taxdan

That makes sense. Thank you very much!

Thank you both for your comments. I didn't realize that we could amend past 3 years due to a NOL.

How am I not past the 3 year date to amend a 2007 and 2006 return?

I am amending a new client's 2008 return to show a casualty loss due to a rental property that burned down in a fire. The loss generates a NOL. Since I cannot choose to carryforward a NOL on an amended return, can I amend the 2007 and 2006 returns to carryback the loss even though we are past the 3 year date and get a refund? I don't think so, but just wanted to be sure. Thanks! Dan

Temporarily could mean a couple of years or 2 days...that is why I said a few months in the title. Thanks for the info.

A Canadian came to US to work for a short period in 2010 and received a 1099 MISC (box 7) for $1,650. He had no other earnings and went back to Toronto. Do I simply file a return with a schedule C (there were little or no expenses) and have him pay the s/e tax? Do I file a 1040NR since he was only here temporarily for the work? I appreciate the advice. Dan

Thanks for the info. Taxmann, when you receive insurance proceeds from a total fire loss of a rental property and those insurance proceeds produce a gain (mainly due to recaptured depreciation) you have a gain that needs to be reported. You can choose to postpone that gain if you replace the property, which is what the taxpayer is doing. Jlewis, I found that tab in the elections (actually it was more hidden in the 2008 program which is the year I am working on), but it does not carry the information anywhere. The 4797 and 4684 carry the gain to the Sch D. I'm just not sure of the proper way to back out that gain. Right on the D perhaps? Perhaps on the page 1 of 1040 line 21? Any thoughts?

I knew that election has always been there, I just don't remember the Elections page popping up automatically when you choose to take the standard mileage deduction.

I jumped on the message board today to ask this exact same question. The first client this happended to, I just thought the election page that popped up was an error and I deleted it. The next time it happened I realized it popped up for a reason.

Any thoughts from anyone?

Client had total loss of res rental due to fire. He is replacing property with insurance proceeds, so we would like to postpone the gain that is generated from the dispostion of property due to the fire. (Replacement cost is greater than insurance proceeds) The gain flows from the 4797 to the sch D, but I am not sure where to adjust the gain down to zero. A line item in part 2 of sch D perhaps? I do know that I have to attach a statement detailing the situation. Thanks for any help.

According to Jainen's link, it looks as though the rates depend on the type of asset being sold. According to Pub 537 (Installment Sales), it looks as though my client's asset in question is not a section 1274 property, so I am going to use table 2. It does seem a little confusing though determining which IRS section your property falls into though.

Thanks Jainen. Does it look like I'm handling the rest of it correctly?

As per pub 17, you are considered married if you are married and living apart, but not legally separated under a decree of divorce or separate maintenance.

Any thoughts from anyone?

I have a client on the selling end of an installment sale with no stated interest. She sold her goodwill in a partnership for $75,000 (no basis) paid quarterly over 3 years beginning in 2010. Can I simply use a rate (like 1% APR) and do the math to figure how much interest would be paid (calculated quarterly) over the life of the agreement, then deduct that total interest from the contract price? I calculated $1,219 in interest over the 3 years, then was planning on showing $656 interest received in year one, $406 interest received in year 2, and $157 in year 3...and the contract selling price would be $73,781. Does that sound like I'm even remotely doing this right? I'm new to installment agreements and any advice would be greatly appreciated. Thanks! Dan

That is what I figured, but I just wanted to be sure. I don't know why, but as soon as the client questioned my, I second guessed myself. Thank you so much! Dan

Client lived in CA for years and lost job in 2009. Client moved to Oregon at beginning of 2010 and collected unemployment comp from State of CA for all of 2010. This would be taxable to the state of OR, correct? I know OR taxes unemployment comp (and CA does not), but client made me second guess when she asked why OR would tax CA income. Is this really CA income anyway? I appreciate the clarification. Dan

Client had total loss of res rental due to fire. He is replacing property with insurance proceeds, so we would like to postpone the gain that is generated from the dispostion of property due to the fire. (Replacement cost is greater than insurance proceeds) The gain flows from the 4797 to the sch D, but I am not sure where to adjust the gain down to zero. A line item in part 2 of sch D perhaps? I do know that I have to attach a statement detailing the situation. Thanks for any help. Dan

Does the income phase out rule apply to prepaid MIP that is amortized over 84 months? So if their income is over the limit in only the first year, do they get no deduction over the 7 year period? Thanks for the input! Dan

City bought part of taxpayers front yard of principal residence to widen road. Taxpayer received 1099-S for proceeds. Do I just calculate gain/loss by using the taxpayers prorated cost basis of the land only and put sale on Sch D? I would report any gain, but not take any loss, correct? Since they are not selling their home, and do not plan to for awhile, does the homeowner exclusion of gain not apply to this? Thanks so much! Dan

I will definitley do some research. Now I feel a little more confident talking to my client about this. Thank you so much!!!!

I apologize....but I have to ask... My client says that this LONG TIME CPA swears up and down that two unmarried people living under the same roof can each claim HOH because they are each considered paying 100% of upkeep on their "home". Of course, this is assuming they each pay half of the household expenses for themselves and for one of each of the two minor children living there. Can there be ANY truth to this? I really want to be sure on this one because the other CPA told my client what a horrible job I did not filing him as HOH. I would like to call this CPA and have a discussion with her. Thanks! Dan

Thanks so much Rita. It's always nice to confirm my own thoughts. I have a feeling this client knowingly wants to file as HOH even though his girlfriend is. I had a voicemail from him upset that I filed him single intstead of HOH because another CPA told him he should be filing HOH. I just wanted to get my ducks in order before I call him back and tell him to go to the other tax preparer next time. Thanks! Dan

I have an unmarried client who lives with his girlfriend. They have two kids together (minors) who live with them. Each parent makes about the same amount of money...about $80K. She claims both kids as dependents (I do not do her taxes). Can he claim head of household with no dependents if he pays for more than half of the upkeep of the home? I believe she is claiming HOH on her return. Two people can not claim HOH living under the same roof can they? Thanks so much for any help. Dan