cientax

Have a client that bought a home (not her residence and not rental), fixed it up and sold it (flipped). She paid cash for the home in cash in april 2008 and sold it in May same year. She is carrying the note for 30 years. She needed some quick cash last year and sold 72 months of the note at a discount of about 60 percent. Prior to selling the 72 months she received 8 regular monthly installment payments from the buyers. We reported the sale on Form 6252 for the 2008 tax return. I guess my question is how do I report the sale of the 72 months. Do I report it as one installment payment and add it to the other eight payments she received? What about interest? Would this be a Sch-D transaction instead of an installment payment? Any help would be appreciated because at this time I am considering reporting it as an installment payment.

I stated in my original post aht I updated the program, but I only updated "manually" and it still would not work. But now I went back and updated "Automatically" and it di work. thanks for your help. Problem fixed.

Is anyone else getting erro message when trying to efile 1040 today. I have two returns that I am trying to efile today and I keep getting the same message = "1040 EF Info Error: Error: Payment date for First Estimated Payment is after the current date." One of the returns has a balance due and the other has a refund. I have updated the program and still getting the efile message when I try to create the efile.

These are the responses I wanted to have so that I can show them to my clients that insist that these appliances are eligible for the credit. I ccontinue to tell my clients that they do no qualify, the they all say the same thing 'so and so got a credit for his new washer and dryer' and so on. Then I tell them to go to so and so's tax preparer and get the credits there, cause you won't get it here. Thanks again.

Here in Texas there is no state income tax so there is no energy efficient credits for state purposes. Recently there was a law passed for rebates but that does not apply to my question, next. What appliances (clothes washers, clothes dryers, dishwashers, window unit a/c's) qualify for the energy efficient tax credits for FEDERAL INCOME TAX purposes installed in personal residence? Also, are these items considered energy improvement property for the energy efficient tax credit for FEDERAL INCOME TAX purposes?

Thanks guys for all the help, Now I can wrap it up and move on. The end is near!

Have a new client (partnership LLC with 2 partners 50% each) where only one partner received guaranteed payments of $1,000 per month for first nine months and the other partner received absolutely nothing, worked for nothing but he actively and materially participated (he operated the business) then partnership terminated at end of Sept and went to SMLLC. The guy that worked for free continued as SMLLC. How am I supposed to show the guaranted payments on the K-1's if only one partner received the payments and this is supposed to be 50% each? The partner that continued does not want to show that he received income from the partnership since he received nothing from it. There is a small loss of less than $1,000 on the 1065.

I know the answer is going to be snail mail but I have to ask anyway. Client purchased new home last year and we're doing 5405. Do the documents for the proof of purchase have to be mailed along with the tax return or can we efile the return separately? Thanks!

I've had two different clients in the last two days wantingto take a credit for their new televisions and clothes drier and washing machines. They were told they could take these credits. Where do I find information on these credits? I know they have been talking to their friends or another excellent preparer that will ge them a good refund.

Now they have decided to talk to each other and now want to go at it together. How would the 433's and 656 be prepared, jointly for income and expenses or separate forms? They are divorced and do not have any common relationship other than this debt. I called the specialty so called IRS HOTLINE and they refered me to their web site where I could find more information and were not able to answer my questions.

Don't know what to do here. Couple owes for 2004 IRS debt about 40k on joint return. They divorced in early 2005 and now ex-wife wants to do OIC but cannot get ex-husband to go joint with her on the OIC. He no longer wants to mess with the problem. We are in Texas, a community property state, if it means anything with OIC. Can she solely file OIC on 50% of the debt or does it have to be together? I called the business hot line but they could not help and told me to go to their website for information. Anybody have any experience with this type of situation?

I think that maybe I was thinking about something other than depreciation. I went home and slept on it all night and then it hit me. I think what I heard was something about sales tax on vahicles and not the depreciation. Some new law about sales tax credits or something to that nature. Help please. Never mind I found what I was looking for.

Just wanting to find out what is new for 2009 depreciation for vehicles for 2009. I've been researching but unable to find any information for 2009 depreciation for vehicles placed in service this year. Can someone help in sending me to a site please. I know I read something about new depreciaton deduction for 2009 for vehicles placed in service this year but can't remember where I read it and don';t remember what it refered to. Someone (not client) called asking about but I could'nt give any reference because brain (mine) went dead as it is now. Thanks

I have a client that has paid foreign taxes and we have taken the FTC for each year the taxes were paid. (This is from Canadian Passive income). In 2006 we used 100% of the foreign tax paid. In 2007 we used only a portion of the taxes paid as a FTC but we did not carryback the unused portion. In 2008 which we are in the process of preparing now, we have a very large amount of unused foreign taxes that were paid. My client paid $1588 FT in 2007 and the FTC was $595 but we didn't carry back the unused tax. In 2008 client paid $247000 FT and we used only $46300 FTC. Should we go back and amend the 2006 to use some of the 2007 FTC then carry forward and amend the 2007 to carryback the 2008 unused tax then carryforward or can we just carryforward the unused 2007 foreign to 2008 and carryforward all of 2008 unused foreign tax. Is it required that we carryback or can we forego the carrybacks?

Married couple want to know if they qualify. One spouse is U>S> citizen the other is not. One has valid Social Security Number the other has itin. The spouse with ITIN is resident based on number of days in U.S. Can they qualify for the credit if they meet all other criteroa? Thanks.

Yes we can make the check good and are going to replace it with a cashiers check and a letter from the bank hoping to avoikd having to pay the bounced check penalty. Client was in the process of changing accounts at time check reached the bank. Our concern is whether the OIC will be rejected because of this. Any experience in this matter concerning the OIC and bounced checks?

Client got irate with me at one point because he felt that I was working too slow with the OIC paperwork. He wanted to speed things up to get the offer in the system and get it over with. Client owes over $100K and we made an offer and client sent 20% check (about $18K) and now check bounces. What happens now or what do we do now? Does the offier get rejected now and do we have to start all over again? I really don't want to do it all over again and have to deal with him in this again, but then it is that time of year where it is pretty slow around here and I could use the cash and I will bill him again.

Can the standard mileage rate be used for an OTR tractor/trailer driver? I have never used the mileage but I have seen tax returns prepared by other preparers using the standard mileage rate. I thought only actual expenses could be deducted for OTR tractor/trailer (18 wheelers). The tractor is fully depreciated for this client and he wants to use mileage since his prior preparer did. Can it be done, LEGALLY?

Maybe I should rewrite the question. For puorposes of the NOL worksheet, would the loss from the 4797 be carried on line 11 of the NOL worksheet that asks for "business capital losses"? Thanks

Client abandonded restaurant equipment and was reported on Form 4797 as loss. Is this a business capital loss or is it ordinary business loss. ?Trying to determine for the NOL worksheet. Thanks

The Federal Housing Administration will allow the new $8,000 first-time homebuyer tax credit to be applied directly toward home purchase costs when using an FHA-insured mortgage, the Department of Housing and Urban Development said on Friday. The plan to "monetize" the tax credit up-front is aimed at more quickly stabilizing the housing market, HUD Secretary Shaun Donovan said in a statement. But in detailed rules, the FHA will still require home buyers to provide a minimum 3.5 percent downpayment from other sources. The $8,000 tax credit for first-time home buyers was created as a part of the Obama administration's $787 billion stimulus plan. Some private lenders already were allowing buyers to apply the credits directly toward purchase costs through special financing schemes. With the FHA following in a similar vein, a significant portion of the first-time homebuyer market will have up-front access to the credits instead of waiting until tax returns are filed. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing," Donovan said in a statement FHA-insured loans, which largely have replaced the subprime mortgage market, now accounts for about 25 percent of new mortgages, senior HUD officials said, versus about 2 percent of the market two years ago. At this pace, the agency will insure some 2.2 million mortgages this year. The National Association of Home Builders estimates that the $8,000 first-time homebuyer credit will stimulate 160,000 home sales across the United States -- 101,000 purchases from first-time buyers and another 59,000 purchases by existing homeowners who sold dwellings to first-time buyers

Thank you, I'll see if maybe I can find something. I thought it was straight forard.

The owner was a C-Corp for 2007 and made the S-Corp election for 2008. Because of the income, the section 179 was limited and not allowed full depreciation and now has carryover to 2008. And my question is posted below. Does unallowed depreciation from 2007 C-Corp carryover to 2008 S-Corp return?

Does unallowed depreciation from 2007 C-Corp carryover to 2008 S-Corp return? The owner was a C-Corp for 2007 and made the S-Corp election for 2008. Because of the income, the section 179 was limited and not allowed full depreciation and now has carryover to 2008. And my question is posted above.

Have the tax rates on taxable income changed? I prepared a return on two different computers at different dates with taxable lincome being the same however there is a $60 dollar differnece in the tax. The taxable income is $2798. On one return the tax is $279 and on the other return the tax is $219. Can someone confirm which amount is correct please. I can't find anything on any changes. thanks.