joanmcq

If it was his 'second home' then no need to amend to remove interest. But he sure doesn't get a loss on the sale of a 'second home'.

The CP2501 doesn't require an amended return; they would like to see a sch D, and if you compute a small refund, then put that in your letter. Get a POA and write a response along the lines of 'we admit the stocks omitted from the return. They were sold at a $____loss. this change results in a refund of $________. Here's a worksheet showing the cost basis info. and attach a D. You probably won't have enough of a difference to require a state amendment.

My most complex problems come from state K-1s, and state different passive loss carryovers. ATX is terrible for these; all differences must be calculated manually and the passive loss worksheet is not intuitive. Profx did all of the state differences seamlessly; with K-1s it had/has a 'state if different' column and the state k-1s are entered side-by-side with the federal entry. I know not all states have different K-1s, but CA does, and so do my NY clients. I stopped taking bonus depreciation on my own return just because the state/fed differences on my rentals were such a pain on the 8582 worksheet.

I've seen other pension plans split...CSA-1099-Rs for one, state of CA pensions. If done right, spouse gets his or her own 1099. If this was an IRA, it could have been split, and part go to an IRA in the wife's name. What kind of account was it? Although at this point, he is pretty much hosed. Another, why don't they call us first moment!

Client had 100% biz use vehicle (carpet cleaning truck) he owned and used as an employee in carpet biz (not his own biz). Got canned and started own biz with same truck. Had been using actual expenses and depreciating truck. Truck cost $6000 when he bought it from the employer (employer required employees to purchase truck) and had 4109 of acc. depreciation when converted to the Sch C biz. Do I use $1891 as the basis of the truck for the biz? Is there any gain loss? do I just dispose of vehicle in ATX and have it not calc gain/loss, and then just move it over to the Sch C asset entry at $1891 basis? Or should I just take a shower and go back to bed? oK, after this addendum, shower and bed. I give up. I've had this as a qualified nonpersonal use vehicle, and used actual expenses on the vehicle worksheet in asset entry. Now the vehicle worksheet says to enter the expenses on the appropriate business form. Do not use vehicle worksheet. However, on the 2106, there doesn't seem to be a place to enter actual expenses, only mileage. Putting the vehicle expenses on the Sch C vehicle entry allows the depreciation to calc along with the standard mileage. Any answers?

If I was a legislator, I'd get paid more, have better health insurance, and more vacation. If I was the god of California, you bet the budget would be balanced!

Well, my sig other is into computer graphics, synthesizers, computer animation. So whenever he starts with his gibberish, I give him some of mine. Neither understands the other one bit. Sometimes, if I need to really get something off my chest, I will preface with 'I know you won't understand a word of this but just listen and nod occasionally. Then I'll let you tell me something about synthesizers.'.

Its the fault of everyone that thinks 'oooh I get a rebate! where do I sign to get my free money?' and those that started that line of thinking in the first place. We have our own debt problems in CA, and the 'no new taxes' and 'no tax increases' thing is really starting to wear thin, especially when the VLF decrease that was supposed to increase again when times got bad and suddenly became a 'tax increase' that couldn't be increased is one of the causes of our debt problems.... And you're right, its probably jainen's fault.

The stock has to be declared 'qualified CA stock option', also AGI has to be I believe $40,000 or less, plus a whole lot of other limitations. Plus the stock had to be exercised before 2002, so you're not going to see this on an option exercised now. I had an FTB notice from someone who used TurboTax and put their NQSO gain as an adjustment on the Sch CA and would not admit that they, and not the program, had made the error. ATX automatically opens the 3885A/D whenever there is a Sch D or depreciation. I've never had a use for it for it with stock transactions (only depreciation, thank you so much for the new bonus depreciation, NOT!), but maybe if I have anyone from CA with a carryover, I'll need it. I just delete it if not needed because you'll get an efile error message if its not needed.

So do they quote you as 'janitor bob' and put your avatar as your picture?

Yes, they are both on title, but (at least for 2007) only one is on the mortgage (the student). The details are, the student partner had $637 of wages and approx $8800 of scholarship/grant income, & $24000 of tuition, so none of the scholarship is included as taxable income, towards the dependency equation, although it does count for support. I believe she's taken out loans also. That's it. The working partner had $72000 of taxable wages, and paid $8300 just in medical benefits for her partner over and above the wages. The W-2 is odd on this, because the federal wages s/b higher than state on this point, but arent' so I'm not sure if they included the medical benefits as taxable wages, like they should have (taxable for fed but not for state..) or if they didn't subtract them for state wages. The working partner paid all of the living expenses for the couple. I've got RDPs flooding in right now, and the cases just get more and more interesting (and complex).

I have new clients (RDPs) where one is going to school and has minimal income ($624 and a scholarship that doesn't cover tuition), and the other is supporting her. The student filed the FAFSA as an independent student, and is well over the age of 24; so that should be the only deciding factor as to independence. Federal law, of course, considers her single. I can't see where I could not take the student as a dependent of the working partner, FAFSA or no FAFSA, because the questions don't seem to cover the situation of someone being the adult dependent of a non-related, non married partner. Therefore, it seems I would have no problems taking the student as the working partner's dependent. Another wrinkle in the situation is that the two own a house together, but for 2007, the mortgage was only in the student's name, but the working partner paid it. If the one is the dependent of the other, can I take the mortgage interest on the working partner's return? They've refinanced for 2008, but for 2007 there is $11,000 of mortgage interest at stake.

Anyone got any idea what an amount in box 14 of a US Federal Courts W-2 with the above notation could be? Has $3414 FSAHBDV. I haven't a clue.

I've used profx too, and checked it out when I went out on my own because that was all I'd ever used....but it is EXPENSIVE!!! (and owned by CCH by the way). but even back in 1999 it did everything. K-1 entry for 'state-if-different' is still something I miss whenever I have to do a K-1 adjustment in ATX.

Cientax, you can do it that way because TX is a community property state. The new regs allow a H/W biz to file with two sch Cs in a non community property state, and split the biz & SE by the proportion that each participates rather than filing a 1065.. However, this case doesn't seem to fit the new regs, because the original poster stated the wife did NOT participate in the business, and to do a split Sch C, both have to materially participate. If the biz is owned & operated by only one spouse, it is one Sch C. The preparer may be filing MFS because in Ohio, it appears that MFS is often the more beneficial filing status. (Ohio preparers complain here all the time).

I like the forms based approach; I used Lacerte when I did contract work for another CPA a couple of years ago, and kept clicking on the forms trying to bunnyhop; all I got were some stupid check marks! The first software I used was Profx at Grant Thornton, which is also interview based but did EVERYTHING; it took some getting used to what ATX did not do, especially with the state forms. However, the states have been getting better every year, and when I asked that CA depreciation flow to the forms, the next year that feature was there. I like the fact that MAX has every form, even though I only do 1040s if I can help it. And my efiling has been smooth as silk this year!

At the top of the 1099-R input form, there is a box to check for a 'special' 1099-R, like CSA or RRB.

I've had no problems...

He should have gotten a statement from his employer with all of the relevant info on it, including what the option price if any, was (it was probably a restricted stock grant with price of 0 from what you are telling us). I have a client that had stock last year from Barnes & Noble, and they do get the info.

Nope, 401(k) does not qualify for first time homebuyers exemption, only IRAs. I just tried it on ATX. sure does let it go through, without even an error message. I wonder if TurboTax will let you do it? Somehow I don't think it will...

Also, if i'm not in the mood for it, I skip a post from Elrood that has 'dinner' or some such as the subject matter. Or Janitor Bob and 'frikkin banana'. If I'm in the mood I'll read it. Or even post back. Or post my love of brown sugar cinnamon pop tarts during tax season. If ya don't like it, quitcherbitchen!

Mine is on 'largest' (my cat thoughtfully did that for me one day, speaking of possible writeoffs, can my cat be my computer expert?) but on this website, the fonts are still small.

I've efiled MFS ever since it became available (husband left that year!). However, I haven't had to do the income split because these were spouses that lived apart all year. Efiling is always going to be a problem if you use overrides. I've seen it mentioned that in order to not have problems with the IRS match, to enter each spouse's info and then use either the wages worksheet or line 36 to make the adjustment. the MFS worksheet should include how much of each line belonged to each spouse.

I agree with jainen on both the phone and the interest. The first phone line into the house is not deductible, on either the 8829 or anywhere else. If your only phone is a cell, too bad, its considered the first phone line, and not deductible. Period. As to the interest, if a second was taken solely for the college costs, the tracing rules might apply. However, it seems your taxpayers have probably topped out the student loan interest deduction income limits. But they didn't. They just took out a big bunch of cash over and above aquisition debt, so the $100,000 limit on home equity would apply. And it would apply to the 8829 as well.

I just got it trying to report my worksheet error. and I'll probably forget about it tomorrow...