Pacun

Go to LN 4 Calc Alloc Credit worksheet and take out the entry on line 1. If you discarded the form and made only 4 entries on the new form, you should be OK.

Please make that their visas were active at the time they were working. If they violated the visa rules, they didn't have a visa anymory and they must pay taxes.

By Denise Lavoie, AP Legal Affairs Writer BOSTON — The U.S. Tax Court ruled Tuesday that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation, a decision that could have broad implications for transgender people. Rhiannon O'Donnabhain (oh-DON'-oh-vin), who was born a man, sued the IRS after the agency rejected a $5,000 deduction for approximately $25,000 in medical expenses associated with the sex-change surgery. The IRS said the surgery was cosmetic and not medically necessary. In its decision Tuesday, the tax court said the IRS position was "at best a superficial characterization of the circumstances" that is "thoroughly rebutted by the medical evidence." The legal group Gay & Lesbian Advocates & Defenders, which represented O'Donnabhain, said the ruling could potentially affect thousands of people a year in the U.S. who undergo similar operations. "I think what the court is saying is that surgery and hormone therapy for transgender people to alleviate the stress associated with gender identity disorder is legitimate medical care," said Jennifer Levi, a GLAD attorney. IRS spokeswoman Michelle Eldridge declined to comment on the ruling. In a 2007 interview with The Associated Press, O'Donnabhain said she underwent sex-reassignment surgery at age 57, after a tormented existence as a father, husband, Coast Guardsman and construction worker. She wrote off the $25,000 in medical expenses on her taxes, but the IRS disallowed the deduction, ruling that the procedure was not a medical necessity. O'Donnabhain, now 65, said she brought the lawsuit in an attempt to force the IRS to treat sex-change surgeries the same as appendectomies, heart surgeries and other deductible medical procedures. "It is not OK for them to do this to me or anyone like me," she said. O'Donnabhain's lawyers argued that because gender-identity disorder is a recognized mental disorder that is generally treated with hormones and surgery, the costs are legitimate medical deductions. The tax court agreed.

I checked 2006 and you should be good for all years for which a refund can be requested.

You should be OK with the big EIC amount. You should amend at once since your time to claim the extra money is running out.

Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0002 If no check is enclosed.

If I am not mistaken, these are new rules. In 2006, a brother could not qualify you for EIC.

Since they have the forms already signed for the years to come, the father should be OK claiming the child every other year. Mother qualifies for EIC every year if otherwise qualifies because the child lives with her. HOH is another ball game. She can claim HOH if she supports the child more than 50%, which could perfectly happen every year. Father would not qualify for HOH ever in this situation, unles he has another dependent. Pretty much the same thing that KC said.

Since it is a rental property, debt forgiveness will not be cancelled because he was insolvent. He will have debt forgiveness to report and a business loss.

Notary public fees go straight to line 21 with a notation.

I think I am right because MargaretMort said she was a "young woman who is Russian and was in the US on a work visa". Margaret please provide more info.

I am not sure but a template, which is already, included in the ATX program will solved your problem. I am not sure how the template will work with rollover clients, but it will work with new clients. So you create the template with all the common forms you need, and when a new client comes in, you open the template and all the forms will pop up.

If the Russian worked for the International Monetary Fund or similar organization which does not have a FEIN and is not required to get one, file schedule C and SE with full amount shown on W-2 and 0 deductions. Any deduction should done on 2106 and schedule A. Based on your situation, only statutory workers can deduct expenses on sch C.

Keep in mind that as long as someone paid or is reponsible for any loans (no scholarships or grants), whoever claims the student's exemption is the one that gets the credit. Just having the 1098-T is not enough proof according to the IRS.

If the registration is under both names, whoever paid for the taxes should take the extra deduction.

If they have proof of payment and otherwise qualify, yes.

It seems that the IRS doesn't care what happened to the previous house, so I think he could qualify. Anyways, when the bank reposes a house it is considered a sale in the eyes of the IRS. I think the 1099-C reporting the cancelation of debt will be issued for tax year 2010.

It depends on the bank. Some banks accept the deposit and then they send the money back to the IRS. If this happens, you will get your refund after you verify with the IRS that the bank got your money, then you have to go to the bank and ask them to return it to the IRS. It could take an extra month or two. This happened to my brother last year. If the bank rejects the deposit when the IRS tries to deposit it, a paper check will be issued and mailed by the IRS the following Friday. This happens when users give you the wrong account number or the account is closed (it depends on the bank).

Yes, after the sale, the LLC was liquidated. What I feel is that the person with no money invested, no work performed for the LLC will get a loss. This person never had any investment at risk neither was liable for any debts of the LLC since the LLC did't owed anyone. This is the situation, LLC was created by the 3 members, everybody agreed 3 ways for losses and profits. When there was time to buy the first property, only 2 members had money to puchase the property. To even up, the other member was going to invest heavier on the next property that the LLC was going to purchase but since the real estate market came down, there was no second purchase. The rental property had 15K loss for the last 2 years, each member got 5K loss. The previous preparer claimed losses for the two members with basis on the ONE property, and carried the loss (didn't claim any loss whatsoever in 2007 and 2008) for the basisless member, hoping that the property was going to generate a profit when sold. To me, he would still qualified to take 3K passive losses since he had other passive income. When the property was sold in November 2009, there was a 12K loss and each member got 4K loss. Am I correct to assume that the basisless partner should use 3K passive losses for 2007, 2008, 2009, 2010 and 2K loss in 2011? AND the same is true for the other two members? As always, when I am going to amend a return prepared by another person, I always want opinions from this forum.

I don't have an answer but this is an excellent question. Since your client just closed the deal, ask him/her to go back to the realtor to have a copy of the HUD-1 that everybody signed. It wouldn't hurt to have it anyways.

Thank you KC. This is exactly what I needed. So, in order for Mark to qualify for EIC, the father had to make less than $15,800 and not claim Thomas. EVEN THOUGH HE PROVIDED 0 for Tomas' support. Of course, if they were born in Oct 1991 NOT 1990 as originally posted.

Common law marriage is accepted in DC. If you want a divorce, the first thing they ask you is your marriage certicate, though. In your case, let's say that the wife becomes disabled and the husband dies, do you think the Social Security Administration will give the wife any benefits because her common-law husband died? As you said before, she didn't work, so she would not qualify for SS benefits on her own. I used to work for a lawyer and she said that for a common law marriage to be valid, they have to bring it in front of a judge and the judge will determine if you are common-law married. She said: Let's say, for example, that a disabled person lived with someone for a long time as husband and wife. Then the abled person dies and there is an inheritance to be shared with other beneficiaries. The disabled wife would have to go in front of a judge to validate their marriage. She went on to say, of course the judge most likely will certify the marriage since no one wants to leave a disabled person with nothing. In the case of two people with equal opportunities, the judge might not even hear the case. I had a case today where the boyfriend supports 100% his girlfriend (who didn't have any income) and she lived with him the whole 2009, I told him to claim her as a dependent. Why will I suggest MFJ? (I know... because the tax rate will be lower and the standard deduction will be doubled). Let's say that the wife says, since I didn't work, I do not want to file any taxes, nor do I want to be responsible for his taxes. What will you do, file him as MFS?

This reminds me that I have to make a donation to this forum so that the electrical bill can be paid. I really appreciate this forum. I think Jainen and a couple of others should be exempted from donating since they give excellent answers, but if they insist, their donation will be welcomed. Disclaimer: I am not part the of the team that run this forum, but I appreciate their effort in maintaining a place for us to hang and help each other.

Three LLC member-managers own collectively one residential rental property (and this constitutes the entire ownership interest of the LLC) that has for the last two years produced passive activity losses. Only two of the members have reported these losses, the third awaiting hoped-for capital gain on the sale of the property (since he has no other passive activity income with which to match this). The sale of the property then generates a loss. May the non-basis member declare any losses, including those of the last two years? If no, how do the two basis-holding members report the losses now permanently disallowed by the third, if any?

Very good question and maybe I am doing it wrong too. Since the bank didn't know the taxable amount when they issued the 1099-R, they didn't entered anything in box 2. Since I know that the whole thing is taxable, I enter it and no problem. Of course we all know that TP has to pay taxes and penalty if not over 59.5. So, I don't see any problems with my system.