Pacun

On 1099R, answer question 7 with a distribution code AND select IRA. DO NOT expect to find a Roth IRA choice.

In the past, I have purchased previous years for 20 bucks from ATX. This time, I needed 1998 so I called. I was informed that there was a minimum of $100 charge. I was also told that I could get as many years as I wanted from 1995, except 2006. Since I am going to program a new computer and I do not want to be looking for previous years CDs, I said please send me 11 years, 1995-2005. If for any reason, you need a previous year, please order 11 years so your $100 are worth it.

From ATX open 1099R, enter $8008 on box 1 and $8 on box 2. You will have a ONE-DOLLAR penalty for early distribution.

A little too late for KC's suggestion, but please share with us how it went.

When acquisitions happen, there is no choice but to leave the 401k and everything else on the new 401k because these newly "purchased" employees belong to the new company and people cannot be rolling over their 401k if they continue working with the new company. When I was "purchased", I decided to moved to the parent company. By mistake, they terminated me and the new company hired me. They sent me a ESOP check which I cashed. A month later, I got a call from the 401k administrator asking if I wanted to return the money because they made a mistake. They went on to say that the rehiring situation should never had happened because I was an employee of the parent company.

The law does not require you to have a driver's license to deliver the pizza. You can use pony express, a scooter or simply walk. But now, you have broght a good argument... If you make a business trip to El Salvador, you will need a plane ticket ($500), a Visa at the airport ($10), hotel ($80 daily) and food ($30 daily). Do you think the traveler or the company he works for will deduct the $10 they paid for the Visa? No one knows the exact answer and we appreciate your input.

Nothing is deductible then. If the company is the one that is supposed to pay and they voluntereed to pay, nothing is deductible.

You are right and believe me, companies deduct whatever they pay for the H1B process including, but not limited to, attorney fees. Prior to 1999, employees had to pay for the H1B process, I believe most preparers didn’t deduct those expenses on the employee’s tax return but now no one questions (not even the IRS) when a company deducts all expenses. I did not want to mention that the employer is the one who pays for the H1B because it is only one of many ways to work legally here in the USA. TPS beneficiaries, for example, are paying at least $400 to renew their work authorization. I believe that if the IRS does not allow those deductions, the courts will. I do not claim them on schedule A because usually the expense is little and I do not want to be the one that challenges the IRS in court. The rule is that if a company wants to employ someone with H1B, the employer has to pay for the H1B visa. I believe a transfer is the same. If not, the new company is not following the rules or found a loopo. Most of the time, employee and employer make agreements and most of this money comes from the employee either through less benefits or more hours of work.

He is renting a whole house and 50% of the rooms from the house he lives in (no duplex). Houses are 2 blocks away from each other.

A similar question came in one of my H&R classes and the instructor said he would claim all expenses (including attorney fees) limited to the 2% floor. While I don't have a clear answer... I would like to create some reaction about this and you can make your decision. American companies would deduct any license fees needed to legally operate their business. A foreign company, not only needs the same licenses but it also needs a special license to operate legally. Would you deduct those expenses? I think so. An american baber will need a get a license to operate legally and YOU would deduct the licenses fees. A foreign barber will need two licenses, one regarding his profession and the other (H1B) to comply with the law. I am all ears.

Tax payer has 2 houses. 1 for rent and 1 where he lives in. He also rents half of the house he lives in. As a landlord, he does all the activities regarding renting both places (he shows the properties, collects rent, decides on repairs, etc). He is single and his W-2 shows income for 50K. His rental shows 10K losses on the rental house and 6K losses from the house where he lives (mainly because of depreciation). How much of those losses can he use against his income?

Provided you all 3 share the same back bone, correct? I think you have licenses for 3... (you, your secretary and your assistant) on the same network back bone but I might be wrong.

That's illegal. This is a buffet... all you can eat. You don't bring your friends to a buffet and pay only for one, do you?

It could be related to an injury your client suffered or his ex is going after him for child support. Just follow the court's order.

It seems to me that the house is half rented and half occupied by the owner. Exclusive use is a requirement for Office in Home... NOT for rental property.

NO. It is not easy to get a green card. So if he wants to get back to the U.S., he better be taxed as a regular U.S. Citizen. If he is not coming to the U.S. every year, the immigration services might detain him when he tries to reenter because he has relinquish to his green card by overstaying in Colombia... unless he has advanced parole approved by immigration. If he got his green card because he married a U.S. citizen (for example), and his wife is dead or divorced him, he will not be able to reobtain his green card. If his mother gave him his green and provided his mother is still alive, he would have to wait about 4-8 years to reobtain his green card. If he got his green card because a company offered him a job, he would not qualify because he is not considered a qualified candidate based on his age and the fact that he is retired. As you can see, giving up his green card is not an easy decision and MAYBE he alrealy relinquished to it.

It sounds to me that the money he took out is return of capital.

Going back to the original question... just ask your client to send 20% of what he took out to the IRS and 10% to the state (if applicable) and he should be OK when April comes. He will only pay regular Federal and state taxes when the time comes.

I thought they already fullfiled the second requirement? Not 100% but for sure some nice percentage.

That's good that they are giving a chance to challenged people. It is a stressfull job. Both IRS and Army are having problems recruiting people.

Do the 1040X as if the IRS has not audited the return. Just make sure you check where it states... are you amending because the IRS audited your return?... I usually include a cover letter to the auditor and I ask him if he accepts us 1040Xing the year in question.

add an asset entry form.

The IRS has created a special new section on www.irs.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes. A listing of frequently asked questions on how to handle a foreclosure and the related tax consequences is available at http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Did you mention the toaster or coffee maker bonus?

I have never heard about the HART program but I have heard that the IRS WILL NEVER EVER send emails about audits. So, please know that and share it your clients.