Pacun

I stated: "Every year, he runs the car 30K miles of which 20K miles are business miles (un-reimbursed business expenses). For 5 years he uses similar mileage on form 2106." I meant that he used the standard mileage NOT depreciation. (I added this after a couple of replies: I meant "actual expenses") If the $2K floor for 2 percent on for 2106 is not part of depreciation, then JohnH might be right. So I am not sure if JOHNH or JAINEN is right on their answers. Which one do you think is right? Imagine that the car was purchased on December 28, 2004, placed in service January 2, 2005 and sold on December 31, 2009.

So, if we use the last 5 years, the average is $.19, so Jainen is right. TP should have a 2/3 gain of the $3000. Are you able to depreciate a car using the standard mileage rate below 0 basis? It seems you can, so could this person could have a profit higher than the $2,000 Jainen is talking, correct?

Do you know what percentage of the 50 cents per mile is for SMR of 2010?

JohnH Posted Yesterday, 10:42 PM "He has no gain or loss on the sale of the car." I would like to answer to both of you "NOT so fast" but I will hold my caballos. Let's analyze it. So, he has gotten 40K in somewhat "depreciation". That includes oil changes, tune ups and tires, correct? So, maybe he hasn't fully depreciated it. What do you rethink?

Client bought a car for 20K. Every year, he runs the car 30K miles of which 20K miles are business miles (un-reimbursed business expenses). For 5 years he uses similar mileage on form 2106. At the end of 5 years, he sells the car for $3,000. So, he has received tax benefits for about 100K miles which is about $40K. How can he calculate a profit when he sold his car? Let's imagine that this is the only schedule A deduction against the 2% floor. Will that change his basis? Let's say that he made $100K every year so in 5 years the 2% floor amounted to $10K.

"Why doesn't he borrow instead of withdraw?" Let's say that this person has two hardships: One economic and the other medical. I like Jack's answer since that section of the code is for you, your spouse, your current dependents or for dependents who were your dependents when you pay the bill or when the treatment was received.

I agree with Jainen and Jack. If I never had any certified, priority or express mail from the IRS, the IRS would not be able to ask the postal office where I am receiving my mail. The FBI would but not the IRS (I think). If the IRS sent me a certified mail and I sign for it, the IRS will know where I am receiving my mail. If I live in an aparment building and all certified mail is signed by the front desk guy AND I HAVE A GOOD LAWYER, then the IRS would NOT know for sure where I am receiving my email. (keep in mind that mail delivery guys are always rushing and the front desk person doesn't have time to see the list of tenants). As you can see, the direct answer to your question is..... NO, YES, IT DEPENDS. I am glad I cleared all doubts. lol.

The 401k plan reads: "To be eligible for a hardship withdrawal, you must demonstrate a need for the withdrawal due to a qualifying hardship provision. Hardship withdrawals will be reviewed carefully and will not be issued for any amount over the documentation supplied for the hardship even when the participant requests. Documentation supporting the amount needed for the hardship must clearly state the amount needed. If there are multiple documents each document must clearly state the amount and reason for payment. The Internal Revenue Service has the following established guidelines on what financial situations qualify as a hardship: * To prevent eviction from, or foreclosure of, the participant's primary place of residence * The purchase of the participant's primary residence * To pay medical expenses that would be deductible under Internal Revenue Service (IRS) Code Section 213(d), determined without regard to whether those expenses exceed 7.5% of the participant's annual gross income Note: Nonprescription drugs (excluding insulin) are not deductible under 213(d). Therefore, these are not considered medical expenses for hardship withdrawal purposes. * Paying tuition, related educational fees, and room and board expenses for the next 12 months of post secondary education for the participant, their spouse, children or dependent(s) * Burial or funeral expenses for a participant's deceased parent, spouse, children, or dependent(s) * Certain expenses relating to the repair of damage to a participant's personal residence that would qualify for casualty deduction under Code Section 165 without regard to whether the loss exceeds 10% of adjusted gross income" I know this is long but it is good information to read anyways. Now my question, client's mother is NOT in US, Mexico or Canada and she is suffering from terminal cancer. Client wants to withdraw $10K from 401k to cover medical expenses for her mother. Those expenses would be deductible under 213(d) if other provisions were true. Would this qualify for hardship withdrawal? If parent would be in US, Mexico or Canada, she would qualify as a dependent. What do you think? I am saying no, but I would like to read the arguments.

Use Internet Explorer if Firefox is giving you hard time. Lower your security settings on your browser for Internet and for trusted sites. You also need to add the link to the trusted sites.

I am doing these amended returns but I have some questions and maybe someone has done this before. Originally filed MFJ got a refund for 5K. On the amended return, the refund for MAIL filing as single is now $2,700 and FEMALE refund is $300. How do I distribute the refund they got when they filed jointly? Should I include $2,500 for each? Currently my 1040X reads that MAIL owes $3,300 and FEMALE owes $4,700. Someone will have to pay $2,000 to the IRS which is the net result. FEMALE made 10K in wages and MAIL $60K. FEMALE's 1098 shows mortgage interest for $28,000. MAIL and FEMALE are in the title of the house but she is the only one in the loan. Since he is 50% owner of the house, should I deduct some mortgage in his schedule A? He was the ONLY one who paid all this interest but I want to be very conservative. I would go with half or zero mortgage interest for him, what do you think?

Can anyone help me. I have looked on IRS website and not really sure how to find the answer. I am very familiar with residential rental property, but I have a client that just leased 39 acres of just land for cattle use. They leased it out for 3 years, but are receiving the payments as half in one lump sum and then 1 payment per month for 4 months to finish the lease payment. Can you divide the payments up between the 3 years or just put it all on the year they received the payments? And Im sure it goes on a schedule E. I know you can't depreciate land. Just wondering if there is any special tax incentives for land with cattle on it? Thanks for any information that can be given. Paula Owner of land should report rental income when received. The cattle owner might have to deduct expenses by allocating it in three years.

This is an excellent idea. But I do like to see the F B I indicators when I efile.

This will be a mess. I guess MicroSoft will get a 1099 from Visa/master card stating "from 2,000,000 clients, we paid you $10,915,153,234.54". How will that figure help the IRS any better? Of course this is already done somehow by this company so this will not represent a big change for either company. The postal office should be happy with this decision because they will get more mailings every Jan/Feb. Or you think the IRS wants to match records and verify if I really paid MicroSoft $199 for upgrading to Windows 7 and purchased Office 2010 for $499.99? If that's the case, Visa/Master card will have to send a 1099 for $699 and my name will appear somewhere in the 1099. I will love to see the 1099 or 1099s that Visa/Master card will send to DELL computers.

Line 63 "Making work pay credit" seems to be available for 2010. This was modified from 2009 which used to read "Making work pay and government retiree credit" Are we going to have the $400 and $800 for working people? I also noticed that PTIN is the only choice as advertised.

Thank you for the advice.

How about using a roll over transaction since the money was in his possesion (his representative's possesion) for less than 60 days?

This might help. Log on with the administrator account and add your regular account to the administrators group. Log on with your regular account and try to print. See if you can do what you "couldn't do". I am assuming that you need to update the driver for your printer and that you need administrator rights to do that. You can also open ATX and see what printers you have by pulling down the file menu and select change printer. If you are using the wrong printer, select the correct one. This will help if you have problems printing ONLY while using ATX.

One time I had a printing problem but I didn't need to reboot, I just added paper to my printer.

Client came this year to me. He lives with his girlfriend and filed 2006, 2007, and 2008 as MFJ because tax preparer suggested. We ended up filing as single for 2009 without any itemized deductions. In 2007 and 2008, IRS charged them taxes and penalties because they claimed too much in 2106 deductions that couldn't prove. He has an immigration case that will go in front of a judge in August and his attorney sent his taxes to a preparer to give an oponion if taxes were prepared properly. In the letter, sent to the attorney and then given to the client, tax preparer states that he is single and therefore he should NOT file his taxes as married. ALSO immigration doesn't recognize common law marriages and attorney wants taxes to correctly match his status in front of the immigration judge. Tax prerarer also questioned his 2106 deductions and asked him to amend all years except 2009 that I prepared. (remember IRS already charged taxes and penalties for 2007 and 2008). I know that you cannot change form MFJ to MFS after April 15. In this case, I will be amending from MFJ to single. Is that possible? How do I amend a return that has already been changed by the IRS? If I amend the copy that the client gives me, IRS might charge him again for something that was already paid.

I am using Windows 7 64 bit for 2007, 2008 and 2009 flawlessly. Jack from Ohio is 75% correct! Maybe 80%, I think 90%. After carefull thought, he is 100% right. When you have 5 years of taxes to prepare what do you do? You prepare 2004 first and make sure everything is correctly entered, correct? Then you work on the next year. Use the same approach when installing ATX. When you get a new computer, you don't want to install every single year on that computer (the reason you got a new computer was because there was so much trash on the old one, correct?). So you make a decision what years you will install and install the oldest year first.

I think there are a lot of people who don't efile but don't want to be noticed. I do agree with them and I will say this: With efile, the IRS will be able to know at anypoint what kind of mistakes were made, what kind of exams you have passed and IRS will be able to tell if the returns you are efiling go along with your qualifications. They will also know how many returns you prepared and the average price you are charging based on Sch A. AND MUCH MUCH MORE.

Compensatory Damages Can Be Tax Deductible A 2010 court decision that favored the IRS over a corporate taxpayer provides useful insights for other companies making restitution payments to the government. Robert Willens - CFO.com | US July 19, 2010 On January 18, 2000, Fresenius Medical Care Holdings Inc. and the United States signed a "Global Agreement" resolving a series of suits against the company on claims of Medicare fraud. The agreement required Fresenius to pay the astonishing sum of $486,334,232 to the United States — $101,186,898 under the criminal agreements and $385,147,334 under the civil agreements. The civil agreements provided that "nothing in this Agreement constitutes an agreement by the United States concerning the characterization of the amounts paid...(for tax purposes)." In its 2000 and 2001 tax returns, Fresenius claimed deductions for the entire civil payment. The IRS maintains that payments totaling $126,796,262 are not deductible. Fresenius moved for summary judgment but the court denied its motion. The issue, therefore, will have to be decided "on the Full report at http://www.cfo.com/article.cfm/14511999/?f=rsspage

JOHNH, whevener you decide to try efiling, please let me know and I will be glad to help you if you need assistance. I have been efiling as much as I can for the last 4 years. Reasons why I efile. 1.- Peer and client presure. 2.- Makes you look more professional and CURRENT. 3.- It is the cool thing to do 4.- Faster refunds 5.- Less mistakes. 6.- No W-2s to attach (sometimes one is attached double and one is left out) 7.- Some of my clients don't know how to fill out the sender's portion of the envelop (I have to do it). 8.- It is more accurate 9.- Less calls from people asking "where is my refund" 10.- Less toner and printer maintenance costs. Not to mention the less paper jams and out of paper messages. 11.- You get a next day message (not a scary letter 2 months later) when your dependent's social security number was by mistake used by someone else. 12.- Next day notification that your client owes federal, state or child support. 13.- Sooner than later the government will require e-file and I will be force to learn it quickly 14.- Less trees to be cut. Don't turn the lights off because I know my list will be extended by someone else.

It really depends on the state laws, the union rules and the labor contract. If the contract reads: "in the event of a union declared strike, the employer can lock its facilities 4 hours after the strike has began". When some unions declare a trike, it means all its members are on strike. The members that don't adhere to the strike (if the union prevails), they are fired by management at the request of the union without unemployment benefits. This easily becomes unknown territory. Don't you think that we are a bit off from taxes on this subject? Maybe we should NT it. In my practice, I don't know how they collected unemployment, the only item that tells me that my clients collected unemployment is the form on my desk or hand or from questioning my clients. Prior to that, I do not advise or suggest to them to collect unemployment, just because I don't feel confortable with it.

I wish I could share my codes but that's illegal. You can buy 10 years of ATX for $100.00. Sooner or later you will need to prepare or amend a 2008 tax return anyways. I am using windows 7 and ATX 2007, 2008 and 2009 with 0 problems.