Joel

Happy birthday cousin. I am the grandson of a Herrington (Harrington) so we must be cousins somewhere.

Back on one of the early days that the IRS offered the online application, I tried but was unsuccessful in logging in. So I filled out the form, printed it and mailed it along with my check. This morning I received an email from the IRS (good thing the subject stated it was about the PTIN program or I might have had to be picked up off the floor) which included a welcome letter, acceptance of my application and re-issuing of my PTIN. Letter filed and now back to work.

What did the homeowners association do with the FEMA funds? Did they expend them for the association purposes? Then there should be a deduction.

As I said I will be getting more information today. A couple of questions come to mind. If the P.O.A. was established to allow for the filing income tax returns would it not be recognized for filing the gift tax return? Also, if the spouse has no assets, but signs solely as married filing joint for 1040 and consenting spouse on 709, if she becomes incompetent is a guardianship necessary? I realize these are legal questions, but must be answered before continuing. TaxBilly, If the husband gives away more than $13,000 of his money then I understand that the 709 must be filed. If the spouse has no assets can she still give spousal consent?

It always happens this way, after posting a question I finally find the answer. (Searched for it before posting but could not find it as I skipped over the sentence as I knew the beginning didn't apply) The executor for a deceased spouse or the guardian for a legally incompetent spouse may sign the consent.

I have a client, husband and wife, that gave $25,000 to each of their children. Usually no problem with gift splitting, however the the wife is incompetent and in a nursing home and has previously signed a durable POA to either the husband or daughter (I will find out tomorrow). My question is can a POA be used to sign the 709 when the signature line on the 709 is as follows: Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. Consenting spouse’s signature © Date © I have done some research and depending on the state (we are in Florida) of residency the durable POA would have to include gift giving to allow for such a gift. Has anyone found IRS rules about POA and gifting? Thanks in advance.

I use PDF Creator and am very satisfied. The price is right: free. http://sourceforge.net/projects/pdfcreator/

I read this several years ago. A couple was being interviewed by a reporter about their long successful marriage. The husband replied that from the beginning they both agreed to share in the decision making. He would make all of the major decisions and his wife would make all of the minor ones. The reporter asked the husband to give some of the minor decisions that his wife make. He replied, well she would decide when and what kind of car to purchase. When and how many children they would have and she picked out the house that they lived in. Well, the reporter was surprised with his answer,thinking that the decisions the wife had made were what he would call major not minor, so he asked him what were some of the major decisions that he made. The husband replied: (scroll down) Well I decided as to whether we should admit Red China into the UN and whether we send a man to the moon!!!!!!

My wife and I will celebrate 55 years on the 30th of May. They sure seemed to fly by.

According to information published in the NSTP newsletter. "The regulations require that tax preparers use a PTIN for any returns filed or any claims for a refund submitted after December 31, 2010" I would say yes

I filed a return on Wednesday and received the Ack yesterday.

Sorry about the lopsided attachment.

See attachment. Assuming the income on line 1 of the k-1 is sufficient, I make a new k-1 entry with the name of the partnership and "depletion" and enter it as a loss on line 1. Depletiion Allowance.pdf

Earlier in the year there was some discussion on CCH combining their ATX program with the TaxWise program. Has anyone heard any new scuttlebutt on this?

Client received a letter from the Personal Representative which included a "reconciliation of 1099's to return" stating that my clients share of the 1099-int from a bank CD. The entire amount was originally reported on the decedents SS number with monies allocated to the decedent and to the beneficiaries with none allocated to the estate. I understand this is a Transfer on Death situation but would have expected my client to have received more than this allocation statement. Is this normal practice?

I you are an independent producer and filing Sch C then the percent depletion goes on line 12 of Sch C.

If he has a basis of $60,000 this means he has put in nondeductible contributions over the years and files 8606 each year and the present value is $30,000 then if he cashes in the entire IRA nothing is taxable and $30,000 is deductible on Sch A. If he converts the $30,000 to a ROTH none of it will be taxable this year.

Isn't the other option on Sch M to give the $250 to retirees of Fed or State who did not receive social security?

However the 1045 is still in draft mode and not yet ready for filing.

If you don't have excel then you can download open office which has an amortization schedule for 'calc'

If the trust has an EIN then the IRS is expecting a trust return. If the trust states that the income received by the trust is to be distributed to the trust beneficiaries, then the trust will issue K-1 to each of the benes with their share of the income.

I made an error in my original calculations. For ease in calculating the tax after carryback I used a copy of the ATX tax return and entered the carryback as an NOL on line 21. This resulted in AMT cumming into play and being added to the zero regular tax. After realizing my error I redid the return with just a minus entry on line 21 and the AMT was not affected. Now the problem is gone and I have a correct 1045. Thanks for the help anyway.

bump Any thoughts?

I have an NOL that is being carried back to a year that the taxpayers itemized. After the carry back the AGI is negative. Do I continue to use the itemized deductions or must I change to the standard deduction? The instructions are not clear in this situation. The decrease in tax is greater if I continue using the itemized deductions.

HV Ken I tried scan and fill when it first came out 2 years ago and returned it for a refund. I could not even get all of the sample documents included with the program to scan properly. Sorry to hear that it has not improved since then.