Maura

It will affect the MA return.

Should look to see if a QSLOB was filed and accepted.

I am not a pension expert. But based on your brief description this setup sounds like a controlled group for purposes of pension plans. Is the LLC a disregarded entity?

"A parent/subsidiary controlled group takes into account ownership of one entity (corporations, partnerships, and sole proprietorships) by another. "

You can try http://www.cpasitesolutions.com/.

Hi Catherine

I would be willing to help but I am located iabout an hour north of Bennington. I can query the VTPA for you to see if there is anyone in the area.

The selling price and expenses should be allocated between the building (1250 property) and the land (sec 1231). The amount of depreciation recapture on 1250 property is taxed up to 25%. The 1231 long term gains would qualify for the lower capital gains rate. Where is the 1245 property coming from? The 0% capital gains is dependent on total taxable income and filing status.

Based on your numbers I show he owes about $189. Did you enter his MI source income on line 14e? (bunny hop)

He will need to file the MA form 1-NR return. And take a credit on the MI

The 8k is based on all income not just MA income. And MA does tax his unemployment as MA source income.

Well that is better than... as useful as teats on a bull!

Be aware that the 2007 1040X is missing the line for the Recovery Rebate Credit.

Janitor Bob

The symptons you described do not sound good (possible heart problem) Please let us know you are alright.

I'll take a stab at NNS1231LPY

nonrecaptured net section 1231 losses prior year

What type entity is the biz? My take on it is that the whole amount is taxable income. The legal fees would be deductible. Does your client have any papers filed during proceedings or from the court spelling out the legal fees awarded? From your description they sound defensive.

To clarify... You will have to find out if the kid intents to return to taxpayers home

Finally, the court acknowledged that the Service relied on Hein and Rev. Rul. 66-28 in Service Center Advice 200002043. In that advice, the Service concluded that a child’s pretrial and post-conviction incarceration is a temporary absence if there is no intent on the part of the taxpayer and the child to change the juvenile’s principal place of abode. The length of the incarceration does not matter for the absence to be considered temporary within the meaning of Regs. Sec. 1.2-2©(1).

I agree with jainen. Being incarcerated is considered a tempory absence the same as if he was in boarding school away from home.

I think as a community of Tax Professionals we should track the HRBlock returns we correct.

Here is a link to a GAO study done a couple of years back. Does not say exactly who they visited other then large chain preparers.

http://www.gao.gov/new.items/d06563t.pdf

I know in this area they are charging the $29. to have your return done by others reviewed. If they find anything to amend it becomes a credit toward the tax prep fee

The CPP payments are reported on line 20a and taxable amount on line 20b. The same as US social security. You would use the social security worksheet to figure the taxable amount. As for the tax credit I am not sure. Are they paying tax on the social security?

Canada does not have a treaty with Costa Rica. So they will withhold a 25% tax on the CPP payment. If he thinks he is entitled to a lower tax rate then he will need to file in Canada an NR7-R 9 (I believe). From the Canadian perspective I am not sure if he is entitled to the reduction since he is resident to Costa Rica.

If he were resident to the US then the CPP would not be taxable to Canada and would be treated the same as social security payments.

oops! forgot the link

http://www.oanda.com/channels/products/products.shtml

You can use this site for the currency conversions. If you know the exact date plug it in. You can also get an average rate for the year if there were multiple payments.

What nationality is the guy in Costa Rica? It might affect the answer.

Can you be more specific about the kind of pension? Is it an RSP, RIF Canadian old age, or Quebec

I was hoping I wasn't.... but,alas I am older than dirt too.