Pacun

I would go with gifts, but then, they are not your clients. Some of them are potential clients.

I also don't like e-machines for work. This one seems to be refurbished which could be one of the three that TAX PREP BY DEB returned. I like DELL Precision machines because they are reliable but they are a bit expensive, but then again, I rather to have a good computer than to be sweting in front of my clients because my computer is giving me hard time.

MFJ who made 140K in 2009 want to open a Roth IRA for 10K before April 15, 2010 for tax year 2009 (5K each). Non of them were covered by a retirement plan at work. They won 100K from the lotto. The other 40K is from their regular jobs. Every year they make about 35K to 40K and most likely that will be their situation for the next 5 years. Instead of paying taxes on those 10K in 2009, don't you think they could open a traditional IRA on April 15, 2010 and go back to the bank the next day and roll it over to a ROTH IRA and pay taxes in tax years 2011 and 2012? Am I correct? Have you thought about this situation?

Nothing for burial expenses.

No relief.

If I am not mistaken, he can get up to 1,000 refund, provided he is claiming his own exemtion and no one refused to claimed him as a dependent.

They qualify for the exclusion and since it was their primary home, they don't have to pay taxes on the cancelled debt.

Nice catch. I updated my reply, but you are right. I made two mistakes, I misplaced the comma and I added one zero. I always wonder if anyone reads what I write and therefore make those mistakes on purpose. lol.

" Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence? A. Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details." I bet you that even if the answer is NO for the above question, you still have a chance... what was the intent of the student? To purchase a rental property or to purchase a place to live while in school? So, your client qualifies for the $8K using the whole cost of the three bedroom condo. If you buy two separate structures, like a duplex, and you rent one and you live on the other, then you have to split the cost.

Last year I was using an old computer and to boot up, it took about 25 minutes before I could do meaningful work. To print, it took a couple of minutes. This year, I bought a duo processor DELL precision 3500 with 4G of RAM. Windows 7 64bits. I got a 20" wide screen monitor for about $12,000. I don't like it because it is too fast and makes me feel old and slow (I have to complain about something, after all, it is human nature). My printer is and HP 4300 and both of them (computer and printer) fly. Windows 7 takes about 30 seconds to be ready when I boot up and the ATX program opens in another 30 seconds. I only have 300-400 clients and I roll over clients when I have them in front me. I do computer work for a tax and accounting office and they roll over everybody at the beginning of the year. They have been rolling over clients who were there 5 years ago and never returned. Having a bunch of clients who will never come back wastes resources.

I don't see any problem with that arraigment. Most companies contract with a cleaning company and ask the company to send trusted employees to clean. All buildings do that. The cleaning company hire the people and they ARE employees to the cleaning company and the cleaning crew are at the disposition of the building manager, even though they have cleaning routine.

If I understand correctly, the manager of a building contracted your client to clean the building. Your client will hire an employee to do the actual work.

He doesn't have a choice, depreciation is taken where the vehicle is used the most.

How do you know that it is taxable? Did you ask the client about the details?

I have a client who moved to DC from MN in the middle of the year. Can I efile part year returns in MN? Any other credit that are special to MN? What forms do I need to file for part year residents? I noticed that if I open only the part year form, I don't get the efile form.

A computer qualifies but I believe you have to use mostly for school work. One computer every year might not be reasonable.

Mainly at the bar. I got only 3 from the IRS but I sent a couple yesterday and they went through.

I am pretty sure this will work. Create a state efile and send it by itself. Then go back to the federal filing and add form 5405 and print out and mail only the federal. Since form 5405 doesn't have anything to do with State filing, I don't think it should be a problem.

Am I the only one who got rejections yesterday?

I called the IRS and they said that there was a e-alert. She asked me if I was registered to e-alerts from the IRS. Is anyone registered or experienced the same problem?

If you get efile rejection code 29 stating that your ERO number is not recognize, don't panic. The IRS is working on it. Rejections happened yesterday.

Based on my understanding: If TP has ITIN, she/he does qualify for the $400. If two TPs file joint and both have ITINs, they don't qualify for the $800. If one of them has ITIN and the other has a valid SS#, they get $800 credit. That's the way I have been doing it and I hope that's the way the IRS is doing it too.

I am from DC and you need to file form D-40B. Make sure to fill out page 2. You pay taxes where you live regardless where you work if you live in DC, MD or VA. I would attach copy of the state VA filing when requesting the refund.

You should issue a 1099misc to the care giver.

Very interesting. I requested an ITIN today and software (even though I never entered a SS#) gave me the $400. I took it out. I have to verify because maybe the IRS changed the rules in the middle of the game. I know for fact that if one spouses has ITIN and the other has a valid for work SS card, they get $800. Honestly, they should give it to ITIN filers because the tables were changed across the board.