kcjenkins

Considering the IRS’s current push to force e-filing upon preparers after 2010, it's interesting that the agency announced last week that persons who claim the first-time homebuyer credit on their 2009 return will not be able to e-file. News Release 2009-108 (11/25/2009).

Also, while the rental income is not subject to SE tax, when an S corp has income, the IRS takes the position that at least some payroll is required to whoever runs it. So that much income WAS converted from rental income to income subject to payroll taxes. Not all of it, sure. But some of it, or you invited an audit, for sure, these days.

I have to disagree with that one, Jack. If the S corp sells the property, it becomes ordinary income of the S corp, which means ordinary income to the shareholders, not cap gain income. That may be a significant difference, especially if held a long time, then sold at a large gain. There are no capital gains for S corps.

Thanks for noticing that and warning us. I bet a lot of us will be going into our 08 program and saving that History page as a pdf in our client folders, whether paper files or pdf files.

Go to Pub 3112 and read the definitions of Online Provider. If you are just an ERO, or an ERO/Trnsmitter, as most of us are, then the rules for Online Provider do not apply to you. Note on page 6 that it says clearly " An Online Provider also chooses another Provider Option, either Software Developer, Transmitter, or Intermediate Service Provider, as Online Provider is a secondary activity. Although an ERO may also use an internet Web site to obtain information from taxpayers to subsequently originate the electronic submission of returns, the ERO is not an Online Provider." Since the page you directed us to is for Providers, not EROs, I think you are getting worked up over nothing. If I am wrong, I'm sure someone will provide the cites to teach me otherwise. Until then I'm not bothering with this one.

http://www.govtrack.us/congress/billtext.xpd?bill=h111-3548 (B ) Documentation Requirement- Subsection (d) of section 36 of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking ‘or’ at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ‘, or’, and by adding at the end the following new paragraph: ‘(4) the taxpayer fails to attach to the return of tax for such taxable year a properly executed copy of the settlement statement used to complete such purchase.’. If you have a settlement statement, that should be all the proof you need. And when purchasing a mobile home, normally you have the same sort of settlement statement as you have when purchasing a stick-built home. Also, from My link Q. Which home purchases qualify for the first-time homebuyer credit? A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May. 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home. Normally, taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. However, a long-time homeowner can also get the credit for a qualifying replacement home purchased after Nov. 6, 2009. To qualify, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. For an eligible purchase in 2010, you can choose to claim the credit on either your 2009 or 2010 return. (11/19/09) Q. If a taxpayer purchases a mobile home (manufactured home) with land and qualifies for the credit, is the amount of the credit based on the combined cost of the home and land? A. Yes. The first-time homebuyer credit is ten percent of the purchase price of a principal residence. The total purchase price (mobile home and land) is used to determine the amount of the first-time homebuyer credit. Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit? A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit. Q. Can a taxpayer who purchases a travel trailer qualify for the credit? A. A travel trailer that is affixed to land may qualify as a principal residence. Q. Can an individual who has lived in an RV qualify for the credit? A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer. The bolded part makes it clear that the purchase of the mobile home itself qualifies, whether they already own the land, buy the land, or rent the land.

Well, unlike my favorite 'contrarian' I have a habit of being kind, you know! At least I try to be.

If you 'lose' an obligation, isn't that the same thing as making money? He's gong to 'lose' the entire debt, for only the cost of the tax on the forgiveness. So his Net Worth will go up, right?

I'd suggest, before you buy ANY sort of office equipment, you go to http://www.nextag.com and look at the ratings and comparisons they have. It's saved me from several mistakes.

Yes, as long as the new home meets the rules to be 'real property', it's a qualifying purchase. It's no different than if they had an old conventional home that was torn down or burned down, and they built a new one on the same piece of land.

I agree with Gail. The only reason not to charge if it's being filed to correct an error that I made. If the error or omission was the client's, then it is only reasonable to charge for fixing it.

I'm with Jainen on this one. Sounds like he 'earned' that tax bill by his own actions and inactions. If he has the resources, why would he take an 'interest only' loan? And then, having done that, pay not a cent on it, nor make sure that his son was paying it? I'm guessing he thought he'd sell it in a few years for a lot more than he paid for it, making some easy money that would be cap gains income at that.

I'm not sure I understand your question. Could you post a link to what you are referring to?

http://www.taxprophet.com/action_guides.html

No, most of us are not in the target market, but many of us have kids or grandkids that are. Plus it's a good reminder that this scam is being used with lots of movies now, and probably more soon. And no doubt some of them may even be movies for more mature audiences. And let's face it, 'free' is always tempting.

PC Tools’ Malware Research Center has discovered another online Twilight scam, promising viewers they can watch the “New Moon” movie for free. Here’s what really happens: • Fans are baited with the text websites, chat rooms and blogs that read: “Watch New Moon Full Movie.” Concurrently, comment posts are filled with related keywords to attract more search engines. • Search results for the movie then link users to stolen images from the movie itself, convincing the fan that the movie is only one click away. • When they click on the “movie player” they are told to install a "streamviewer". • The streamviewer, however, installs malware on the user’s computer. This is of course part of a larger trend, where cybercriminals use the popularity of current affairs, world events and even movie premieres to attract people who seek free or pirated content. Our advice is to see films in the cinema. Sure the popcorn is over-priced, but it’s still cheaper than having your bank details taken from your PC and your account drained of funds.

Great reply, Jainen!

just a thought, Bob. You can import from QB into ATX, you know.

You can also go here and check that you are still listed. My link

Now I'm confused. Didn't you tell us there was no mortgage involved? Now you say that the land and buildings are security for the loan?

If you want to use the laptpop as the sole computer you should install the old programs to the laptop, while it is not connected in any way to the old computer. Then you can copy over the data files, or you can export them then import them into the new one.

What you do is leave the program on the old computer, and then run netsetup on the new one, to allow the program to set up the files to access that program. Don't install the program on both computers, it should be on only one. So the old computer will be the 'server' and the new one will be the 'workstation'. You may, if you wish, install the new program first on the new computer, letting it be the server, and then run netsetup to let the old one be the workstation for the 09 program, if the new one is faster, or whatever.

Well, let me just ask another question. What sort of business are we talking about here? If there is a legitimate business reason for them to live on the property then it is neither income to them nor an issue for the corp. I've seen this in situations where an auto repair business owned the house next to the business, where the owner lived, and took all the late night wrecker calls, for example. Dairy owners who live on the farm are, of course, the classic example. It's always a 'facts & circumstances' determination. There is no single answer that fits all cases.

I can't believe a real tax professional would actually use the screen name you are posting on, but I guess it's a case of 'different strokes for different folks'. Anyway, I suggest you use the button above for MyATX then go to the Knowledgebase and look there for more detail on setting up the program on a network. You will get lots of detail there.

Check the Preferences.