lbbwest

You got it. lbb

I haven't looked this up in a while JB, but I don't think it's the FMV of the home, I think it's the FMV of the rental amount of the lodging. As always the numbers are blowing me away, we have a mom, a 19 year old, a 17 year old, and a ten year old, being supported on the 17 year old's $8500? Even if the home is "free and clear" where does the food, clothing, medical, gas (car), utilities, etc. all come from? lbb

I am never wise, just wordy. I practice in Michigan and although not an expert in anything, am somewhat familiar with the Restaurant Industry, your area SCORE volunteers may NOT be familiar. I would suggest your client join the state restaurant association, the MRA (Michigan Restaurant Association)is VERY knowedgeable and up to date on regulatory requirements, tipping laws, etc. All areas of tax are fraught with "urban myths" but I truly believe the restaurant industry is one of, if not the worst. Your client NOT consulting you before making business decisions promises to be a continued nightmare. Good Luck!

Juan VALDEZ was the coffee guy.

This is SO wrong, that I'm going to take a deep breathe and try to calm down. Although state laws differ Federal Labor law and payroll taxes don't. The "relatives" by labor law should be paid the minimum for servers. IF they maintain they are "volunteering" their time, they can't keep the tips. My clients' workman's comp insurance providers are under the impression that restaurants are high liability enterprises, if your clients' relatives aren't on the payroll, they aren't covered by workman's comp. If you don't think relatives will sue each other, come to Michigan and you can meet mine. The restaurant industry is highly controlled by various governmental entities (e.g. health departments.) Most restaurants fail because of the business side; and very quickly. PLEASE have someone mentor you in the various regulations. lbb

To Eyre is human, to forgive is not my job.

"#. This employee presented a valid drivers license, social security card etc.... There was no reason to suspect anything was wrong till the police showed up looking for the employee." WHOA, I am really getting confused. So this identity theft is ALLEGED? Did we get rid of the innocent until proven guilty for everybody now??? Paper file W2s with any documentation you do have (it doesn't sound like you have any) with a disclosure of why you have reason to believe that the Social Secuirity Number is incorrect. They won't read your letter, but your behind is still covered. Send packet Return Receipt Requested and keep proof of receipt. (Gee, I've never heard of the police making a mistake or questioning the wrong person and the guy probably has a really unusual name like Juan Hernandez.) lbb

VERY interesting quick question. Perhaps there are cites available, but would take some digging. IF parents were married (Oh, those were the days my friend...we thought they'd never end..) mom and dad in year of dad's death would file married filing jointly with one dependent or married filing separately with either parent claiming dependent. If they lived separately and dad supported prenatal mom, mom has legal right to give dad dependancy exemption by signing form...where are you form geeks when I need one (8???). Unfortunately in today's computer world...irrelevant point, if mom (or anyone else) doesn't claim baby and dad's final return claims baby there is no paper trail. If I were dad's final preparer I would have mom sign form, cya. Off of the top of my head. lbb

Perhaps if I knew what language you were speaking I could come up with a plausible lie. (PLEASE don't explain the question to me, I'm on overload.)

"Mel, I agree 100% with you. There is probably little power in individual complaints, but "class action suit" would certainly carry enough weight to get CCH to reasonably address a settlement." Benjamin Franklin said in the 1800s "Common sense is very uncommon." It hasn't gotten any more common. Where is the logic??? When is the insanity going to subside? Gee, wasn't it this week that we read about the number of ridiculous lawsuits that were proliferating? Perhaps half of my professional life wouldn't be spent requiring clients to sign CMA documents if there weren't so many lawsuits. If you don't like the product don't buy it again. If the coffee burns you, perhaps you should wait until it cools before you drink it. I don't remember when in our society my life became so burdened because of "safety measures" that everyone from my banks to my investment brokers to my doctors choke me with because of litigation, but it not only exhausts and irritates me, but I'm tired of paying for it. By the way I'm tired of paying for government rebates when we are running a deficit; where the heck do these people think the money for the rebates come from? In my never humble opinion this whole bipartisan effort is a very expensive ad campaign that I'm paying for. Well after that diatribe I feel better, I don't know about the rest of you. lbb

"If you get another cell phone number to be used strictly for business it is no longer listed property. taxbilly." The voice of reason. I've suggested the same thing for computers in the home, rather than the tedious record keeping of a log. Unfortunately I've encountered too many taxpayers that prefer the gambling of deducting personal use items as business; in the past years they have been very lucky, so fighting the tide is not always easy. lbb

Every ad I have seen has irritated me in some way as they do not "tell the rest of the story." YES you CAN deduct your work clothes, if they can only be used for work (not normal wear) OR have a logo etc., AND you file a schedule A, AND it's greater than 2% of their agi. Yadda yadda yadda

I agree with Taxbilly completely. There have been some seminars out there offering to set up various ways to "invest" retirement funds in various entities including real estate. The rules are very specific and are usually prohibitive regarding individuals' investments in non-publicly traded entities. It stemmed from the allowance of investments in retirement funds into REITs (Real Estate Investment Trusts) which are non traditional investments in terms of being on the NASDAQ etc. WARNING Will Robinson WARNING! lbb

Et tu Brute ! (And you Brutus) very rude to point out other posters age...maturity.

Thank you, but let's not take a vote. lbb

Thank goodness. The tax law has gotten so complicated it takes me forever to find an answer I'm comfortable with. (Notice I did NOT say the right answer.) Now I can contact AT&T and get a response as timely and efficient as when they are called regarding telephone issues, Right? :rolleyes:

RE: Jainen's thread; FYI CPAs are sued over this issue frequently, one can not serve two masters or two clients in a potentially adverse situation. Additionally NO two people have physical custody of a child exactly fifty percent of the time; there are cases where it actually comes down to calendars with nights spent at each parent's home. States' courts do not care about Federal Tax law and vice versa. Many decrees these days read joint physical custody which has precise meanings per state law; for Federal tax purposes how many nights Johnny sleeps at mom's or dad's (with proof) rules. lbb

Lenny the Pirate is REALLY smart, does he know Jerome and Betty Sue? lbb

"He was paying child support until Sept, then when he obtained custody the payment became alimony." I'm either missing something (VERY POSSIBLE), or that doesn't qualify as alimony. Alimony has to be designated alimony in the divorce decree. Intermixed with the child support or property settlement affects deductibility, especially if the other spouse doesn't claim the income. lbb

Is that the same Lenny that J.B. knows?

I have a client that IS a collection agency, he is able to offset State of Michigan returns with proper preauthorization for private debts. Clients often say "tax returns" and don't designate Federal vs State.

Warning Will Robinson, Warning. Efile test didn't work. Error message continue to state correct program version not downloaded. I download daily. After waiting on hold for a long period, spoke with very pleasant young lady from Georgia who suggested I download. Wanted me to restart computer (already done, done, and done.) We were diconnected. After calling back (and being on hold) she had me change Atx.exe file to "old." She then gave me "Herbert" who she said would figure out why my system wasn't updating the new versions (they were on my drive.) Herbert asked me if this was my first time installing ATX. YIKES!!!! I tried to get him up to snuff, nice guy but it wasn't easy....Finally I said, "Herbert, why don't I just move my ATX backup from within the C\programs\ATX2007 to my desk top, remove ATX, reinstall, download updates from web, and restore backups? Herbert thought it a capital idea, I did it, and VOILA! efile test worked. I am STRONGLY suggesting anybody even semi-proficient with the program or computers (that may be overstating my abilities) go to the nth degree BEFORE calling technical support. Best of all in this taxing season. lbb

"My husband is starting a DJ business. He purchased most of the equipment in 2007, but is still missing a few components to actually start the business." Per YOUR post, the business was NOT opened in 2007. Thus no deductibility in 2007. In my never humble opinion, I agree with Jainen. lbb PS. Of course as always, the legal deductibility has little to do with "what you can get away with."

The quick answer is no.

"Only account is a joint bank account." The correct answer is as always, it depends. IF both individuals put all of their income in the joint account; allocating mortgage interest by percentage of total income is fine. In real life that rarely happens. If standard deduction for both doesn't create a larger deduction then technically the taxpayer should only deduct the interest he or she paid. It's mind boggling how many "couples" have arrangements such as he pays the mortgage and I pay the utilities etc. Tax law is indeed baffling. lbb