Steve M

Sorry I came back in this late; I couldn't find the thread and thought no one had answered. Obviously that's not the case. the client has not decided what to do with the property yet; it may depend upon what the tax consequences are. Other than a deductible there would be no loss to claim on 4684 and that will not meet the threshold. If he sells just the land, my assumption would be that the insurance proceeds would be included in the sale price plus depreciation less the deductible. But if he rebuilds and sells, I would think his basis would be the original basis plus depreciation. But if he claims the sale this year (even though he doesn't sell this year) What happens tax wise if he sells it next year for the same amount. If he is issued a 1099 for the sales price in a future year, IRS will think it is a second sale. Even if the new basis and sales price are the same, it would still appear as a second sale. Thanks for your help anyhow.

Client was selling rental house. 2 weeks before closing, house burned down. Insurance covered the loss. He asked me for advice and I want to be sure that I am correct. There will be no tax consequences until he sells the property if ever? Yes or no? When he sells, he will add the insurance proceeds and property value together and that will be his selling price. He then adds in his depreciation taken to get a final selling price. Is that the correct way to handle it or am I missing something else. smacica

Thanks for your response. I did find the credit in CT; it helps a little.

Doing a favor return for a client. Her daughter lived in both NY and Ct for 2011. All income comes from CT. When I fill out NY IT-203 allocation of income worksheet, col D asks for income earned during residency in NY state, even though not earned in NY. This person is paying taxes to CT for entire year; does NYS give a credit for taxes paid there? Do you really pay NYS income tax on earnings from outside the state? Do you pay taxes to both states. Something is not right and I can't find it. Would appreciate some input. Thanks, Steve M

I do agree and have been filing for my clients, even though I feel guilty because I am not sure they need to. In this particular case, there were about $200K of stock sales on the 1099-B and only $1900 short term gains (no long term). That 1900 along with 600 in dividends is this persons total income without social security. Oh yes, and the management fee was 10K. (the broker must be happy). I guess I will file to keep the IRS away from her, but I just wanted to be sure I was doing the ethical thing. Thanks for all your help and opinions. Steve M

I have looked for other filing criteria in the 1040 Tax Facts but can find nothing on total sales amount. Do you have some reference that I can check. I tend to agree that a return should be filed if only to show the IRS that there is no taxable income, but I cannot find anything in writing to that effect. If you have a reference it would be greatly appreciated. SteveM

I have had several clients who are now retired whose only steady income is SS. But they have brokerage accounts which have had a lot of activity but little in the way of taxable gains- certainly not enough to meet the filing requirement threshhold. If I don't file a return for them, will the IRS request a return because they have lengthly 1099-B's? And if I don't file, what about the one's who have carry-over capital gain losses. Do you just suspend and track their losses (or increase them if they have a yearly loss) even though they are not filing? Thanks, Steve M

Just answered my own stupid question. Please ignore me- I deserve it! Steve M

This year I do not have a list of existing payors quick entry as I have had in past years. I don't know why they were not automatically rolled over with the rollover manager. Have to fill in complete info. ATX has a 30-40 wait- can anyone offer some suggestions? Steve M

Last year I used fee collect for this client. This year it is just direct deposit. I have set up the e-file info correctly, but I get a message telling me that Error: The account number entered in bank information section must be a account number for the lending bank, not the tax payers bank. Hit the restore button to return to the standard bank account. I have switched to direct deposit and do not see any reset button. Any one have any ideas. I have tried 3 times to access customer service and the webpage is down as well. This reminds me of years past when the service was non-existant. I wonder what's going on with ATX? Steve M

I had a similar situation. The IRS told me to go back to the first year and then go forward. Any loss that is not used in the year that is too far out for a refund can be used in the following years. Depends on the size of the loss and the income of the individual. smacica

True enough, but LTC premiums are not pre-tax. At any rate, I think you are correct that since the cost has been reimbursed, it cannot be claimed, but just wanted another opinion. Thanks, SteveM

My client has been in a nursing home. His long term care policy reimbursed his LTC in the amount of $25000. It is not taxable income since it is a reimbursement - used form 8853 Just want to confirm whether or not he can claim the $25K as a medical expense on Sch A. I think not, but just wanted to be sure. Thanks, SteveM

My client has been in a nursing home. His long term care policy reimbursed his LTC in the amount of $25000. It is not taxable income since it is a reimbursement - used form 8853 Just want to confirm whether or not he can claim the $25K as a medical expense on Sch A. I think not, but just wanted to be sure. Thanks, SteveM

Thanks jainen, To answer some of your questions, he was acting as an individual, the corporation had been previously closed and he acted on his own behalf. There were no assets. He was not sued, but signed a document stating that he would pay and he did. It seems to me it is a personal liability since the corp was long gone and I really don't think there is any way he can expense it. But I thought I'd ask. Thanks again, Steve M