chadw

I am running TRX 2010 with Windows 7 Ultimate 64bit with no problems at all. I even have many previous years of ATX running with no issues either.

If Ryan is still monitoring this board, I have some questions. I just ordered a new HP ProBook laptop with Win 7 Pro 64 bit. Are there any known issues with TRX and Win 7. I did this without really investigating this. I see some folks are having issues with ATX and italics. The new machine has 350G HD, 4GB memory upgradable to 16GB. I thought this would be ample computer for quite a few years. I did get 7 years out of my dell but it is now displaying resource deifficulty when opening both 2009 & 2010 TRX. Any input is appreciated.

Small not for profit was started in 2010 and was incorporated as a non-profit. However, it was decided that it wasn't going to go after tax exempt status.

I assume it is an 1120 form and it has to then pay taxes on any "income" it had during the year. This was the first year and it had not given away all the cash it had been donated.

Is this correct?

Thanks

Chad

~Question removed~ on edit.

I configured gmail thru outlook without any problems.

Devm

I also use gmail and outlook with no issues at all.

I have a client that moved back to France(country of citizenship) in early June. She is dual status. Is there a way to get the "Dual-Status Return" statement on the top of the 1040NR.

Chad

HOW can 25% be usury if credit cards charge 29.99? i though 30% was usury. were you being sarcastic or is 25% the real number??

I believe it depends on if the loaner is a qualified financial instituion. It also varies from state to state as well for the interest rates.

I had a student that lost her job and collected unemployment that is now being taxed at her parents rate. Her earned income is not more than 1/2 of her support.

I just checked and I have the same thing. The returns I expected to get deposited today did except for the 1 that had an energy credit.

Client thought he was rolling over a 401k to an IRA. brokerage firm told him it was in an IRA and client thought everything is just fine. Low and behold, in March he recieved a 1099-R with the whole thing taxable.

We gave the brokerage firm a call and they fessed up and apologized for the mistake.

We have since asked for an extension of the 60 day rollover from the IRS. The firm provided a letter stating it was their error and that they would immediately put the funds in a qualified IRA if granted the extension.

In the mean time, we haven't received feedback yet from the IRS and with the 15th tomorrow, there is a large potential that this client will owe a ton of money as this is a large sum of money and he is also subject to the 10% penalty.

We are going to file an extension, but do we show the large amount due or the refund (if we are granted an extension to roll over) on the 4868.

Client doesn't have the money to pay the tax unless he takes the money from the account. He doesn't want to do that unless he isn't granted the extension.

Do we show the lower tax amount on the extension or the larger amount to be safe?

Thank you very much. 35 today.

I hope to have many many more. myself, the wife, and 4 kids (7, 4, 2, 7mos) had a great time at the indoor water park today.

Fun time.

Thanks again

Chad

While working on 2 houses at the same time certainly might imply that this was a business operation, it might still be considered improving investment assets and recognized as business assets for form 4797. Its a gray area. You really need to talk to the owners as to their intent of operation. Are they investing or rehabbing? Would they rehab anyones property?

you're exactly right oldjack. I haven't sat down with the clients yet. So their intent of this operation isn't totally clear yet.

thanks for the replys and advice

Good. Then capital gain treatment applies.

taxbilly

exactly. unless this becomes more of a business and then forced to show as inventory vs. an asset.

Yes.

Are they a partnership or a corporation?

taxbilly

they formed an llc to be taxed as a partnership in 2008.

a group of 3 guys set up an llc and bought 2 houses and fixed them up. The houses are currently up for sale on the market. Would the costs associated in "fixing up" the houses be added to the basis' of the houses and held as an asset?

chad

I've had ATX do the same thing in the past. No, you cannot take the "credit" for tax paid to another state unless you are a full year michigan resident and are not subtracting the income on the NR.

As usual with the state return, many times you have to use your knowledge of the tax law and make the necessary adjusments. Just zero out the tax paid to the other state on the worksheet/or line where ATX is putting it.

The most annoying thing I think ATX does with the Michigan reuturn is to add the MI 1040-D to the return everytime you have any capital gains on the federal. That form is only used when you have a cap gain/loss from property owned before 10/1/1967.... So we almost never need that form. I am always deleting that one.

Taxtrio

Thank you. I thought I was losing my mind. Thanks for a little reassurance

Client for several years. This year his business has a $40K net operating loss. I have verified that the NOL is legitimate. (he had a really bad year)

My question is procedural. Should I include an explanation with the return when I file it, or will the IRS even pay attention to the note. This business has consistently shown profit (some years more than others) for the last 6 years.

Maybe I am being paranoid, but I would rather send an explanation now, than sit across from an auditor and explain it.

I don't think an explanation is needed. Given the current economic times a loss is not unusual IMO.

How did you enter the information from the w-2? (the one from NY) make sure you put NY in for the state. I believe it will automatically enter MI if it's a MI address on the return. Was there some type of local tax for NY? It might be caculating this as a MI "city tax" and giving the credit on the sch. 2 if MI is entered on the w-2 instead of NY.

(hope this make sense)

The state is NY on the entered W-2. There is no local tax withheld either. The credit is on line 5 of schedule 2 (income tax paid to another state). The credit is apportioned down by the percentage of NY income to MI income. But even then the NY income is being divided by the lower Michigan income because of the subtraction from schedule 1.

I may just have to override the system.

thanks

chad

When completing the NR, did you complete the dates the husband was a part year resident? Also, make sure the income is

allocated there between Michigan income and other states income.

Yes, for the filer I entered 6/1/08 to 12/31/08. I left the spouse empty as she was a full year resident. For the 3 column portion of the return. column b michigan only has the michigan earned income and column c has only the other state (NY) income.

I think everything is entered correctly, but I don't get why there is a credit and a subtraction. I believe there should be a subtraction from schedule 1 but not a credit from schedule 2. I would love to be wrong on this though.

Chad

I have a client that moved to michigan in June from NY. After filling out the W-2 information and going to the Michigan return it is doing something I don't think is correct. I am doing a NR form as he is now a part-year resident. He also got married and his wife is a full year resident of Michigan if that makes a difference. He didn't earn income from NY while he was in Michigan also.

It is subtracting the $ earned in NY from schedule 1, but it is also calculating a credit on schedule 2. I thought that if you take the subtraction on schedule 1 you don't get the credit on schedule 2. Or am I completely wrong here.

If I am not wrong, how do you stop ATX from taking both the credit and the subtraction.

I guess maybe I am just confused.

Thanks

Chad

Most clients have not been in military during any part of 2008.

If I answer question correctly, i.e., "No" - no rebate is calculated.

If I answer question INcorrectly, i.e., "Yes" - rebate calculates.

If I IGNORE the question, i.e., don't answer it at all, the rebate calculates.

I don't understand:

1. Why the worksheet is responding this way or,

2. What military involvement has to do with the Recover Rebate, other than requirement for SS #s.

Am I missing something?

Thanks,

Chowdahead is exactly right. You shouldn't check any of the boxes in that question. One of the lines before tells you to skip those questions depending.

He is also right on that whoever designed this worksheet is an idiot.

chad

I don't understand the re-booting problem.

I agree, I run Vista business and I pretty much never have to reboot except for when the computer updates. I am also not saying that I don't get frustrated with Vista on other issues, but rebooting is not something I have trouble with.

A copy of ATX just arrived via FedEx. However, I did not use ATX last tax season. So, why are TaxWise users complaining that they haven't received their copies when ATX has time to deliver to us non-users?! Why aren't they putting paying customers first?

I got my software last week. I also got it again yesterday. I went to my CC company to make sure they didn't charge me twice. Plus the thing is, I didn't even use the disk. I downloaded it off the website.

If an extension was filed with both the husband and wife on the extension, can they still file MFS vs MFJ.

I know you can't amend to MFS once you file a return MFJ, but I wasn't sure if the extension locks you into MFJ.

Thanks

Don't know if you can still get a pc with XP installed. I have a laptop with Vista and a desktop with XP. They share a wireless internet connection via a router and I can share files between the two. I have not had any problems. The set up was a little bit of a pain since the OS were different, but once set up there have been no issues.

I also have a laptop with Vista and a laptop with XP. They also share the same things as the previous poster and they also connect to a wireless print server fine as well.

I think with Dell you can still get some business systems with XP Pro on them. You have to "buy" a higher end version of Vista and choose the downgrade to XP.

Perfect.

Thank you