.

Yes, group the assets by type (1245, 1250, land, personal) and allocate the selling price. Then report the sale by each type. You only need the bulk dispositions if >1 asset of a type (ex: building & then multiple improvements/renovations at different dates, or multiple appliance purchases). Otherwise, if just one asset in its type, just use the other disposition tab (not bulk).

I think I have the correct answer, but I'd just like some reassurance from others that have reported these transactions relating to shares acquired through an ESPP. It is a qualified plan. Client didn't meet the 2-yr holding requirement on some of the shares, therefore these were considered disqualifying disposition & the ordinary income portion of the transaction was included in the W-2 as compensation. Here's the part where my question arises: the shares where the client DID meet the 2-yr holding requirement and these are considered qualifying dispositions. The ordinary income portion of these transactions WAS NOT included in the W-2, but is taxable as ordinary income. I am going to report it as compensation on line 7 of the 1040 and enter the description on the backup worksheet as "Ordinary Income from ESPP, Qualifying Disposition, 2-yr holding period not met." Does this look correct, or am I completely off-track here? Thanks for any help or advice. Judy

Client works in NJ, lives in DE. Nonresident NJ was filed as married filing joint & also claimed daughter as exemption. Client just received a notice from NJ saying that the return claimed an exemption for Registered Domestic Partner & requesting the New Jersey Certificate of Domestic Partnership. Or if not the case, send back correspondence indicating that the return is in error. Huh??????? I noticed on the NJ Data input sheet, that there is a box for this, but it is unchecked. On the NJ1040NR, in the exemption area, "1" is entered in each box for the taxpayer & his spouse. Then just to the right of that, a "0" is appearing next to the word "Domestic Partner." I looked at this tp's '06 return, and that area was blank last year. ATX system put this "0" there, but maybe it should have been blank. Has anyone else received this notice yet? Just what we need - ATX making little marks in areas that should be blank and now client is receiving notice and telling the client that return is in error!!!!!

DOB is Jan 21, 1981. Dad brought info to me & hesitated on DOB, so I even confirmed with Mom And thanks for the responses. Does amending to claim EIC raise red flags? Seems pretty clear cut, but you know, when things just seem too easy ... I just didn't want to fall into any traps!

According to the NJ Division of Taxation's website only practitioners whose office is located within NJ are exempt from the separate application to e-file. Here's a cut & paste directly from their site: Registration How do I sign up to file electronically? A practitioner whose business is located outside the State of New Jersey is required to register for the NJ E-File Program with the New Jersey Division of Revenue. The registration form can be requested by calling (609) 633-1132 or by downloading the form from the Division of Revenue’s website at: www.state.nj.us/treasury/revenue/forms/elfreg.pdf. Practitioners whose businesses are located in New Jersey are no longer required to complete an initial registration. The Division of Revenue receives their registration information from the IRS. Here's the NJ Div of Taxation site: http://www.state.nj.us/treasury/revenue/ And here's the whole page that talks about e-file registration for practitioners (updated 12/31/07: http://www.state.nj.us/treasury/taxation/t...tm#Requirements

Grad student in medicine, age 27, single, claims own exemption & no one else can claim her. Tuition of $32K+ is paid by student loans each year. Lives on her own, but parents obviously give her $$ to help with living expenses. 2007 return: Wages $8,712 Divs 10 Tuition deduction: ( 4,000) AGI 4,722 Std ded ( 5,350) Exemption ( 3,400) Taxable income 0 She was 26 last year, return showed very similar $$. Previous preparer didn't take EIC. So this has me doubting EIC calcs on this return I'm doing are correct. ATX is coming up with EIC of $296. It looks to me like she is allowed this. Could someone who is comfortable with EIC please confirm? Thanks for any help.

Right, I say we all just stay here & be supportive of each other.

No, NJ has their own application for e-filing.

Unless the client or broker can supply you with a summary, don't create your own spreadsheet. Then you'd have to be careful to sort properly by short & long. Just enter them & let the program do its job. 29 transactions is nothing!

Thanks John, that will be very useful.

Booger, there are supplements that you can give her that will help. I believe that one is chorophyll. I don't have this prob w/ my 3, becuase I follow them around with a garden trowl & pick up their little toosie rolls. They're chihuahuas so this is possible for me. With a shepherd, a bigger shovel is required! Seriously, there's a great website with lots of knowledgeable dog owners that discuss this very topic. It seems to come up frequently. Here's an active discussion from that board right now: http://www.ourdogsonline.com/ubbthreads.ph...9833#Post159833 If you want to search their archives, you'd have to set yourself up as a user (no big deal, free too). Here's their main page of their forums (even without joining, you can lurk & learn, just can't view the photo/video forum): http://www.ourdogsonline.com/ubbthreads.php/ubb/cfrm

As others have pointed out, you can't have a ptnship of one. You also can't file 2 final returns. First you must decide in which year the operations ceased. Were documents formalized for the exiting of partners? And if you need to amend 2006 as not final, it'll take IRS time to get that into the system. So if you do need to file an 07 ptnship return, you'll need an extension for this return until things can be sorted out. Here are a couple of additional things to think about. It sounds like as least part of those $50K in debts were or should have been recorded on the ptnship books already because it was a payoff of the equipment. Here are some basics regarding ptrship taxation: If exiting partners have negative capital accounts or were relieved of debt, they recognize income. The final remaining partner stuck with the liabilities possibly should've gotten a step-up in basis. This is an election that requiring attaching election to the return. I don't know if you could even do that now. Perhaps this is how your final "partner" should have gotten his "deduction" for the debts he paid off because he would've had a higher basis to report on his personal return. I don't think you can just keep the depreciation going either. Isn't the equipment out of service if operations ceased? Sorry for the ramblings, but you have a lot of issues to sort out. I just thought I'd throw some ideas out there.

I'm happy for you JB. Thanks for sharing your plans. Have fun in Florida!

Is that the rescue operation where about 800 dogs were living with an elderly couple in a triple wide trailer? It's a good thing I'm not closer to AZ or I'd be fostering or adopting!

Thanks, she's a long-haired chihuahua.

Son can't be a qual relative because his income was $4,900. QRs can only have $3,400 in income

Yes you are correct. Son claims own exemption. Exemption and std ded will result in -0- taxable income for the son. Tax benefit of education expenses is lost.

Clients have a property that was a vacation/rental for the first 2 yrs owned. Depreciation carrryovers were created due to income limitation. For 2007, clients decided to not rent this year & are using 100% personally. This property may or may not ever be a rental again. The only item on Sch E is the "Vacation Home Carryover." I'm not sure if it's best to mark each asset as "converted to personal" or indicate business use % as 0%??? Should I file the Sch E with the return showing zero rental & the carryover? If it's never rented again, what happens to the c/o? Is it just lost?