Karen Lee

Client brought in info for 2010 tax return with, among other things, rental income and expenses. Prior year tax return shows one rental with some depreciation. Well, it is two rentals and this error goes back to 2005 when purchased and placed in service. Both rentals were purchased in 2005. Amount to depreciate is incorrect, date placed in service is incorrect. I have the #'s on what it should have been and also have the #'s should be going forward. I believe I have a section 481(a) adjustment and need to fill out a Form 3115. Then put on Sch E under other expenses "Sec 481(a) adj" with the amount and include the depreciation not taken for each property. Form 3115 is much different and more complicated than ever before. I'll get through it but does the above sound correct. Thanks Karen :spaz:

Thank you very much...that is 2 more off the desk. Karen

OK got the name to go........ Now back to the Classaction Lawsuit Settlements.......we aren't talking about the $13.00 kind...these are about $2500.00 and 507.00 Thanks for the condolences...been a tough week.

I have two clients with Classaction Lawsuit settlement for charges stemming from SEC irregularities... 1. Client sold stock at a loss in a previous year and received settlement for less than the loss. Do I report this as a gain on Schedule D to offset loss from previous year? If not...where and how do I report it on the tax return if I report it at all. 2. Client has a mutual fund, still has the mutual fund but received a Class Action Lawsuit settlement for SEC irregularities...reduce basis when distributions are taken? Timing problems is the reason for the Class Action Lawsuit. Trucation problem with the name Santiago De Hernandez...suggestions? I can't even remember what I have tried. Lost my sister-in-law Friday and services yesterday...I'm a little off my game. Thank you Karen

Client purchased home 2nd home in New Mexico Nov 09 and sold same home May 2010. They lived in the home for 2 months and came back to Washington State. I know how to handle the sale on the federal return but have no idea on the state. The home was sold at a loss. Do we need to file a state return? No income from New Mexico sources. Thanks Karen

Have seen all of mine and timely too. Karen

Client calls and asks: Karen, I have a question for you. I just did my taxes on Turbo Tax, would you check it over for me? :angry:

Julie: Bonus $ are subject to all payroll taxes (>$25.)So you client has probably issued correctly. Karen

I have been told that I have the same PTIN and my check has been cashed however I don't have "the letter". Does anyone care that I don't have the letter? Should I place a copy of the cancelled check in the file for my PTIN? Do I need to do anything? Karen

If I was busy this would be a non-issue.

Now that I look at it closer...the NATP article says TAX YEAR 2011...therefore I was wrong and I apologize. But am glad that I have it straightened out now.

You must have missed something: Inflation Adjusted Exemptions and Deductions Personal exemptions and standard deductions for tax year 2011 were released by the IRS. These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief Act. Some of the adjustments include: The value of each personal and dependent exemption available to most taxpayers is $3,700, a $50 increase from 2010. The new standard deduction is $11,600 for married couples filing a joint return, a $200 increase; $5,800 for singles and married individuals filing separately, a $100 increase; and $8,500 for heads of household, a $100 increase. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals and $1,450 for singles and heads of household, each an increase of $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010. The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010. The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children. The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

Merry Christmas, even to the person that was offended by Taxbilly's B-Day posts.

I haven't figured out how to print both pages at the same time so the perforated paper goes in first then print the instructions on the back or use plain paper for the instructions. I was livid when I figured it out. I think the future will be plain paper W-2's

It is on a tab on the bottom...called "instructions", I think. You have to print on the back of the uniform or print a second page. I think the instructions were too long to print on the front. Karen

I gave up years ago trying to use e-services :angry:

I have used Propay for 3-4 years and have never had a problem. Karen :)

I sent in the form on the same day it became available and then the form was revised. My check has not been cashed. I just received a letter stating there was a problem and to go online and fix it however I never got the email with the password so I called today. On hold for about an hour before I got a person then she had me on hold several times during our conversation. I could not be "authenticated". Since I received my original PTIN I have moved and gotten married and reorganized from sole prop to S-Corp. You would think that since the PTIN is substituted for your SSN on tax forms that there would be some sort of match up that is simple. What is the purpose of the SSN or PTIN on the form, if not to trace it back to me easily. Oh well, I don't plan on spending too much time thinking about it. Was told to call back next week. Was also told that it wasn't an unusual problem. Karen

I have decided to offer bank products again for several reasons that I won't get into here. Have always thought they were too expensive considering you can get a direct deposit in 10-14 days. Back to the topic: I am wanting to have a prepaid debit card funded with the tax refund. ATX has a product Moneywise PPD Mastercard and I would like to know if anyone here has used it and what your thoughts are. Also, I know you can't have bank products and fee collect so are there these same type of restrictions if you use the card. Thank you Karen

Thanks...I got it!!!! It was all me not paying attention. Have a good weekend. Karen :blink:

I'm not sure what you are trying to say. Did you read the OP? Karen

Not to be paid back, these funds are to replace a bridge that connects their land to the rest of the world. FEMA funds have been deposited into a bank account for the Homeowners Association. They have collected some maint $ for the road and have spent some $ for organizational costs. They have a balance in the bank at their FYE of over $60,000. Then after FYE there are some expenses for engineering, surveying etc. The Homeowners Association was formed to pool FEMA funds for landowners to get this bridge replaced and road maintenance. I am just confused on how to report the funding of the Homeowners Association without it being taxable. Tax Free money is used and there should be a Bridge Fund of X. The Fund is reduced by expenses for the bridge. How do I do this with an 1120H? Not show the FEMA $ as income by not reporting the FEMA $ on the 1120H? Thanks, Karen

Well I can get through the 1120H without much problem with the exception that the Homeowners association was funded with their FEMA money of $69000.00. Do I just not report it anywhere on the 1120H? Is it considered capital or loans? If I report the 69000. as income they owe over $20,000. Thanks Karen

OK...new homeowners association formed because of flooding and bridge access destroyed. Residents now walk across a handmade 2 log bridge. Residents have received FEMA money and part timers contributed to the association to get a bridge built. Now this homeowners assoc has a certificate of incorporation from the state "...a non-profit corp" and the letter from the IRS assigning the EIN with filing requirements being an 1120H. At this late date...do you have any suggestions how to get "tax exempt" status going...formation of corp 8/3/09 on fiscal year ending 6/30/10. Thanks IA Karen

Form 982, Line 1e and Line 10b. See if that is what you are looking for.