Gail in Virginia

Margaret, the obvious answer is that their 2009 tax return was wrong since no rollover occurred that year. Therefore, the 2009 should be amended to take the rollover off. The taxes that were paid can be forwarded to 2010 tax return, where you will report the rollover normally. To me, the bigger problem is that they have non-deductible contributions with no clear trail of 8606 forms to show what was put in after-tax. Good Luck!

He lived in the US for the whole of 2010, and yet was considered a non-resident. I don't see how he could be a resident of Virginia if he is not a resident of the US.

That is going to be a bit tricky since when I try to add a second 5405 on ATX I get an error message that says the form may not be duplicated. :wall:

And when you fill out the 8948 for reason you are paper filing, you can put that the husband's name/SSN did not match IRS records and he refused to provide information regarding the problem. If you let him know that is the reason you are using, maybe he will cooperate. Maybe not.

I am a dilettante - I like to do a little bit of everything. Unfortunately, for the last few years I have been trying to work and go to school, so most of my hobbies have been abandoned. But when I have time I like to sew, embroider, cross-stitch, crochet, refinish furniture, latch hook, cook, and I want to learn to knit. But church activities take a lot of my time, and even though my son is no longer a boy scout, I am still active as a Merit Badge Counselor. And during tax season, who needs a hobby?

The break does not present a problem - that is why the law phrased it as "any 5-consecutive-year period during the 8-year period." However, from May 2005 until July 2009 is only a little over 4 years. They do have to own a home for 5 consecutive years sometime during the 8 years before the purchase of the new house.

It does not have to be a degree, it can be another recognized education credential. This includes most trade school certifications, which is what she would get from Cosmetology School.

It depends. Is this a repair or a rebuild of the engine? If it materially extends the useful life of the asset, you might be supposed to depreciate it.

I believe that you get an error message telling you that you can only have one 5405 per return.

I don't think you should call your wife a moron, even if she did not know that Janitor Bob always speaks the truth. It just isn't nice. I hope she doesn't read this board. ;)

I would be inclined to file in the new state just to show that we did not make any money in that state. Otherwise, how do they know?

All we have here are a lot of stinkbugs. For some reason there has been a plague of them this winter. :angry:

One tool that I find helpful is to sort the e-files by status. If I click on the word status at the top of the list, the returns sort themselves according to their status rather than alpha by return name. This makes it easier for me to be sure I have found everything that has a status of created when I am getting ready to transmit returns.

We have a client (who I keep trying to convince to go somewhere else) who has three corporations. One is wholly owned by the husband (call it Hubby, Inc.) one is owned by the husband and wife (call it Couple, Inc.) and one is owned by the husband and an unrelated third party (call it Sucker, Inc.). Sucker, Inc. doesn't have anything to do with this particular question. All three are S corps. Hubby, Inc. bought a piece of land, which they then sold to Couple, Inc. Couple, Inc. spent some money fixing it up, and Hubby, Inc. did some work fixing it up for which they were not paid. Couple, Inc. then did a deed of gift to return the property to Hubby, Inc. Hubby, Inc. has the property for sale. How do I determine basis? Is there such a thing as a gift tax return for corporations? Why are they doing this to me? What forms do I need to file?

ATX works the same way. I think the check box is on the top of the page, above the form, on page 1 of the 8606. If you want to count it all this year, you mark the box. If you do nothing the program assumes that you are splitting it half in 2011 and half in 2012.

But even after today's program update, I still can't create an efile for a form 4868. I have a client leaving the country until after the 18th of April , and I want to file his extension before it slips my mind! I guess once the corporations are done, I devote an afternoon to calling ATX and straightening out some problems.

It is strange. I have the new version also, now, even though I had tried about 4 times to update this morning and nothing had changed as far as the program. And I could not find any place on the support site that actually told you what the current version should be. I hope whoever is watching will keep it up.

Just wondering - MY program version is 2010.3.6 Does anyone have a later version?

I have not been able to create an e-file for 4868 either, but had assumed I was just to early this year. I update manually every day on my computer, and the other two do the automatic update whenever they sign on. But it has been a long time since I have been told that they update requires me to restart the program. I am concerned about that.

I am doing a return for a North Carolina resident. According to the instructions, private retirement benefits included in federal taxable income that do not exceed $2000 are deductible from NC taxable income. My taxpayer took an IRA distribution and rolled it over into a ROTH IRA. The total amount is less than $2000. Is this is excludable on the NC return? He also has a small amount from a settlement on a mutual fund formerly held in his IRA. If I am reading this correctly, since he cashed the check instead of forwarding it to his IRA trustee to be put in the IRA, he must pay tax and penalty on this amount. Is this excludable from his NC income?

This is a hard field to compare value. Most preparers, me included, don't like to give prices over the phone because that simple return isn't, and unless someone you know recommends their preparer to you, I can't give you references that you can contact because I can't give out the names of my clients. And a lot of it is taken on faith - someone can sound knowledgeable, but unless you are equally educated in that field you really can't judge. And if you are equally educated, you would probably be doing your own return.

I have never been able to, but I think that is because I have not had the correct EIN for the W-2. And if I am not mistaken, you have to wait until April sometime even if you know that a w-2 is not forthcoming.

I am glad that the challenge came out the way that it did, but I would personally have been curious to have also compared an experienced, unenrolled preparer's fees and out come, and would have loved to have seen a mention of Enrolled Agents as an option.

Technically, it is a wash sale, but since all of the stock was sold you add the cost of the shares involved in the wash sale to the basis and end up at the same place as if it weren't a wash sale because it all was sold. I am assuming that more than 30 days has passed since the sale and the taxpayer did not purchase this stock again. At least, that is the way that I understand this.

No. The state is not accepting any pass through entity filings electronically at this point, and the list of software vendors approved for regular C-Corps is short, and ATX is not on it. You can upload the Virginia K-1 through Virginia's website if you wish, but that seemed like more trouble than it was worth to me.