jainen

>>The only thing in your post that I see as valid questions are the issues of citizenship and [hinted at] whether the father of the child has any claim<< Sure, I'm feeling a bit pedantic today. Pacun has a good reputation on this board for posing important questions in a serious way. But in the exact terms of his post I see the kind of question a client might ask, with many elements left out. It is common to ignore a child's income, especially if it is from a trust fund or non-taxable Social Security. And it is even more common for family members to delete mention of the absent parent. Although the mother doesn't have any income, before I answered the question I would still want to know if she is filing a return or Form 8332. So I repeat my caution. Just because only one thing is being asked, if the answer depends on many things you can't assume the rest.

>>According to instructions and flow chart for line 6C<< Although nothing in the original post argues against it, there are several unanswered questions in that flowchart. These include whether the child is self-supporting, citizenship, and whether the taxpayer is a dependent himself. The instructions also have additional requirements that have not been addressed, concerning tiebreakers and separated parents. It may be that pacun already knows the answers to these questions, but we have no reason to assume the answer is yes.

>>With ATX Keinrock CPE - can you print out the material completely before you take the test?<< Yes. It formats nicely on my printer (HP 5) but I recall it took a few clicks to find the screen that allowed the print.

>>the major part of price fixing involves a monopoly or oligopoly of a market<< Oh no, that's begging the question. Price-fixing reduces competition, not the other way 'round. Where there is already a monopoly there is no need for a price-fixing agreement between competitors. Here's a nice short definition: http://en.wikipedia.org/wiki/Price_fixing. See where it says, "The price-fixing laws apply to industries and professionals, for-profit concerns and non-profits and charities"? It also draws a useful distinction between price-fixing, which is us communicating with each other, and price leadership, which is us stealing H&R Block's fee schedule. The latter is perfectly legal and ethical.

>>unlimited CPE 1 year<< How much CPE do you want this year? I haven't taken any of their courses but they sound rather simple to me. For example, there is one on Uniform Defintion of a Child, but it's only one hour -- you can get more than that out of Pub 17! Of course, there are plenty of advanced topics too, including research skills, so you can probably get your money's worth. ATX also still offers Kleinrock CPE, which I used last year. I found that to be fabulous, full of lots of ideas I had never thought of before. Like you, I print out the book so I can take notes and look back later.

>>What are the next three letters in this sequence: << phi beta cappa?

>>how it usually works<< Just like a woman to oversimplify the thing and not understand the important issues. Sure, the woman may do a large NUMBER of little tasks like putting out the spoons. But you haven't even mentioned the FIRE, which is the whole point of barbecue (I mean, of course, after the beer). The man has to handle that dangerous chemical stuff. Twice, in fact, because after the coals are halfway smoldering he has to squirt another can on it (hopefully the woman hasn't forgotten to pick up another can at the store), which puts him at great personal risk of singeing his hairy arms. Plus, it takes great mental abilities to get the new fire-starter gadget to work. So have a little more respect, please!

>>The original post asked for dollar amounts for specific services.<< When we specifically share rates or elements of rates (such as costs) for the purpose of setting fees, that is indeed the very definition of price-fixing. It is not a big problem for the economy, and as our moderator points out it is not very effective anyway, because our industry has so many small and independent practitioners. But it is unethical and contributes to a poor public opinion of our profession.

>>Rate would differ from NY<< Why should your rates be different from your own rates? If the client wants a NY preparer, they would expect NY prices. Not that there is a standard price anyway -- your rates are an individual mix of your own business practices, your skills, your local market, etc. The location of the taxpayer is not relevant.

>>a 20 page pdf file on the new rates<< I had to download that yesterday. It took me ages to find out exactly what "letter-size" meant according to shape-based pricing. It doesn't bother me that I can't mail pencils any more, because I've already switched to computers anyway, but I don't think it's fair that you can't get a full fourth ounce. Of course, my favorite is the flexibility test, especially the pictures! And I'm glad they are finally doing something about mail that doesn't read sideways--that's always been one of my priorities for the federal government.

>>when the next rate increase comes along<< Call me sentimental, but I think they are wrecking the country. First they took away the great American tradition of standing in line at the post ofice at midnight on April 15th. And they are pushing so hard to get us to mail things before December 10th. Now this--no more standing in line for the penny stamps. At least we can still stand in line at the post office for money orders on the first of every month.

>>he comes and he goes as he pleases, and isn't there half the time<< I can't say about the missus, but it sure sounds like lover-boy considers HIMSELF to be unmarried!

>>Anybody care to reveal what the SUBJECT of "a declaration under this Subdivision" would be?<< Okay, I looked it up myself. It's buried kind of deep so I'm not sure this long link will work, but you all can find it as well as I. The quote is from Division 165-55, concerning the authority to disregard a fraudulent scheme when assessing taxes. It's rather like our own "substance over form" doctrine. http://law.ato.gov.au/atolaw/view.htm?dbwi...declarations%3B

>>just let the Commisioner declare it to be and it becomes so<< Declare WHAT to be? Anybody care to reveal what the SUBJECT of "a declaration under this Subdivision" would be?

>>It's just plain not showing up on the Sch D<< Don't use Schedule D that way if the property was being rented at the time of sale. I'm not sure what you mean by "bulk sales," but report your assets sold on Form 4797 in the normal way. Calculate the Section 121 exclusion manually and enter it as a negative number on Line 2. Depreciation can't be excluded so don't alter the amounts in Section III. That's all you need. This is the way it is explained in Pub 523 and the instructions to Form 4797.

>>The land is owned by the Association<< The term "condo" embraces a wide range of ownership arrangements. If your condo includes a membership or share or interest in the common areas or association, it would usually not be appropriate to include that value in the depreciation of the structure. For personal use, you can do as you wish. For a rental, ordinary business care requires that you understand the value of your assets. That is at the heart of the real estate agent's job, as well as the mortgage broker, appraisor, insurance agent, and other professionals. If you continue working with people who can't determine the figures you need, you've only yourself to blame.

>>you are in the "NO" column... because you answered "YES"<< A comment worthy of true tax expert!

>>So I'm thinking I'd log you in the "NO" column.<< The question in the original post was, "Does anyone make an adjustment for land value?" I assume you didn't misunderstand the question, since you were yourself the one who asked it. Therefore you must have misunderstood my answer. Perhaps I was too reserved in expressing my opinion.

>>no way to value the land separately from the structure<< Nonsense! You can bet the mortgage company knows what are improvements and what are not. So do all the various insurance companies in the complex, the county assessor, the real estate agent, and the attorney for the homeowner's association. And don't forget the professional appraiser that your client has already paid to make exactly that determination! Land is always a significant part of the value of any real estate. That's what the cliche about "Location, Location, Location" means. Since land can not be depreciated, you MUST allocate some of the basis to it.

>>clearly they bought more house than they could afford<< Nothing in the original post suggests that this was a purchase mortgage. My guess is that they refinanced against rising property values, probably to support their plastic lifestyle and the gambling. Even with a purchase, you may have noticed that aren't still going up. Besides the problem of teaser rates expiring, a lot of homeowners are discovering that leverage works against them as property values drop. Not only are they ineligible for a refinance, they can't sell either. As for the cut-and-run strategy, it isn't pleasant but it can be successful. Credit counseling and bankruptcy aren't pleasant either, and often fail after dragging the debtor down even further. If they are going to lose their home and job anyway, a strategic retreat might very well be the best answer. You see it all the time in family matters, and often enough in financial straits. A great many people have the ability to run away from their troubles. A great many.

>>Could someone help me find the above cite or one that states that the taxpayer does have 3 years from date filed (besides IRS instructions or publications)?<< First of all, you must recognize that amended returns are an administrative convenience of the IRS. There is no statutory authority for them, although they are referenced in one or two places in the law. The IRS is perfectly free to accept, reject, or ignore an amended return as it wishes. There is no time limit as such for amending a return. A CLAIM FOR REFUND, on the other hand, is limited to three years after filing (or the due date for late filed returns), or two years after payment. Since payment has not been made, I don't see why you shouldn't be allowed to adjust the amount. I think it is unreasonable for the IRS agent to cite private industry sources, which carry extremely little authority, instead of her own regs and publications. Ask her to explain more fully her thinking, including what IRS procedures it is based on.

>>agreeing with the previous poster that all attorneys are corrupt<< I don't mean to imply that attorneys are corrupt. But if you ask an attorney for a professional solution, you will get an attorney's professional solution. That is more likely to involve the attorney working as a legal professional, than, for example, the attorney suggesting a social resolution like my idea of leaving town. And when attorneys work as a professional, they charge a fee. Of course the attorney is not lying. He has examined the facts and circumstances (which I have not) and given his opinion. He is perfectly aware that the previous Congress took away a lot of the debtor's rights in bankruptcy, especially concerning credit cards, and no doubt expects that filing bankruptcy will lead to the kind of negotiations that we mentioned.

>>Atty advised bankruptcy on credit cards as only option< I presume you are not posing this as a tax question. Naturally if you ask an attorney, he will advise a solution that produces a large attorney fee. Bankruptcy can be useful, but it also has a lot of problems so he should get another opinion on that. Even with bankruptcy, there are some alternative approaches. Under current law it's pretty hard for a wage earner to discharge consumer debt in bankruptcy. Certainly the credit card companies will object if he tries to keep his home. He can ask a credit counselor to renegotiate his debts--it costs about the same as a bankruptcy and I suppose has about the same possibility of success. There is nothing against him dealing directly with his creditors himself, knowing that the mortgage company definitely does not want a default or foreclosure and the credit card companies have no security whatsoever. Don't assume that he has exhausted the possibilities of a new or second job. There are undoubtedly things he hasn't thought of. All these ideas are based on him keeping on keeping on. Another traditional solution is to just walk away from it all.

>>Would this be a situation that might qualify for an OIC??<< Assuming she could not show any doubt as to liability, eligibility for an Offer in Compromise is based on her ability to pay. Considering her age, physical condition, job skills, and other factors, can she demonstrate that she has no assets or expectation of income? The IRS generally looks forward for five years to determine the possibility of collections, although their statute of limitations is at least ten years (and filing the OIC will significantly extend the statute). A problem for you as the professional is that developing a valid offer takes twenty to thirty hours of work, so how can she pay you?

>>"unless you accidentally forgot"<< Thanks, Bill. Our industry is not immune from the cancer of non-accountability that infects so much of our society. Many people simply refuse to take responsibility for their own errors of commission or omission. I am distressed at how often good, solid tax professionals will try to justify a flimsy position based on "intent," as if they are not comfortable discussing specific tax planning techniques with their clients. April 15th is supposed to be the big deadline in our business. You run your checktapes and the smell test, and sign under penalty of perjury that everything is true and complete. If later you get other information, you deal with it professionally according to the normal procedures. You don't say, "Oh, I didn't really mean that so it doesn't count!"