Crank

TY for the response

I thought I read somewhere that there was a website to check if the TP got the $250. Anyone know of it?

Since the buyer accepted a lower price because he was looking for a quick sale that would imply that he did not sell the house at its current market price ... in my opinion.

Is it possible to remove "completed" returns from the form update report?

Client claims he had approx. $44K on deposit with a financial institution (Advanta Corp) which filed Ch 11 in November 2009 and voted to liquidate assets in Jan 2010. He also received a 1099-int for interest earned in 2009 which was not collected but rolled over into the $44k. I havent found anything to indicate that this was a federally insured (FDIC) institution. According to news articles, "Nothing is available for shareholders and it is unclear at the present time if any creditors will receive anything". I have yet to see any of his documentation. If this is the case I presume for 2009 taxes we can get a Sch D cap loss on the $44k and he must still claim the 1099 interest on sch B. Also, if any money is recouped in the future would it be treated as ordinary income?

Client works for a local college where the clients child also attends undergraduate school. The child received a $5,655 tuition credit referred to as "Tuition Remission-Day for Staff" on the account history and included this amount in box 5(scholarships and grants)of the 1098-T. Is this considered a scholarship or grant and is it considered taxable income to the client or child? Client claims they have a paper saying its taxable for "graduate" studies only but I havent seen it. Thanks

We all get them. The prospective client who wastes your time or refuses to take your advice for his own good. I just had to share this one. This guy calls me yesterday wanting to know what I charge to do a Federal return. That's the first warning sign for me. People who say "I can do the state and local returns myself", because they are looking to save some money. So I tell this guy that my fee's are based on what forms are needed and I proceed to ask him some questions about his situation so I can give him a ball park number on the overall fee. During this I find out that he has been doing his returns himself and over the past 4 years. In addition to his regular w-2 job he has been doing some work on the side which he was paid with a 1099-Misc(about $4,000). He has just been including the gross amount without taking any offsetting expenses. So after I tell him my fee would be about $150 for a 1040, A, B, C, M, ,SE, 5695 & E-File (cheap right and I'm a CPA) he says it too expensive and he's only pay's $20 to do his federal return online somewhere (I wasnt really paying attention where ... lol). I guess he wanted me to beat the $20. So I explain to him that I would be saving him significant dollars that would MORE than cover my fee since he is overpaying by not taking his expenses against the 1099-Misc income but he responds that he'd be crazy to pay me that much money. Even told him that I can amend past returns and he would come out ahead after my fee's but he wasn't buying it. Some people amaze me! I keep a log of prospective clients each year with notes. The final line in his note said, "I don't expect him to return as a client. Isn't the sharpest tool in the shed but still a tool none the less!" :spaz:

Congrats on your daughter's acceptence! Welcome to the poor club. LOL :spaz:

Hmmm. Interesting. Thank you both for your replies.

I have a potential client who appears to be tax preparer shopping. She purchased her mother's home about 10+ years ago for $1 and allowed the mother to remain living there. They executed a "Life Tenancy Agreement" (LTA). Dont know who paid the bills but the client didn't live in the house with her mother. In 2009 the mother passed away and they subsequently sold the property and now she wants to know what is her basis in the property. My interpretation is that since she purchased the property for $1 it was actually a gift and the $1 is her basis. Therefor all but $1 of the proceeds from the sale of the property will be a realized gain. She claims that she has consulted four CPAs and called the IRS twice and has received mixed answers. She maintains that since there was a LTA in place, the property was the mother's residence and that the address was listed on the death certificate, the transaction should receive a "stepped-up" basis as of the date of death similar to if she had inherited the property. She claim's the LTA is the key to this. I can find nothing to show that her position is valid. Does anybody know if the facts here (LTA , mother living there, address on birth cert.) support her claim? Thanks