Trnr395

My client received the 7500 credit that has been being paid back for four years so = $2000.  She sold her house for a $72,372 and original purchase price was $77,250.  For a loss of $4878.00, she still owes $5500 for the credit but the loss offsets that so total amount to be paid back is $622???  Am I thinking this correctly?

I have a client that got married last year.  She is filing a married filing separate return.  The husband received the first time homebuyer credit that he repays back $500 per year.  When I file her return it gets rejected based on no form 5405.  When her husband files his return using married filing separate he will include it on his return.  Why would this get rejected she isn't the one that received the credit in the first place?

Thanks

Brad

Will it be fine, or is it going to double up their 1099's and show they made twice as much money than they really did?

I have a client that I prepared their 1099 misc forms and efiled them. The copies I gave them they just informed me they mailed in when they picked them up, I am pretty sure they said "copies" but am not 100% certain. What do I do now, the efile has been send and approved.

Thanks guys, It wasn't his primary residence at the time of foreclosure. I will have to get some more info from him. He is a neighbor of my parents and he talked to them about it. Not my client and will need to talk to him for more specifics. Thanks again.

I have a client that rec'd a 1099C for a house that was foreclosed on. He has since been living somewhere else as his primary residence for the the last 4 years or so. The amount of debt cancelled was $82,000 and the FMV of the house was $65,000. Do I put the difference on "other income" or do I have to show this through schedule D as a sale? Or am I completely of base....

I am having this same issue, i looked at the prior couple years and have it entered the exact same way but still not figuring the deduction for sec 179. Anybody else run into this?

I have a client who is in college, is working full time on his own and living on his own. He wins 100,000 on a scratch ticket, but since he is 19, a full time student does he have to file form 8615 and will I need his parents taxable income, also his parents are divorced. Any help would be greatly appreciated.

Hello,

I have calculated the cost basis and gain on the sale of some walmart stock for my client. They have dividend reinvestment, company contribution and payroll contribution. I have added the div. reinvestment and payroll contribution in figuring cost basis and didn't include the company contribution. Now that the 1099s show the cost basis on the short term sales I figured I would calculate that as well. They have used all of the cost including the company contribution as well. Anybody have any thoughts on this, should I be including the company contribution also.

Thanks

Actually I am pretty sure he is purchasing it all in his name not the corporation which answers my question but I will double check.

actually Jainen, they run a gas station and at one time there was another gas station in town that closed. The owner of the S Corp is purchasing the building and starting another shop there.

ya ya i thought so....39 years it is.....

That was the direction I was leaning Jainen, and they handle every aspect of the business from bookings, office work. Know another question is the cost of the camps incurred last year, can I depreciate the cost of building them as business start up or does it have to be real property and expensed over 39 years?

They rent for a week, or a weekend typically. They provide services as far as chopping wood for their fires, laundry and all utilities.

They have a business name and it is husband and wife running the business

My clients just built two small camps that are used just for renting out to hunters, sledders, etc. Should this be reported on Schedule E or C.

I have an S Corp that is purchasing a new business. He wants to keep everything separated between the two businesses. Can he keep two separate sets of books and then when he files his tax return do you combine them both and file it under his regular S corp. Never done anything like this just simple S Corps and single owners.

Thanks

Does anybody have any advice on how to handle this issue. I am at a loss here.

Thanks for the info guys! Now he paid over 10k and wants to deduct this expense? I know the penalties and fees aren't deductible but how about the tax that was paid, not sure how I feel about this one.

ha ha nice.....I had this same question last year I think. Crazy what people will believe, client had a friend who took an accounting class once...and as stated by my client "She is very smart with this stuff" love it!!

I have a client who had a cousin with a foster child, the foster child was taken out of that home because of "issues which i didn't ask" and now lives with my client. He lived there all year and doesn't have any income and is 17 years old. They can claim him for a dependent with the qualifying relative rules but just to double check myself he can't be claimed for EIC purposes because there technically is no relationship and I entered other in the dependent information. Am I correct in this, questioned myself a couple times on this.

Thanks

Hello everyone!

If a company purchases goods from another country and resales them at wholesale companies who are tax exempt in this country does the company have to pay a use tax for what was purchased across the border? A customer came to me because he was penalized for the last two years for this and paid a hefty sum of money to the state that he runs his business in, the customer says it wasn't for use tax it was just because he didn't fill out the sales and use tax form for his state so they penalized him. The bill was for around 10k, seems like a large sum for just penalties. Has anybody have any insight into this I have never dealt with this before and was thinking he would still owe a use tax for bringing these goods into the country and selling them (even though he is selling them to resellers)

Thanks

Brad

Great, thanks. I re-read the worksheet again and figured that was the case.

thanks again!

I wanted to double check this credit. I have a married couple that the husband works and wife stays home and has no income. Computer is still calculating 800 for the making work pay credit and for the calculations on the worksheet it just asks whether or not the total wages for the household is above $12,903 regardless of who earned it. Doesn't make sense that the "making work pay" credit would also be given to somebody who doesn't work.

Thanks

Brad

I actually called the IRS and asked them about this and all they could do was to refer me to the instructions for dividends....which i have read 4000 times and still am not 100% clear. The two owners of the corporation basically just decided throughout the year if they want some additional money other than their paychecks. Then they write themselves a check for 15,000 or 30,000 dollars, etc. There is a lot of accumulated wealth that has just sat in a savings account and appreciated throughout the years...now they want some of it. It would basically mean that they wouldn't pay any tax on the dividends if it is qualified.