Dave T

Tried calling customer support; they're closed for the holidays...

Dave T, I'm interested in whether installing 2009 works...

Just loaded 2009 but still can't get rollover to work

Dave T

Interesting that this should post today. I just bought a new computer and am having the exact same problem.

I too don't have the 2009 program on the new computer but do have the data files and can't rollover the '09 returns.

I am going to install the 2009 program files and see if that is successful.

Please post if you get it resolved.

Thanks

Dave T

Going to Galena, Illinois for first time this weekend - things to do, things to see, things to eat, things to buy??

Was there sveral years ago wtih my sister and family who live in Rockford, Ill.

President Grant's home is there and we toured that and I recall several nice bookstores in the town.

Enjoy.

- Dave T

Clients only income is from SS and New York State pension,

The 1099R from the state has code 3 in box 7 which is for disability, which in this case is correct.

My question is this, since this is a disability pension the amount gets carried to line 7 of 1040 instead of line 16 and because there is an amount on line 7 Schedule M is automatically being calculated and I don't believe it should.

Am I correct on this?

Thanks

Dave T

Client called and said he needed to drop off 'some additional tax papers' he got in the mail.

He didn't really know anything about it other than the fact that he'd rolled over his 401K to another qualified retirement account.

It was a k-1 from a partnership. As I'm inputing the various fields I notice in Part II - Information about the partnership line I - What type of entity is the partner? and it says IRA/SEP/Keough.

I've not seem this before and am wondering if the fact that it is within an IRA if I need to do anything with it?

Thanks

- Dave T

Looking for opinions on this.

Need to buy a new laptop and am wondering whether to purchase an extended warranty or not.

Thoughts and opinions appreciated.

I might note that this is not my main computer for taxes but often use it when going out to clients, church treasurer work, etc.

Thanks

Dave T

Client's son leased a vehicle in 2007 and the lease is coming due in January 2010.

He has a buy-out option on the vehicle for approx. $15K. He is considering doing this and would do it in 2009 if there were a tax advantage to doing so.

I do not believe that this would qualify for the additional above the line sales tax deduction as this is not a new vehicle but would be eligible for the Sch. A sales tax deduction if it were greater than his state (NY) income taxes.

Am I correct in this?

Thanks

- Dave T

Thanks Taxbilly for the B'day wishes.

As one of my former collegues once said " I don't like the idea of having another birthday but it sure beats the alternative. "

Dave T

She will be subject to NY State Tax and will need to file IT203 (NY Non-resident) return.

When she files NJ return she will be able to claim credit for taxes paid to NY on NJ return.

Devm

Thanks for the response on this.

Do you know if she would still have to pay New York City tax as well.

-Dave

Help with New York City tax and New Jersey state income tax would be appreciated.

Friend's daughter recently moved from upstate New York to Queens, NY. She teaches oustside the City in Rockland County during the week and works in Manhattan on weekends. I understand that due to the fact that she lives within NYC that both jobs are subject to New York State and New York City tax.

She is now contemplating a move to New Jersey and commuting to the two jobs. I presume she will be subject to NJ state tax even though she works in NY, is that correct? Also, does NY tax any of this income even though she is no longer a resident?

Haven't encountered this before but I'm sure it's quite common for those who live in Conn. or NJ and commute into the City.

Again, thanks for the help.

Dave T

Thought I heard something about this recently but don't remember the source.

We provide our pastors a cell phone and pay the bill to the cellular provider directly.

They do not keep a log of their calls and although the majority are church related, there is some personnal usage involved.

Aside from requiring them to log their calls how do we determine the portion of the monthly bill that is taxable income to them?

Seems that I heard that some type of allocation could be made based on an estimated percentage of personnal use but again don't remember the source.

Any help would be appreciated.

Thanks

- Dave T

If 2008 was the year in which they turned 70 1/2, I think they have until 15 April of the following year to take the distribution. Bad thing is, they still have to take a distribution for this year, so 2 taxable distributions in 1 year.

In the case that I was dealing with the T/P was the beneficiary of her Mother's IRA and she had made the RMD in 2007 but failed to do so in 2008 and therefore suffered the 50% in 2008 (ouch).

Dave T

Just curious about this only because I just did a return in which the T/P didn't take the required 2008 RMD.

The fact that they took it in 2009 wouldn't they still be subject to the 50% penalty for not taking it in 2008?

Dave T

If I am reading correctly, it seems that KC's and Mike's answers are in conflict with each other ??

I believe Mike is correct on this.

Unless he has opted out of Social Security, his housing allowance is subject to SE tax.

Richard Hammar publishes a tax guide speciically for pastors and churches and it is a great reaource on this subject.

Dave T

Have a married couple who became first time home buyers in 2008.

Each tapped their IRAs to make the purchase. She for almost 10K and he for 4K.

I know that first time home ownership is one of the exceptions to the 10% penalty and that the limitation is up to $10K

My question is, is the 10K per IRA or in total, as in this case the total was almost 14K or would the entire amount be exempt from the penalty seeing it came from two different accounts?

Thanks

Dave T

Have a question I haven't seen addressed and IRS website seems a bit confusing to me.

I know the rebate amount is determined primarily from the 2007 tax return.

My question is - what if the return needed to be amended and as a result the rebate amount would be higher?

Client (MFJ) received rebate check of $600.00 but should have been $1200.00 - reason being is that on original return his tax liability was less than $1200.00.

The amended return included more income and tax libility exceeded $ 1200; therefore he would be entitled to the full amount.

Will IRS correct this? Wondering what I should tell client.

Thanks

Dave T

Tom,

My wife and I are both native New Yorkers so I don't mean to steer you away from our state, but several years ago she and I took a trip to Boston and it was great!!

Seeing the Old North Church, Fannuel Hall, USS Constitution etc. was a wonderful experience. Just a beautiful city and certainly very historic.

I must say though that I did get some strange looks due to the fact that I wore my NY Yankee hat.

Hope this helps

Dave T

Aside from not checking more closely, what did I do wrong?

Client comes in at end of January. We sit down, do the return and send him on his way with 8879 for he and wife to sign. (along with hard copy of the return)

I tell him when I get the 8879 I'll e-file the return but with the caveat that it can't be filed until 2/11/08 because he has 5695- Claim for Energy credit attached.

On February 11 I update the program, 5695 gets added and I e-file the return. Files get acccepted and everything seems OK.

Client calls me the other day and informs me that his direct deposit went into the bank for $650 more than what what was on the return.

I check the return and notice that wife's W2 wages that were on the original return did not get carried over when file was updated.

Needless to say I had some explaining to do with the client along with a Federal and Sate amended return.

Again, I'll accept responsibility for not checking the return but why wouldn't the wages have carried over when I did the update?

Thanks

Dave T

I have a client whose son is is studying music in Australia. He is 20 Years old and course of study would be considered post secondary education.

It's a non-degree program so if it is eligible it would have to fall under the Lifetime Learning credit. My understanding is that some foreign educational institutions are eligible but not sure how to determine if this might be. I also know that to be eligible the institution must be able to participate in the financial aid programs of of the Dept. of Education.

Based on the information prvided, I don't believe he is entitled to the credit ( or tuition deduction) but would appreciate your opinions.

Thank you.

Dave T

Mine arrived yesterday (1/22) via US Mail

Dave T

Saw an article in Money magazine the other day that said Matt (?) Murphy, the man that caught Barry Bonds' historic 756th homerun baseball, was selling it so that he could pay the taxes due on it.

The article went on to say that it would probably fetch upwards of $500K ( this was before someone actually paid over $750K for it).

Had he not chosen to sell it, how would he have declared it and and for what amount?

Dave T

PS - Went to a game last year with my sons and they got a ball hit by a player. Didn't know I had to declare that, although a foul ball hit by a AAA farm team player probably doesn't have quite the same economic value as Barry's ball:)