SunTaxMan

In 2006 ATX, there was "Basis Remaining" entry box for standard mileage allowance. In 2007, I haven't found a designed-in method for tracking basis reduction when using standard mileage allowance. I have tried leaving "Depreciation Method" blank and using override to enter basis reduction for this year. This seems to work in Asset History, but produces error in "error check" (not just "override." Am I missing a "standard mileage" check box somewhere that will enable the software to track basis reduction - without "manipulating" the software to produce the correct results?

"She doesn't have to provide her SSN, does she?" Was babysitter hired? Was babysitter being paid? Simple questions, simple answers. Want more complications to frustrate your client? W-4 and I-9! Both are required. Re: 1099 instead of W-2? I don't think so. Control? Would parents allow babysitter to send another person in babysitter's place to do the babysitting? I think I would want to know WHO was doing the babysitting! I would insist on that element of control!

The distinction between owner operators (independent contractors) and employees is irrelevant. There is a greater consideration. Many of today's "trucks" are so much more than "just a truck" with a sleeper berth. There is expanded 'personal space' behind the Driver's seat. Personal space that often includes refrigerator, cooking facilities, upholstered chair(s), tv, entertainment center, ??? -- indeed LIVING space, not just sleeping space. If this team "lives" in this truck, in much the same way that people "live" in a motor home, I can accept that this vehicle could easily be construed as their "tax home" - jeopardizing the overnight meal expense. Facts and circumstances are in control, not the mailing address on the tax return. As far as "separate or combined" is concerned - each of these spouses is an employee - therefore each files a 2106 - each is entitled to the overnight meal expense deduction, IF, indeed either are, based on greater considerations. One other thought comes to mind. I would "assume" (and you know what "ass u me" means?) that when they eat in a restaurant, they eat together. For tax purposes, I would encourage separate checks. On those days when their actual expense might exceed the standard per diem, they could (INDIVIDUALLY) use actual expenses for that day - but separate checks would be the documentation for that deduction. My conclusion for your situation - you need to ask more questions, perhaps request a photograph of the "truck" they drive - a "picture might be worth MORE than a thousand words."

You said....... >>on 8829 ALL telephone expense, even the base billing each month, is included in the "Utility" entry<< There is no statutory authority for this treatment. " My reaction. I didn't think there WAS any "statute authority." I couldn't recall any. What this means to me is there is no "restriction" on this application. Correct? In the absence of spcification in the regs, etc., I don't even need to "disclose" this, just take the deduction - BECAUSE I am not taking a positon that IS in contradiction to the regs. Correct? The question that remains -- IS including "unqualified" mortage interest in the "mortgage interest" figure used on the 8829 a "position" that has a "more than likely" chance of acceptance (in audit). Schedule A "qualified" mortage interst HAS the specified restriction, so to take the deduction on Schedule A is in contradiction to the regs. Taking the deduction on 8829 is NOT in contradiction to the regs, indeed is not even ADDRESSED in the regs. The further consideration -- on 8829 the figure would be included in "utilities" - ALL utilities, not just those utilities that would be bonafide Schedule C, E, 1120, 1065, etc., "utilities" for business expense deduction. Correct? 8829 is not addressing "tax deduction" but "costs" of maintaining the home office (which includes "utilities." You said....... "No part of the base rate for a first phone is allowable as a home office or business expense." My reaction. I agree - in general terms. For example, for the Minister of Religion, the base cost of the house phone is never a tax deduction, BUT for purposes of "Housing Allowance" the total cost of the phone (not JUST toll calls) IS included in the "Actual Cost" of maintaining the home. Different situation, different perspective. Here, we are not addressing the base cost of the telephone as a direct, specified "telephone" deduction, but its inclusion in the term "utilities" for the cost of maintaining the home (part of which is the home office). You said.......... "A telephone is not "utilities" in either tax law or common usage." My reaction. I beg to differ as that "telephone" IS a normal inclusion in "utilities" To illustrate. http://en.wikipedia.org/wiki/Utilities for one. A simple dictionary definition for another.

What I was looking for was an opinion as to whether 8829 Mortgage Interest is limited in the same was as Schedule A Mortgage Interest, i.e., "qualified." For example, "telephone" expense is limited on Schedule C to "business use", but on 8829 ALL telephone expense, even the base billing each month, is included in the "Utility" entry. Re: "college expenses." Taxpayer used Home Equity loan proceeds to pay for college for his children. $100,000 limit is not relevant because the loan is already in excess of both $100,000 and original acquisition/improvement debt limits - thus the 1098 Interest does not qualify for Schedule A. As far as eduction credits, I was not aware that the "source" of the funds used to pay for college was a relevant issue for the credits, i.e., doesn't matter if taxpayer got funds used for college expenses from W-2 wage, savings account, piggy bank, or lottery winnings.

Some of taxpayer's interest paid on refinancing used for college expenses and does not meet "qualified" for Schedule A. Can I use it for 8829? I am thinking I would use ALL interest paid before applying the 8829 %, and would then reduce the Schedule A portion by the "unqualified" $.

I am surprised..... No one is going to even comment on either suggestion?

At one of the Gear-Up seminars this year, the speaker mentioned "good practice" in the Tax Preparation office is to ask clients who have contractors to require I-9 completion for all independent contractors, as well as employees. If I remember the rationale, it was so that IF IRS would ever reclassify contractors as employees, the I-9s would be completed and on file. I don't remember the speaker saying, or even hinting, that INS is enforcing, or even hinting at enforcing, I-9s for 1099 recipients. Comments? SECOND ISSUE. This same speaker recommended issuing 1099s to ALL contractors, not just those who cross the $600 threshhold. Comments?

I suspect the issue here, and demonstrated by the software, is that on 1-1-07 the client was 24 years old, i.e., 24 years were completed. On 1-2-07, the client started the 25th year. Could this be a solution to the issue?

You do not have to uninstall before installing additional states. Use the original disk, select custom install and pick the state(s) you want. Don't forget to update after install to bring program up to date. By the way, I discovered several years ago, that to get DC to install (which isn't, or wasn't listed as a state - at least the last time I checked), I needed to install ALL states and DC was included in the installation. Apparently DC is an "unmentionable" aspect.....

Do I need client to send a 1099-Misc.

In my opinion, I would rather "address it in a realistic way," so IRS sees no need to address it in audit - at least that's my opinion at this point. How to "address it in a realistic way?" I ask clients (and I do this myself for my own tax return) to review and summarize at least 3 "typical" monthly cell phone bills and code the calls for business, medical, personal, rental, and any other categories pertinent to that taxpayer. Tally the minutes for each category and come up with an allocation of time on the basis of this summary. If they don't want to do it, I will do it for them, and include the cost of this work. No documentation, no deduction. For the year of equipment purchase, this is the basis for depreciation and usage and cost deduction. For following years (as long as taxpayer's situation does not significantly change), this is the basis of cost deduction.

Another reminder. The "Database" folder within the program holds all of your completed returns. Lose that folder and you have lost work. "My Computer," etc., is the avenue to get into the program folder and have access to the "Database" folder. After reinstall, you can remove the new (empty) "Database" folder and put the old one back in, or just copy the contents from the old to the new. Check the "properties" of each after this copying to make sure you have all information. Hope it works.

A suggestion. Often when I have a problem of some program not acting the way it should, two possible solutions are available: 1. Restart the computer (which apparently you have done, more than once.) 2. Re-install the program. (If you have prepared any returns, it might be wise to remove the "Database" folder from the Program before this re-installation - simply move it - copy it - to anywhere, e.g., the desktop, some other folder. After re-installation, put the "Database" folder back into the program - remember to remove the new [empty] one first!)

Multiple returns for the same client are common, at least for me. I LABEL, with a suffix, the purpose for each "duplicate," e.g., "Q1 Est tax," "PP Assets," "10-31 worksheet," "X, 5-31-06," "MD worksheet," and ALWAYS "FINAL" on the final return that was filed. I figure if I check the "complete" box on the duplicates, as I finish with each, for its own purposes, I can create another duplicate to use for a different purpose, and no matter what I do subsequently, those "complete" returns in the program manager will not change - I don't want them to change. In addition, I have printed a pdf. copy for the client's file - one more "backup" for me - just in case.

Earlier, I said, "I currently use 8 tabs as my "home page." Several times when I have tried to add a tab, I have gotten an error message indicating I have reached the limit and cannot add another tab (I do not remember exact wording of message), but later, different day, time, whenever, I can add the tab with no problem. If there is a maximum capacity for the number of tabs available, I apparently have not reached it. There are, of course, other ways to add "instant access" to a site, e.g., add it to favorites, or on the Accountants World site, add it to "My Resources" window." The other day, when I posted, I tried to add an additional tab to my browser and it didn't work. Later I tried again and it did work. To make a long story short, two things: 1. Sometimes, only sometimes, after I add an additional tab and go to "tools" "internet options" and then click on "Use Current" it sometimes NEVER completes the task. I just let it alone for awhile (half hour +/-), then come back and "close" that window (not cancel). When I reopen the browser, I have the additional tab(s). 2. Right now, I have 10 tabs in the "home" I am still not sure how many tabs, IE will support.

KC, There are a couple "wrinkles" in this, that I am not sure I understand. I currently use 8 tabs as my "home page." Several times when I have tried to add a tab, I have gotten an error message indicating I have reached the limit and cannot add another tab (I do not remember exact wording of message), but later, different day, time, whenever, I can add the tab with no problem. If there is a maximum capacity for the number of tabs available, I apparently have not reached it. There are, of course, other ways to add "instant access" to a site, e.g., add it to favorites, or on the Accountants World site, add it to "My Resources" window. In those tabs that are open, some automatically "refresh" some do not, e.g., G-Mail automatically adds new mail. Quickfinder, TaxBook, and other sites do not - I need to remember to hit the "refresh" button periodically during the day to see a current page.

Let me add my 2 cents' worth, fyi. I have had NO problem with log on. Using a multi-tab MS Internet Explorer, I have added https://support.atxinc.com/myatx... as one of my "default" tabs when I open MS IE. When IE is fully opened, I am ALREADY loggin in - I do not have to do log in, it is already done. Why this works is beyond my understanding, but then a lot of things are.....