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Delaware is one of the states that does allow itemizing when taking the standard deduction for federal. The Federal Sch A was in the system, but the ATX program won't include the Federal Schedule A with the state efile if the 1040 is using the standard deduction, even though the itemized deductions are properly showing on the state return. I duplicated the file before forcing the deductions on the federal because I wanted to preserve the actual Federal return as filed with the IRS for my records and for next year's rollover process.

Taxpayer used the standard deduction for the federal return, itemizing for the state. The only way ATX would include the Schedule A for the state efile was to create a duplicate file and force the federal to use the Sch A even though it was less than the standard. I submitted the state efile after receiving the federal ack. Will this cause a rejection since the 1040 submitted with the state efile package won't match the actual federal return that was accepted?

A second residence, a beach condo owned by the taxpayer and his wife, was put into a newly created LLC owned 50% by each. The sole purpose of the LLC is to own this condo. It has always been 100% personal use, never rented, never will be. Subsequent to the property's contribution to the LLC, husband and wife each gift 1% ownership in the LLC to their daughter. Other than the contribution of the property to this LLC, the LLC has no activity and no real business purpose or current profit motive. The LLC does have an FEIN. The taxpayer paid the real estate taxes from his own funds. Is a tax return for the LLC needed? What to do with the r.e. taxes paid personally?

My client and his wife are lessors of commercial real estate, a strip shopping center. He wanted to expand the center with another anchor store. He moved one existing tenant and did extensive reovation and expansion at one end of the strip. He paid a commission to a retail strategy group to find a suitable tenant and help negotiate the lease for this newly built space. The commission, stated as a percentage of the total lease payments, was paid in 2010 when the tenant moved in. Another similar percentage-based commission was also paid to a local realtor. The lease has a 10 year term, so these commissions are a significant expenditure all in the one year, totalling over $60,000. Is this deductible all in 2010, or amortizable? I am really drawing a blank as to what key phrases or terms to use in researching this. If any other preparers here have experience with commercial real estate in this regard, I would appreciate any guidance you could give, or help with the key words for me to research. My other question relates to the costs of relocating the other tenant, a Chinese take-out. From going through the invoices, most of the costs were for all of the leasehold improvements to set this take-out place in business again, and demolish the old place since that's where the new anchor store is attached to this strip shopping center. Any help or guidance would be greatly appreciated.

Yes, I know she is an employee, and she would not be exempt from FICA or FUTA because to be exempt, the family member would have to the family relationship with all owners of the partnership (as in a child employed by a ptnship owned by father & mother), which clearly she isn't the spouse of both owners. My problem right now is that Blue Cross of Delaware will only accept the state unemployment reports as proof of employment for her to be considered an employee of the company, even though in their correspondence they indicated that they would accept other documents such as 941s, w-2s, individual tax return and payroll registers. All of those were supplied to them and rejected! So I am going to attach a report showing all the wages paid, including the wife's, and then a line of subtraction stating that her wages are "exempt" from SUTA.

LLC is owned by 2 brothers, each brother owning 50%. LLC is taxed as a partnership, and the income is considered self-employment income of the owners. One of the wives is on the payroll of this company. Her wages are included in all the payroll filings and she receives a W-2 each year. This company was randomly selected for audit by the Del Dept of Labor. Their only finding was to say that wife is not employed by the company. The dept adjusted the state unemployment filings by removing her wages. They cited Del law Title 19, sec 3302 11(C ). Sec 3302 pertains to unemployment compensation and 11 is part of the definitions. It is as follows: 11 - "Employment" does not include: ( C) Service performed by an individual in the employ of the individual's child or spouse and service performed by a child under the age of 18 in the employ of the child's father or mother. What am I missing? Is she not considered an employee of this company?

They are still having problems. The "official" ATX community message board has postings with the same question as mine (haven't visited there in a couple of years). Sure would be nice if ATX posted about this problem on their blog or e-file status center.

Thanks. Makes me feel better that it's not just me or my computer.

Is anyone else having trouble connecting to ATX tonight? I tried sending a return and the message block just sat idle for a long time "waiting for server response." When I tried sending a test transmission, I get a red "server error" message, the transmission fails, and it appears that the program thinks I'm not connected to the internet. Is anyone else having this trouble tonight?

Aon through AICPA, mine is $490 for $1,000,000 per occurrence, $2,000,000 aggregate.

I don't remember getting any such email either.

Eric, I'm sorry I missed donating to this. See what happens when I take a vacation from the normal work routine and computer! Happy 5th Anniversary to you both. We just passed our 18th, and both of us forgot. Husband remembered yesterday but didn't say anything. Wished me H.A. today and we both had a good laugh. :)

Dispositions of property are reported on Form 4797. Here's a link to partners' instructions for Schedule K-1: http://www.irs.gov/instructions/i1065sk1/ch02.html#d0e1878. Click on the link for line 20. Also, the instructions for Form 4797 should help you too. Code L can also be used for gains and losses from casualties & thefts that would be reported on Form 4684, and for installment sales reported on Form 6252

Update on the friend's CA return. Friend's returns was one of 300 delivered to CA FTB that were sent by certified mail. Only the 1st return of that batch was acknowledged back to the post office as being received. The other 299 returns sent by certified mail weren't. The post office is saying a clerk at FTB is to blame for only scanning in the first one.

Yes, thanks for that update. You were on my mind as well. I'm glad the surgery was successful. Hope the other issues can be resolved for you to regain full health.

OldJack, my heart goes out to you and your family. I'm so sorry for your loss and the pain this has caused. My season: two blizzards in a week. That delayed some of the early birds, so a lot of work seemed to pile in all at once. Other than that, the program performed well for me and the season went smoothly. SALY.

Thank you all for the replies. Yes, e-filing would have avoided this problem, however her return had sec 179 from a partnership, so e-filing wasn't possible.

Deb, I did exactly that and emailed the teacher directly shortly after her first posting. I provided links to an IRS search for her to easily print out the 1040x, Schedule M and their instructions. I gave her the criteria needed for her to qualify for the gov't retiree credit. And I explained that all the numbers for the 1040X are coming directly from the 1040 with the exception of the $250 credit itself, if she truly qualifies. I also explained that the board was set up for the use of tax professionals, mostly using ATX software, and that she probably wouldn't receive a response. And lastly, I explained that her preparer was most likely taking a few days off. Perhaps a change in the forum's banner would discourage the infrequent posting such as the retired teacher made. It only seems to happen once or twice a season and doesn't seem like a big deal to me. I would like to think that we could spare a brief moment of our precious time to help someone in need. That was what I chose to do.

If her 2009 O/P was fully applied to the 1st estimate due for 2010, would the "MyFTB Account" at ftb.ca.gov show this information?

Edited: Just found out she had an overpayment and requested that it be applied to next year. So in that case, I don't think the refund status page will help her, and no check went with the return to check for its cancellation. Is there any other way to verify this return was received? Calling the CA FTB would be to be a joke at this point. I once had an IRS auditor tell me that certified or return receipt mailing only proves that an envelope was mailed to IRS, not what was inside it. He was such a smart@ss about everything that I wanted to reach across the table and smack him across the face.

Posting this for a friend. Taxpayer mailed their Fed and Cal returns by certified mail. Tracking by USPS website yielded no results so she called the post office 800 number for more info. The fed return to IRS Fresno was received there on 4/10. The issue now is the CA return. Post office's last record shows the return at Sacramento P.O. also on 4/10. No other information is available. She is not sure whether Franchise Tax Board ever received the state return. I'm not sure if she is getting a refund. From the ftb website, it looks like she could use that to see if the return is in processing. Is that right? Now if she had a balance due on this return, would that show up using the "MyFTB Account" function? I haven't done a CA return in years, so any guidance would be appreciated.

This person is not receiving social security and sounds like she gets a teacher's pension instead of SS. Is she eligible for the gov't retiree credit because of this? In this case, the teacher would have had to be employed by a state or local gov't where the wages weren't covered by SS, Is that right?

Happy Birthday, Many Happy Returns.

Happy belated birthday. Hope it was a good one.

Happy Birthday. I hope you had an enjoyable day.