lbbwest

I must have been thinking of Taxbilly (who is also not taking new clients) when I was thinking of Florida.....Even though posting on the boards isn't the same as reviewing someone else's returns, after a few years watching various positions taken, some people I wouldn't hesitate to recommend based upon their "theoritical" positions taken, I am sure that there are many excellent preparers who post that I am not familiar with...however I am old school enough that if I'm not familiar with them I wouldn't recommend. (Please note in the effort to be a kinder gentler lbb I am not addressing posters that I AM familiar with; that I wouldn't recommend.) I am glad you and taxbilly are still around, I am looking forward to laughing with you all this tax season. lbb

I am very sorry to hear that also, per your previous posts (on both boards) I wouldn't have hesitated to recommend you either. lbb

I have a client whose sister phoned me this morning, they "purchased" a Sub S and there appears to be at first blush some issues. I don't want to take this on long distance, are you interested? They are in Leesburg, FL which she said is about one hour from Daytona and Orlando, I forgot where you are....but since I have a tendancy to agree with the positions you take on this board, if you are interested, I wouldn't hesitate to recommend you. lbb

In my area; many local attorneys have been touting Sub-S as a vehicle to avoid social security/medicare taxes on the working shareholder for years. In fact combined with the limited liability aspect it was considered the primary reason for incorporation. For years it has been the norm among the trades, bars & restaurants etc. $500 salary, the rest flow thru. Any educated practitioner has been aware of the Tax Court rulings for years; and the shareholder compensation or lack there of has been readily apparent on returns for years...the small number of audits has been and will continue to be accelerent for noncompliance. Once these urban myths have been created they die hard. I don't think preparer penalties will affect more than a very small number of preparers; they haven't so far. I had lunch last tax season with a local CPA whom explained that he had a client that chose his vehicle mileage from the last five digits of a random phone number from the phone book. However, it was the representation of the client, and when he inquired about the log, they guy said Oh, yeah. I asked if he had trouble signing the return under penalties of perjury....NO. Trust me, most people in my area would prefer him preparing there return over me. I am not concerned about preparer penalties. lbb

All political rhetoric aside, this is typical of today's medical ACCOUNTING issues. It's an industry where the provider charges whatever it wants, and the recipient of the bill pays whatever it wants. E.G. the provider CHARGES differently depending upon self-pay versus third party pay. Blue Cross pays differently than other insurance providers or Medicare, or gosh darn what's that filthy word...oh yeah MEDICAID. There are stringent "rules" about what the co-pay CAN BE charged. So without looking at the various contracts your insurance provider, the school's provider etc. one can not make a professional judgement. An early payment discount that is offered and accepted in June for a final payment received in September, may not have qualified for the "early payment" discount. Were you NOT given all the facts necessary to make the correct assessment YES. Have we NOT been given ALL of the pertinent facts to make the correct assessment YES. As always, the correct answer in accounting and tax is ALWAYS "It depends." lbb

I just tried to receive acks three times, program froze, when I went to ATX, said "Down for Maintenance." I'm about ready for a cocktail. lbb

"Trust" is a term used very loosely by the general population. It sounds like you are describing an account set up FOR someone; as you are thinking those are not tax deductible. Only tax-exempt organizations that have filed and received the status as such are able to be donated to with a corresponding deduction by individual taxpayers. For instance, I own a condominium unit; my condominium is a tax-exempt entity (Homeowner's Association) HOWEVER, donations to the association are NOT tax deductible by me. Final example worthy child has illness, donations to worthy child are NOT tax deductible, child qualifies to be a recipient of Crippled Children's organization. Donations to Crippled Children is tax deductible. lbb

PS The whole post was supposed to be funny I looked up the statute and wondered which one of them was underage, insane, a difference sex than advertised, or perhaps they were close relatives???? Whichever of the myriad issues caused the marriage to be "annulled" in Michigan closed-courts after so many years this inquirying mind wanted to know if/when they told (or will tell) the grandchildren that they were "never married."

DUH, oh yeah DUH DUH either I'm exhausted (definite possibility) or you have no sense of humor left (also a possibility)

Michigan also takes marriage very seriously, a few years ago the ex-mayor and his wife had their marriage "annulled" after twenty-eight or so years....I looked up the statute and wondered which one of them was underage, insane, a difference sex than advertised, or perhaps they were close relatives???? Whichever of the myriad issues caused the marriage to be "annulled" in Michigan closed-courts after so many years this inquirying mind wanted to know if/when they told (or will tell) the grandchildren that they were "never married." I would have loved to have the paid task of filing 28 years worth of hefty amendments. lbb aka inquirying mind

Inform them that FREE is a four letter word, indeed one beginning with F, and you don't use that kind of language in your practice. lbb

I think this thread is getting "lost in translation." For ease of reading let's ignore everything except the OLD lender. Interest Accumulated on Mortgage $81K principle of new mortgage $681K (implied principle amount of old morgage $600K.) The other deductibility issues (primary residence etc) do come in to play, but taxpayer did indeed pay 81K in mortgage interest. As stated in an earlier thread whether he cashed advanced his credit cards, (or won the lotto, or borrowed from mom) he did indeed PAY the 81K; by increasing his debt. lbb

Very good, per the Tax Court it is an allowable deduction IF the size is of such immense proportions that there is no personal benefit. lbb

I could use a stimulus package right now. Send it up. lbb

It never seems to work out for me either.

Obviously you didn't see "The Forty-Year-Old Virgin." Why don't you invest in the dvd rental PRIOR to your appointment? lbb

Please see Pub 560 Chapter 3. I may be getting lost in terminology but at first blush what you posted does not appear to meet the criteria of a Simple IRA, which is a Salary REDUCTION matched either dollar by dollar up to 3% of Gross Pay (see additional criteria) or a Salary Reduction with a 2% of Gross Pay to all employees. Look at what has previously been reported, (e.g. W2) how contributions were made etc. lbb

Is it true that "fools rush in where angels fear to tread"? May your lives be filled with as many frikken bananas as you could want or need. lbb

That's why I take actual expenses for my bicycle. It was a VERY expensive bicycle, so I Sec. 179 it. I have to buy a new one every other year, so it's a big tax savings. A get a new helmet, and tires when needed also. The backpack is used solely for business, so that's okay too. I have special bike shorts printed up that say lbb FAST TAX we move our a** for YOU. I write that off as advertising. I NEVER take my plane or boat. I rent them to the corporation and file a Sched E on both ONLY when used. Has Betty Sue checked in? I haven't seen him, but I've been busy peddling my ***. lbb

He filed the Indiana return MFJ? What did he do with her Michigan income???? (He can't take her & kids if any as MFJ and not list her income.) Are their children? Have you seen the Indiana return? I haven't looked it up for years, but it "used to be...." you COULD file a MFJ Federal and MFS Michigan, However, depending on the situation,....you will have to be very cautious regarding any of the MI credits. IF he file joint with her name on it, she is liable for any such filed returns until she proves otherwise. Again depending on your situation, you make be in the middle of a wicket that is sticky. Her wanting a refund as soon as possible, is common, but may indeed be costly DEPENDING. Find out all answers, check reciprocity rulings etc etc etc. I don't think you were paid enough, which is why I don't bill until AFTER the work is done. lbb

Apparently we are NEVER going to be finished with this issue. You do not wish to agree to disagree? I am please to hear that your attorney was so amused at my post, he obviously has a sophisticated sense of humor and has never posted on line. I was typing quickly and meant to type MEDICAID, instead I typed MEDICARE, gee I'm probably the first person to do that ever. I am going to start from scratch AGAIN. Taxpayer comes in the office, taxpayer says "MOM put the house in my name several years ago so that she could become eligible for Medicaid AND so that I would not have to go through Probate, because she heard it's very expensive. She died in 2007; I sold the house, since I inherited the house, I have no Capital Gains, right? My friend told me this, and she reads the ATX board all the time." Was she on Medicaid? Was the estate probated? Did she have a will? Did she consult any attorney? Your jab about playing an attorney on TV was unwarranted since I was maintaining transfer of real property needs to have an attorney involved. Simply advising preparers to take the step up in basis for an "implied Life Estate" is your right. I have the right to my opinion, and I shall continue to consult with attorneys regarding whether an implied life estate exists. lbb

I WAS TALKING ABOUT PRACTICING LAW WITHOUT A LICENSE. Optimistically we are done now.

CLARIFICATION of why this issue bothers me. It's not a perfect world. Most people put the adult child's "name on the house" to avoid probate, Medicaid pay back issues, or both. In order to do that LEGALLY without an estate then they have to divest themselves of the property, which makes it a gift. (No step up in basis.) If it's includible in their estate and there for stepped up basis, then it's also subject to probate and Medicaid issues. IF the transfer IS subject to a Life Estate in writing, then you have a much closer to perfect world. lbb