NECPA in NEBRASKA

Thank you very much. Bonnie

Client called me today and said that his wife had received a $40,000 check with a letter that stated that is was a bequest from a relative's will and wanted to know how to increase his estimated payments. I told him that I would need more information as the letter doesn't state what kind of income it was from. Does anyone know if Canada sends K-1's like the US fiduciary returns? I know that I need to research to see if this has to be reported with a FBAR form. He said that it was a total surprise and that she didn't have any signature authority over any account. Thanks! Bonnie

He flies mainly out of Eppley. He flies around Millard a lot because we live here. Someone shot into his plane Saturday night with a green laser from around 156th and Center. Thankfully, it hit his passenger's headset and didn't hit anyone in the eyes. He does practice touch and goes at Millard. It sure would have saved on gas if he had flown out of Millard, but since he started flying when he was 15, I went with the Flight Nebraska Group for a school, because I really like and trusted the instructors. They have been good to him and hired him on part time so that he could get employee rates.

Thanks, Doug. We are pretty proud of him. I'm glad that he loves flying, because they sure don't make as much money as they used to, so at least he should love going to work.

Thanks everyone. Bonnie

On the Input Sheet for the partnership K-1 bottom of right page, under Y other information is a line for unreimbursed partner expenses. That should check the box. Bonnie

Tom, I am a terrible back and front seat driver. I hate having the yoke and pedals in front of me, because if it's bumpy I might grab them. He wanted me to take the yoke to show me that I wouldn't crash it immediately, but I'm not ready for that yet. Bonnie

Linda, they go on page 2 of the Schedule E on a separate line under partnership income or loss. There is a box to check to say that you are reporting UPE.

Thanks! I just wish he worked as hard on his school work as he does studying to fly. He has wanted this since he was a very little boy.

Catherine, Andrew's plan is to be a professional pilot for a career. His instructor wants him to get his commercial license when he turns 18 and then his Certified Flight Instructor ASAP after that so that he can make some more money while he is in college. We are very proud.

This is not tax. My son took two checkrides last week on his 17th birthday and received his private pilot's license in the morning and his instrument rating in the afternoon. He had already passed the written exams. That is the first day that he could legally receive them according to FAA rules. His dad are I were his first passengers without an instructor last week. I have been terrified of flying all my life, but I actually enjoyed myself some as long as I was in the front seat. I can't stand the back seat, because I am too claustrophobic. Thanks for letting me brag. He was on a local TV station here the next day. Bonnie

Pacun, I would love to know how you manage to get good service. I used to think that they were great, but the way they are messing around with me right now on my son's very expensive XPS 9100 makes me think that this will be my last Dell. I also have a new XPS 8100 for the office that needs my data transferred to it. I spent 7 hours on the phone Friday and Saturday with 4 different Dell support guys. While all were nice, every one of them said that they would call me back and NONE of them did. Then I would call back and get a new one that wanted to run more diagnostics. The first one told me immediately that I needed a new video card and the next three kept running tests and now want to wipe it back to the factory specs. There are a ton of programs on there and I use that computer all the time now to apply for since my husband is trying for disability and I have to do a online. I am sure that the video card is going out, but they refuse to give it to us. I paid extra for their premium support ( which used to be very good) and now sucks. I think that they farmed it out to Iyogi, because they keep trying to sell me software. If you have any advice, I'd appreciate it. I hope that I'm not really sorry that I stayed with Dell. Thanks! Bonnie

I had three brothers extensions reject for the same reason; the SS# and database didn't match. I called their dad and asked if the family had changed their names with SS for some reason. They hadn't. Last year they were accepted with no problem. Nothing has changed so I mailed them.

It was a great article. Congratulations!

Linda, I am so sorry. This has been my worst tax season in 31 years due due to personal issues, computer problems and horrible client problems. I am going to have to sit down and decide after I get everything done if I can even afford to keep doing this or if I even want to continue. I am so burned out with client's that haven't filed or just plain screwed up, that I don't know if I want the stress of dealing with it. As a one person shop, there is only so much that I can do and the stress of being a counselor and not just a CPA is wearing me down. Good luck and I hope that your year goes better.

I would say no, because the son was not self-employed.

For anyone with Iowa tax returns, I just received this from them. Bonnie Immediate Income Tax Changes for Iowa Taxpayers Des Moines, Iowa – April 13, 2011 Changes for tax year 2010 Iowa Income Tax filing became effective April 12, 2011 with the enactment of Senate File 512. This legislation couples Iowa tax provisions with federal provisions retroactive to January 1, 2010 in the areas listed below. Taxpayers who are impacted by these changes and have already filed returns for tax year 2010 may want to consider filing an amended Iowa tax return. NOTE: Iowa did not couple with the bonus depreciation provisions allowed for federal tax purposes for the 2010 tax year. For Individual Income Tax Filers Only: ¡Ü Deduction of Educator Expenses: Taxpayers who meet the requirements of an eligible educator in 2010, can deduct up to $250 of qualified expenses he or she paid in 2010 and claimed on line 23 of the federal return. This deduction is claimed as an Other Adjustment on line 24 of the IA 1040. Tuition and Fees Deduction for Higher Education: Taxpayers who paid qualified tuition and fees for themselves, a spouse, or dependent(s) are able to take this deduction as claimed on line 34 of the federal return. This deduction is claimed as an Other Adjustment on line 24 of the IA 1040. Election to Deduct State Sales/Use Tax as an Itemized Deduction in lieu of State Income Tax: Taxpayers will have the option of claiming an itemized deduction for either other state and local income taxes, or general sales taxes as claimed on the federal Schedule A, line 5. Iowa 1040 Schedule A has been modified to incorporate this change and is available on the Department Web site. Earned Income Tax Credit (EITC): The refundable Iowa credit is simply 7% of the federal credit, and there is no longer a need to recalculate the federal credit. Tax Free Distribution from an IRA to Certain Charities for Individuals 70¨ö and Older: Taxpayers age 70¨ö and older can distribute up to $100,000 from their individual retirement account to certain charitable organizations without including the distribution in gross income. For Individual Income Tax Filers as well as Corporate Income Tax (including S Corporations), Partnership, Fiduciary, and Franchise Tax: Section 179 Asset Expensing: An increase in the Section 179 expense deduction changes the cap for Iowa taxpayers from $134,000 to $500,000 for tax years beginning in 2010. This phases out when purchases exceed $2,000,000. This brings the limit in line with the federal provisions. Alternative Simplified Research Credit, Form IA 128S: This tax form immediately replaces the Iowa Alternative Incremental Research Activities Credit, IA 128A, for tax years beginning on or after January 1, 2010. Electronic filing of this form will not be accepted by the Department until April 26, 2011. Deduction Related to Small Business Health Insurance Credit: For federal tax purposes, taxpayers claiming this credit must reduce the deduction for health insurance premiums by the amount of the credit. Since the deduction is disallowed for federal tax purposes, it is not allowed as a deduction for Iowa purposes and no adjustment can be made on the Iowa return. Start-up Expenditures: Iowa adopts the increase in the amount of start-up expenditures from $5,000 to $10,000 for 2010. Taxpayers who have already filed tax year 2010 returns should review information provided on the Department¡¯s Web site www.iowa.gov/tax about how to file an amended return. For More Information: Additional information can be found on the Department¡¯s Web site: www.iowa.gov/tax. Taxpayers can call for assistance at: 515-281-3114 or 1-800-367-3388 (Iowa, Omaha, Rock Island, Moline) 8:00 a.m. - 4:15 p.m. CT or e-mail: [email protected] Media Contact: Roger Stirler, Public Information Officer, Iowa Department of Revenue Phone: 515-281-4908 E-mail: [email protected] + + + + +

Love it! I really like the guy beating his head.

Julie, I'm glad that you're OK. I'm sorry for the hassle that you're going through.

Linda, I am so sorry for you. That is such a terrible hard thing to do. I still cry when I think about having to put my cat down 15 years ago. The pain eases, but never goes away. Buddy was lucky to have someone to love him so much. Bonnie

I received one from someone else. I didn't know that I should have received a renewal notice. Maybe I missed it in the 353 emails I have waiting.

Thanks for the great information.

Thanks to everyone for their thoughts and prayers. I just hope that he can find a job of some kind to boot his confidence.

Joan, I'm sorry to hear that you lost a job also. I hope that you can continue to grow your own business. I'm sure that we will downgrade our COBRA policy, because we did have the most expensive policy offered because of my husband's health. I can easily hire him and kill two birds with one stone. He will feel better and we may find other insurance. Good luck. Bonnie

I could hire him without a hassle, because I am incorporated. The insurance runs out at the end of the month, so we will have to decide then. He does help me out with office work and errands. Thanks everyone.