Margaret CPA in OH

JohnH, I like that reply! If the client isn't pleased, maybe next year s/he will choose to go to a corner store and wait in line. I try to alert my clients that there are at least 5, 10, 15 (whatever feels right for the given client) folks ahead of them so please be patient as this is the time when most people decide to bring in their documents. It's far less busy in early to mid February if they want to try that next time.

Well, the person I mentioned _should_ have known but just neglected to check if he had a winner. The agency certainly had no way of knowing who won so couldn't possibly have notified him. Anyway, I'm just pondering so that I know what to do when I win the big one (I wish!).

I just read about a man who, when looking through his tax records to prepare his return, found a winning ($9 million!) ticket purchased last year and due to expire the end of that very day. Just curious - would the money be taxable in 2010 (constructive receipt) or 2011 when he finally claimed the jackpot? Wish it was my client! Or me!!

Pacun, please reread my posts #33 and #40. The term is REduction of basis of the buyer when DEducting points or origination fees paid by the seller. If you have access to Quickfinders, please read in the summary section for Schedule D on Settlement Costs on Sale or Purchase of Real Estate. If you have access to Kleinrock 1040 Express Answers for 2010, look on page 4-37 on the Settlement Cost Table where it states the Points (loan origination) is deductible on Sch. A by the buyer even if paid by the seller. Check the pubs. listed in post #40. I did not look at the attachment provided by JB. I just looked at the reference material.

Terry and JB, please reread what I wrote quoting Quickfinders. For $2000 and a reduction in basis in the residence, it may be worth a few extra minutes of research. While QF isn't the final word on all things tax, I would be surprised that this would stand were it not true. Could be wrong, but I don't have time or the client needing the $2000 deduction now to further research. I would, though, if otherwise. QF references Pus. 523, 527, 544 and 551. You may wish to check... or not. Your client, your time.

Tom, the School District tax form is attached to the Ohio state return. It's actually sort of a state return, too. So they are efiled together. Have you looked through the OH efile tab to see the options? Don't forget to have the client "under penalties of perjury, declare .... " at the top. Also check the third tab for the disclosure statement for a direct deposit of refund and, of course, the Use tax. Here is the RITA link http://www.rita.to/ I have prepared only business RITA returns which required forms attached so have not efiled. I looked under the Tax Professional tab on the left, the Efile and discovered that it looks to be possible only with Creative Solutions, Drake and CCHGroup, but I don't know if that means ATX as part of CCH. JB, chime in here any time...

JB, I don't understand why you had to do all three returns completely to figure out OH. I just input everything as F, S, or J then used the original MFJ vs MFS worksheet to get the respective AGI for each. I then input that into my little spreadsheet that just had the columns and the main items of the OH return. The only thing I had to figure was the tax, easy enough on the tables. In any event, it is a really great improvement and worth A LOT in my opinion. As for keying in a couple of things, no big deal to me after the way it was. In the federal split, you still have to do some of that already but still so much better. Now if only we could just get rid of all these pesky muni returns...

Aw, cred65, now you'll want to make everyone fight to prepare Ohio returns just because they are so darn interesting and fun! Weren't you glad for the help with the OH calculation this year in ATX? I had been using a little spreadsheet to do that for Ohio and could never figure out an easy way to incorporate into the program but at least I got the results easier than writing it out.

Thanks, Jainen, I think I was confusing de minimus use things such as the occasional use of a copier at the workplace or making a personal phone call from the work place. I would rather imagine that 99+% of those of us with a home office would fail then. Sort of reminds me of the reporting requirement discussion recently for found money and a few bucks paid to a family member or friend for a ride to the airport. No mercy! I do believe this place is used regularly, that is, every day for business. There just isn't much going on. They have lost several clients over the last 5 years and I don't think have any new ones as their technology is dated. This employee's lack of pay is reflective of the low cash flow but he does still provide tech support to the remaining clients.

Is it possible to send electronic copy including 8879 to H to review, print 8879, sign and fax back? I have clients in several states that do that.

I think the cable tv is separate from the internet access which I believe is through the telephone company but I will double check. Otherwise I don't think he would ask. This office space is truly office space. I've been there when they were clients and there are no comfortable, homey type accommodations. It was a family room in an earlier life as this is a residence. The employee is single, no kids. My guess, and it's only a guess, is that he would like to watch tv during the day occasionally and maybe or maybe not exclusively business news. I don't know that for fact, but there is precious little business now so what else would he do? As for exclusive use of any office in home, there still is de minimus personal use, isn't there? I will pass along the question and ask about exclusivity, though. This poor guy really needs to get another job but I think is too lazy. It's kind of nice for his commute even if he doesn't get paid. I just don't know how much longer he can hold on! Thanks for comments!

Client has home office for the convenience of the employer (company office is in this employee's home, in fact, as company cannot afford another office). Company is not paying rent to employee but he is taking home office deduction. Just asked now, in utilities, should he include cable tv. The office (used to be family room) has cable access. Company does not have a tv but employee has put a small tv to 'use during business hours to follow business news.' Deductible? Sadly, I know maybe a bit too much but it shouldn't influence this. Company is on its last legs and employee was paid maybe for 6 of the last 12 months. I fired the company last year for a variety of reasons but this only remaining employee is still my client.

I didn't do deep research but QF summary for Sch. D on settlement costs state that, for a principal residence, loan origination fees or "points" paid by the seller are deductible by the buyer but the basis must be reduced by that amount. It refers then to the discussion of points but I think that has been reasonably well covered in this thread.

With the RITA form, you don't have a separate local return. Most munis don't tax anything other than wages or business type income. If they were no longer residents of OH when moved to CA, don't include the wages. Read through the form instructions on the form itself and follow the bouncing ball. It really isn't all that bad - better than a root canal without drugs, although not much. I feel totally lost when faced with a CA return, myself. Thank goodness those clients are no longer with me. JB will likely provide better guidance once he gets his points in a row.

Told you JB was gooooood!

I'm sure JB will guide you in the right direction but meanwhile I found that Richwood files as part of the RITA or Regional Income Tax Agency http://www.ritaohio.com/municipal/richwood.htm Here is a quick way to find out about school district information: https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/AddressLookup/LookupByAddress.aspx?taxType=SchoolDist With all this, I am puzzled because the Ohio return instructions do not list this school district in Union County. JB will set us both straight! I am in Cincinnati, not so close to Richwood.

RitaB, you are correct. Dave T, I did include the 8606 with exactly the entries repeated by RitaB. Sorry I didn't catch your misunderstanding on the reply. However, it seems JB's situation is different.

Wonderful and needed, for sure. We can't let those youngin's define everything, now, can we?

I thought this was a joke at first. It's hard to imagine the problem and I do realize it truly is no laughing matter. Unfortunately I am of no help whatsoever. Have you tried the knowledgebase just on the waaaaay outside chance there is something there?

You are most welcome, Dave T. I certainly get more from folks here than I provide so am happy when something works out.

Lion - wow..... so sorry for all that bad karma, etc. Like Jack from Ohio (maybe an Ohio thing?), I have had my last 5 computers built by the guy (DR Micro) about 2 miles from here. All generic parts that he can replace and he knows the system inside out. He sets up everything, transfer data and programs, customizes some things and more. For my business, after my first and only name brand debacle years ago, custom made is the only option. He can link in from his place, too, in case something even looks funny to me. I also take it in just before tax season for a spa treatment where it gets dusted, cleaned in every way, and tweaked. Then I take him donuts a couple of times a year and wine at the holidays.

You are NOT alone...

When does the campaign begin for your dictatorship, taxxcpa? I think I want to lobby for you and your platform - so much of it makes so much more sense than what we have now. I especially like the 2 terms for legislators :rolleyes:

From the handy dandy Quickfinders: Points - often referred to as loan origination fees, loan discount, discount points or points. The must be computed as a percentage of the principal amount, etc. I just googled points and found this: http://www.moving.com/articles/mortgage-loan-points.asp and this: http://www.bankrate.com/finance/mortgages/mortgage-points.aspx Look at a HUD settlement sheet usually lines 801 and 802, top of second page.

Yes, two separate gifts to two individuals.