kcjenkins

Sch D, actually. Treat it as a sale of real property, taking a pro-rata share of his basis. Had a recent case just like that, where he got paid $2000 for selling right of way for a gas pipeline. His basis was easy, thank goodness, because he had inherited the land just a year ago, and had bought out a brother on his share, so we had a good FMV basis in the land. Ended up taking $93 of basis. I attached a note to that entry, by the way, showing how I calculated it. Handy if it ever is questioned.

You do not need the 8606 if he's making a normal deductible contribution to his IRA. Any part that goes to the ROTH will not show on the return, because it's not deductible. But as long as he does not exceed the limits [both contributions count against the limits], the regular IRA portion will show on the front page of the 1040.

Love this one.

I know the feds don't want to process an amendment that changes the tax due by less than $50, so I would use the same logic on the state. In other words, it will probably cost the state more than $38 to process that change, so I would not amend it unless the client insists, or there is some other compelling reason for the amendment.

There is a box on that worksheet for you to check if you want it to show up. It's the fourth box down.

Enter the W-2, go to the top of that form, right above box 1, and click to get the dropdown menu, and select Clergy there. It will then generate a W-2 with nothing in box 3 or 5. Then add the clergy worksheet, and it will add the SE form automatically, and feed to it from that worksheet.

And, of course, the other problem is that it may well cost him as much in attorney fees to take her back to court as the exemption would give him. It's not like he gets HOH or anything more than the dependency by claiming the child if she did sign the 8332.

Yep, he got caught in a trap the IRS set up several years ago to stop fraud. Some crooks were preparing bogus W-2's showing modest income with most or all of it as FIT w/h, thereby getting refunds of all the 'withholdings'. This got to be a significant scam, so the IRS decided when any return shows a W2 or other form with more w-h than the taxable income, they want to look at the return, and verify the W-2 or other form is legit.

Now, that sounds like a great idea!

Typical government service. [ Expect the same sort of answer to health questions in the future.]

Yes, it gets stepped up.

My link http://tinyurl.com/yh5uj7c http://tinyurl.com/yl7h3zo My link My link

Congrats!

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.” -- C. S. Lewis (1898 - 1963)

Thanks, Tom, that is sweet of you. I'll be OK. it's just a bad day today! Now, if you were HERE, I'd heap about 10 file folders on you, and put you to work, and that would REALLY help. :lol:

I'm guessing, although you did not say so, that this is cash rent and you are using Sch E? And the box is box 12 at the top of the page? If so, I agree it should be checked. How much is the loss? Read Pub 925, page 9 the rules for rental of nondepreciable property. It is treated as nonpassive, which should be why the loss is not limited by the passive loss rules.

You are right, Tom. I really do need a break. It's hard, carrying the whole thing, and also dealing with my husband, who is frustrated that he can not do anything to help, so he 'tries' to help and, like a 4 yr old who wants to help, the help often makes things worse. Then he sulks. Sorry, MN2V, did not mean to sound mean. It's getting late in the season, and the pressure is piling up, it's spring break week so the grandkids are running around my office making a mess, my son and DIL are fighting, and I'm just plain tired of everything. Think I'll take a break and visit Farmwille!

Sorry, I missed that you were being sarcastic. :dunno:

Oh, gee, I forgot, if the business is hard, we get to ignore the tax rules and give them a break. How could I have forgotten that one?

Sure. Go to the 4562 and click on the tab for the Detail report. Next yr dep is one of the columns there. You can hide other columns, or just print out that report by clicking on the 'page' icon next to the print icon.

It's always been that way, Tom. Rental income has different rules, so the easy way to deal with it is having two columns, one for each type.

Yes, lots of them are. The list is available on the FASBE website. http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet Quoting from our friend Tim on this very subject: ssuming that the school qualifies, I wish to point out two small cautions. Tuition fees under Canadian Tax Law are not Tuition fees under US Tax Law. You may not use the Tuition slip provided by the Canadian school (namely, the T2202A) for US tax purposes but must go back to the original invoice, remove the unqualified expenses, and convert to US dollars, probably using the spot rate. I believe that the US is cash basis for tuition as well while Canada is accrual for tuition. Your client's child will probably be advised by her/his fellow students to file a Canadian Tax Return but the benefits are not necessarily in their favour. Principally because this student may be considered a non-resident of Canada, even though they are present in Canada - Again, residency rules for Canada are different than the US. Good Luck! Tim Parris, in Canada Phone (613) 216-2028 - Ottawa Phone (604) 628-7072 - Vancouver Fax (866) 380-5270

The practical point is that the person processing the original return will not read it, and even if they did, they are not the one with the decision making authority. So it's really pointless to send it. If they want it they will write and ask for it, anyway.

Yep, since there is no extra travel involved, there's no business cost.