joanmcq

I know the payor is American Funds. Do you know any way to get an EIN?

I haven't gotten any renewal email or mail, so I don't know what they are charging. I'm so nuts right now I can't even think about changing software. But I like the program and am not changing yet.

Want to pay the tax now. 1099-R asks for zip code and EIN of payer which I don't have. filling out substitute doesn't seem to populate 1040. Trying to get efile to create. Anyone know what to do?

Choice number one above is the correct one. That's all they want to see. You can also check the transcript on eservices to see what the IRS did get against what you have, as well as all of the suggestions above. Let us know what happened.

Jeesh old jack, I know I know. And I gave them the rules for donations...I just wish they had stuck a bunch of the stuff in the garage until January. If they had called me, that's what I'd have said. I still don't know how to break up a Sch A donation that has two names on it and the items are owned 20/80 though. do I split the total value of each donation or item 20/80, or somehow distribute the items approx 20% to partner B and 80% to partner A? D'ya see why I wish it was a partnership distribution? Not to mention I still am not quite sure as to figure out what is a similar item and what is not. And the kicker is that the 80% partner really will get very little tax benefit because his income is so low...without itemizing his tax is wiped out by the child tax credit and he gets EIC and ACTC besides. The 20% partner has a huge COD problem (see other post below), as well as most of the income.

If you are doing 3000 returns a year (unless you are a mass producer type of preparer), wouldn't it be better to upgrade to profx or one of the other software packages that is geared to larger firms? Its perfect for my solo practice, and since I am picking up more and more out of state returns, it is great to have all states and all forms supported, especially the 982 this year!

Partnership had a stall in antique mall to sell antiques. Business was not that great and when main partner got sick, they went out of business, and donated the inventory to goodwill. (I really, really want to shop at this Goodwill; the one partner claims it is the Saks of Goodwills, very rich neighborhood). So I have 4 reciepts from goodwill for the same date with thousands of dollars of antiques (about $26000 worth), as well as some personal items. Truth of matter is , they said they closed p'ship and then donated the items, although it may just mean they closed the store, and then donated. Putting this stuff on the 1040 will be a huge red flag, as well as there being a problem with a lack of appraisals, although is a 'morris chair' a similar item as an 'oil painting', or 'persian rug'. the reciepts are not grouped in any fashion, and one has 5 pages of items attached. The way I'd like to do it is to have it flow from the K-1; less messy and a lot less 8283s. What do you all say? and if I put it on the partnership, do I reduce the inventory by the amount donated as 'items withdrawn' in the COGS calculation?

Client had house he rented out mid last year. Tenants paid deposit, trashed the place and ran. Bank repo'd house in November, I think., and zillow shows house as being sold Dec 7th for $139000. Main mortgage was for $257952 when cancelled. Not sure of client's basis in house, but he bought it for $210000 and did a lot of improvements. Also had an equity line which issued COD on 12/10/07 for $109670. However, equity line is listed on 1099-C as VISA, not equity line, even though credit union sent out 1098s for the interest paid. Can I count debt & value of rental house when doing the insolvency equation? And if not, is there a possible loss on sale of rental property, if 'sold' to bank for $257952, if the basis was greater than that? Client went bk in Feb 2008, but since the credit union cancelled the 'visa' in december I can't use the bk. Clients owned another house they are upside down in, but not for the amount of the cancelled debt.

Its a pain that it opens automatically, even when not needed. Since its a form I charge for, I'm constantly checking and deleting it if necessary. But its better that it populates unnecessarily than how it was a few years ago when it had to be filled in manually, including for depreciation differences!

Any parts of the house used by the daughter (relative at below FMV) is personal use. So you can depreciate & take expenses based on the sq. ft of the bedrooms and any areas not used by the daughter (ie private bath), and probably take 75% of utilities. See the treatment of B&Bs.

Why would you need to file a state return with a 'stimulus return'? The stimulus return is one that only has to be filed to claim the stimulus. If there is no state filing requirement, don't file a state return. If there is a state filing requirement, there is probably a federal one too.

My eyes are crap. I do have my internet blown up to gigantor size.

The B & B rules are not like the daycare rules; actually they work pretty much like a home office or even more like renting a room. You can only take the rooms not used for personal, unless the personal area has living area, bedroom, bath and full kitchen, and the rental dining area, kitchen, etc are NEVER used for personal. The MSSP will give a lot of guidelines for what you cant do. My boss at work just did some very intensive research for a tax pro who was representing a client at audit on this issue. The client is going to get slammed; all of the remodel has to be capitalized and only the percentage that represents the rooms for rent can get deducted. We determined that if you are going to have a B&B, live in a cabin in the back yard.

I wasnt referring to her sex in the 750 hours. Its the amount of time you have to spend taking care of rentals. If she's rehabbing them, they are not available for rent (at least not usually...we did rebuild a foundation with a family in the house...), although those hours would probably count towards those spent in 'real property trades or businesses'. Another factor to consider is how many hours she spends in the taxidermy business. Another qualification is that the RE hours must be 750 as well as greater than 50% of all hours spent providing personal services.

Qualifying dispositions for an ISO are capital gains...but there are AMT issues. His AMT basis will be higher than the regular basis, and there shoudlbe an AMT adjustment. Means he held the stock for more than 2 years and none of it should be taxed as ordinary income. The disqualifying dispositions have an ordinary income component. What's wierd is that the qualified dispositions amount was apparently added to wages, and the disqualifying wasn't. Don't mix DISqualifying dispositins, with NONqualified stock options. Totally different animals.

I like the client copy watermark too. Helps me sort out the copies when I''m printing; which is mine, which is theirs. Only thing that ticks me off is that it prints 'client copy' on the frikking cover sheet so I have to make sure that prints from the preparer copy. At least it doesn't print on the letters like it did last year. I staple the client copies into one of the ATX colored folders, (hard to mail in that copy by mistake) and this year got a compliment from a new client that it was the nicest presentation he's seen.

Each rental unit would have to satisfy the material participation rules unless they elect to combine the activities, which could have unexpected consequences in the future, and she would have to spend at least 750 hours in RE trades or businesses at a minimum. I've owned 6 rental properties, and some had several units. Trust me, she doesn't spend 750 hours a year unless these were large apartment complexes or something. Why would they not qualify for the addtional child tax credit? And why do you feel sorry for someone who's tax liability is zero, and owns 6 rental properties?

have to do them on the Sch CA. I think there is a worksheet for them. I forget every year too. CA K-1 entry is the main thing I miss from Profx.

He did say the mother wasn't working & he provided more than half the support. So question is, is he providing over half the support of the household & is it his baby? did he & the mother live together the whole year? if he is supporting her 100%, maybe she is dependent too.

Jeez, and I'm working off a 15 inch laptop....

I think the phrase, estate or OTHER final reciepient means that it is taxed to the final recipient. If it is the estate, meaning the ESTATE cashed the bonds, then taxed to the estate. On a 1041, as income to the estate. But Sonny is the final recipient, cashed the bonds, and therefore pays the tax. at a lower rate, I might add.

Of course, then you get the nastygram from the IRS if you don't report all the interest. Per the Tax Book, you have to elect to report the accrued interest on the decedent's final 1040, or else it is taxed to the estate or other final recipient. So if whoever prepared the father's final return did not elect to report the accrued interest, then client has to. the only out is if the bonds were so old they had stopped accruing interest. At that point the father should have reported the interest regardless of whether he sold them. If this is not the case, sonny is outa luck and outa a lot of interest and penalties.

Good to know; one of my clients just took a job in NJ, so I may be dealing with NJ next year!

Dunno, is TN real estate as bad as some of the rest of the country? He could have a loss! So what was value at DOD? Has he been reporting the rental income?

Can an out of state preparer efile in MN and/or MD without any special registration as long as you are federally registered?