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Jake

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  1. I was at Costco today and decided to pick up some candy to refill the candy jar at the office. After this week Dum Dums seemed most appropriate. Hopefully my clients won't catch on to my inside joke.
  2. I agree with the other posters use the F 5329 and have your client document his disability so that you can respond to the correspondence that will almost certainly be coming from the IRS.
  3. I know in my State the corporation neeeds to be closed with the Division of Corporations before a corporate officer/owner can be considered for unemployment.
  4. I started scanning a couple of years ago. This year we are scanning almost everything that comes into the office. We use the Document Manager program from ATX. It is not perfect but I certainly wouldn't go back to the old filing system.
  5. If any of it is taxable (which I doubt) it would go on line 21 of the 1040.
  6. I am going to jump back in here. As I outlined in a previous post I believe that a correct way, and in most cases a benificial way to report gambling activity is to net winnings and losses from a single gambling session on line 21 of the 1040. As KC and Tom have pointed out, this treatment is gauranteed to result in a CP2000 notice because line 21 will not match the W2-Gs that have been issued by the casinos. In addition it would be a difficult CP2000 issue to resolve. So my question is from a practical standpoint, how to report this correctly without having problems with IRS in the future. My thought would be on the detail schedule for line 21 is to report the gambling income like we normally do and then on a seperate line on the same schedule report the losses and title it something like "Netted Gambling Activity". I don't know if this would work because I don't know how much detail is trasmitted to the IRS. Any other thoughts?
  7. Jake

    Gambling

    When I read the case I understood that the taxpayer could net winnings and losses on line 21 of the 1040 for each time a taxpayer "settles" with the casino (i.e. cashes in his chips). I do not think that limits the taxpayers ability to deduct other unrelated gambling losses on the Schedule A to extent of all netted gambling winnings. For example if a taxpayer goes to the casino with $500 and he wins a $5,000 jackpot and continues to gamble but only goes home with $2,500 his net winnings would be $2,000 for the day and that is what should be reported on line 21 of the 1040. If the taxpayer goes to the casino two more times during the year and looses $1,000 each time then I believe that the taxpayer would be entitled to an additional $2,000 deduction on Sch. A of the tax return. I have several clients that are on SS and typically have W-2G's from the casino's if we can use the new rules to reduce AGI it will be very benificial to them.
  8. Ok 2010 can arrive I just finished my last hour of CPE that I have been procrastinating for weeks.
  9. Depending on the circumstances maybe a casualty or theft loss in 2006. Or if the other CPA determined that your client was in the devolpment business then perhaps there could be a deductible loss for 2006. But I am with you it sounds like the expenses probably should be capitalized and added to the basis of the property.
  10. Thanks I did have a happy 40th birthday.
  11. Have you renewed your subscription for the upcoming taxyear? I lost my access to to the online research a couple of years ago at this time of the year when I was slow to renew.
  12. Tom, I have had three impatient clients contact me this morning regarding the availability of the cedit to them. I read the amended legislation and in regards to your questions it says: Special Rule for Long-time Residents of Same Principal Residence.—Subsection © of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: “(6) Exception for long-time residents of same principal residence .—In the case of an individual (and, if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.”. It does go on to say that the credit is reduced to $6,500 for this class of homebuyer. Lots of question still need to be answered.
  13. When we had our new office built a couple of years ago we purposely designed it with very little storage space and this forced us to implement a document retention policy. We scan or print to a PDF all documents (tax returns and supporting documents)as well as payroll information and we will keep these documents in an electronic format indefinetly. We use the Document Manger program that comes with ATX and a Ricoh 2550 Scanner/Printer. Keep an eye open for free shred "events" they are usually sponsered by banks or credit unions our local city goverment even sponsered one a few months ago. good luck
  14. I agree with KC having a good scanner will save you a lot of time and frustration in implementing a paperless system. Make sure you get one that can scan both sides of a document for all of the IRS Notices. We also do about a thousand returns every year and started using Document Manager two years ago. What I like about the program is the fact that it is intergrated with ATX so if I select the print to PDF button in the print menu it automaticly files the return in document manager under the clients name and SS#. What I don't like about the program is that it takes forever to open the program and access client files (2-3 minutes sometimes) and that the program is bit tempremental in that it freezes up or stops working more than it should. It works well but not perfectly for us. Good Luck
  15. I used it yesterday and liked it much better than the old system. I reccomend that you go through the short tutorial but it seems to be fairly intuitive and easy to navigate.
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