Jump to content
ATX Community

Pacun

Donors
  • Posts

    4,542
  • Joined

  • Last visited

  • Days Won

    25

Everything posted by Pacun

  1. It depends if the other business uses Schedule E.
  2. I think they are referring to NIT. Numero de Identidad Tributaria. I am from El Salvador and we have NITs. They are similar to the social security card numbers.
  3. I like to emphasize that we need to calculate the basis because just the 1099-A is not enough. That's the reason for the extra capitals. As you know you need to consider many factors on the basis. To mention a few, improvements, insurance payment for damages, bequests, etc. On the 1099-A the bank is only saying, I am buying back this house from this guy. I am paying the amount on box 4 and he owes me the amoung on box 2. They also say yes or no to "personally liable on question 5. That's all it says.
  4. CORRECTTTTTTTT You need to know the basis of the house. These people refinanced many times in the past. isn't editing great!!!!
  5. Let's say you make $200K yearly and then you have an accident on December 31. Your company has short term dissability benefits and they pay you 2 weeks from Sick days. I think you would qualify for EIC.
  6. Imagine that your client just sold the property for $252,000. Calculate your basis and (since this is an investment property) file gain or loss.
  7. Pacun

    Dependents

    Exactly... you should NOT care about what HRB did because situations change from year to year. Maybe last year he qualified to claim them and this year he doesn't. When you review returns prepared by someone else the following year, you glance at the return. If within 2 minutes you determine that there is a big mistake on the return, then you let the client know and suggest to amend if necessary. You do not pull out your dependent support sheet and ask them all the questions about the already-filed-year and try to find out why HRB claimed them as dependents. Tax payers hired you to prepare this years return NOT to audit HRB work. As I said, I see the returns and if I do not see anything completely abnormal, I continue to do the work I was hired for.
  8. Pacun

    Dependents

    Are you switching your questions now? Based on what you have said... HRB might be right.
  9. Pacun

    Dependents

    Even if he supports all of them 100% and claims them on his return, he CANNOT file as HH.
  10. Pacun

    FORM 982

    1099-A means a sale. If you made a profit on the sale, you have to report it. If you have a loss on rental or investment you take, if not.... It means nothing, except that for matching porpuses you have to file Sch-D if appropriated.
  11. Pacun

    FORM 982

    Let me put it this way. Banks have not forgiven most of the debts yet. 1099A means nothing at this point. Banks do not know how much they will forgive and how much they will collect from some of these people. As a matter of fact they don't know how much they will forgive for two reason 1.- They do not know if these people have other assets. 2.- They do not know how much of the debt they will collect back when they sell the house again. When the bank issues a 1099-A, the bank is only saying, "I am buying this house back from the greedy run-away home onwer. Later this year, next year or whenever I sell this property and I know how much I will forgive this looser, I will issue him a 1099-C." On August 2007, a bank gave a client of mine a 1099-A purchasing the house back for $355K, the debt was $380K. The house is on the market right now for $280K. I told my client to expect a 1099-C for at least $100K this or next year. Rental and personal second home owners that just lost 2 or more houses will have headakes next filing season if a court didn't declare them bankcrupted.
  12. Oops, I thought he said no income.
  13. Pacun

    FORM 982

    I think most banks have not forgiven any debt yet. I think form 982 will be very useful next year.
  14. I only keep 8879 with supporting documents and original signature. I also keep the state form. What I do, I pring a copy of all the forms and I grab only the two that I need and I give them the rest.
  15. Why are you guys trying to fight the system... states are forcing tax preparers to efile. I do not tell people that the forms are not ready because I simply efile. It is easier, more convinient and secured.
  16. If the employer has the wrong zip code on the W-2, go to http://maps.google.com and enter the correct zip code.
  17. I think you are right because no one has mentioned the 11K floor when calculating the credit for the children. So any dependent kid related by blood under 17 will get $300. Thanks for your reply.
  18. Also, kids means, kids that qualify for the child tax credit or additional child tax credit. So a couple that makes only $6000 and 3 kids under 17 would get only $600. Am I correct?
  19. I am waiting for peer review but you should also check the tax treaty between the US and the other country.
  20. "This is a reminder that Form 1040 Page 2, Form 982, Form 4136, Form 8835," I guess you didn't read carefully.
  21. Sch C and Sch SE for $125K
  22. Ajuroff, I understand your point. Yesterday I had a client, his W-2 was more than $100K in just 6 months (more than 180K with wife). Very nice and professional person but I could not do his taxes because something didn't click. He started by saying, "I do not want a big refund and just want what's right". "I come to you because you are the CPA and know how to do this"... I immediately replied, "I am not a CPA but I can prepare your taxes" (he had left his paper and I studied his case for 30 minutes). He moved from CT to VA in the middle of the year and left a house behind. He showed me that he finally sold his house and lost 20K, and started showing me other expenses in order to sell his house. I said "The loss on your primary residence is not deductible". He couldn't believe me (of course after I said I was not a CPA). He went on to show me that he made 4 trips back to CT and showed me hotel expenses. I said, "did your new employer asked you to go back to CT 4 times?" He said "no". I said, "it is not deductible". He said but that's part of relocation... I said those were personal trips. He said "I am going to look for someone who has dealt with relacation before... I said that's fine, but the only thing you can deduct is your very first trip from CT to VA including the moving of your belongings. So far he was in my office, then he asked me about the $1000 for child tax credit and I told him that because of his salary, it vanished... then he said "Have you heard about the check the IRS will send in the summer". I said your check will be Zero. I printed out a return without the moving expenses and babysitter and I said.. you will get a refund because both employers withheld social security taxes and you overpaid SS. I went on to say, why don't you check with other preparers and handed his papers. I have to admit, that when our clients start telling us "another preparer told me", it causes certain sensation on us. As professionals, we have to deal with our feelings.
  23. "And here's my problem. Let's say client walks into your office and wants his taxes prepared. Gives you his w-2. TELLS you that the number on the w-2 is fake, just made up, shows you his social security card, and says this is my real one, use this. You look at the social number on the w-2 and discover it's your very own social security number. What would you do? I would have a problem with that." If I find out it is my own social security number, I would file his taxes right away before the IRS adds his salary to my salary. I let other professionals deal with the other problems. If someone comes to my office and saids, I am here illegally and every minute I am violating many U.S. laws, but I do not want to violate the IRS laws, can you file my taxes? I say yes... absolutely, that's what I am here for. As long as he doesn't try to get benefits that he doesn't deserve, I will file his taxes.
×
×
  • Create New...