cred65

With out a doubt this board has contributed much to the needed input into resolving some oomplicated issues that I could not solve on my own without extended research. The response from this board can give point blank common sense and technical resources to questions posed. Thank you everyone on this board for your contribution. Thank you Eric and KC. Can we send some back in $$?

I had a "what I had considered a fired client" call and leave a message late today requesting an extension and promising to pay last years bill which is seven months past due, and asking for my new address. So I filed the extension and left a message on his cell phone. After searching my database from last year, I also filed extensions for two dead persons. The spouse remained but has not contacted me recently. CYA or benevolet? I am now nursing my favorite beverage, a mixture of Red Bull and vodka. So in a while I will not know if "I am going UP or Down". That's why I call my drink the Jimi Hendrix Experience!

If you help prepare the 941 on the clients computer and QB software are you considered a Paid Preparer? TIA

Client who has acquired several residential rental properties in Cinti, OH during 2008 thinks that the 50% bonus depreciation would apply to these properties. With limited time I do not have research available to either confirm or deny this premises. Anyone have any particular insight to this assertion? TIA

It is entered on line 41 and flows to line 2 which reduces the OH taxable income and therefore the OH tax.

TP withdrew an RMD of $5K from AIG and rolled over $37K to another broker in Apr 2008. The 1099 R issued by AIG reported the full $43K as taxable in Box 2a. After preparing the return an informing TP that the large amount of tax due was because of this, she informed the new broker of this and he has documentation for support of the rollover. The TP and the new broker called AIG to see if they would issue a corrected 1099R. AIG said they could not comply. Question would be the proper way to file this return after the correction is made. Should it be manual filed with supporting documentation? Or e-filed and supply documentation when a notice of deficiency is issued? TIA

Client in the 35% tax bracket has parents in their 80's that have filed jointly in preious years (also client). The mother was put in nursing home in early 08 and son footed the bill of $46,550. Mother had gross income of $3,008 and SS of $9,233. The four requirements for Qualifying Relatative are satisfied (as I see it). The life care portion of the $46,550 designated for medical care will be elgible as medical expenses on the sons return (as I see it). The parents joint return will not be materially affected by this transaction since father has only $16K of gross income. Am i correct in this assumption? Or vegged out?

Open the individual partners return. Click "Returns" in upper left border. Click on "Import K-1 Data" 10th item down.

Thanks KC. I'll send you a bottle of vodka tomorrow (not Ruskie vodka).

I have two clients that have had large ISO's over the past several years (one is employeed by a bank). I was having a problem with Part IV of 8801 because nothing was computing as prescribed by HR 1424 signed on 10/3/08. Then after some frustration I discovered that I needed to answer Yes to line 29 question in regards to 2005 carryover to 2006. I was amazed by the results; one client received $60K and the other $70K in Tentative Refundable Credits. Am I dreaming or vegged out? Anyone else experience this? I am wary about telling the clients of the amount until someone sobers me up.

Client informs me that as part of TARP the tax bill pased last fall allows for any AMT paid prior to 2008 will be refunded, half in 2009 and balance in 2010.

Thanks RC I feel better. It's 75 in Cinti, OH. I thought I was having a heat stroke>

I have a TP MFJ with 1 child in 2007 and received $1500 stimulas payment. Also had another child in 2008. When I use the worksheet for line 70 the software computes $1800 based on 2 qualifying children. Is this correct or am I losing it?

S Corp with excellent credit has applied with another bank to refinance existing mortgage (3 yrs old) on commerical real estate. As part of the requested documentation the bank has required the corp to sign form 4506T Request for Transcript of Tax Forms for years 2004,5,6. This was due to the fact that the bank received TARP funds. Anyone else experienced this?

You need to use Form 6198.

It worked. Thanks

How do you get the real estate taxes on to flow to the amount of the standard deduction? I entered RE taxes on schedule A and checked box 39 C but nothing happens. TIA

You can elect not to file F 1116 if certain conditions are meet: Passive income Reported on 1099-DIV etc Not over $300 ($600 MFJ) http://www.irs.gov/instructions/i1116/ch01.html

Code 05 on form 5329 is for the medical exception. My question would be is this sufficent action or should TP have the issuer of the 1099 R correct the Distribution Code.

TP receives $24K to pay medical expense of similar amount. The 1099 R has Box 7 Distribution Code of 01 normal distribution. Is this going to cause a problem with feds?

According to a study of IRS data, 56% of professionally prepared returns showed significant errors, compared with 47% of those done by the taxpayer. And audited taxpayers who used preparers owed an average of $363, while those who filed themselves owed $185. see attached http://finance.yahoo.com/taxes/article/104...'t-Tell-You

Upon checking with a BMW dealership at that time he is informed that the FMV is only $34K - $35K (softtop sports coupe). He plans to sell the car in late spring 2009. The $52K causes $28K in SS income to be taxable, which creates $15K in additional fed & state taxes. Has anyone else had a similar scenaro and is there any relief afforded to the TP? TIA

Snowed in here in Cinti, OH. If taxpayer has made all of the required tax deposits for the quarter ended 12/31/08 is the due date extended beyond 02/02/09? TIA

Thanks, it worked.

In QuickBook I am attempting to add the Medical insurance to 2%> shareholders gross pay as an after the fact adjustment. I am having a problem following QB procedures (or lack thereof).