Terry D EA

I just recently completed a return that had Mo, KS & NC and all went well. The only thing that didn't was the wages amount to each state and the amount of taxes paid to another state for Missouri (as a resident state), to calculate properly.

Are you tring to get to "Grand Poo Bah" status? Huh? Really? Good luck with that.

Grandmother cannot file as HOH without a dependent. She must file single Daughter can claim daughter as a single filer as it would appears she did not pay for more than 1/2 of the upkeep of the home due to the fact she made approximately 1/3 of the grandmother's income. Question is can she claim ETIC as a single filer with a child?? Off the cuff I say no. I don't see a tie breaker rule applying here. let's see what others say

Thanks Margaret, Pub 970 doesn't mention when the credit became available but does mention that you cannot use the Hope Credit this year. It is always good to keep each other straight with these ever changing issues.

Student loan interest is only deductible for taxpayer, spouse or dependents. If the person for whom the education loan is for cannot claimed as a dependent or is not the spouse or taxpayer, then the interest is not deductible regardless of who is responsible to repay the loan.

I find the following according to Pub 970. 1. This is the first year of the AOC credit, so it would be impossible to have already claimed the credit for any previous tax years. The gray area here is the fact that the AOC is an extension of the Hope Credit and if the Hope Credit has been claimed for any two previous tax years, then is there only two years remaining to claim the AOC? So far, I have found nothing to support that but it still very well may be the case. 2. The eligile student requirements are pretty clear. The credit is ONLY for undergraduate work. We all know that if a student is enrolled in graduate school, he/she had to have completed undergrad work. 3. The statment is clear regarding (4) four tax years. Going forward, the credit can only be claimed for four tax years, there is no statement that these years have to be consecutive. So, if a student took a break for one year and then resumed, he is still eligible to claim the remaining credit. So, if a student took 8 years to obtain a bachelors degree and there were a year or so break, then it appears he/she could take the credit for (4) tax years. However, if a student takes (8)consecutive years to complete a four year degree because he/she is a half time student, then it is clear the credit can only be taken for (4) four tax years. To the scenario of a student who is a junior enrolled in a four year bachelors program could only take the credit for the two remaining tax years and the first two years of grad school... the student is not eligible to take the two remainig years of AOC credit simply because the credit is allowed for pursuit of a four year undergraduate degree

Not sure on this. I have one with TRX pending as well. So, it isn't a software issue but an IRS issue. I can't remember for sure, but I think mine shows a tentative release date of 2-11.

Hi Margaret, this is a tough one. Did you client by chance have the property appraised when it initially went on the market? If so, then I would use that figure for the basis of depreciation. I wouldn't lower the depreciable basis becuase the property didn't sell. That fact that the market did not return a sale isn't enough reason in my opinion to reduce the depreciable basis. The appraisal would be the best form of substantiation. However, if there is not an appraisal, then I have to go with Pacun on this one and use the tax card value.

Thanks Ryan it is on the way.

Ryan I need your e-mail address

let me add something here. When in peek mode, click on the form on the left of the screen you want to view and that form will be displayed. This is quicker than going to review each time. I have done this in expert mode

Ryan, Just to keep you in the loop, one of the updates that was completed earlier today has corrected some issues with the inability to roll clients forward from the previous year. Also, I have been getting an error window quite frequently and that has appeared to stop as well. Thanks so much for looking into this. I have a print screen image of the error window. Can I e-mail that to you for your perusal?

I don't remember seeing a social security number as one of the requirements to take this credit.

I agree with Bcolleen, put it on line 21. I understand the previous post about the IRS matching and looking for box 7 income that should trigger SE tax. However, amounts in box 7 can be added as income not subject to self employment tax. Of course, if it is disguised as wages then that is another story.

Just off the top of my head, alimony paid is deductible regardless of where the funds were obtained to pay it. My question is how is this coded on the 1099R? Does this fall under one of the exception categories that eliminate the 10% penalty and additional tax? Without further research, I would say yes but it will be interesting to see what others say

This was exactly my position on this and I do appreciate you backing me up here. Now getting the client to estimate the outbuilding might be a little difficult. However, would it be unethical for me to estimate the possible cost based on my knowledge of what a 16 x 30 building would cost?

Thanks for the suggestions. I have not moved the clients that disappeared and yes I have multiple backups. Here is the amazing thing, the client names show under the client management tab. I know it seems wierd and I promise I am not crazy, but by the time this is solved I might be, the clients have disappeared from the client profile as well as every backup that I have including back blaze that we checked and figured that was a sure fired way to retreive them. However, nothing !!! and now it is call the one client to see if she would be so kind to let me see her return so I can recreate it. If there is anything comforting about this is these returns do contain the Sch A which I did not transmit yet so the client is not expecting their refund for a while. No one in support can figure this out and they have seriously tried.

I have called TRX support twice on this issue with no luck. I have had two returns completely deleted from the client profile without warning. First time, the support agent couldn't help and said the return was gone. Fortunately, I still had the client information to re-create the return from scratch. Tonight same thing only different client!!!! I need to know what is going on, why, and how to fix this and keep it fixed. I am booked solid tomorrow and don't really want to continue to use the program. Can someone from RedGear call me or give me a number to contact them for help.

Let add my own twist to this one. If you are doing the books for the gym, it does matter whether the client is cash basis or accrual. If he is accrual basis payer, the income received in 2010 for services in 2011 are funds unearned and are adjusted at the end of the year so as to not overstate income. It is income received during the period but not yet earned. If he is a cash basis tax payer then amounts are reported in the year it was received. So, yes report it this year as your post states he is cash basis

Have a client who owns a second home with a 16 x 30 out building. The out building has been modified as an apartment and is now for rent. Here are my questions: 1. The outbuilding cost was included in the total cost of the home, lot and outbuilding. My client has no idea what the building would have cost. What is the easiest way to determine the cost basis? 2. Renovations or upgrades cost 8k. The builiding is now rented as of Feb 1, 2011, all expenses incurred were in 2010. Are they expensed, or should they fall under depreciation and be depreciated appropriately? 3. What affect does all of this have on the re-sale of the original home as they do have it listed. Thanks

Correct me if I am wrong but I thought the software companies were able to accept the returns and not transmit them until the 14th. I have prepared returns with the Sch A but have not tried to transmit them. I am using TRX so I don't know if I will be able to create the e-file or not. But, I plan on trying and I certainly would not turn a client away and tell them to come back later. I would and have explained the situation to my clients that NOBODY can file this type of return. However, I can complete their return and will be happy to transmit it as soon as I can and they don't have to come back. They sign and date the 8879 alont with any other forms and are happy. If your clients are loyal, they will be in your office and not someone elses.

Thanks Don, I will look into that. I did pull the tax rate schedule from NC DOR which gives the percentage method. It does say to use the tax tables for income under 68,000. So, there may not be anything to worry about here. Thanks for bringing this to my attention. Ryan from Red Gear, if you are looking into this, the program appears to be correct based on the NC instructions. Thanks for your desire to help

This is TRX I am talking about. An attempt to override the entry was indeed made. However, TRX does not have a provision to do so. The override feature in ATX is a plus. If it can be overridden in TRX, then maybe I haven't gotten to the right people yet.

Here is a post I put on the TRX discussion. I decided to put it here as well just in case some TRX users are monitoring this poriton of the ATX Community. Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter. TRX support said they would leave a note for the developers, but at this point nothing can be done. I am personally going to calculate every return until I know it is fixed. One support guy suggested the only way to change it was to complete the return by hand without the software. GREAT!!!! Why the hell did I buy the software??????? TRX- FIX THIS PROBLEM ---- Programmers should be able to correct the formula

Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter. TRX support said they would leave a note for the developers, but at this point nothing can be done. I am personally going to calculate every return until I know it is fixed. One support guy suggested the only way to change it was to complete the return by hand without the software. GREAT!!!! Why the hell did I buy the software??????? TRX- FIX THIS PROBLEM ---- Programmers should be able to correct the formula