Redneck

I did forget to mention one requirement for using this back up. When backing up your entire hard drive you have to have a floppy drive because the program puts some files on the floppy that are needed to recover the backed up files. I have never used it for anything other than full hard drive backups so I don't know if a floppy drive is required if you are only backing up some selected files.

Windows xp has a simple back-up command built in. To get to it: Click on START > PROGRAMS > ACCESSORIES > SYSTEM TOOLS > BACKUP. Once you have BACKUP highlighted > Right Click on SEND TO DESKTOP (Create Short Cut)

This will create a short cut on the desktop so afterwards you only have to click on the short cut. This tool gives you several options as to what you want to back up, one of which is to backup the entire drive. I use it and have had no trouble with it so far. You don't necessarily have to have two hard drives of the same size to back up the entire hard drive. But, of course, the drive to which you back up must be large enough to hold the contents of the hard drive from which you are backing up.

If he meets the qualifications of a day trader, (and wants to be), he is required to file schedule C. Gains and losses from selling securities as part of a trading business are not subject to self–employment tax.

If the taxpayer's trading activity rises to the level necessary to be considered a business, and the Marked to Market election has not been made, then his business expenses are reported on Schedule C and his trading activities are reported on Schedule D, and thus his gains would be capital gains and not subject to SE tax. Meeting the rather stringent tests to be considered in business as a day trader might be difficult though.

cdallen7 - I just had this same issue. There is a really cool website that will walk you through this and give you a nice printout for your file of the new basis. I don't know how to link that site to this message, but if you go over to page three of the board and look for my post of March 31, you can get the site off that thread. KC was the one who posted the link. It is something like costbasis.com.

Check it out, you will be very glad you did.

Tom

Lodi, cA

Hmmm - I didn't remember from where I had gotten that website, but it is the same one I posted already.

Ok, first timer here....I have a few clients that held stock in a local bank. The local bank was bought out by a larger bank. Here is what my clients recieved for each share of stock held in the original bank.

Each Pavilion Bancorp shareholder will receive 1.4209 shares of First Defiance common stock and $37.50 in cash.

So my question is, how do I handle the stock sale with relation to the original stock basis? Does the original stock basis get netted with the cash payment and cash-in-lieu the client received leaving the client with a $0 cost basis in the new company? Or does the old basis follow the new stock in the new company and the whole cash considerations be what is taxable? Have been unable to find the answer anywhere. If anyone has any links/literature for viewing that would be excellent.

Ok, first timer here....I have a few clients that held stock in a local bank. The local bank was bought out by a larger bank. Here is what my clients recieved for each share of stock held in the original bank.

Each Pavilion Bancorp shareholder will receive 1.4209 shares of First Defiance common stock and $37.50 in cash.

So my question is, how do I handle the stock sale with relation to the original stock basis? Does the original stock basis get netted with the cash payment and cash-in-lieu the client received leaving the client with a $0 cost basis in the new company? Or does the old basis follow the new stock in the new company and the whole cash considerations be what is taxable? Have been unable to find the answer anywhere. If anyone has any links/literature for viewing that would be excellent.

I haven't used it myself but the attached .pdf file purportedly shows how to figure this out. This is the first time I have tried to include an attachment, so I hope it shows up.Cash_Stock_Merger.pdf

I have a problem with the wording, also. I have a client who is a tour guide. The travel agency does not require her to report her tip income (and doesn't do anything with the info even if reported). When I fill out the form, I will usually add a comment that she is not required to report it. She's never told me that IRS has ever questioned it.

The employee receiving tips that exceed $20.00 in a given month is required by the internal revenue code to report them to the employer. It doesn't matter whether the employer requires the tips to be reported. Granted, if an employer doesn't want to be bothered with it, it puts the employee in the position of risking his/her job if he/she complies with the reporting requirement and the employer is incovenienced by the need to meet the employer requirements imposed by the revenue code. However, I believe our responsibility is clear. Once we have been made aware that the client received tips that should have been reported to the employer, we should advise the client to complete Form 4137. If the client declines to do that, I would decline to complete the tax return.

Client just called and says someone at his wife's office says he can 'deduct' $5,000 in childcare expenses off his tax return (did not have flexible spending account). I've calculated the maximum credit (client has almost $400,000 in income) . . . what am I missing? Wife is insistent that I'm missing a $5,000 deduction.

Thanks.

It's they who are missing something - not you. There is no such deduction.

My client is a retired person from UK. He is green card holder, and now settled in USA. Now he receives pension from UK. I am not sure how to handle this case. If any one In ILL who is expert in this kind of case, I will be happy to refer this clent to him. My e-mail adress is; [email protected]. Please respond as soon as possible. I will appreciste it.

I don't have time to check it right now, but I think the answer to your question can be found in the US/UK tax treaties. You can find them at:

http://www.irs.gov/businesses/internationa...=169552,00.html

Anyone have any thoughts on this portion of my question?

I have a new minister and in previous years the CPA took a deduction for part of the housing allowance on line 21? Under what circustances would this be done? Could it be that part of the housing allowance was erroneously included in box 7 of the W-2? CPA has sinced died and new treasurer at the church and the Minister has not a clue???

If there is no one left to tell you why they did it that way, you'll probably never know. I would let sleeping dogs lay and do the return correctly this time. If the minister won't let you do it the right way then you have to decide if you want to have him for a client.

I'm not Mike but I can answer your question. Yes, normally 100% of the housing allowance is subject to SE tax. The "lesser of" computation is done only to determine how much, if any, of the housing allowance will be subject to income tax.

There is a thread a little farther down the board called "ministry of the gospel" where Mike has given an excellent explanation of this.

The thread is actually called "minister of the gospel"

Is 100% of the housing allowance always subject to SE tax (if not exempted) or is it also the lesser of (1) designated amount, (2) amount actually spent or (3) the fair rental value? If it is not the lesser of, why would it more be advantageous for an increased $ amount, because what you save in income taxes you pay in SE tax, or am I missing something? Former CPA told (according to minister anyways) minister the less the designated allowance the better because he wouldn't have to pay SE tax on this amount.

I have a new minister and in previous years the CPA took a deduction for part of the housing allowance on line 21? Under what circustances would this be done? Could it be that part of the housing allowance was erroneously included in box 7 of the W-2? CPA has sinced died and new treasurer at the church and the Minister has not a clue???

I'm not Mike but I can answer your question. Yes, normally 100% of the housing allowance is subject to SE tax. The "lesser of" computation is done only to determine how much, if any, of the housing allowance will be subject to income tax.

There is a thread a little farther down the board called "ministry of the gospel" where Mike has given an excellent explanation of this.

I have a 6252 installment sale. This year client accepted a payoff for discounted price. I can't remember how to do this.

I think I have to recalulate the figures for the gain and % of profit. Any help would be welcome.

Page 11 of Pub 537 has a pretty good explanation of this.

Thanks for the advice. I will ask all of those questions and more and if I don't feel the client has taken the proper steps to retrieve his money, I will leave it alone. Otherwise I will file it as a capital loss.

Would this not require a Casualty Loss, Form 4684? I don't think you can just report it on Schedule D only.

Never mind. I downloaded the large (130MB) file and apparently it is an update file, which Winzip can't open.

He believes that Paccioli made a Windows version prior to closing its doors and was hoping to get a copy of that before his DOS machine dies aa natural death.

Joel

I don't know how good it is, but apparently you can download a version of Pacioli software at:

http://www.advlog.com/files/updates.htm

Does he qualify to consider this a schedule C business and thus a schedule C loss?

Even if he could consider this a business and use Schedule C, the loss would still be a capital loss, subject to the rules governing the deduction of capital losses. Using the Mark to Market system of reporting trades is the only way trading gains/losses can be treated as ordinary income/loss. It is too late now to elect that method of accounting for trading gains/losses for the 2007 tax return.

I know of no way he could take the losses in one year UNLESS he had elected report his trading under the Mark to Market rules. From the tone of the original post it doesn't sound as though that election was made.

I forgot to add.... All of the income came from her earnings. His business showed a loss..... She should be able to get her taxes refunded....I hope just to her!

Did husband file joint return without her compliance?

It would only go on the Sch F if the client is running a tree farm. If he merely makes a one time or an occasional timber sale, it goes on the D.

Form T - while not required for an occasional sale, the instructions for this form have some record keeping requirements of which the seller should be aware.

Couple of years ago I got up at 3 a.m. (don't ask) and found my garage door open. Very scary. To make a long story short - after just about giving up and calling the garage door people I picked up one of my remote controls and the garage door opened before I pushed any buttons. Watched it for hours and occasionally, at random times, the door would either open or close, seemingly of its own volition. I replaced the control and that ended the problem.

I read an article the other day that stated that interest and fees on loans charged to members of the Millitary could not exceed 30% per annum. The slant in this paticular article was that these new rules were putting the pay check advance type lenders around Millitary Bases out of business. I suspect that the fees on most RAL's exceed 30% annually.

http://www.responsiblelending.org/policy/c...itemID=29895875

Just saw an indication on the HRB board that military personnel will not be allowed to get RAL's in the upcoming tax season. Talked to an HRB preparer and she said that she had also heard that, and she thought it was something put out by the military, rather than by HRB. Haven't seen anything solid on it yet, but thought I'd pass it along for those who might be affected.

I know he didn't apply for a loan for a personal residence; however, my question really regards can he claim the loss for a rental property because he never owned the property. He didn't lose money on the property because it was never his, so therefore, how can he claim the $17000 loss- or can he? I don't think it is a short term capital loss, so what would it be if anything?

Steve M

This might help: http://www.taxalmanac.org/index.php/Discus...te_deposit_lost

Your advice and counsel will be missed by all of us. I wish your husband a speedy recovery and you both will be in my prayers.