Joel

Did the taxpayer remove the excess contribution made in 2007? If no, then there still is an excess contribution in 2008 and the penalty applies.

Kea, With a NOL in 2008 you use the 1045 to go back and calculate the refund from the 2006 and if necessary the 2007 return. It is all done on the 1045 and you do not do a 1040X for the prior years.

TonyP Taxbilly's reference to the cch pdf is where I got the $250.00. Joel

TonyP Since she receives social security she will be eligible for the $250.00 Economic Recover Payment in the stimulus bill just passed and expected to be signed by the President on Tuesday. It looks like the same procedure will be used as last year so I would file a return after the instructions come out.

Cinetax, Yes.

25 degrees this morning in Ocala, FL. Burrrrrr

KC, I thought the title of this topic was an update on your ice storm and freezing weather, so I will ask. Did you get power restored at your house yet?

Cinetax, The insurance company should have reported the basis on the 1099-R and the taxable amount should have been 0. If this is not on the 1099-R get the insurance company to correct it. The $22,000 loss can be deducted on schedule A.

Kea, For years after the sale just enter the amount received in the box for the amount received in the year of sale. If you have the correct percentage and the prior payment then all should be well on the 6252.

MN2V If the children's names did not appear on earlier tax records then the gift did not occur until the time of the sale. The parents basis would be used to determine their cost basis. I would consider investigating further the actual sale. Was it the intent of the parents to give the house to the children or was it their intent to split the proceeds with the children and the closing company errored in preparing the documents and possibly could be amended. I would look into it further.

Just of interest "Rapid Refund" is a trademark of HRB. They have sued others for using it. According to HRB it is the name for their electronic filing program and process.

Quintco, In the letter you received from TRX announcing that "your software is on the way" is the information needed to log into the TaxWise site. In the lower right hand corner of one of the pages I received is a box with EFIN, Client Id and Registration code. Use the client ID, ADMIN and the long registration code as your password to log into the site. Once in you will be directed to change your password. Good luck Joel

Go to https://trxprotwsupport.com. Log in, click on downloads and then click on 08 updates. Check for updates for fed and the availability of state programs.

Roberts, Did you not receive the letter from Doug Hughes in mid November? In it he out lined the procedure to issue the new software. Unfortunately he stated that we would be getting the software package the next week. When that did not happen, I called and was advised of the December 10 date I mentioned above. Apparently that has since slipped to the 13th according to Chief. If you did not get the letter, I would contact TRX and check on your address and email.

I talked with sales a few days ago and was told that the package (2007, 2008, passwords, ID number etc) kit will be mailed out starting on December 10.

Taxpayers have a small house building S corp. This year they finally sold the last house and are ready to terminate the S corp. Other that the usual final return and Termination notice to the IRS the S Corp has only one asset, a 2005 truck. The original purchase price was $32,000 and accumulated depreciation is now about $20,000. The truck is to be converted to personal use. In reporting the conversion on the 1120S the resulting $12,000 basis is reported as a loss that is transfered to the shareholders k-1. Since the shareholders (husband and wife) are receiving the $12,000 loss on their k-1 and receiving an asset of value what should be reported on the 1120S and/or the 1040?

Go to www.trxprotw.com and download the 2008 demo as a guest. They said they will be contacting us by phone or email to give us a code to convert from guest status to regular.

I believe the quote is "Who knows what evil lurks......"

IRS decides to audit Ralph, and summons him to the IRS office. The IRS auditor is not surprised when Ralph shows up with his attorney. The auditor says, "Well, sir, you have an extravagant lifestyle and no full-time employment, which you explain by saying that you win money gambling. I'm not sure the IRS finds that believable." "I'm a great gambler, and I can prove it," says Ralph. "How about a demonstration?" The auditor thinks for a moment and says, "Okay. Go ahead." Ralph says, "I'll bet you a thousand dollars that I can bite my own eye." The auditor thinks a moment and says, "No way! It's a bet." Ralph removes his glass eye and bites it. The auditor's jaw drops. Ralph says, "Now, I'll bet you two thousand dollars that I can bite my other eye." The auditor can tell Ralph isn't blind, so he takes the bet. Ralph removes his dentures and bites his good eye. The stunned auditor now realizes he has wagered and lost three grand, with Ralph's attorney as a witness. He starts to get nervous. "Want to go double or nothing?" Ralph asks. "I'll bet you six thousand dollars that I can stand on one side of your desk, and pee into that wastebasket on the other side, and never get a drop anywhere in between." The auditor, twice burned, is cautious now, but he looks carefully and decides there's no way this guy can manage that stunt, so he agrees again. Ralph stands beside the desk and unzips his pants, but although he strains mightily, he can't make the stream reach the wastebasket on other side, so he pretty much urinates all over the desk. The auditor leaps with joy, realizing that he has just turned a major loss into a huge win. But Ralph's attorney moans and puts his head in his hands. " Are you okay?" the auditor asks. "Not really," says the attorney. "This morning, when Ralph told me he'd been summoned for an audit, he bet me twenty thousand dollars that he could come in here and pee all over an IRS official's desk and that you'd be happy about it !" (EEE)

If only it works. I tried the program last year and count not get the scanfill program to correctly read the sample 1099's that came with it! Maybe other users had better luck. I asked for and got my money back.

I had a similar problem and had to go back to the restore point. This was several weeks ago and have not tried it again.

I e-file several foreign states and as far as I know New Jersey is the only state still requiring you to apply in advance of filing.

Jainen The taxpayers real concern is that he is paying capital gains tax on $400,000 gain now on property that he will still own.

Jainen, Since the sale was for raw land, it is possible that, if he did repossess it, a new sale might be immediately available because of the present economy. Thanks for the info on the private letter ruling.

Tom, Yes 1951-1959