Pacun

If you keep on reading, you will find... "However, nonresident aliens married to U.S. citizens or residents can choose to be treated as U.S. residents and file joint returns. For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1." The reading sends you to chapter 1 which reads: "Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Example. Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. In June, Bob became a resident alien and remained a resident for the rest of the year. Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information. A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year. The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)" Thank you Jainen for reminding me that NOT only do you have to add GLOBAL income BUT they also have to make an election. Yes, we do need an international taxation class since this type of situations are becoming very interesting and firms that prepare "international returns" charge a lot of money for simple returns. Normally, I charge $75 for a regular return. I just charged $400 for a diplomat who left behind a house and he is collecting rent in Washington, DC while in Paris.

It is a simple Short term gain and just either add some expenses on the basis or look on Sch D and enter them there. I would be careful with this client... he seems too smart to be my client.

I know you will ask for substantiation. If you get married before December 31, it is considered that you were married all year and who cares where you were as long as your wife was in the US.

Non of them can deduct their IRAs

Yes, they should file jointly using global income for both.

If you tell us how much he made in the whole year, we will be able to logically answer your question.

If they are commuting miles, the answer is no.

The idea is to share. Why don't you post your findings?

Go to the cost field on asset entry and reduce the cost by the amount forgiven.

If these are your long time clients, I would be reviewing my Internet habits and be paranoid. It is extremely and almost impossible for thieves to find out: Correct social security for husband and wife that match their names. Correct filing status and filing habits (filing late in the season). Could someone have hacked your system?

The tax preparation profession has changed with globalization. We all need to take a class on international taxation or tax treaties. Can someone suggest a good class? Going back to your question, you need to check with the tax treaty between China and USA and maybe you only need to include his icome from Jan to Sept in 1040. He cannot be claimed as a dependent since he made 5.3K in 2010.

What's the link to find out how much retirees got from SS as making the work credit? I think I found it. https://sa2.www4.irs.gov/irfof-mwp/start.do

Temporarily could mean a couple of years or 2 days, which is it? Check the tax treaty, most likely you will file schedule C and 1040NR.

Could it be possible that he is filing single and he should be MFS? Did he go to another preparer before coming to you and the previous preparer filed by mistake? Could he be a victim of identity theft?

You must own a property and pay interest on the mortgage in order to deduct it. None of those two conditions were true in 2010 and I think you shouldn't deduct it on sch A.

A lot of times the bank waits until it sells the property to issue the 1099-C. In the case above, what's written on the 1099-A is not an accurate reflection of the what the amount of debt will be forgiven. If the property is sold for $75K, the 1099-C will show $125 as debt forgiven.

Was the title of the property transferred to the LLC? If not, there is no federal filing requirement for the LLC. I hope the state is like MD which charges $300 for the LLC just for keeping the status. Who gave them the brilliant idea of opening an LLC to your client?

You don't have to create two returns in your case. Send the Federal and the next day add schedule A and prepare the state return. If the federal is rejected for any reason, you might have a problem because the federal return will not be the same. To avoid that mistake, wait for the Federal to be accepted and then add schedule A. The IRS couldn't care less in this situation BUT most states have a rule that if take the standard deduction on the Federal, you must take the standard deduction on the State. (I might be wrong).

You have to report the disposition of the asset on Schedule D.

Yes. It depends on the other factors.

It might be a good idea to read about capital losses for future reference.

How would you create a non-profit company so that donations can be collected and the money will be used to build new houses (2 or 3) and donate them to poor people in Central America. We need to collect the money so that he engineer with the technology can go and build the houses and get local help.

Don't especulate. For cash TPs, You can deduct real estate taxes when paid to a state govenment NOT when you put it in a scrow. Puting the money in the hands of the brother doesn't constitute payment.

What makes you think that we can give you better information than those CPAs who sat with you and checked the papers? In any event, you will be double dipping if you do that. Why don't you list what each of the 3 CPAs said and we are going to support the one with the most logic.

What makes you think that we can give you better information than those CPAs who sat with you and checked the papers? In any event, you will be double dipping if you do that. Why don't you list what each of the 3 CPAs said and we are going to support the one with the most logic.