tmike

It seems she would retain her status as a CA resident if her intent was to return to her CA home upon completion of school. You are correct to use MN NR to determine non-resident income for MN purposes. -Mike-

Thanks KC!!

Does anyone know if you e-file a return with an election statement does that election get e-filed. I have checked in the "list " of e-filed forms in this particular return but does not list the election as being e-filed. Anyone with any experience in this matter? -Mike-

I just got a response from the research dept. and they say"A married taxpayer filing a separate return may be able to claim the credit even if the taxpayers spouse does not have a valid social security number". They then go on to say that I should refer to the rebate recovery worksheet for line 70 on page 62 of the instructions for form 1040. I still have my doubts but am going to paper file and see what happens. -Mike-

I have e-filed many rent credits this year without any problems. Property tax credits for any county other than Hennepin county must wait until after March 15th. -Mike-

Thank you for the help

Thanks RCooper, Am still having a problem deciding. Pub 17, page 256 seems to imply that both taxpayer and spouse need valid SS#'s. It does not address a separate return. Also I called the IRS and they could not give me an answer. It is now referred to their research dept. I can't believe this would be a fairly common situation. Let me know what you think. -Mike-

Could any Oregon preparer give me a quick run down on the credit for long term care insurance. I find no info in the instructions. Is this a dollar for dollar credit? Are there any income limitations. My client is a part-year res and had income over 300k. The link for line 56 just says "Long term care insurance premiums. Code 716. Any help is appreciated. -Mike-

That is how I read it. "If filing a joint return". Pub 17 Page 256 says both spouses must have a valid SS# but makes no reference to filing a separate return. I talked to IRS but could not get a conclusive answer. I can't believe that this would not be a fairly common situation. -Mike-

I have a client who has a valid SS# and his wife has an ITIN. Can I file separate returns and get the rebate recovery credit for him and the children? If I follow the worksheet there is nothing that would disallow the credt. When I try to e-file the return it is kicked out saying a valid SS# is required. Has anyone run into a situation where one spouse has a valid SS# and the other is using an ITIN? Any help would be appreciated. -Mike-

Quickfinder offers an accounting book that is very helpful if you have some basic knowledge of accounting

I see that now. Thanks -Mike-

Is there any problem changing a filing status for the express purpose of getting a rebate credit? I have a married couple that filed a joint return for 2007. Husband has a valid SS#, wife has ITIN and each of 3 children have a valid SS#. As a result no stimulus payment was ever received. If I were to file their returns as MFS are there any pitfalls as regards to the recovery rebate credit?

I have a client that filed a joint return and because his spouse filed with an ITIN they did not receive any stimulus payment. She will again be using an ITIN next year when they file a joint return. Would I be correct if I said that the 10% rate reduction for the first $12000 of taxabble income would still be in place for them? I have tried to find a reference but am not coming up with any. -Mike-

I just talked to ATX e-file support and was told there are no more drain times after 11:00AM and that returns will not be considered timely. No time to locate client and file paper return 20k tax liability. Any suggestions? In past years never had this problem. Am I the only one that missed this? -Mike-

I have a client who is using 2005 premier contractor edition and in spite of my suggetions did not back-up any data. The program has a corrupt file and will not open up. I have tried to install over the existing program but it will not install. If I install the program in a different directory it will install but the data is missing. My question is 1) is there a way I can drag a data file from the corupt program and have it restored to the newly installed program? or 2) I do have a back-up on my computer of an accountants copy of his. Is there any way it can be used to restore the company file? Thanks in advance for any help. -Mike-

Thanks for the input. My client is an on line retailer and bought an existing site that did the same thing. Given the world we live in today I was hoping to find some clear guidance with this issue but could not find any. Are most of you using section 197 amortization? -Mike-

I have a small business client that has recently purchased an existing web site(domain) for 25K. Is this something that should be amortized, treated as 3yr. property(software), section 179, expensed as an advertising cost or any other option? I have not dealt with this one before and cannot find any clear guidance. Any help would be much appreciated. -Mike-

Thank you MAS-Mike-

I have not dealt with this yet, but would I be correct to say that debt forgiveness under the short sale of as house be forgiven under the debt relief act of 2007. The entire mortgage is acquisition debt. -Mike-

Thanks JRS, That was my thought as well. -Mike-

I have a a client (Husband and wife) who paid $23999 to join, participate or otherwise learn how to wisely invest. Without getting into why someone would do this I am wondering if anyone has any thoughts on the deductability of any or all of these expenses. It does not qualify for lifetime learning credit because it is not an accredited school. It also does not seem to qualify under Sec. 274(h)(7). This package included a seminar, "coaching" workshops and other things designed to make one a successful investor. Any thoughts on this would be appreciated. -Mike-

I had someone ask me to look at their 2007 return which was already filed. To make a long story short, he retired from his company at age 56 and had a pension and a 401(k) with about $500,000 in them. His plan was to use $150,000 to pay down some debt and use the remaining $350k for retirement income. Under section 72(t) he could withdraw the $150k and not be penalizes because he was over 55 and separated from service. The problem is his fin'l advisor had him do a direct rollover into an IRA. About 2 weeks later he withdrew the 150k thinking there would be no penalty. Under sec 72(t) IRA distributions do not qualify for an exeption to the penalty. Is there anything I am missing? Is there any work around that anyone is aware of? I think the financial advisor could be liable, but that is another issue. Any help would be appreciated. -Mike-

Thanks JRS, I appreciate the help. -Mike in MN-

He did not own the fund very long. Less than 1 year. There was only a "2007 ownership schedule". This only showed dates that he bought and sold units in the ptp. His capital account was adjusted but I am not clear on how to calculate basis for sale of ptp. He had a capital gain on the disposition because the market value had increased on this particular partnership. -Mike in MN-