mcb39

Absolutely! I learn so much from this Community and save so much time with research just by reading the posts of interest here.

Unless you are in a state where it is illegal to cohabitate, you can file your scenario for both Fed and State. HOH, Child and Other.

There is no practicality in it. And, there is no easy way to do it. Have only done it occasionally as a paid favor for friend; less than one a year. Which takes us back to the original question; where is the sense in the statement from the IRS website?

I have had other preparers bring their returns to me to efile. However, I con't see how you would get to be an ERO if you weren't going to prepare returns also.

Wisconsin has MANY adjustments between Federal and State. Several Federal credits, etc are not allowed or are adjusted as in capital gains. In other cases, WI has credits or subtractions from Federal income. Makes preparing a tax return somewhat of a two-way street.

Thanks KC.....as I said in post #6, he already received the insurance payment, so we already know what his loss is. I just had some confusion as to whether a passive activity casualty loss was treated differently than a business loss. One of the books mentioned something about having to capitalize it, but they weren't clear and it didn't make sense.

NO.....the client doesn't live in the rental apartment, he owns the rental, collects and reports the rent. I am confused as to how to report the difference between the cost of repairs and replacement; which was far less than the insurance reimbursement. I have an idea, but I need backup.

If the form was already in an active return, it will not automatically update. The return needs to be closed in order for it to update. One of the updates did fix this problem.

Anyone know offhand how to deal with this when it is a rental? Do I treat it as a business casualty loss or as a rental expense? The insurance reimbursement was several thousand dollars less than the cost of repairs/replacement. I haven't been able to find a clear answer on this. There seem to be special rules for passive activity casualty losses.

I did a bunny jump to the worksheet just to make sure it was doing it right. It correctly subtracted the $2400.

Jainen, did you read my post (#4)? What exactly are your thoughts on this scenario?

I edited my second post above to that effect. They could qualify for the $6,500.

Otherwise, she does not qualify and even if she did and filed MFS, she would only qualify for half the credit. Now, in black and white...."An individual (and, if married, the individula's spouse) who has maintained the same principal residence for any 5 consecutive year period during the 8 year period beginning on the date of the purchase of a subsequent principal residence is treated as a first-time homebuyer, effective for purchases after November 6, 2009. However, the maximum allowable credit is $6,500. I had my years wrong in my first answer, but, as I see it, the only out for them is if he lived in the home that he sold for five out of the previous eight years. Otherwise, they do not qualify. I had a gal who bought a house in her name in August; then got married in September; which qualified her for the $8000 credit.

Did the husband live in the house he sold for three out of the last five years? If so, wouldn't he also be a qualified FTHB?

Have noticed that the ERO signature on the 8879 is not filling in as it has done in the past couple of years. I am not too lazy to sign it, but just wondered if I didn't check something that I was supposed to. I see that the program is a lot fussier in several areas and is making us check boxes for Direct Deposit, etc; which we haven't had to do before. This is good IMO because it makes us stop and think about asking the client whether the money still goes to the same account. Just curious.

Just did a complete defrag and program opened right up. Shamefully, I was very defragmented.; but still wasn't having a huge problem.

I just opened one that I haven't started entering any information into. All four children are checked for Child Credit and Eligible for EIC. Could it be because these forms were all opened last year and rolled over?

I had no problem, but have not received ACK though it get transmit OK.

I turned it off also, but might just turn it back on and see how it works, especially now when there are several updates a day. Can always turn it back off.

I don't have to log in, but, yes, the startup is slow. Will try it on the brand new laptop and see if it is faster there. I just assumed that this old girl (computer) was getting tired. Now have 11 years of ATX and Saber on it and 70% of harddrive still free.

I used the "old" form to amend the 2008 return for a gal who purchased in August of 2009. As soon as you put the date of purchase in, it changed the credit from $7,500 to $8,000. We thought that amending 2008 would be the best route as she was single when she purchased the house; she was single when she filed 2008 return; but she got married in Sept, 2009 so will be filing MFJ with a new name for 2009. Heaven forbid that we confuse the IRS any more than they already are.

The only other one is "N" for None.

Yes, and they are sending out update e-mails on a VERY regular basis. They are trying to help.

Create the Organizer for 2009 in the 2008 Program as always. Remember, there are two this year. They have brought back the mini; which so many of us were asking for. It is possible to open both Organizers in the 2008 return; then pick and choose the pages you want and print. Or, if you want to waste paper and toner, just let the program print it all.

Hi Buddy.........it takes us all a while to get in the groove. I did all of that setup on my desktop last week, then had to figure it all again yesterday when I loaded to laptop. (I guess I should edit "all of us" to read "some of us"). Anyhow, glad to see you again.