Kea

It's all sole proprietor. I don't know for sure yet the extent of the business that he will do in the other state(s). I'll ask him to track hours in each location - in case it's needed. Thanks

Yes, you are correct. I, too, have had clients be able to claim a much higher per diem than actual meals & incidentals.

Thanks so much!

Client is retired but is about to take on a project as a consultant (independent contractor) for 4-6 months in another state. This will most likely be his only job for the year. I know you can take travel expenses away from your tax home when you take a job that is expected to last less than a year and does last less than a year. But if this is the only job and is in another state, does that change his tax home? He will be maintaining duplicate living expenses and his family will remain in his main home. He will also travel home every couple of weeks. I'm pretty sure this all counts as travel, but after reading the section on tax home, I'm starting to 2nd guess myself. (been doing that a lot lately) If he rents an apartment as opposed to staying in a hotel, does that make a difference? It should still count since it would be cheaper than staying in a hotel that long. But does IRS look at it as more "permanent" even if less than one year? He will be based in Pennsylvania. From there, he will probably also be traveling to New York and maybe a few other places for meetings or presentations. I presume that he will need to file a Penn state return, but probably not the other states. Thanks.

Thanks for the suggestion. I'll check into the price if I can't find anything else. My guess is that ATX would charge me more than IRS would charge the client for late fees. But it's only a guess.

My client filled out and mailed to clients the 1099Misc. She called to say she forgot to mail the red copies to IRS by Friday. She only does about 6-7. Is it a big deal if she mails them a few days late. I know the efile deadline is not until the end of March. My software doesn't include the 1099s. (I switched to TRX Alliance this year, but only had the basic 1040 program with ATX anyway.) I saw Julie's earlier post for www.filetaxes.com for doing a few 1099s. However, this service includes mailing the 1099s to the contractors. Does anyone know of a good website just for efiling to IRS? Thanks.

Ditto for the Texas people.

I could not find a comprehensive example / reference worksheet in Quickfinders. I found examples for the various parts and that is what I have used. It's when I start putting everything together, that I try to confuse myself. Was my last example correct? And am I correct that the final amount that I calculate for the Form 8824 is the same as the disposition basis? Or, is there yet another calculation I need to make?

Your explanation sounds like what I am doing for calculating the basis for depreciation. I'm more (if possible) confused about the basis for eventual disposition and / or next trade-in. I'm starting to think I can't just carry forward one number for the disposition basis. Would this make sense? Original basis for vehicle 1 * weighted average of business use for vehicle 1 + boot for vehicle 2 * weighted average of business use for vehicle 2 .... + boot for vehicle n * weighted average of business use for vehicle n less total depreciation taken for all vehicles involved Then if client ever actually sells a truck, I would subtract the selling price * percent business use (weighted over all vehicles?)

Am I correct so far? When I make the election for 1.168(i)-6T(i) treatment of a trade-in, I still file Form 8824 (like kind exchange). "All" that election does is let me start over on depreciation with one vehicle (and not continue prior depreciation with "old" and "new" components). I must still use the book value of old vehicle + additional paid for new as the basis of the new vehicle. I still defer gain / loss on old vehicle. ----------------- More confusion--- My client uses his truck primarily (but not 100%) for business. When he gets a new truck, he trades-in the old one. I thought I was getting the hang of this, but now I keep taking myself in circles and am getting confused. Does anyone have a good comprehensive IRS (or other source) example or spreadsheet? Ideally showing a series of trade-ins. Veh 1 for veh 2 then a few years later veh 2 for veh 3. I do have one basis for depreciation (including personal use adjustment) and another separate basis for disposition for previous vehicle. One of the places I'm am getting confused is with the business basis (basis * business % less depreciation taken). This figure has been completely adjusted for business use. If I carry that forward into the basis for the new vehicle (adding additional money paid), then take business percentage of that .... that just doesn't work. I know I'm making this harder than it is. Thanks so much.

Jack, Thanks for posting the spreadsheet. I have a similar one for reinvested stocks. But my handling of shares sold goes into more detail as to which shares were sold, and it is not as automated. I like yours better.

I appreciate all the help. I will mail the forms and instructions to the client today. This board helps me feel more comfortable keeping my clients even when they move to other states. (And all those other questions that come up!) Thanks.

No, paper supply is fine. Just wanting to save postage. Thanks.

I prepared a tax return for a California resident. A week later she received a 1099R. When she sends the CA amended to the FTB, does she have to include the Federal 1040X? Does she attach the 1099R? - There was federal withholding but not CA. I have the mailing address, but any other assembly assistance would be greatly appreciated. Thanks.

Thanks so much. I'll send it and see if it goes through.

I will be e-filing a return for a New Mexico part-year client. The NM website mentions: Note: All New Mexico professional tax preparers must have a New Mexico CRS (Combined Revenue System) Identification Number. If I am only submitting one e-file, am I a "NM professional tax preparer" / do I need this ID? Another NM question: Do medical savings account contributions / expenditures get shown anywhere on NM returns? If so, where? Thanks so much.

KC - I am a very big Douglas Adams fan - have been for over 25 years. He has many quotes that make good signature lines.

Just to add another wrinkle. What about the sales tax on home building materials? Even though it was one credit card purchase, the other kid did pay back the 1st kid. So they can split the sales tax, right? No stipulation on whose house for that. The invoice just shows the total. There is no breakdown between the windows, labor and tax. (Yes, I know the kids, also - all of them are clients.) Thanks.

Thanks everyone. It's what I figured, but wanted to check if I was missing any legal loopholes.

Kids completely paid for it. It was a surprise gift. The mom couldn't sleep and the kids wanted to fix the problem quickly. Invoice / credit card receipt is in one kid's name.

I was only looking for legal ways to do it. No, I'm not going to jail for anyone for any amount!

I was fairly sure the credit was lost. But I was hoping that there might be some kind of work-around (such as what Bart suggested) that might be acceptable - or even possible after the fact. So, is Bart's method OK? Or anything else? Would it help if the client repaid the children, then later the kid gift the money to the parents? I'm guessing that might have been OK then, but would violate the spirit of the law if done now. Thanks

Client got "sound proof" windows for their house. This was a gift from their kids. Qualified windows cost $4000, with each kid paying $2000. Who, if anyone, gets the energy credit? Or, is it lost? Thanks.

I think you are exactly correct.

Sorry, I didn't state my message clearly. I had to change the address back to the PO Box for the IRS to deliver. Like you all have said, the post office can't deliver to a street address if there is no mailbox there.