Tax Prep by Deb

No. Actually I had received a postcard with a 5% discount offered by 10/31 but when I logged on it was 10%. My rep asked if I needed any research books as I had ordered quick finder last year (Actually last year I purchased the book only so I could get a discount on the software, told him I didn't want to spend any more money so he said he thought he could get it thrown in for no additional charge so I took him up on it. I would suggest you log on to Atx and I believe on the right side of the page you will be asked to renew, click on the link and it will open up your quote and see if they have already given you a discount. Like I said my discount on my account quote was more than the postcard they sent me. If not just wait another week and check again, their offers change often.

I agree and that's exactly why I confirmed the price increase. I have every intention of passing it on.

Thought I would give you all a heads up if you don't know already. I just renewed my ATX Max software and was given the 10% discount, plus my account rep thru in an extra research book! Different this year however, is that starting in 2017 any tax return e-file for 2015 or 2014 is going to be charged an extra $5.00 transmission fee. They truly are starting to nickel and dime this program to death. Perhaps next year I will be trying out something else. Sad because I've been with them since the early days and long for them!

Thanks for your imput. Actually I had found the exact article that your provided, and believe we have good figures to go forward on.

I need a little help here. I have a client who is on the process of selling a business, S Corp, just selling assets, good will, and no compete. The sale allocation is what they are currently working on and we have definite numbers fot the assets, but are still left with 100,000 to allocate between goodwill and non compete. What would you recommend? I've never been on the sale side of this, only the purchase side and it was mainly assets so not to suee about the tax consequenses other than on the sold assets. Any thoughts would be greatly appreciated.

I smell a rat!

I have done several and not one has been challenged. I will not file it just on the opinion they are insolvent. Nor will I do the worksheet for them. I send it home with and reviewing it with them and tell them to get a separate envelope and that everything they put on the form must have documented proof in case of questions. I don't ask to see the proof, I just make sure they have kept it then I go over everything with them and finally make the determination. In my area it's not that difficult as most have to do with either foreclosures, short sales, or loan modifications. The property values here took a tremendous hit and are just now recovering, so I was pretty sure that if a home was involved they were insolvent.

Problem is getting them to move the payment to theSRP. It took my client going to the IRS office to get the payment applied. This took several months.

Just finished my last return, preparing three more extensions, and no where to be found for the next several days!

Kiddie tax the way I understand it it applies to investment income, not scholarships or grants. Although scholarships are technically earned income, they are reported on line 7 as wages as if they were earned income, so no they are not subject to kiddie tax.

I've heard that. I'm just over the hill from the bay and home values are recovering and prices are rising. I suspect that within another year home values will be back where they were before the bust. Great news for those who bought when prices were at it's lowest.

Thanks Tom, I have already done that and the doc's actually appear correct. In other words they make sense including the FMV of the home at the time of the forgiveness. I have done the insolvency sheet and it appears we can deduct about 1/2 of the cancelled debt. Was hoping for more but had a feeling I was seeing it right. There was talk earlier that maybe perhaps they will vote to change this and retroactively at that, so I'm watching to see if the guys in big chief in Sacramento will do so. I don't have many of these now, nothing like 4 to 5 years ago, but homes were I'm at are still under water. Getting better, but still not there.

Anybody?

Ok this one would be real simple had California conformed to Federal on Cancelled Debt. Client had a loan modification on a non recourse loan (acquisition debt only) that resulted in 199,400 being cancelled (1099C issued box 5 not checked) with a fair market value of 186,569. Balance on the loan after the forgiveness is $109,500. (doesn't look right to me, but these figures are on the 1099C and mortgage statement). With federal it is all excluded and basis of home reduced. California doesn't conform and it appears that because they kept the home we have to treat the COD as income unless insolvent. Is my understanding correct on this? Any thought would be greatly appreciated.

Just looked at my profile and it says I've been here since 4/12. Didn't take me long to find home!

I agree with the above!

Thanks for the reminder, and Thanks Eric for a job well done!

I just did a tax return for a client. The person I did the return for is in the hospital and unable to sign. The daughter has a Power of Attorney which stipulates she has the authority to sign and file her tax return. How is the done e-filing? Any help is appreciated!

I'm having a lot of issues with Covered California. The only 1095A that are right are the ones who had no changes at all.

Also what is stated on the W2 is what she claim at the end not necessarily what she claimed the rest of the year.

If they no longer qualify for the advance credit you only fill in the amount of the advanced credit they received and put nothing in the rest of the columns.

2% plus $25.00 clearly stated on my invoice. I usually assess it after 2 calls followed by two invoice reminders. I really have no intent on collecting it but it usually gets their attention.

It says that from 2014 on they do not conform to Federal. Prior to that they did. So again everything I see says we cannot exclude the cancelled debt of his primary residence. Unless I'm missing something.

I've actually had this situation also. Finally they remarried, then divorced and went their separate ways!

Can you point me to your source. Everything I checked said they did up to a certain year, but have not gone along with the more recent extensions. Maybe I missed something.