joanmcq

Just proforma'd a 2005 return to amend tonight, and my software went to PRS for the VA return. I counted and had done 5 different states already in 2005. But I thought that with the Office package you got all 50 states. Can't find any of the old catalogues, so is my memory correct or did it only come with 5 states? Since I still had a few returns left on PRS it isn't such a big deal, but still....

I have problems with the household employee status too. If the kid only worked for one household, say as a nanny, yes, but mowing lawns for the neighborhood is SE IMHO.

Its from the pubs.

Some of the appeals officers here in CA are really great to work with. My audit from hell swept through appeals with no problem "I see no problems with your workpapers, you tie all the income to the bank statements perfectly. (insinuating the audit agent's workpapers did not tie which they didn't) No change".

First, a few points. Zeke, 'constructive reciept' in tax terms has a specific meaning codified in law. The taxpayer has constructive receipt of the funds when the check is mailed to him. this usually comes up when a check is mailed at the end of the year, but the TP doesn't get it until the following year and tries to claim the income in the following year. By the rules of constructive receipt, the income is taxable in the year the check is mailed. Pacun's client had constructive receipt of the funds. Second, the ATM excuse by the bank seems weak. A check that large could not have cleared quickly or been withdrawn until the check cleared. Third, if this is coming up in audit, I'm assuming the taxpayer got a CP2000 or 2501 because he didn't put the income on the return. Therefore this happened in 2005. One thing we are asking is what happened since then? Who did the crime? As I pointed out earlier, mail theft is a federal offense, if the mail was snatched from a mailbox as you infer. However, if he was gone for a few months, I'm sure he had someone taking the mail out, or you run into overflow issues. So was it stolen from his house, or the mailbox? What was the police response? Thats just some of the questions about the crime itself. Lastly, why would this be a passive NOL?

I think he was being a bit sarcastic about the wife making a fortune in the real estate market, unlike your Turkish friend!

What has he done to recover the money? Has he filed a police report, contacted the check issuer that the check was stolen, contacted the bank that cashed the check (should have had to show ID, etc to cash it)? If someone stole $200,000 I'd raise holy hell with everyone involved. If the check was stolen from the mail, it's mail fraud and a federal offense, as well as a felony.

It looks to me as though the code section was established to allow retirement plans to hold company stock or to establish a profit sharing plan. This is through a self-directed IRA. Clients of mine came in asking about doing this to help finance a B & B they want to start, and I was extremely skeptical, especially of the no self dealing requirement of a self directed IRA. They had Guidant Financial pitching to them.

Idiot & Jainen, thank you for your input. I have the computer and all peripherals plugged into the only outlet that is on its own circuit breaker; the old computer was plugged for quite a while into a plug connected to a circuit that had the kitchen, my bedroom and part of the bathroom and a hall plug on it. It blew regularly, when I would forget I had the space heater on and would use the microwave, or vacuumed at the same time I was washing clothes.....my wiring is REALLY screwy. The plug I currently have was definitley added later; big metal box and external wiring. And is a three prong. I will check to see if its grounded. Thank you again!

My last computer fried and the diagnosis was the wiring in my house causing power fluctuations.....and I had a very good surge protector. The advice was to get a laptop which they said dealt with the power problems better. My APC has the red light (for unstable power) lit at all times....so the solution would be either rewire the whole house, or move, or get laptop w/battery backups and surge protectors!

TurboTax automatically prepared a 4137 if the taxpayer checked a box saying, 'this should really have been wages'. I've seen a lot of 4137s filed, and just won two cases in audit, filing the required SS-8, ect. This merely provides a form to do what the 4137 was being used for but wasn't designed for. As well as definitely putting a heads up to anyone that was using the 4137 lightly because they didn't want to pay the SE tax.

Does Canada tax capital gains dividends? My boss is trying to reconcile a really messed up US return for a US citizen working in Canada, and the Canadian return appears to be missing the cap gains dividends....as well as the US return missing ALL the canadian wages. Even though he took the FIE. Like I said its pretty messed up, an the reconcilliation is just not working.

Anyone know if they qualify for CA CPA CPE? Now I'm gonna say that real fast three times....

I applaud that last response. Not to mention another forum where there was discussion of a large refund check being sent to somewhere in Canada by mistake. IRS thought it was an input error. No problem with direct deposit.

Nah, I'm not that far from you...65th St & 21st Ave. I'm not sure how much we got, but everything was pretty wet when I woke up. My it has been lovely weather for July for the last few days!

I read the 6 inches figure in the last week or so in one of these publications: Newsweek, the Sacramento Bee, the Nature Conservancy magazine or the Sierra Club magazine. that's what I've read in the last week that might have climate info in it. Granted some of you may not respect the figures if quoted in the Sierra Club magazine. Facts are, Antartica is melting. The northwest passage is open for the first time in recorded history. New islands are being found in the arctic, because the ice is melting. Glacier National Park is expected to be glacier-free within 10 years. Greenland is melting. the Andes are melting. The very small nation of Tuvalu is very worried, because they may not exist within 20 years. During the last warm period the coastlines were VERY different than they are now.....Alaska and Russia were connected, y'know. From the cycle, eventually the increased open water does increase precipitation in the polar areas, and the ice begins to grow again. Takes about 10,000 years as SCL pointed out...

Same As Last Year

Ok, redux can appreciate this. It rained last night and this morning. A lot. in Sacramento. In July. So don't tell me the climate isn't gettting screwy. And the sea level has gone up 6 inches in the last century.

I wonder if its ethical for me to still do my ex's return....of course he keeps trying to give me his charitable contributions as 'SALY' and I won't accept it...

Efiling W-2s and 1099s is the way to go. I won't do anything else once I tried it.

Finding out more; the strategy is that the life insurance grows tax free, and then you take loans against the life insurance. When you die, the insurance pays off the loan. Sec 264(a)(3) states you cannot deduct "any amount paid or accrued on indebtedness incurred or continued to purchase or carry a life insurance, endowment, or annuity contract (other than a single premium contract or a contract treated as a single premium contract) pursuant to a plan of purchase which contemplates the systematic direct or indirect borrowing of part or all of the increases in the cash value of such contract (either from the insurer or otherwise)." So this strategy appears to run afoul of this code section. or this section appears to contradict the rules regarding the $100,000 of equity deduction. In any case, it appears to make no sense.

You adjust the RMD to the life expectancy of the beneficiary using the single-life table.

I have recently become aware that certain investment 'advisors' are promoting a scheme by which one takes up to $100,000 in home equity to purchase cash value life insurance. Supposedly, you get a tax deduction while having the assets grow tax free, thereby having the best of both worlds, blah, blah, blah. As you can see, I don't think much of this strategy. However, the question has been posed, is this actually possible, or does it run afoul of the Sec 264 laws against taking deductions for purchasing life insurance premiums? The only references I can find are pre 1986, and deal more with whether there was economic substance to the transaction apart from the tax benefit.

I am composing a letter, but please let me straighten this out. I am an employee for a company that is not providing audit protection for this person. I was assigned the case to look over, and let him know why they may be auditing him. Actually its not him. It is his wife's 5 % ownership s-corp. He is not a friend. I provided assistance as an employee of a company.

All of it unless he had basis in the IRA. There is no DOD step up in basis on an inherited IRA (I wish! I've got one myself)