Pacun

Since we are taling about a disregarded entity here, the promisory note would read, I, pacun, promise to pay pacun 10% interest....

If you are purchasing a new "vehicle" with 18 wheels, you can 179 it on Schedule C.

Where are the NJ preparers? It seems that Jainen was reading OLD info. If that info were correct, I doubt that the software was not updated for so long. I read something more recent and it reads: 9. New Jersey Earned Income Tax Credit (Line 50). If you are eligible and file for a Federal earned income credit, you can also receive a New Jersey credit in the amount equal to 20% of your Federal benefit. Complete the Earned Income Tax Credit Schedule to calculate the amount for Line 50, Form NJ-1040. However, you must prorate your credit based on the number of months you were a New Jersey resident. For this calculation 15 days or more is a month. You must file Form NJ-1040 to receive a New Jersey earned income tax credit, even if you are not required to file a return because your gross income is below the minimum income threshold

Nice info Jainen. Just out of curiosity, what year are the instructions for? Did you find the ones for 2012? They seem old and I think NJ tax preparers should report issues like this to ATX so that the formula "IfNotEIClistingdependents then NJEIC = 0" should be entered on the software.

Why did you report it on line 21? A lot of times line 21 is not earned income and maybe that's why you are getting the letter. Another mistake on the return could be that your client lived in Texas (hence the babbysitting income) and the tax software did NOT prorate the NJ EIC. This is the formula for part year EIC for NJ: FedEIC*20%/12*monthslivedinDC.

To make matters simple... Tax payer has a two floor house (first floor and basement). He lives in the basement and rents the 3 rooms on the first floor. Depreciation is 50% rental and 50% personal. Rent contracts state that utilities are included in the rent (gas, cable, electricity, water, and internet access). Each room has two tenants and each tenant has a laptop and TV (to make matters simple). All of them cook and shower (very important). Can he claim 6/7 utility expenses on schedule E? I know 50% is the conservative answer but I want to see what you think.

More mistakes will be made by tax preparers if multiple returns are opened. When I open the previous year just to see how the return looked like, I end up working on the previous year return. Sometimes I realize that I was working on the wrong year when I am ready to efile. Most of the time I blame the stupid computer system.... I don't explain to my clients that a computer system includes the idiot behind the keyboard.

You don't need to translate anything. Just ask how much she made and report it. You should check the tax treaty between the US and France. Remember that "withheld money" is not equivalent to "tax paid to another country" in some cases.

When the sale or dispossition happens, you don't know if the bank forgave any debt. So, you deal with the facts on the papers and report the sale on your taxes. If the bank ever forgives you the debt, then you will get a 1099-C and you will have to deal with it at the point. I doubt the bank will forgive the debt that easy since it seems this person has at least one more real estate property.

Banks don't see or touch the checks anymore. You can even deposit a picture of a check these days!!!

I think it is better to send a second 1040 instead of a 1040X when done prior to April 16th.

Not entirely accurate. Each time you type more than 2 letters followed by a space or return, a particular portion of the dictionary is opened and compared. If you type aa, the program goes to the a portion of the dictionary and stops as soon as it finds ab. Then it goes to your personal dictionary (ies) and does the exact same little task.

I live in a big building and my address is something like, 4302 Massachusetts Avenue, NW, Apartment A343C. If I want to receive a bunch of refunds at this address, I could use: 4302 Massachusetts Avenue, NW, Apartment A343C 4302 Mass Avenue, NW, Apartment A343C 4302 Massachusetts Ave, NW, Apartment A343C 4302 Massachusetts Avenue NW, Apartment A343C 4302 Massachusetts Avenue NW Apartment A343C 4302 Massachusetts Avenue, NW, Apt A343C 4302 Massachusetts Avenue, NW, Apt. A343C 4302 Massachusetts Avenue, NW, Apartment 343C 4302 Massachusetts Avenue, NW, # 343C 4302 Massachusetts Avenue NW, # 343C 4302 Massachusetts Ave NW, Apartment A343C 4302 Massachusetts Ave NW Apartment A343C 4302 Massachusetts Ave NW Apt A343C 4302 Massachusetts Ave NW Apt. A343C And many, many more addresses. For a computer, each address above (and the many more that I haven't written down) is unique. So, a computer program will have a lot of difficulties identifying the fact that these addresses are the same. Now, they will have to audit all my skyscaper neighbors if they want to audit all the address that start with: 4302 Massachusetts Avenue 4302 Massachusetts Ave. 4302 Massachusetts Ave 4302 Mass Avenue 4302 Mass Ave. 4302 Mass Ave This question is for the mathematicians on this board, how many unique address will I generate with variables I have used on the example and the ones below? I could also use Unit A343C, Unit 343C, Suite A343C, Suite A343, Apartment A343C, Apartment A343, Apt A343C, Apt A343, Apt. A343C, Apt. A343C, Apt #A343, Apt # A343C, Apartment # A343C, Apartment # A343 This is without counting that I could spell Massachusetts as Masachusetts, Massachussets, Massachusetts, Massachussetts, Mass, etc.

add it to the basis.

By definition (according to the IRS), 1098s are not accurate and you must keep prove of payments. If you have proof of payment and enrollment, you should claim the credit in the year the classes were taken not when paid.

The way I understand "each gambling trip" is that I would report $10,000 winning on line 21 and $1K loss neted and the rest of the losses on Sche A up to 9K.

You must use FMV at the time of death or 6 month later.

Client went to Casino and won $10K. His net winnings on that trip were 9K. He files jointly with he went to casinos 3 times. The time he won and two other times that he lost $500 each. His net winning would be 8K for the year. His wife made 10 trips to the casino and she lost 4K on each one. Can they wipe out the gain since they are filing jointly if they both have accurate records and then fille for divorce since wife lost all the money and never won? I understand that sch A is involved but I want to know if they can deduct the wife's losses on the joint return. You are right, this is not a real life scenario, but please respond.

When the EA exams were done by hand, I passed them in two days without paying any prep courses. I think paying for test prep for the RTRP is a waste of money if you have some experience.

Does this sound right to you based on the rules for your state? A single LLC will pay $250 even if no income was earned. An LLC with two members file a partnership form with the state along with K1s and pay no taxes. If that's the case, I should suggest to clients to make all LLCs with a 99% member and a 1% member and file state partnership form with K1s.

Yes, the IRS always audits those people... maybe more this year since this is a hot topic here.

Nice free commercial. I googled TRX and a bunch of complaints showed up.

My job is computer support and when users call me, I ask them: "Have you rebooted in the last 5 minutes?" If the answer is no, I say... Please reboot and call me back if the problem continues. If the answer is yes... I tell them, "please reboot one more time and call me back". My boss thought it was a good idea and wanted me to ask the same questions and give the same answers when they call back but I politely declined.

Client has two houses, one is rented (she actively participates) and the other is used 50% for a daycare that she operates and she lives on the other half. When I filed her Federal taxes, she has income of about 28K from taking care of the children and a loss of 15K from the rental. She owes SS taxes on 1040 for about $3,500 and that's it. DC requires a business form for the rentail activity and now another one for the LLC. Each form has a minimun tax of $250. It seems that just because she opened an LLC, now she has to pay LLC taxes to DC on the $28K and $250 minimum on the rental loss. I do understand that you are not in DC but I wonder if other states have similar taxes and how you would file the state returns. In priior years, it wouldn't matter because DC would require only $250 minumum tax on the rental activity and the rest would be a normal return. With the existence of the LLC, her situation seems to have changed. Do you think the LLC (which was formed for the daycare) can carry the rental activity? I know the answer is no, but I will appreciate your comments.

Congratulations. I agree, if I am a cook for 10 years and they asked me about the ingridients and preparation of the dishes I have been preparing for 10 years, I think I shouldn't be nervous and I should get the correct answer 75 percent of the time (which will be a passing grade).