JRS

I went last year, then played with the software. Had a hard time, since I am used to the forms input. I kept bouncing back and forth from their worksheets to the forms to check how everything was flowing. My main problem was capital gains input. It was bulky and I did not feel comfortable with it. All of my clients are investors and I just am more comfortable looking at the results with a click. Their personnel were great and very helpful. I had a few more questions that they answered by email and in person at the CSEA seminar in Reno. I was close to switching, but kept having problems with options (puts and calls). They connected me with their CPA back East, but he was totally lost and could not answer me. So, I went back to ATX. Interesting side note, I went to the ATX booth to renew and was told, "we can't do that here." The 4 hours CPE was nice.

Can't help you. But, you might post the question to the following website: http://www.fairmark.com/forum/index.php There are some pretty knowledgeable people on the board and always seem will to help.

For all of our "tough" questions. http://www.accountantsworld.com/desktopdef...Id=i0331802.7nw

Also make sure the client has a high deductible health plan and no other health insurance - there are a few exceptions to this part.

>>On #1099-SA: I should input as gross dist. $5800 right? How about the code # on box 3, #1?<< Unless I am reading you wrong, you would not fill out 1099-SA. This form is for a distribution FROM the HSA. You would only use part I for a contribution. Work through the worksheet carefully and it should come out at $5800 on line 25. AND check the box or boxes that apply.

But, the IRS doesn't give you free samples.

I have a fairly small practice, so I am not efiling constantly as are most of you. But, 90% of my refunds have hit right on schedule. The ones that missed had RRC's. I am wondering if this has anything to do with your location. All mine go through Fresno and as I said, right on time?! I always give a "disclaimer" about when to expect the money, so far, I look like a hero.

I didn't run the figures, but the capital gains rate for 2008 is zero for tax brackets 15% and below. This is probably the situation.

I have two clients with settlement checks and below is how I handled it. On Schedule D, as a LT capital gain. Use the following entries: Acquisition date - original stock purchase date Sale date - date on settlement check Sale amount - amount on settlement check Cost basis - zero Gain or (Loss) - gain, equal to amount of settlement check Since I did this, I have found other forums that agreed with me, BUT it doesn't make it right. The main forum I found it on is: http://www.fairmark.com/forum/index.php You should be able to "search" ENRON settlement and get more information.

I have dealt with a few clients who have changed brokers, including my wife (who is a heavy trader) and I agree with fredazcpa. I have never seen the situation you are describing. I have seen many ACAT's, (with the $100 fee), but nothing like you are describing. I try to make my clients research their investments and really question their brokers or advisors. Case in point where research, questions or a phone would have saved some bucks. Client invested in gold bought it low, sold it high and told me his captial gains tax was zero and why was I making him pay 28% in taxes on a captial gain. Another great thing the markets are selling are the ETFs that are actually partnerships. Phone call, "What's a K-1?" But all is not lost. Supposedly by 2011, the following new rules will take affect: The new IRS rules require 1099-Bs to also include adjusted cost basis and short-term versus long-term holding periods. But the IRS is still not requiring brokers to provide a complete trade tax accounting, including options, wash sales and more. Although this is a big step forward, it’s still not the complete tax information a trader needs to simply attach to their tax returns. Plus, the new rules are not mandatory until 2011, and although some brokers will early adopt them, others will not. Sorry I am ranting, but it irkes me that people will not learn what they are doing when investing and don't have a clue what they have done and expect us to make it right and blow up when we have to charge them for it.

I hate to be a pain, but you should read the instructions below and make sure you come at least close. Few brokerage statements follow the format that the IRS wants. I was "politely" busted a few years ago, because the statement "did not meet our standards." They let me resubmit with just a verbal slap. Instructions for Schedule D: Lines 1 and 8 Enter all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824). But do not report the sale or exchange of your main home unless required (see page D-2). Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. You can use stock ticker symbols or abbreviations to describe the property as long as they are based on the descriptions of the property as shown on Form 1099-B or 1099-S (or substitute statement). You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not enter “available upon request” and summary totals in lieu of reporting the details of each transaction on Schedules D and D-1 or attached statements.

There is a check box on the K-1 (1065) input sheet for "final distribution." Line 20 v, does refers to UBTI and in this case, would be ignored. "UBTI, Unrelated Business Taxable Income, is a concern to tax exempt investors in a hedge fund (or a limited partner whose investment is in a IRA) because the receipt of UBTI requires the tax exempt entity to file a tax return that it would not otherwise have to file and pay taxes on income that would otherwise be exempt, at the corporate rate. A broker reports UBTI if the amount is more than $1,000. A broker will know this, in most cases, and will repot it on a 990-T and will charge for it.

Got some around 12 pm (PDT). A little late responding, hadn't been on the board until now.

"It must be an epidemic." It almost seems like a return of the "churning" days. Brokers are hurting and not making any commissions. I have had 10 clients this year, where the broker recommended selling ABC fund and buying XYZ Fund. Unfortunately, the broker used the magic "exchange" word and I get to brake them the news. Though, in eight cases, the clients did call their "tax advisor" who clued them in AND I made a couple chocolate chip cookies in return for "my vast knowledge of investing." The other two fired their broker and filed complaints against him.

Another MORON and his company: My client's broker told me two weeks ago, "Of course, that REIT dividend is tax exempt, that what it says on the 1099." I asked if he meant it should be a nondividend distribution. "No, tax exempt." Wrong, a taxable dividend. The brokerage has yet to change it, even after the VP of the REIT called them! The IRS gives them extra time to get it right and they still can't.

ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs Please be advised, returns with Form 5405 claiming the First-Time Homebuyer Credit of $8,000 for homes bought in 2009, will be accepted electronically starting with the 6 PM drain March 30, 2009. Form 5405 can also be transmitted for PATS testing on March 30, 2009, for the 4 PM drain. The revised file specification for Form 5405 will be available on irs.gov March 20, 2009.

"Shouldn't you be able to deduct those tools in his belt?" I would, but he tried to donate them, but there was no FMV!

This validates the "My barber", excuse me, "my hair stylist says I can take off my dog food, because my dog is my security system for my house, where I have my 'office in home.'" Some clients "think" by osmosis. My quote is word for word from a long time client, that I thought, (there I go thinking) had a few sharper tools in his belt.

and this website: http://agonist.org/raja/20081113/good_news_in_the_tarp

The current ordinary income tax rates for individuals are 10%, 15%, 25%, 28%, 33%, and 35%. Certain capital gains and qualified dividends (i.e., adjusted net capital gains) are taxed at 15%, or 5% for taxpayers in the 15% or 10% tax brackets. Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) and extended by the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the 5% rate drops to 0% from 2008 to 2010. In 2011, these rates will sunset and revert to the pre-2001 rates of 15%, 28%, 31%, 36%, and 39.6%. Qualified dividend income (i.e., dividends from most domestic corporations and certain qualified foreign corporations) will lose its favorable status, and capital gains rates will revert to pre-2003 rates, generally 20% (10% for gains in the 15% bracket) and the special five-year holding period rules.

Go to Return Manager, then to tax warehouse. Scroll across and you can see what areas your clients had entries. It goes by classification, like business, interest and farm. It might not help that much, but you can at least narrow it down.

Capital loss carryover. If you have a total net loss on line 16 of Schedule D that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it is completely used up.

From CCH analysis: Currently, unemployment benefits are included in a recipient’s gross income for federal income tax purposes. The new law temporarily excludes up to $2,400 of unemployment compensation from a recipient’s gross income for 2009.

I totally agree, but sometimes, it is hard to keep one's mouth shut. I also agree with the new heading by Eric and I am at fault for the last one, it was about taxes, but not relevant to our practices.

• There are no income limitations that have to be met by purchasers. • There is no first-time homebuyer requirement. • There is no repayment requirement (unless the purchaser sells, rents out, etc., before two years expire). Of course, there probably wont be any money to fund it after the first or second credit is issued. From the FTB: Homebuyers must certify that they will occupy the home as their principal residence for at least two years after the purchase. We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis.