Janitor Bob

Hey JB.....I know you did my taxes already but I got a 1099 in the mail this past weekend from when I sold some supplements. It was only $25.00, so I just pitched it. Ugh

"Equitable Ownership"...that's the term I could not think of! I'll search on that. I think we are referring to the same court case. In this case, YES...son pays all the bills for the home just as if he owned it. Again...it is not going to help this year, but It peaked my curiosity....I'd like to be better equipped with precedent in case it is needed in the future.

...and Yes, I know my cats cannot understand a word I say, but I always shares stories with them of Smokey....our first beloved cat that paved the way for all future kitties. Regaling them with "tales of the Great Smoky" makes me feel better and eases the pain of losing her a little bit.

Oh Joan....so sorry! I think we all know how devastating this is. Nothing will ever replace the kitties you've lost, but take heart...as you probably know, there will be plenty of furry cuddles to share with future kitty/puppy family members

In this case the interest would not help the son (not enough deductions to itemize), but I found the question interesting and wondered if anybody had been able to successfully argue in favor of claiming such interest.

Son had bad credit and could not get mortgage loan...so mom put the mortgage in her name. So the mortgage is in mom's name, but son lives in the home and makes the mortgage payments. Of course the 1098 is in mom's name and SSN. Son wants to claim that interest paid on his return. My first though was NO...not tied to your SSN and your'e not legally liable for the loan so no...you cannot claim the interest. But...I seem to recall a tax case where the son was allowed the deduction in a similar case...If I recall, the reasoning was that even though not in his name, he lived in the home and since not paying the loan would mean he would lose his home. Am I so early succumbing to the pressures of the season and hallucinating or was there actually a precedent for this?

Normally, I send the documents via pdf (encrypted). I direct the clients to print, sign and mail the form(s) 8879 back to me along with a check for payment. Once I receive that, I transmit the returns. I do think I will sign up for and download the cPaperless Signatureflow so that I have that option when I want to get the signed 8879 faster.

What is the difference between Vitru Free and what you are paying for?

Gonna give Virtru a try

I want to be able to send and receive documents to and from clients, but want to do so in a more secure manner than simply emailing pdf files. Has anyone tried CCH PortalSafe or other similar programs? Maybe a good free/cheap encryption tool to encrypt email files?

Feb. 3, 2016 The IRS experienced a hardware failure this afternoon affecting a number of tax processing systems, which are currently unavailable. Several of our systems are not currently operating, including our modernized e-file system and a number of other related systems. The IRS is currently in the process of making repairs and working to restore normal operations as soon as possible. We anticipate some of the systems will remain unavailable until tomorrow.The IRS remains in close contact with e-file software transmitters and the tax community during this period. A number of taxpayer and tax practitioner tools are unavailable. IRS.govremains available, although a number of the services on the site are not, including Where’s My Refund. Taxpayers can continue to prepare and file their tax returns as they normally would. Taxpayers can continue to send their tax returns to their e-file provider; these companies will hold the tax returns until the IRS resumes accepting electronic tax returns. Taxpayers who have already filed their tax returns do not need to take any additional action. The IRS is still assessing the scope of the outage. At this time, the IRS does not anticipate major refund disruptions.

Tell me if I have these two correct: 1) Client had two short gaps in coverage during the year (Jan/Feb then again Nov/Dec)...only the FIRST gap can qualify for the exemption. 2) Client had a 3-month gap in coverage...Since more than 2 months, NONE of the 3 months qualify for the short gap exemption...correct...or would two of the 3 months qualify?

First chance I've had to get on here this season because I've been busy holding my first grandchild. He is perfect.

Off the topic of taxation and more on the side of personal finance. A client is being charged 1.35% of her asset market value as an annual management fee...Does this seem high, low, average?

I called Tech Support. They connected remotely to my PC and deleted some files and ran a repair utility...works fine now....They have no idea why this happens and could not guarantee it would not happen again. Fortunately, they seemed to know just how to fix it and I was repaired and off of the phone in under 20 minutes

Is anybody else having this? For the past few days, I can no longer open the ATX program...I keep getting an error message about not connecting to the server.

Ugh...client moved into newly constructed home on March 20th, 2008. Before April 8th, 2008......

awesome. I will compose a response explaining that taxpayer did not occupy the newly constructed home until late 2008. Hopefully client can get me some documents to support that date.

Client took out a mortgage loan for land and building supplies in early 2007...had and deducted mortgage interest on their 2007 return. Since they did not move into their newly constructed home until 2008, they took a first time homebuyer credit on their 2008 return. In 2010, IRS audited their 2007 return...and because they had mortgage interest in 2007, IRS declared that they did not qualify for the 2008 credit and must pay back thee part of the $7500 that had not been paid back from subsequent returns (2008 credit was the one that needed to be re-paid)...plus interest, of course. The taxpayer ignored the IRS until they received another notice this past January of a final amount due (approx $6100) and gave them notice that they may file a lien or garnish. I told client I would take a look and confirm/dispute IRS....but it seems pretty clear to me....Mortgage loan in 2007 with mortgage interest paid and claimed on 2007 return means the home was essentially purchased in 2007...not 2008 (even though they did not move in until 2008)....client owes the money....correct?

He drives a company truck and is even required to wear company uniform.....I told him last year that he was gonna get hosed by the company if they did this to him...but as stated....I suppose he preferred this to no job at all.

Client has 1099-MISC. $38,707 in box 7. he drives a tow truck for a company....they tell him where to go, when to go, what to do, etc....I'm not sure why he is not a W-2 employee, but he's not. I am assuming that this $38,707 is subject to SE tax?

Completed taxes for a client that had several pages of 1099-B transactions...was glad to have it done..spent at least two hours digging through the investment company's Combined 1099 statement. What does client receive in the mail yesterday? A REVISED Combined 1099 statement....and almost everything is different! Most stock transaction have the same gain/loss, but some have different purchase dates and have moved from LT to ST and vice versa....Dividends and capital gains are much higher. What's the use of sending a statement when you're just going to change everything? I will tell client to send the bill for the amendments to his investment company.

I will miss her...one of the few that never complained...about her taxes or my fees....always had a smile

So I have a long time-client that provides a good breakdown of income and expenses for his rental property. He informs me that his income and expenses are a lot higher because he purchased two additional rental properties in Feb. 2014. He did NOT split out the income and expenses to each property...just one lump sum for income and for each expense category. All 3 are in different cities, so each will need its own income/loss. Extension.