Terry D EA

Well put Jainen! In this case, the auditor isn't going to get the easy out. MFJ does save some money and now that I have received the wife's return, we will be amending to MFJ. Thanks!

A taxpayer who is disabled and in a wheel chair had to move from his home while modifcations were made to the home to meet his medical needs. I know the expenses to complete the necessary modifications are deductible and subject to the capital expense rules. My question is are the rental expenses incurred while the repairs are being done deductible? I personally think they should be as they are related to the home modifications. I have been searching but have not found a definitive answer. If so, will someone direct me to a publication or any other documentation to support the deductibility. Thanks ! :wall:

Thanks Jainen. To clear the mud a bit, this is a situation where a married couple filed MFS for the spouse and the husband did not file at all. The IRS has prepared a return for him. They should have filed MFJ all along and for some unknown reason they did not. One reason I received was the accountant they were using refused to file his returns which again is a mystery. What ever the reason is, it doesn't matter at this time. I have prepared a MFS return for him and he does owe 5K. She itemized and took all the mortage interest, property taxes; etc and the only deductions he would have is medical if any. The IRS agent that I have spoken with said it would be easier to file the MFS. I agreed but it appeared that I could amend the spouse's return. However, and as you say, the IRS is under no obligation at this point to accept the amended return. Any additional help is appreciated.

How far back can a return be amended? Example: amend a return filed in 2003 as MFS to MFJ to possibly reduce the amount of tax liability due.

Alot of time has passed since this problem occurred. There was not a real resolution to this problem. The clients were gone forever and all of the returns had to be re-created. I did not experience any furhter problems. Good luck with getting this fixed.

Don't these people just amaze you? Yes, you are correct. If your client has a refund he must file today to be able to claim a refund. However, if he owes, then the staute for the IRS to collect is seven years with hoards of interest and penalties. Hope the result is a refund

I hear ya! I knew about the 8453 but thought there might be another way to scan and attach the doc. Oh well, somethings are just better left alone. I don't drink, although doing taxes could definitely be a reason to start, my ascending order will be sending my ascend to the beach :spaz:

How do you attach a document with the tax return for e-file? Example; see broker statement. I have a guy with numerous puts and calls and want to use the bottom line totals with the description as see broker statement. Any suggestions?

Thanks, that is where I have put the fees initially. If there were a specific amount designated for handling the puts and call, then I would add those amounts to the basis.

One question here, is the 1065 marked as the final return? It sounds as though you did not prepare the 1065 but just the one partner. Go with the figures on the k-1. I would think as well that when the partnership is no longer a partnership that the partners capital accounts should be zero and all assets either sold, or converted to personal use. However, in your situation, they may be winding up business and will file the final return next year if the return for 2010 is not marked final.

I am understanding that the fees a broker would charge for puts and calls are normally added to the basis the stock transaction. I have a client that has a list of puts and calls that shows the purchase price, selling price, dispostion, and gains or losses. The cost column says "Costs or Other Basis". The account management fees are listed at 3800.00. Is this fee added to the basis or deductible under miscelleanous deductions on Sch A?

In my original post I stated that the husband claimed HOH with one child. The wife has the second child who the husband did not claim an exemption for. In my opinion, the wife should be able to claim HOH with her child as she is the parent and the child did live with her all year. Just need someone to back me up.

Simply put, his SS# has been used as a taxpayer on another return that has already been filed. I do agree this may suggest identify theft. You could get him to sign a POA so you could talk to the IRS and find out what's up

Apparently folks in the South haven't graduated to the sheet protector. Mine come in plastic WalMart bags. It is a mystery however, as to what is actually in the bottom of the bag. The best one I have ever had was the phone call when the client stated " Go look in the bushes for a garbage bag in front of your house, you weren't home so that is where I put'em to be safe". No, I'm not making that up. :spaz:

I know this has been kicked around before but I am tired and unable to think clearly. Couple is separated and living apart from each other since 2008. Hubby claimed one child and filed HOH. As far as I can tell, the wife (my client) can claim HOH as well because she is using the other child which would be her qualifying child. Am I correct here? This stuff can get confusing real quick this late in the game. :wall:

I hope this works. Just what I needed at this time of year IMPORTANT_Medical_Test.pdf

I have a husband wife partnership where the husband passed away in Jan 2011. I am filing 2010 at the final return. I normally would like to leave at least one year open for winding up of business and distributing the assets. However, there is no money nor estate and I am trying to avoid having the client pay another year of annual report fees to NC. We will be dissolving the partnership as soon as tax season is over. Is there any special form to notify the IRS of the dissolution or is the final return enough. Thanks!

Boy, in my opinion, somthing smells bad about this. Why did this employer take the funds to begin with if the person didn't qualify for the plan. So, not qualifying for the plan still constitutes being penalized because apparently an error was made. If I was this 23 year old, I would argue the death out of the 1099R. How can you withdraw funds that seem to have never been part of a retirement plan and classify them as an early withdrawl???? Is there a line on the 5329 for an exception due to Dumb A employer mistake? :wall:

That is way too cool! Looks like he might have gotten a littel disoriented at the end unless he meant to accelerate towards the crowd. What a rush and I can only guess at what it is like in the driver's seat

No problem

I would file it as well. More than once a client has been asked for a tax return that didn't have a filing requirement. I share office space with a real estate agent and one of her potential buyers who did not have to file, had a significant amount of trouble getting financed due to no returns filed for several years. So, again, I say file it.

How does this work with your software package? Please give a little more detail

After looking at the Hud 1, you are correct on everything except the 2,000.00 closing costs paid by the seller. This amount was added to the buyer's loan and again, not a cost he/she incurred as part of the settlement charges. You should tell your client that you are deducting everything permissible by the IRS code. Hopefully that will satisfy her/him. You could look up the PUB on this and have it handy to substantiate your position. Most of the time, when a client is not happy about the amount they are getting or paying, it is due to misunderstanding on their part. However, this doesn't apply in every situation but for the most part, the majority of them. Hope this helps you.

For some reason your last post didn't show and after I asked if you needed help, there it was. The only thing I am questioning here is the points paid by the seller. These are not deductible to the buyer as this was not a cost he/she incurred.

JB do you still need help with this?