Terry D EA

I agree one SE should do the trick here. If you would split the total between the two, the bottom line would be the same. Just unnecessary paper toner & time.

I dont't know what play the community property state has here. It appears your client has no choice but to file MFS. He cant' file MFJ which you already know. Don't you just love the courts? You are correct when you say the IRS could care less about the court's position with this.

I can't add anything additional so be sure to follow the others. DO NOT put more than one return in an envelope. Doing so will just make matters worse. If you could even get inside the mail room at one of the IRS processing centers, you would see why.

Thanks for the replies. The processor is an intel dual core somthing or other. I could post the specs if that helps. This computer will be put into use for next season as it is too late to begin to think about data transfer; etc.

If Ryan is still monitoring this board, I have some questions. I just ordered a new HP ProBook laptop with Win 7 Pro 64 bit. Are there any known issues with TRX and Win 7. I did this without really investigating this. I see some folks are having issues with ATX and italics. The new machine has 350G HD, 4GB memory upgradable to 16GB. I thought this would be ample computer for quite a few years. I did get 7 years out of my dell but it is now displaying resource deifficulty when opening both 2009 & 2010 TRX. Any input is appreciated.

Okay you guys are scaring me here. I just ordered a new laptop with Win 7 Pro 64 bit. I trusted the guy at HP on why I needed the 64 bit. Before it is too late, is 64 bit the way to go? He said it is for memory upgrade capabilities.

Are both computers running the same update? That would be the first place that I would check.

I agree with bcolleen but, there may be a question of timely filing of the 1041 due to the fact the spouse died in 2009. Without all of the facts, it would appear that her estate is insolvent. If Jainen would chime in here I am sure he knows the proper action to take. This will be interesting to see the outcome.

Same here. I too plan on renewing but not at this crazy time. I do feel left out though, I didn't get the e-mail unless it went to junk mail or spam.

Taxbilly, John H is correct with his instructions on how to handle this. Social Security is not taxable to NC and I don't think there is a residency requirement for the credit for private retirement benefits. If you input this on the W-2, then the program will calculate for the credit. BTW, I have not ever heard of different filing status's for Federal and State. Matter of fact, I have not ever seen the option to change the filing status when preparing a state return. I would ignore that suggestion.

You are correct, this is income to NC and there are no provisions to deduct this from the Federal Income. The sale of this property is taxable as a gain to the Fed's then it is taxable to NC as NC begins calculating the tax liability based on the Federal taxable income. Hope this helps.

This is another perfect example of the importance of constantly backing up information. I too learned this valuable lesson the hard way. If your machine backs up to an online source, you may be able to retreive a copy of the file that you deteled there. If you have a backup such as an external HD or to a CD, you may be in luck. Otherwise, I don't see any other way. No back up no chance of restoring. Sorry

I agree JB. Use the figure on the 1098. What the others are saying is you can use the information from the HUD 1 if the points paid are not listed on the 1098. The deductible items are the loan origination fees, and of course, taxes paid. I hope all of the replies clears the mud for you

Karen, I am sorry for your loss as well. Just to reaffirm, I agree totally with Jainen on both. Our prayers will be with you and your family.

Jainen I see where you are coming from and I agree, there are alot of low income people working their tails off for little money and, in my opinion, deserve every break they are entitled to. But, I also see those who are working the system as well. However, I guess it is not part of our job to judge how and what the client is doing. Our only responsibility is due diligence for EIC purposes. I agree with KC as well that this is just another way our Government promotes poverty or other immoral practices.

First reation out of the gate was to do exactly as you stated. Conver to personal use. The only way that I see to to handle this is to do the conversion manually. Record the depreciation take for this year and do not go forward in 2011. Maintain good documentation for your client that supports his/her position. If there is another method within TRX, then I would like to know as well.

I agree with the responses to the boss question. I also agree with the responses to the original post. As long as the property was available for rent then the losses are deductible. However, it is note worthy that the loss of rental income is not.

Maybe I'm think of something different, but I asked ATX, when it was still ATX, if something like this could be done automatically in the return manager. Say, like when the return is transmitted, pending, accepted, rejected, held; etc so you could see the return status fromt he one screen. Unfortunately, it never happened.

I wish things were this exciting around my neck of the woods. JB where in the world do you get'em from? I mean clients like yours. I thought you were in the big city of Canton or Massillon where there aren't many farms? Of course, the poop could have come from anywhere but just asking. :spaz:

If they are filing a joint return, it would only make sense to include the total for both on one form 5405. Question, if you do complete separate forms, will the total flow to the 1040? let us know.

Your only option may be paper filing. Of course, that means extra forms to complete and have signed.

If conditions are such to require the AMT, will the AMT automatically trigger in TRX? I guess I was used to ATX automatically populating the forms for me.

Spoke with the NC DOR yesterday. Using my own return and refund, I inquired about when the direct deposit could be expected. After the little laugh, the agent told me 45 days from the date of acceptance. Refunds from NC State were coming thru faster at the end of Jan. Obviously not now. Just thought if there are any other NC preparers here that you might want to know if didn't already.

I would love to have access to those types of emotion icons as well. They would indeed be fun. Thanks Catherine, we can always count on you to come up with something unique and different.

We all get a few of these each year. In my opinion, it only proves one thing. Taxpayers fail to fully understand their position with related taxable or non-taxable items. I try my best to make sure the client understands that regardless of what I or any other accountant, broker, tax preparer, etc; do or tell them, they are ultimately responsible for each and every line on the tax return. Too many times I have had to ask the question of why didn't you call and the usual response is because they were trusting someone else or didn't think they would have to pay. Folks don't appear to understand the necessity of good planning or any kind of planning at all. Over the years I have had to learn to not feel bad when a client owes because of their own irresponsiblity or ignorance. I too have gotten caught as Jainen mentioned but again, I usually follow up my recommendations with the following statement: "Call me at this time (usually 6 months into the year), make an appointment for a review so we can make any adjustments to avoid any unforseen tax liability." You guessed it, no calls or appointments but alot of crying before April 15th.