Catherine

Thank you! I've been fretting that while this _should_ go on the D, that with a 1099-DIV we'd get fussed at for not reporting the Box 8 amount on a dividend schedule. I'll proceed as you suggest.

Rifle season starts in April -- first match is Saturday the 25th. I'll see if I can dig up a picture of me on the line from last year. Got it -- I'm the one with the green jacket sort of in the right/middle. Don't think anyone would be interested in a picture of dirt from my garden, though! Catherine

Well, that's the thing. Liquidation proceeds are the same as the business sale proceeds. But the _basis_ for that liquidation is greater than the proceeds, so there is a net long-term capital loss. What I don't know is how to show the capital loss without then getting a letter saying "what about those liquidation distributions from the 1099-DIV?". Catherine

I had a momentary flash of brilliance and checked the "Where's My Refund" site for info. My folks' refund got direct deposited last Friday, so they can send payment in full per the letter. Nice to know I'm not the only one whose clients had letters with response dates of 4/8. Catherine

Yay taxbilly!! Catherine

Have a client who got a CP2000 notice for 2007. There was indeed income missed and the notice, as far as we can figure, is correct. So the notice has an amount of extra tax plus some interest. Before I have my folks send money in, how likely is the IRS to take this year's refund and apply it to the CP2000 notice balance? We're trying to get through this with as little financial disruption to these folks as possible. If they pay the whole amount and then their refund gets applied as well, then they have to wait ?? much longer to get money back, and what they get won't be direct deposit, either. OTOH, if the refund won't be touched, they should pay the total and not get any more interest hit. Any guidance would be appreciated. I tried calling and spoke with someone who was talking 120 mph in a nasty tone of voice -- and in the end wouldn't/couldn't tell me what I needed to know even though I have the "permission to talk with preparer" box checked on both returns (the '07 with the notice and the already-e-filed '08). Thanks. Catherine

Client received cash liquidation distribution from sale of midwest family farm (structured as S-corp). The letter accompanying all the documents clearly shows the cash amount distributed and the cost basis to each shareholder of their shares sold, and says that all this goes on the Schedule D -- which I agree with, and which makes sense. However, the distribution is reported on a 1099-DIV, Box 8, cash liquidation distributions. How do I tie this 1099-DIV in with Schedule D so that the cash liquidation amount doesn't get reported twice? In case this helps, there is also a K-1 Line 9 amount for net section 1231 gain. Thanks. I should be able to figure this out, but I'm fighting a headache today and anything that isn't automatic just isn't working. Catherine

Glad to help.

From the TaxBook: NY filing requirements: NY-source income and New York AGI (federal amount column from form IT-203) exceeds $3K if single/dependent $7.5K if single/NOT dependent $10/5K if HOH Does this help? Catherine

THANK YOU

Too close AND not close enough.... :blink:

Well, that was my first thought. However, it is NOT the IRA amount, but differs by $1246 (a pretty random amount!). And the TaxBook specifically said modified AGI for this purpose (passive loss) is AGI figured without deductible contributions to IRA's or the one-half of SE tax. (TaxBook page 7-12) So I think I'm still confused. Catherine

A much better way to do it would be to fund the 2008 IRA separately, and use the 2008 refund to fund the 2009 IRA contribution directly. Then all the 4/15 deadline hoo-ha goes away. And if you can't manage to get ahead that once, "skip" a year's contribution. If the money goes in on the same day, does it ultimately matter what year you _called_ it? It may mean no tax deduction that one year, and that will make a difference to some folks. But just once! Catherine

I have a Form 8582 Line 7 worksheet that is putting a number on line 27 for self-employed SEP/SIMPLE deductions. But this client has chosen to put $5,000 into a deductible IRA (not an adjustment for this worksheet), and NOT into a SEP or similar. If I go to they Form 1040 "figure your SEP deduction" worksheet, it is BLANK. But the worksheet hop-to takes me there like it expects something. I've tried choosing different SE retirement programs, and the number on the 8582 worksheet changes. But if I make the SEP worksheet blank, it doesn't delete the entry on the 8582 worksheet. I can't get rid of that entry without an over-ride. And then I also have to over-ride the "total adjustments" line 30 on the worksheet, too. Am I missing something like a checkbox here, or is this an actual program bug? TIA, Catherine

We're having the same storm but in a cold, windy rain. At least we don't have to shovel rain. It's barely 40F and feels way less than that between the wind and the wet. I was out talking to someone about doing some spring cleanup here (lots of branches down this winter and I have neither the time, tools, or strength to do it all myself). Despite a water-resistant coat, heavy boots, etc., I got thoroughly wet and my hands were icy. Hang in there, guys, spring will come. I saw crocuses while I was outside. Catherine

Check number of boxes entered. Enter number of checked boxes. Enter number of checkered boxes. Do nothing here. From the Jeff MacNelly cartoon I posted here a while ago....

Nothing reportable with facts as stated.

Section 529 plans to save for college expenses, set up by the individual states. No deduction when the contribution is made. No tax due on growth when withdrawn for education purposes as delineated. Annual contribution limited to the amount of the annual gift exclusion with a provision to "front-load" up to five years' contribution provided no additional gifts from same donors made for five years. Contributions can be made by parents, grandparents, aunts, uncles, cousins, godparents, family friends -- anyone willing to put money to the kids' college. Some _states_ have tax benefits for contributions to their own state plans. Some of those plans have expenses that kill any tax benefit, some don't. Catherine

My clients receive them when I print them out and give the coupons to them!

Unless he does this regularly, I'd put it on Line 21. My one poll worker gets a W-2 from her town. It's a once or twice a year, couple of hours gig. That hardly counts as self-employment, IMHO. Catherine

Thanks, Paul. I didn't know that would work! Next time I have 500+ transactions, I'll keep it in mind. Catherine

Guilty as charged, and I did it by posting a reply to the note immediately above mine! Catherine

New clients; moved here from Canada, they are resident aliens here on visas. Bought a house here and are deducting mortgage interest & RE tax etc on Sch. A. But they also own a home in Canada, empty and on the market, that they are paying mortgage interest and RE taxes on. Where should these get reported? There is no income, so I can't see how to work Form 1116, the property isn't held for investment, does it all just go on Schedule A? TIA, Catherine

I'll keep that in mind for the future, and thanks. Ended up making a copy of the return FIRST, just in case. Unprotected the D, pasted in the data, and all was fine. But even doing the columns would have been work; this ended up being 507 transactions (yikes!), and the transaction type and filer/spouse/joint columns still would have to have been done by hand, I think. And you can't toggle down with the down button with those two fields; you have to click in the new one. Catherine

A guaranteed way to make a client call! I've even used it successfully a couple of times when I've been waiting for a call before I can go out to do some much-needed errand. However, that trick does not work if you bring the cordless phone with you -- you have to be required to go tearing back up the stairs to grab it, breathless, before the answering machine does. Sympathetic magic is rather inconvenient at times! And the fairs around here don't have cinnamon rolls. But they do have fried dough, fresh and hot and covered in powdered sugar. Yum! Catherine I made it to ATXaholics!!! Is this my 12-step program?