kcjenkins

No, the S corp idea will not work. Unless he becomes a RE professional, which is not easy, he's just out of luck at that income level. Just getting a RE license does not do it, it's a TIME issue, and given the normal income, there is no way he'd have enough time in the rental to make it work. What he could consider, though, is selling the current property, which frees up the suspended losses. Then he can take advantage of the current market to buy replacement property(s) if he wants to stay in the rental game.

Sorry for your loss Karen. I agree with Jainen on both treatments.

Yes, to protect both sides. And tell them to get a WRITTEN APPRAISAL of the FMV now, as well. It'll cost a little bit, but is well worth the cost in protecting them from arguments. Might even get the value down a bit, for the gift issue.

But this is cash rent, at least most 'pasture' rent is, so that would go on the E.

Yes, since that child is not his, she can. Just one more way our government encourages 'shacking up' over marriage.

That was a great break! Thanks, Cat.

OK, I am going to close this thread now. Enough already. B K, trying to start up a new fight over a thread started in 2009 is a real stretch. I do not buy your argument that Jack started this fight. Chill, please. We do not need that sort of vendetta here.

As far as I could find, the only time OldJack called him a jerk was in this thread, after B K had attacked him. I've warned him, but don't think banning him from posting is called for at this point. That's a bit drastic.

If you can save that pdf as a csv file, you can then open the return, click the drop-down menu, and select Import Sch D Data, and the program will pull the info into the Sch D.

post a link to that thread, BK

That is why when you enter the estimated tax paid, you have to enter the date paid, or it will not flow. Because the total paid will go to line 62, but only the amount paid in 2010 will go to the Sch A. The Jan payment will not go to the A.

Actually, in this case I think IRS is correct and ATX is wrong. Because excess grant money is deemed to be 'wages' that are exempt from payroll taxes, but still earned income, and therefor should count for both the tax credits.

No, his response was inspired by your attack, while your's came out of left field without any provocation. If someone is attacked personally, they do have a right to fight back, on this board. It was your unwarranted personal attack that started the fireworks.

Yes, that should be reasonable to rely on.

How about if he signs a letter 'donating' all his claims to the piece to the organization that is sponsoring this? He might suggest in the letter that they auction it off at the end?

Yes, according to their own instructions, he is eligible for the credit. Guess Congress figured [probably correctly in most cases] that siblings are less likely than parents or grandparents to make 'bargain' deals?

Thanks, Eric, for saving me the time to worry about that. Guess I will update the Win 7 computer at home, [or get my son to do it] but ignore it on the XPs.

Did you try putting the 3500 in the Taxable box 2? Or just create a new 1099R from the second bank, as if he had deposited the entire amount, then immediately withdrawn the 3500, as he should have done it. It's true it will not match the 1099R's in the system, but I've never seen the IRS raise a problem about someone OVER-REPORTING income, so I doubt if he will ever hear from them about it. If he does, you then simply explain what he did, and they will be happy with that explanation.

Basis would be the $702K less Acc Depreciation.

Jack, I seldom disagree with you, but this time you are frankly wrong. If you have not got a court order [of either divorce or legal separation] then you are still married. And have only the options of MFJ or MFS. Unless you qualify for HOH under the abandoned spouse rule, with a qualifying child living with you, which is the ONLY exception, and for that you must meed all the rules.

Thanks for the smile, Cat.

I think his point on the 'over the line' comment was that both CA and WA are community property states, so some OR preparers who live close to the state line end up filing returns where one or both t/p's may work in OR and do business in OR, and use an OR preparer, but actually live in one of the other two states. As to the original question, your only options are MFJ or MFS. From Pub 519: If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information. A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year. The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.) [To deal with last year] Amended return. You generally make this choice when you file your joint return. However, you can also make the choice by filing a joint amended return on Form 1040X. Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. You generally must file the amended joint return within 3 years from the date you filed your original U.S. income tax return or 2 years from the date you paid your income tax for that year, whichever is later.

If there were taxable 'earnings' in box 2 you would enter that on Line 21, [7th item down], but since there is nothing in that box, you do not enter it anywhere.

Eric, are you saying that if we are using a Win XP computer, we should NOT upgrade to IE9? While I use Chrome for most everything, I do from time to time use IE because of my old personal hotmail.com account. Have not upgraded, but if it would cause a problem I will not. If it works ok on an XP machine, I probably will, when I get around to it.

March 19th, tomorrow, is the next full moon. Also the largest full moon in over 18 years. http://www.almanac.com/moon http://www.foxnews.com/scitech/2011/03/18/supermoon-rises-biggest-moon-18-years-occurs-saturday-night/