kcjenkins

It's not your fault if the client's did not tell you when you were doing their 09 return, that they only received the 08 refund in 2010. You would think, for such a large refund, that they would have been calling you about why it had not come in, back in 09. Are you SURE that both of them are for 2010? I've had clients include a prior year statement in with the current year statement by mistake, and entered it before I noticed the date. I don't mean to be insulting, just that it's early April and we are all tired and stressed.

If you read the instructions, it tells you clearly that you do NOT need the 8878 when there are no funds being withdrawn to pay with the extension. to complete Form 8878. IF e-filing . . . THEN . . . • Form 4868, and • The taxpayer is not authorizing an electronic funds withdrawal.......Do not complete Form 8878.

Not knowing the type of business makes it a little hard to make many suggestions. But clearly this was a business, and a profitable one at that. I see no problem at all with taking his deductions. Even if he has 'another job' and does this only occassionally or seasonally, it's still a business. Whether he keeps on doing it is not really relevant to this year's decisions, although if you §179 the equipment, I'd explain to him that if he does not continue to use it there will be a recapture issue.

Oh, OK, I see, the sons sold it to a third party [call him X] on an installment basis, and were reporting the income as the note was paid. Then, needing cash, they sold X's note to Dad. Use the worksheet to calculate the taxable gain, and for the sons this is the last of it. Dad's basis in the note is what he paid for it, so he will have some interest income and some capital gain income from the payments as he receives them.

Bart, why not mention the program you use and like? And tell us if it is one of the free ones, or how much it costs. I always value the opinion of a professional who has used a program over all the advertising in the world.

I think Lynn covered it very well. "It depends...." is the only correct answer, of course, but in the case of payments due to lost income from a business, that clearly does belong on the C. Lost rents on the E, etc. I wonder if that CPA firm is going to pay the costs of fighting the IRS when they advise clients to ignore the IRS position?

There is no depreciation recapture, and no need for a 4797, unless the wife was involved in the farming activities as a partner. In which case there might be recapture on her half, but not on the portion she inherited. I'm going to assume [dangerous, I know] that HE was the farmer, not her. In which case, she got full step-up in basis, and she is now selling inherited investment property. If she has a written appraisal I'd take the loss. And not on individual items, I'd lump them together since they were inherited together and sold in one single auction.

This one has me totally confused. The Partnership sends K-1s to the partners, not the other way around. Unless the partners are other partnerships? Could you give us more details?

I edited both posts, hope you don't mind. LOL Yes, you did it right, Barns are 20 yrs. 150 DB I have used code 812910 for a horse boarding business.

Although the responsibility is the taxpayer's, not the trustee's, they usually will accept it one time with the reason being [and the letter should be written by him, handwriting it is even advised] "I thought it would be done by the broker, automatically, and did not realize that it had been missed when I changed brokers." If this is the first time he had to withdraw RMD, that should be mentioned, that he was not aware it needed to be done. If it was done automatically in the past, then again, that should be mentioned, as basis for his assumption. If his handwriting is a bit shaky, that is all to the good.

Look at the computer time and date again, and check the AM/PM setting. If you look at it at 9 AM and just look at the date and time, it will show 9 and the right date in the morning, but if it says 9 PM then at noon it will jump the date ahead. That seems like the most likely way it could happen then seem to reverse itself. Date will be OK in the morning, wrong after noon.

I'd agree with you Deb. Use the last pay stub as your guide and backup for the Form 4852. Unless you want to try calling the employer, and explaining what is wrong with the W-2 and offer to correct it for them? They may simply have no idea of the proper way to report the tip income.

Thanks for sharing that one.

The letter of explanation always comes separately, sometimes before and sometimes after the check.

It's both and and maybe as well. With a little thrown in too.

Yeah, the problem really is that the clients think we are miracle workers, who just instinctively KNOW what their basis is, so why should we charge extra for calculating it for them?

No, I do not agree that just having a Logo is enough. If the 'uniform' is distinctive enough that it would not normally be worn on the street, such as a Wendy's shirt, which has not only a logo but distinctive color and pattern, then yes. But just a small logo embroidered on the sleeve or pocket of an ordinary shirt, does not make it unacceptable as street wear. Tax Court rulings have even disallowed painter's coveralls, etc as a deduction. The article is week in other points as well. "construction workers who must buy their own hard hats, protective glasses and special boots can benefit greatly from this tax deduction" for example. No mention that 1) you must itemize to take it, and 2) you must exceed the 2% 'haircut' before it even counts at all, Most W-2 construction workers, in my experience, get little or no benefit from buying safety equipment. Sch C contractors do get the deduction, but it seldom amounts to any significant savings, certainly not 'greatly'.

I hope you charged him extra for that one, Gail. Julie, glad you are OK, someone stupid or high enough to kick in the door could have done you harm rather then running when they realized someone was there!

A lot of the people answering the phones at the IRS know almost nothing, they just have a database to consult. If they do not know enough, they often tell you the wrong answer, even with that.

If putting it on Line 29 meant it had to be on the SE, it would go there automatically. The reason you have to fill in the box at the top is because it is an option. I read the related code back in Jan, and I agree with how ATX is handling it as an option. [i'm sure if I am wrong someone will tell me so, with cites. LOL]

Makes you wonder how they get and keep a job, doesn't it? LOL

Pub 537 has good examples and worksheets.

It is a pain when people do not keep up with their basis. Hopefully you can get it from the employer, if it's not on the W-2s. If it was given to the client without being included in the W-2 then the basis is zero.

It's the 11th tab at the bottom, so the easy way to find it is to click on the First tab, 'Pages & Worksheets', and then select it from the list.