kcjenkins

I don't think it's a bug, the program gives you the choice of downloading 'all states' or selecting just the states you want, to save disk space. So if you did not tell it you wanted those files, it's just following your instructions. While it would be nice if when you roll over a return, it asked you if you wanted to download those forms, it's not really a bug.

Basically yes, but I've always found it best to file a 'final' installment sale form to close out the books on the sale. Never had it questioned when done that way, but I knew a friend who, in the sort of situation you describe, just left it off, and then got a CP 2000 later, and had several letters required to clear up the issue of why there was no reporting of the sale that year. I hate those CP 2000 letters.

Miles from home to clients farm and back should be business. Plumber example is perfect fit. She stores her supplies, etc at home, so no problem with OIH basis for the mileage. And the correct term is Faiirer.

According to the OP the price paid was $14,000 so the basis on the new would be the 14 plus the basis of the trade in, which was 8, thus $22,000.

That's what makes this board so valuable, IMHO. Glad I could help.

It's not an ATX update, it's a Microsoft update. And not a "critical" one that they push on you, but an "optional" one. Here is a direct link to the manual update of .Net Framework 4.5 http://www.microsoft...s.aspx?id=30653

Yep, you are in luck, it's been possible for several years to elect Sec 179 on an amendment.

OK, with that additional info I can see where you are coming from. I agree that the IRS would certainly consider the salary being less than a third of the total he took out to be unreasonably low. On the other hand, there have been lots of examples where the taxpayers got away with it. John Edwards being the classic example. http://blogs.findlaw.com/eighth_circuit/2012/02/reasonable-compensation-john-edwards-tax-shelter-strikes-again.html Just so you don't think I am being "partisan" http://taxprof.typepad.com/taxprof_blog/2012/01/newt-gingrich-used-.html Finally: http://taxprof.typepad.com/taxprof_blog/2011/06/more-on-the-.html

Always better to tell them the longest possible time, IMHO. Because they never get mad because they get it a bit earlier than you told them, but they always get mad if it takes longer.

Also depends on how the profit is earned. If it is all from his efforts, such as a consultant selling his services with very little expense, then there is a basis for saying the salary is too low. But if there is significant value from other areas, such as high-value equipment, then a significant part of the income is reasonably ROI on that equipment, and properly taken as dividends not subject to SE tax.

I agree that it is not unreasonable for a person with an assert worth $300K to use that asset to pay their own way. But some good tax planning could have eased the pain, no doubt. Foe example, although her own assets should pay her way, if the family wanted to keep the home in the family, proper planning could have done that, where now the only option would be for them to pay for the house at the Which might have real timing problems. Point is that now, let's say the house sells for $300K, and Mom lives two years at the $12K, then the family inherits the remainder. $276. Odds are, if they had put the house in a trust, paid her bills, and kept the house, they would have inherited more value.

I need more info. Clearly, just because he made more than he paid himself does not mean he did anything wrong. Ask him about the reason he is leaving that much in the business. Perhaps he is planning an expansion, or an investment in equipment, etc. There is no way I'd issue a 1099 in this situation unless it had gone on a lot longer than 1 year.

I'd rather you used quote if that's a problem. The right to edit is, IMHO a valuable right that should not be changed.

Have not noticed any problens, Eric. I use Chrome.

I did not mean he had to repay it in this return. Annie was asking what advice she should give him. You do make an excellent point, tho, that his repayment will not exceed his gain.

Here's an example of what I mean" "Actually, the GOP bill wasn't designed to avert cuts, it was designed to avert these cuts by giving Obama the power to replace them with equivalent cuts of his choosing. He's been screaming for weeks that the sequester will chop crucial services by hitting agencies indiscriminately across the board, right? Well, there's the solution -- let O protect the important stuff, like naval deployments, by reinstating the Pentagon's money and cutting stuff like cowboy poetry festivals instead. Result: The bill fails, 38-60. So terrified was the White House of the political responsibility of deciding which arms of government should bear the burden of an $85 billion haircut that they actually threatened to veto the bill if it passed. No need to worry about that; Senate Democrats, who've been shirking political responsibility for years by not passing a budget, were happy to kill this thing for him. Imagine how awkward it would have been if they hadn't and O had to explain to the public that he had the power to save money in ways besides, say, releasing illegal immigrants from detention centers but chose not to exercise it. His whole strategy in this process is to impose maximum pain on Americans while blaming Republicans for supposedly tying his hands in trying to avert it. They offered to untie his hands. He refused. Leadership." --HotAir'sAllahpundit I'm sorry, SCL, but If you're among the shrinking ranks of those who still insist such assertions are too strident and partisan, then you have officially taken leave of your senses.

You must report the sale or other disposition of your main home on a completed Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and attach it to your tax return for the year of the sale or other disposition. The IRS matches information from a variety of sources when your home is sold, destroyed, foreclosed on, or is no longer your main home. If you received the FTHBC and the IRS has information that the home is no longer your main home, the IRS checks your tax records to find out if you reported the sale or other disposition on the Form 5405. You may or may not have to repay the credit, but you do need to report the change to the IRS on the Form 5405. The IRS sends you a CP03c Notice, Important information regarding your First-Time Homebuyer Credit, when it has information your home is no longer your main home and you did not report the sale or other disposition on your federal tax return. This notice reminds you to report the sale or other disposition of your home on the Form 5405. Given the info presented, he will have to pay it ALL back if it is not used as his home for the full three years.

Good advice every year, every time, always. Can never have too many backups.

Also consider if she could qualify for an installment agreement ? http://www.irs.gov/taxtopics/tc202.html

No, the principle is not taxed because they got no deduction for the contribution in the first place. It's just like you taking money out of your savings account. It's not income, just moving your own money from one place to another. It's only the earnings that are tax-sheltered, not the contributions.

One suggestion, have them check with whatever agency or attorney helped with the adoption. There may already be a SSN applied for, or even issued, that they just are unaware of. Or almost always an ATIN is applied for by the agency, in my experience.

Yes, it is really a 'facts and circumstances' question. It is possible that she is legit trying, even has large receivables, but her clients filed bankruptcy, or just skipped. Ask more questions. We should not be just assuming the worst, but neither should we be blind.

I am sorry you see it that way, SCL, I did not intend it as partisan. Frankly, I am almost as fed up with the GOP as I am with the Dems. We do not elect them to spend all their time playing political games. Once the election is over, they SHOULD BE TALKING TO EACH OTHER TO TRY TO WORK OUT SOLUTIONS TO OUR PROBLEMS, But that is simply not happening with this President. And I do stand by the position that, at this time, the entire leadership of the Dems, Obama, Reid and Pelosi, are being totally obstructive. Reid refused to allow a single bill out of Congress to even be voted on, PLUS he did not present any alternative bills. How can any compromise ever be reached under that kind of leadership?

Q12. Who is an eligible student for the American opportunity tax credit? A. For the American opportunity tax credit, an eligible student is a student who: (1) is enrolled in a program leading toward a degree, certificate or other recognized post-secondary educational credential; (2) has not completed the first four years of post-secondary education as of the beginning of the taxable year; (3) for at least one academic period is carrying at least ½ of the normal full-time work load for the course of study the student is pursuing; and (4) has not been convicted of a felony drug offense. Based on that, she qualifies for the credit. She has not completed 4 years, only two at the start of this year, she is enrolled full time, and I'm assuming she meets #4.