Pacun

I would go with D. For sure the building is 39 years because it is NOT residential.

On the previous one, is $25,000 because he physsically participates. Even if he didn't physically participate, 0 would not be a good answer.

I wanted to ADD: Please ask any questions on this forum. We are here to help. We were at your level at some point and we understand. I think simple questions get an answer right away. Just don't make it as hard as my warm up exercise because you will not get ANY answers.

I do support regulation too. The main problem that I see for the IRS is the tax preparers that know a lot but don't sign the returns. They will continue to operate since they NEVER sign returns. They are not affraid of exams because they know a lot but simply don't want to follow the rules. I am going to take the EA exam during the summer and be ready for next year.

This person owed $2,126 for 2005. How much do you think it cost her to get representation and preparation of the documents to bring to court? How much time she invested on this case?

The DC-40 was just released and it seems to have a bug for low income credit. I will report it 1 day before efile begins. Maybe at that time they ATX has fixed the problem.

I guess this was the worst idea posted on this forum.

I scan all 8879 and burn them. I don't recycle them.

I used form 1040.

I get all signed 8879 in one place and I efile as I go. We are busy on the weekend so on Monday, I hand in all 8879 to my partner and I ask her to read the names and I check efile status. If accepted, a check mark with a highlighter goes to the 8879 and it is put on a pile. If not accepted or not transmitted, it put on another pile. If I do not see on e-file I put it on another pile and work on those returns immediately after we check them all.

We put the checked 8879 on a pile on a different drawer. Next week, my partner will check the refund status on the IRS and state websites and make a note. After that, the 8879s are moved to the finito filing cabinet. When a client calls, we go to the finished returns and tell them when the refund will be received or if there is a delay on the return. We do that every Monday and if I forgot to efile one, no problem because Wednesday is the deadline for efiling.

I efile EVERYTHING that I can. I do not charge extra for efiling since I save paper, toner, printer and time.

Under your scenario, the person actually lost $100, which they can claim as a loss, since their winnings were also $100 at the end of the trip. If they had lost $500, they could only claim up to $100, because that was their total winnings on that particular trip.

You are right the net result would be a loss, but you will need to report $100 on line 21 and if you do not itemize, you CANNOT deduct any losses.

When I read the case I understood that the taxpayer could net winnings and losses on line 21 of the 1040 for each time a taxpayer "settles" with the casino (i.e. cashes in his chips). I do not think that limits the taxpayers ability to deduct other unrelated gambling losses on the Schedule A to extent of all netted gambling winnings.

For example if a taxpayer goes to the casino with $500 and he wins a $5,000 jackpot and continues to gamble but only goes home with $2,500 his net winnings would be $2,000 for the day and that is what should be reported on line 21 of the 1040. If the taxpayer goes to the casino two more times during the year and looses $1,000 each time then I believe that the taxpayer would be entitled to an additional $2,000 deduction on Sch. A of the tax return.

I have several clients that are on SS and typically have W-2G's from the casino's if we can use the new rules to reduce AGI it will be very benificial to them.

Jake, I don't think you are right. At no point the court said "since you cannot itemize, you cannot deduct any other losses".

I know that part. It's just that typically you can use the selling price as FMV if it is "soon enough." Since it didn't sell in one year, do I need an official appraisal? Or, do I have a few month leeway to still use the selling price?

Thanks.

You can get the FMV on those dates without an official appraisal and use that as your basis. You just need to have some documentation but an official appraisal. I hope someone can give you some websites to help you.

The lady who opened the daycare center on May 1, 2009 will get a refund of $4,423.00 for tax year 2009.

If you have a different answer, please post all the entries on lines 47 though 67 and I will tell you what I have and we can start a nice exchange.

I've been trying to sell my late father's house since last July. (I would have put it on the market sooner, but I was kinda busy the first few months of the year.) Since it has now been a year since his DOD and there are no "nibbles" yet, do I need to get an official appraisal? I know if it sells reasonably soon after DOD, you can use the selling price as the basis. I've always understood that to be one year. Or, is some other time-frame more appropriate? I do have the real estate agent's estimate of FMV on DOD, but that is now much higher than the current offering price.

Thanks.

You need to use the FMV of either DOD or 6 months later.

Any takers? I will post my answer within 48 hours.

The HRB fee is based on the forms, schedules, worksheets, lines, etc., in the return and not on the experience of the preparer. I worked for Block for years (although only 1 1/2 in a regular office; Premium the rest of the time) and charged whatever the computer calculated or the price list said or the Block hourly rate. I had one nice couple at about $139 for years. Gentleman is still with me (wife passed away a couple of years ago) at $140 now. But, I don't do any other returns that low and didn't even while still at Block. You can't tell how experienced your preparer is at Block by the price.

The cases that will not require many forms or lines go to the roockies and the price is below $400. If you bring a case like the warm up case I posted, it will not go to a roocky, it will go to an experienced preparer. That's the point that I try to make. Of course it will cost you much more than $400 to have difficult returns prepared. No one has challenged this: You can bring a person who doesn't know what a W-2 is, have him/her take the basic course, pass the exam and be an HRB preperer 4 months later. Trust me, the instructors are very experienced and knowledgeable but the company pays very little to preparers and that's why they have very inexperienced people working for them. With the salary HRB pays its preparers (and the non-compete agreement you sign), it is very hard to keep preparers after 2 years of experience. They teach their course every year everywhere because that's how they hire their employees.

H and R block will start charging more since their preparers will not come from the street in August, attend a class, and be preparing taxes by January 15. They are very reasonable with their pay though. Yes, I said that. They pay them little, but they don't have any experience. Do you now agree?

I have taken a lot of classes from HRB and they are very good classes. I have had a chance to help my friends with their homework and no matter how good the classes are, taxes cannot be learned in 3 months. I always tell my friends, if you do not pay HRB more than $400 for your retun, you didn't get someone with experience behind the desk. Isn't that the case?

>>

Then shouldn't ALL preparers be tested, including attorneys, CPAs, and enrolled agents?

Everybody will be tested or required to attend classes after the initial exams. CPAs, Attorneys and Enrolled agents will be excused for the initial exam because they have already passed harder exams.

Some one said that preparers will not sign. You are absolutely right. As a matter of fact, preparers that do not sign returns are the biggest headache for the IRS. "Public education???" you must be kidding, the public is the one driving that force. The public is the one that goes to those preparers who will NOT sign the return and pay them 200% more of what I charge.

I love this community, I feel that no one should be allowed to prepare taxes without this community. During my first month of tax preparation, I will make a small donation in gratitude of all the help I get here. CPAs, EAs and Attorneys are not exempted from donating.

We should start another thread since this one is becoming too big.

I agree with GeneInAlabama. I am unlicensed preparer, but I take courses. I have also taught for H&R many years ago. I real don't feel like traveling to take this test. I am also a retired teacher and I know some people can take tests and score high but may not be able to apply their learning, others fear a test but have the skills to apply their learning.

I love to drop some bombs from time to time and this is one of those times.

In order to prepare taxes, you need to be able to pass a test and you need to be able to apply what you learn in school or courses. If you cannot do both, sorry, you shouldn't be in tax preparation business. This is no longer a profession for the semi-smart, semi-prepared person because too many changes happen every year.

Honestly, are you ready for this coming tax season? Are you semi-ready? Are you relying on your experience? Don't you wish you took a course?

That's the way I see it too. I have a few clients that will probably be able to take advantage of this new law and it seemed to be too easy. I can't remember another tax year where tax planning was so important especially with the inheritance tax debacle congress created for one year. One minor correction that might have been a typo. The tax payer wouldn't pay taxes on the racharacterization until the 2011 and 2012 tax year.....strange.

You are right they will have to pay taxes in 2011 and 2012. Which means that some people will pay on April 15, 2013.

I feel that this whole issue should be based on experience and the amount and types of tax returns that are being prepared by each individual. To lump everyone together is going to give people who should have more education the right to prepare taxes, while not allowing people who are more than qualified to have to take a test when they have proven themselves qualified/capable over the years. This needs to be a case by case evaluation. I realize that I am newer to this forum and have asked many of you questions over the years and you have all been very helpful (no matter what titles you have) As I said, experience is a very valuable asset and some have more experience than other and that should be taken into consideration with the IRS.

The IRS doesn't have the resource to evaluate experience on a case by case basis for a million preparers. Exams are already in the computers and will not create any extra burden on the IRS. So, no matter how we look at it, we better start studying for the exams.

About 5 years ago, I was able to pass all 4 exams for EA just by reading previous exams. Because I changed my name later on, I didn't get certified. I am going back to those exams again and see if I can pass them. Now you can take one at a time. CPAs are right, no way you will pass the CPA exams just by reading previous exams.

Partner A didn't gift anything to Partner B. Partner A's basis is whatever money he invested. Partner B's basis is zero. Partner A made a loan to LLC so when he collects that money back, no tax transaction happens; except for interest if any. Any money paid by LLC to partner B should be treated as money paid for services and subject to payroll taxes.

Now, if you are saying that Partner B is personally liable for the loan, then he could have a basis on the LLC, but I don't believe that's the case.

How will they grandfather someone with 5 years of experience?

Experience means a lot but sometimes means nothing. How about the tax preparer who only prepares 11 paid returns every year and has done it for 30 years? How about the preparer who works at a big office and only deals with some type of returns for 6 years? How about some one who prepares 300 diverse returns by himself or herself and has done it for 30 years? Who will testify on the experience of the 300 diverse returns person? I bet you the guy who only deals with limited returns at the big office will be the most qualified in the eyes of the IRS since a CPA might write a letter regarding that person's experience.

So, in order to be fair, I think exams should be given to everyone who is not a CPA, EA or Attorney.

How could TP legally be drawing unemployment while working?

TP was a successful banker making a couple of millions up to halloween 2008. She was laid off and started collecting unemployment compensation. She didn't work Nov and Dec 2008 and start collecting unemployment compensation. Since she didn't make enough money, she continued collecting unemployment in January and February 2009.

"I received a letter today in regard to preparing tax returns without the form S2, W2G or 1099R in hand befoe filing."

I received that letter also. Are we part of the 10,000 or this was sent out to every efile site?

But you do understand the point that you can only take child care expenses for the time that the TP was either employed or in school, right? So there is no question that you MUST question her about the time that she was getting Unemployment.

Let's face it, this is what is so hard about writing tax problems, there are just so many different factors that must be covered before you can finish the question.

Actually, TP was working while collecting unemployment as I explained before.