Trnr395

That is what I have always advised my clients on but one client told me the other day she was talking to another business similiar to hers and they said they keep track of everything that is spoiled and give this figure to their accountant and they use it as a deduction. I tried to explain that by doing that they are getting the deduction twice.

Regarding the first time homebuyer credit. I have read several articles on this but nothing that I know is 100% code. What I have read is that if you "build" a new home the date you would use for the homebuyer credit is the date that you first occupied the home. Am I correct? Thanks

I have a question regarding accounting for spoilage. With a restaurant business when the supplies become outdated and have to be thrown away should this be added up and deducted as a line item for spoilage OR is it already accounted for when I enter the ending inventory figures. Thanks

So you are saying that based on the plan rules you can withdrawl the money....but you are still going to have the 10% penalty regardless...right??

I have a client that claims that she was told by her employer that she could take some of her retirement out (before age 59 1/2) because her house was being foreclosed on and she needed the money due to "financial hardship" I can't find any code that states this as an exception. I was always aware of the first time homebuyer and the higher education or for major medical expenses. The 1099 has the distribution code 1 so the penalty is calculated. Am I missing this exception or is she still forced to pay the 10% penalty. Thanks

I have a client that owned a house that ended up burning down. They rec'd insurance money to take care of the mortage and the belongings that they lost and later moved. They are going to sell the lot. How do they figure out the cost basis of the lot when they purchased the house. they moved in 2005. Another question he had that somebody had told him is: If he takes the income that he is going to rec'v from this sale and applies it to an existing loan on another investment property he wouldn't have to pay capital gains. Thanks

I have a client that has a dependant that worked around a month and filed a tax return somewhere else. Parents filed return with the dependent and know it is rejected due to dependant claimed on another return. I can't remember the exact procedure here...I believe I have to mail the return in instead of efiling and should there be a letter written along with the return stating that the dependant shouldn't have claimed herself. It wouldn't have made any difference on the dependents return because she was just filing to get the little bit that was take out for federal wages on her w2. Thanks

Okay, I have a client that is a Mass. resident but doensn't have any mass. W2's, traveled to Minnesota, and Oregon to do a couple construction jobs and this is shown on his W2. He is going to recieve everthing that was withheld on his federal return. The Minnesota return is filed as a nonresident return and shows the portion of income that was earned in that area for the short amount of time that he was working there. Same situation in Oregon and he ends up getting refunds for everthing that was withheld from the two states. When I complete the massachussetts resident return he ends up owing a little bit of money after I enter in the income taxes paid to other jurisdictions....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest??? Any help would be greatly appreciated thanks

I have efiled several hundred efiles this year, this is the first SCorp that I have done. I have filed some C Corps with success though. This is a new corporation that was started last year. It was rejected by IRS. Should I just send this in the mail. I am kind of running out of time to get the client back in the office to sign the return to send it in. Thanks

I have tried to efile an 1120S and I get the rejection code EFIN in the return header must be listed in the efile database and in accepted status. Has anybody had this rejection error...the efin number is correct

Have a client who recently bought 42 acres of land for $52,000 which equals about $1238 per acre. They had 6 acres of this cleared for a house lot and recieved $4,310.65 for the wood that was cut. I could figure a cost for the total 6 acres but this would include the land and the timber together which wouldn't be correct because they still own the land. How do I figure the cost basis in the sale of this timber, they never had a forester value the timber? Thanks....

I have been getting the same error this morning.

I do not think I will. It isn't really a daycare per say. I am going to report it on the Sch C-ez for the full amount and figure the se tax.

I have several daycare providers that are clients of mine and use their home for business use. But, I have a new client that "babysits" one child in her home. Earned $1075, She is basically a stay at home mom. Do I include this income on the Sch-CEZ she doens't have any expenses against this income. Or, put it on the Sch-C and include business use of the home as expenses. Thank you for your help.

Thanks, that is how I had done the return. Just wanted to double check. Thanks Again,

Here is the situation.....Son lives with father, parents are divorced. Mother has divorce decree stating that she can claim the son on her return. Mother has very little income doesn't even need the exemption....My main question is should she be able to claim the earned income credit even though her son did not live with her at all during the year? She qualifies for some earned income credit for herself. Thanks

Thanks that worked!!

I have been trying to transmit returns and continue to get the error: Failed to connect to an EFC server. This started yesterday evening and still can not connect this morning. Is anyone else having this problem? Thanks

Last year I had a contractor frame up my house. I have done all of the rest, insulation, exterior doors, windows, etc. Would I qualify for the credit for the builder. As far as my reading goes I would say no....but am still unclear???

I am pretty sure I know this answer but need to double check. Client has a son who is a student, maine resident. Went to Texas for 11 weeks through a school program and worked on an oil rig and earned a substantial amount of income. There are no Texas state income taxes so he doesn't need to claim this income for any state....am I correct? Thanks Trnr395

Does anybody no when the updated ME E-File Info form will be done. The forms are approved for filing?? Thanks Trnr395

Have client who owns a house and his mother and father are living with him. They only have social security income and do not file a tax return. He can claim them for tax purposes right as two dependants and file head of household? Thanks