kcjenkins

Are you serious? TurboTax commercials have the forefathers promoting the brand? The forefathers specifically wrote into the Constitution a prohibition against any tax based on income. Because they knew that a tax on income is both a disincentive to work harder, and an excuse for a great loss of privacy, as the government has to be able to stick their nose into all your business, in order to enforce a tax on income. They would be horrified at the 16th Amendment. Never forget that we had to amend the Constitution before they could impose an Income Tax. Those guys were smart. They knew that if the government was limited in how it could raise money, they would be likewise limited as to what they could spend. And that was what they wanted. They wanted the vast bulk of law to be enacted and enforced at the local and state level. They never wanted a central government to be involved in our day-to-day activities. They had fought a revolution to get an overpowering government out of their lives. They did not want to trade one such government for another just as powerful. They also decreed that all spending bills must start in the Congress, which must run for election every tow years, because they wanted those who wrote tax bills to be accountable to the voters very soon, and very often, to limit their natural tendency to expand their power by buying votes through the spending.

OK, is the price list in the 2007 program? In other words, if you open a new return in 07, and then go to price it, will the invoice have the prices? If so, you should be able to roll them over by going to that 2007 database. If not, can you roll over the price list in the 07 program, from the 06 program?

Reread the fist paragraph of the section of the instructions, on page 7, and you will see that the adjustment is just if the Simple deduction would have been different based on AMT AGI. Not a common problem, but to be considered whenever you have AMT and SIMPLE.

The kids might be SMART [after the fact, of course] to consult an attorney and get a legal opinion on when the gift occurred. If the gift was made AFTER THE SALE, a gift of the proceeds, then the parents would have an excudable sale under §121, and the kids would have no income at all, although there might be gift tax, depending on the amounts. But if the gift was before the sale, as the paperwork implies, then the kids basis is the lower of donor's basis or FMV. What YOU need to be careful about is giving them legal advice, since that could come back to bite you if the position they take is later challenged by the IRS. I'd advise you, given the paper work that your client has now, is that, absent a legal opinion to the contrary, you have to report this as a Sch D sale of a personal asset, which would be a long term capital gain, as his holding period is the parent's holding period.

Just a few more details. He omitted $83,333 in 2007 consulting income, "because he did not get a 1099 for it". Now, how many of you have told a client, "You only have to report it if you get a 1099 for it"? And how many of you would buy the idea that he 'forgot' that much income, whether he got a 1099 or not? And I almost barfed when I heard a 'defender' on one of the Sunday shows try to explain away the failure to report as income the value of car and driver services worth $225,256 that he received from 2005 through 2007. Can you believe, he compared it to 'loaning a car to his son for the summer' and said "I don't think my son reported that as income." How stupid does he think the American people are???? Even a person with very little tax knowledge knows that what you get from your employer is different from what you get from your family. And that when you get the use of a company car for personal use [much less a chauffeur as well as a limo] that it is taxable income, not just a 'loan'. But now, it seems there may still be MORE to come. According to the committee report, lawmakers are also looking into Daschle's involvement with several organizations. Committee aides are reviewing whether travel and entertainment services provided by EduCap Inc., the Catherine B. Reynolds Foundation, Academy Achievement, and Loan to Learn should be reported as income. We have not heard yet how much those amounts may be, but given the type of traveling he was doing, it may run extremely high, as well. Personally, I'm getting sick of it. These are the folks that write the tax code, and way too many of them seem to think that they are above the laws they write for us ordinary folks. Remember back a few more years, Dick Gephardt, who was the Majority Leader from 1989 to 1995, and Minority Leader from 1995 to 2003, did the Rangle type thing, cheating on his taxes over a vacation home? And yes, the GOP has had it's share of tax cheats too, Duke Cunningham and Ted Stevens come to mind. I personally think that national politicians should be held to a HIGHER standard, not a lower one, than the ordinary folks. They have all these tax free perks, already, that we do not get. And they write the laws, so if they think that free personal use of company cars should be OK, they let them rewrite the law to allow it to apply to all of us.

I'd say take it. And remember, the IRS has those 'occupation codes' for a reason. They evaluate returns taking into consideration the type of business. For a writer, income ups and downs are normal, not flags.

You answered your own question. "instructions state that you only take half if someone else has interest in the home,". Whether the mother has to file is irrelevant. Whether she is disabled is irrelevant. She is on the title, so she has an interest in the home, and so he can only take half the credit. Tell them to be happy that he gets that.

The mother might be able to go by the local SSA office if possible, and get the number through them. Look at the chart at this link, http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cf...amp;p_topview=1 PA average time to get it is 3 weeks. Best if they wait the extra time, in most cases. Option is to file without the child and get the bulk of the refund, if there are other kids, then amend after they get that refund, and claim the extra child. That is only wise if they get most of the refund without the kid. If this is the first child, and without a child they get, say, $800 back, but with the child they get CTC and EIC and get back $3K+, then it would be better to wait for the number, because amended returns are processed much later than the first filing.

I agree that in a case such as this, it is morally wrong that she gets EIC while he supports the kids. But yes, it does work that way, because the code allows it. You've always had to put the non-dependent who qualifies him for HOH on his return. and it will not cause a red flag, the IRS does not care. This is one of those cases where the tax code makes it that much less likely that they will marry, and give the kids a stable legitimate family. But it's a very popular thing, these days.

Before you go to all that trouble, try going to the Return Manager, click on Rollover manager, and then click on Rollover, and one of the menu options is to roll over your last year's Billing rates.

Note something else. Daschle, nominated to be secretary of the Department of Health and Human Services, did not pay more than $128,000 in taxes over three years. The back taxes, along with $12,000 in interest and penalties, involved unreported consulting fees, questionable charitable contributions, and a car and driver provided by a private equity firm run by entrepreneur and longtime Democratic Party donor Leo J. Hindery Jr., according to a confidential draft report prepared by Senate Finance Committee staff. Now tell me, have any of you ever seen a delinquent taxpayer who owed over $128K in TAXES, get hit with only $12K in INTEREST AND PENALTIES, after three years? That is a computation I'd really like to see. Also note that a tax deficiency that large would also be subject to criminal fraud penalties. That is, if you are not a buddy of the President, and that president is not a Republican.

Good for you, Bart. Why should the kids have all the fun?

http://www.slate.com/id/2210271/ Daschle Forgets To Pay His Taxes! Daschle Forgets To Pay His Taxes ? All the papers off-lead news that Tom Daschle, Obama's designated secretary of health and human services, didn't pay more than $128,000 in taxes until six days before one of his confirmation hearings. Daschle realized belatedly that he had to pay taxes on $182,520 worth of limousine services from Democratic power donor Leo Hindery Jr., who put Daschle on the board of his hedge fund in 2005. The former senator also failed to report $83,333 in consulting income and overstated the size of some charitable deductions. THIS MAKES TIMMY LOOK LIKE A SAINT BY COMPARRISON, DOESN'T IT?

Did you try typing 'Applied' in the box? That used to work, if the childs DOB was within the allowable range [6 months?].

Linda, when you use the search button, remember that it will not search for words of less than 4 letters. So don't use 'how' or 'tax', for example. And if you search for 'depreciation', it will give you way too many results. So try to give it at least one other word, 'bonus depreciation' or 'depreciation life' etc. If you will give me an example of some search you tried recently, I may be able to figure out what you need to change to make it work. Advanced Usage Help Use = Means apple banana = Find posts that contain at least one of these words +apple +juice = Find posts with both words +apple -juice = Find posts with 'apple' but not 'juice' apple* = Find posts with 'apple' and/or 'applesauce' "Some Words" = Find posts with the phrase 'some words of wisdom', 'some words' but not 'some noise words'

A new law was passed last year changing the deadline for some 1099's to Feb. 15 (Feb 17 this year because of Sunday and a holiday). See Notice 2009-11, Brokers May Furnish Certain Composite Annual Tax Reporting Statements by February 17, 2009 at http://www.irs.gov/pub/irs-drop/n-09-11.pdf or read about it here: http://www.irs.gov/newsroom/article/0,,id=203200,00.html

Well, is the amount the house sold for enough that the interest could have been that high? It is possible, but without some numbers, it's hard to speculate. And yes, some purchase loans were STARTED as Interest Only, then after a specified period of time, they convert to normal, interest and principle terms. That is the point, of course, where a lot of folks could not handle the new higher payments. I know it sounds stupid to make that kind of loan. But while prices were rising, it seemed to many as if they could not lose, because they expected to either be able to refi, or sell at a profit, and that would take care of the problem. Now, they are paying the price of that mistake. Just remember, you do not have to anguish over this too much. As long as the bank says it is correct, and it's within the range of possibility based on the sale, it's not something you have to 'prove'. You can do the return with the documentation you get, as long as it is not clearly, on it's face, in error.

:bday:

You are not 'obligated' to dig, JB. If you don't feel right about it, just decline to do it. One return fee lost will not lose you as much sleep as one return that you feel uncomfortable about will. While it is not your responsibility to audit the client before you do the return, when one does not 'feel right', it is usually because it is not right, and your good senses are picking up on an evasive answer or some such detail. If you do decide to do the return, get him to sign a written statement that both the GF and her child or children lived with him ALL YEAR, and that he provided all the support. That covers you if he is audited, and tries to tell the auditor that he did not know, but you told him to claim them.

But what is the NAME of the town you love so much? "New Jersy" covers a lot of territory.

:bday: http://www.jonesborosun.com/story.php?ID=36699 JONESBORO — A Jonesboro man died Thursday after a tree fell on him while he was cleaning debris from his yard, police said. Larry Bettis, 63, 406 Magnolia Road, was outside working in his yard Wednesday afternoon when a tree fell and struck him, Jonesboro Patrolman Brian Arnold reported. Bettis’ death marks the second in as many days from a falling tree or limb. On Tuesday night Trumann Police Chief Larry Blagg was killed when a tree limb fell and struck him in the head.

But for gosh sakes, at least raise your fee by a nickel, so that you charge round numbers! No one likes to fool with small change these days.

Ed is totally correct. If you do not get paid in advance, you will not get paid, or at best you will be one of the many unsecured creditors. Even the bankruptcy attorney can get caught in that trap if not careful.

Thanks for the laugh, Kyle.

Check to see if the state code allows a Foster child to be reported simply as 'child'. It will depend on whether the facts match the definition in the state tax law, but if so, then you are good to go.