cred65

TP (US citizen) works for SAP and was assigned to work in Canada for a few months. TP received a Form T4 (ugly little thing) with $33K Employment Income and $3,040 Income tax deducted. I asked clients husband if he knew if this amount was included in US W-2 (120K) and he doesn't know, wife doesn't know and I don't know. It's too early for vodka so I call on the mercy of this board to bail me out. TIA

TP may need some returns from 90's and cannot locate them. Also does not remember who had prepared them. I purchased the tax business in 2007 and they were not in the inventory acquired. Need to file Form 4506T to get copy or transcript.

Bulldog, There is another make work project for you. If both taxpayers are working and have similar income generally it is better to file MFS for OH due to the large marriage penalty in OH. In order to do this it is best to start off MFJ to determine best way. So you may end up doing 3 fed returns to get one. Also these local city tax dept's are run by authoritarions (former KBG & SS agents) that want to start criminal procedings if you are late. Make your wife do the returns and hire a good divorce lawyer.

I would require congress and the pres to prepare their own tax returns without the aid of a computer and tax software (calculator and abacus board allowed). The returns would then be auditd by a new and slighly more benevolent agency than the irs, that would be headed by Hitler and Stalin (they would not be allowed to hire Jainen because he is too sweet and lenient). There would be sentencing guidelines that would start with amputation of certain parts of the anatomy up to electrocution. As you can see I have not been able to give this much thought in such a short timeframe. I reserve the right to edit this later.

TP purchased residence in 2001 for $702K. At end of 2007 purchased another residence and converted previous residence to rental (FMV $852K). The previous residence was rented all of 2008, vacant most of 2009 but an effort was made to rent. In spring 2010 the TP sold the house at a significant discount for $590K. So according to IRS pub 523 the sale is to be reported on Form 4797. So as you can see this baby going to have a significant loss. Is it correct that the basis would be lower of Cost or FMV, less Accum Depn? Is this the correct procedure to handle this?

There should be a brokers statement on the sale that would include a commission. This would be cost and result in small loss on Sch D.

You mean we get no deduction for dealing hippy lettuce?? What's up with that Dude.

This situation came up yesterday by an IRS agent that was auditing two stockholders that had multiple (four) Sub S companies. The agent had the clients prepare an "ACTIVITY LOG" that the feds furnished that detailed the hours spent on each entity and by the type of services performed (Reg 1.469-5T(f)(4)). The agent determined that one of the companies was passive due to lack of participation. This enity had large taxable income. Today at my office I went into the individual shareholder return to the K-1(Form 1120S)Input Worksheet and checked X for passive activity. There was no difference in the tax computation. However, the client had no PAL's. I will play around with this using different scenarios to see what the results will be. BTW the agent hinted that the audit had to be completed by 3/18 since the govt may be shutdown! (what as shame).

Line 29. See attached Line 290001.pdf

Achtung Jainen, and Welcome back! After you have taken the liberty to insult the tax intelligence of members of this board, it appears that you would not allow almost any grey area deduction and even possible legitimate deductions. The members of this board feel that they represent the TP, but the advice you give generally seems to support the oppostion (Feds). So who's side are you on? Even though your knowlege of the overall tax system exceeds that of most of us combined, so rather than treat the members as a bunch of dumb ars's why don't you little up a litle bit and treat us as peers. I'm going to drink some vodka: OUT

What bank is it? Maybe I'll apply.

Thanks, it worked. That was the step I was missing.

I know that there are posts on this board in this regard but can't find them. I originally installed 2009 on my new computer as a standalone. I now want to access the data from a networked workstation. Any hints? TIA

Senate Votes Against Repeal of 1099 Reporting On November 29, the Senate voted against an amendment to S. 510, the FDA Food Safety Modernization Act. The amendment would have repealed the onerous Form 1099 reporting requirement that was enacted under the Patient Protection and Affordable Care Act. Unless a future amendment is passed, the reporting requirement will become effective for payments made after 2011.

Have you filed Form 6198 "At Risk Limitations" with the returns past and present?

If his trades are in a decent format enter the summary totals in ATX. Then open Form 8453 and attach the detail worksheet and mail to the prescribed address.

I finally got it to work. Thanks Margaret.

I have applied for a client and received a POA but when I attempt to get a transcript it informs me that I do not have the authority.

Last year I was able to perform this task and get a transcript of clients data on-line. This year I am unable to do this. Did the feds change this procedure or did I just lose it? TIA

I read on another blog that he passed away last winter. This was posted by his wife. Anyone else hear this?

Fear Not; Help is on the way. Hope this makes your weekend. http://online.wsj.com/article/SB10001424052748703578104575398003212963276.html?mod=WSJ_hps_MIDDLEForthNews

Maybe Tim Geithner prepared his return.

http://www.cato-at-liberty.org/2010/04/26/costly-irs-mandate-slipped-into-health-bill/

Anyone on the board certified? Is it worth the effort and $? TIA

According to IRS instructions on website "15th day of fourth month". Us folks down here in KY can even figure that one out! (Actually I now live in Cinti, OH).