Gail in Virginia

:bday:

http://www.maylin.net/Fireworks.html Happy Fourth to all!

:bday:

:bday:

I am not expecting high performance from the IRS in regard to this particular issue. When it became impossible to file these forms electronically, they obviously were not going to get refunds within 10 days. When word came down that they were examining everyone individually, I began telling people to not look for their refunds for three months minimum (not that they remember I told them that, but I did.) I don't find that unreasonable for an item that has such a huge potential for fraud. However, when they are looking at a specific return in June, get all the paperwork they request by the end of June, I think that six months additional time indicates that these refunds are going to take a very long time, and I personally was hoping this would all be over with soon.

I had a client come in yesterday who had gotten a letter from the IRS requesting documentation of the home she bought in 2009. We had sent copies of everything with the tax return, and the client called the IRS and told them that but they could not find any record of the documentation. No problem - we faxed the documents to the number we were given. The part I found surprising, and a little concerning, was that they told the client that even with proper documentation received now, it would be December before they issued the refund. Has anyone else heard this? :mad:

It sounds like the problem is that they never filed form 1023 for federal tax recognition.

If you will re-read my post, I did say that there could be other facts and circumstances that would change my mind. If the taxpayer does dig ditches for the developer and therefore did not provide any skilled labor of his own on this house, but rather hired sub-contractors to do the work, then this could be investment property rather than inventory. Many times in these questions we do not have the entire picture and can only offer opinions based on past circumstances and situations we have dealt with. A real estate salesman would be in a different situation than a contractor.

A belated to you!

I have to agree with Jainen on this one. The increase in value comes not from appreciation, or even the addition of materials, but from the addition of the skilled labor this contractor is in business to provide. This might be a one-shot deal for him, but it is so closely related to his business that I don't see it as anything other than an extension of his business. There could be other facts and circumstances that would change my mind such as they he did not do any labor of significance on the house, but as it stands it looks to me like it is Sch. C.

:bday:

:bday:

:bday:

:bday:

:bday:

I would be curious to know how that first meeting went, and what kind of things were discussed, if you are allowed to say.

:bday:

:bday:

:bday:

Does anyone have the lowdown on the extension of the home buyer credit until September 30? Is it only for people whose contracts were in place before April 30 but were unable to close by June 30? Does it apply to first time home buyers only, or does it also apply to long0time home owners? A Google search seems to bring up articles that contradict each other....

:bday:

Most people, myself included, have some political or emotional bias in their economic and other analysis. At least you are wiling to own up to it.

I do e-file the return, but most of my clients would look at a CD and ask me if they could listen to that in the car. We still print paper copies internally as well, although we are hoping to eventually get away from that. It would be nice to have a print manager that is easier to use.

May God continue to bless you and hold you in the palm of His hand. Your attitude is an inspiration, and I will continue my prayers for you and your family!

:bday: