JanMi

My understanding on a 1099-A is that nothing is to be reported to the IRS by the taxpayer at this time as it is only information received by the mortgage holder. When the taxpayer receives a 1099-C then the income is reported on the required forms. Please let me know if I am understanding this correctly, as I have a client with a 1099-A and I've read Pub 4681 and nothing there states it's to be reported until a 1099-C is received. I would appreciate any help with this. Thank you.

It depends, do they have a business name? Is it just one person? It kinda sounds to me it would be a rental.

I have a young client (age 19) with incorrect SS & Medicare tax withholdings from his employer. In box 4 & 5 the employer has -0-. In box 1 wages they have added what the employee's share and the employer's share would have been. My tax program's diagnosics wants me to verify the authenticity of the w-2 with the employer. This W-2 was hand written and the employer crossed out the wages in box 1 and re-entered the new wage amount . This employer is a local farmer who hired my client. The employer clearly does not know how to fill out a W-2 and the correct amount of withholdings. My question is do I contact the employer or do I have my client contact this employer and have them contact me? I sure I can't file this W-2 the way it is, can I? Thank you.

Thank you everyone for you input. At first I was going to enter everything on a Sch C, but after reading your comments that this type of activity could trigger a audit I didn't want this for my client or myself. I put the income on line 21 and all the expenses on Sch A. Thank you again for your comments, they are really appreciated.

My client has winnings and expenses from horse barrel racing. Do I put this on a Sch C? This is her 1st year with this income, her winnings were $3200.00. She received no 1099's. She has expenses that are more than her winnings that she can deduct. Thank you.

My possibly new clients have a situation where Mom is in the hospital and her only income is from Social Security which the hospital takes to help pay her expenses. In 1985 Mom deeded her house and property to her 3 daughters and included herself in the deed as having life lease. Not being able to keep up the expenses of Mom's home the 3 daughters sold the house and property in 2011, for $52,500.00. With realtor and misc expenses taken out they received $47,000.00. A 1099 was given to them at the time of closing with each sisters name and Social Security number on it. In 1985 the value of the house and property was $40,000.00. DHS found out that Mom's house was sold and they calculated her portion of the selling price was around $14,000.00 and they then took away her medicare for 2 months. The hospital also told the 3 daughters they would have to pay $265.00 a day for her hospital stay until her medicare starts back up. The daughters paid the hospital a total of $18,000.00. My question is because DHS calculated the Mother's part of the home was worth $14,000.00 and the daughters paid out $18,000.00 can any of the money paid out be deducted by the 3 daughters on their tax returns? I have never had this kind of question ask of me and I could use some help. Thank you. Another question: Technically the $18,000.00 the 3 daughters paid to the hospital was Mom's $14,000.00 share in the sell of her home and the rest was for her hospital room until medicare could be given back to her. So can the daughters deduct Mom's share between them when they file their taxes to go against the sale cost, being they didn't get the money for themselves? They will be filing this tax season. Thank you

I entered the carryover amount into my program and it gave her the ($3000) against her income for the year. But it doesn't seem right to deduct the $3000 from her income when she doesn't have and Sch D transactions to report. Am I looking at this wrong? Thanks.

I have a client that had a capital loss carryover from her 2009 return for $8,423.00. This year she had no Sch D stock transactions to report. Do I still enter the carryover amount to the carryover worksheet and she claims the ($3000.00) loss? Or do I not report any of the carryover until she has stock transactions? Will she lose the carryover if she doesn't use it? Thank you.

I have a client who adopted 2 special needs children (hard to place) in 2010, she paid the adoption expenses but was remimbursed by the Department of Health Services. Does she get the adoption credit even though she was reimbursed because the children were special needs?

IRS Rev.Proc.2009-47 this was issued Sept. 30

Is the standard Federal per diem rate (effective Oct. 1, 2009 - Sept 30, 2010) for M&IE $46.00 or $59.00? And what is the rates for (Oct 1, 2010 - Sept 30, 2011) the same $46.00 or $59.00? I am finding both and am not sure which to use. Thank you.