schirallicpa

This client just started as a corrections ofcr in 2008. He started at the facility nearby, and was shipped to a facility 240 some miles from the first. He expects to be returned to the nearby facility in 2009. It's like they send him to the tougher area as a "break in" kind of deal. He stays down there because it is such a long drive back and forth. Does his situation fly for mileage, meals, and/or lodging for Form 2106. It makes a nice difference on his return. He is not reimbursed for any of the additional expense. I have another client that works for a large turbine plant here and he gets sent to all those middle east countries that I can't pronounce. I take meals and lodging for him while he's over there, as he is not reimbursed for any of it. To me that seems fairly cut and dry. But this one...the corrections officer....I'm looking for some agreement on. If I worked for a CPA firm and was asked to go work for another branch of the office for a while, would I get the deductions? I think so.....(and we all know CPA firms don't reimburse expense!) Thanks for your thoughts. xxx's and ooo's on Valentines Day!

hey - thanks for giving me a bump up. I appreciate it. I had looked at that Pub and hadn't really found what I was looking for. I think the client's concern is whether or not it's taxable income to her. I'm thinking the tax amount would be pretty small anyway. I think that the former employer will pay for the high deductible plan as per usual and that will continue to be a tax free benefit. And what ever that they decide to contribute to the HSA will be of neglible tax effect. And, as you said, would be a wash. I just hadn't seen anything like that before, and really can't find anything black and white. We don't see too many of these in our area yet. One of the bigger employers in the area have them.

Client is 61. I know she'll be eligible for medicare at 65. Then the HSA will be a mute point. In the past, the former employer has kept her on the health insurance policy as an eligible retiree. The former employer is considering an HSA plan to cut costs. Can my client as a retiree still qualify to receive this benefit - the employer will fund the HSA $1500 annually. Will this be a taxable benefit to her? Can she even participate? Or is she out on her own? Not finding much helpful info on internet on this specific topic. Any thoughts w/b appreciated. thanks.

Thank you for answering the question...... And I will check the stimulus amounts now on every client. I was just being one of those silly's who thought that people were getting the amounts they were supposed to.... I know....what was I thinking.....

I taught on this at Alfred University. Yes - interest is capitalized. You may be questioning yourself, because - as usual - it is not that cut and dry. The amount of interest to be capitalized is limited to the lower of the actual interest cost incurred during the period or the "avoidable" interest. Avoidable interest is the amount of interest cost during the period that theoretically could have been avoided if expenditures for the asset had not been made. To apply the avoidable interest concept, the potential amount of interest that my be capitalized during an accounting period is determined by multiplying the interest rate(s) by the weighted-average accumulated expenditures for qualifying assets during the period. Did that help, or just make things more complicated?)

Return already e-filed. (Can't wait til they develop the un-efile button.) Client now mentions that they didn't get the 1200 stimulus they expected. Should they get more now. I check - yep.....they should get more. Now, do I amend the return to tell the IRS info they already have. Will they generate the additional credit automatically? Does anyone trust the IRS to do so? And whats with the 1040 x still in draft!!! It seems we really have to be doing the research this year, or become great mind-readers. Between "did you get your stimulus?" "huh?" "how much?" "don't remember" "did you pay your real estate tax" "huh?" "how much?" "don't remember", and here in NYS, "did you get your STAR rebate?" "huh?" "how much?" "Don't remember that either." I'm not charging enough!

Good luck with the exam. I don't think I could ever get through it again. That was 16 years ago!!!! Actually, the first time I sat would be 18 years ago. UGH!

yes - any subsequent legal fees for defending any patent are added to the basis and amortized over the remaining life of the patent. What kind of patent? I never get interesting things like patents in my business.....

Hey - I taught intermediate accounting for a few years at Alfred University as an adjunct. We did patents. I even have the text!! If a patent is purchased, the purchase price is the cost and is amortized. If the patent is created internally, all costs in connection with securing the patent including atty fees are capitalized and amortized. However, the R&D costs on the development side must be expensed as incurred. So the internally created patent doesn't appear to have the same value on the balance sheet. (Hence big pharma's development of the small, separate R&D companies. Let the R&D company get a grant or investor and expense all the R&D and run all the loss. Then big pharma buys the patent and has a nice asset without the "expense." My brother works for one of these little R&Ds. They run losses for years, sell the patent, and dissolve the company. Then hire everyone back under a new name with a new R&D project to work on.) The legal life is 20 years. The patent cannot be amortized more than 20 years, but may be amortized less than 20 years if it appears that the useful life will be shorter (ie: drug patents are usually less than 20.) Any subsequent legal fees in defending a patent are added to the cost and amortized over the remaining life. If patent becomes worthless, gets written off immediately. Hope this helps.

I had one of these a few years ago. I just reported to income on the wife's return, as if. And I attached a statement, explaining the situation. Never had any problem. You might get hung up if efiling. You may need to paper file. I suspect the amounts are not big enough to create too much of a tax liability for the spouse. I can see where the paycheck would have gotten goofed up and into the next year, but you would have thought the 401K loan would have been taken care of in 2007. Or, you may consider amending the 2007 return for the items that should have been on there. Don't open an estate just for this little stuff.

I have a client that should be filing some 1099s and we have just discovered that a little late. He has asked what the penalty is. I'm not finding anything more updated than 2007, which was at $50 per would be receipient. Considering just trying to get them out now anyway. Client is reluctant. (Imagine that.) Thought the penalty thing might encourage him, but he's afraid that since it's after Jan 31, he'll red flag and bring more attention to it. the thing is, in a previous year, he really didn't have that much that would need 1099. This year he hired a number of contractors to do some renovations, and many of those guys are local sole props. Any thoughts would be appreciated.

Yes - I would treat them as dependents

check IRS pub 4681, page 7, how to report qualified residence principle indebtedness exclusion.

coffee and donuts, no joking aside.......wouldn't meals come in to play for shifts expanding over standard 8/9 hours.

I signed up for fee collect 3 weeks ago and have been "processing" ever since. I have called the bank (SBBT) and ATX multiple times. I don't offer all the loans and early refunds. I offer fee collect and have for the past several years that it's been available. No problems. My clients love it. What is the problem now? is SBBT down the flusher with the many other banks in America and I didn't know it? According to ATX its a bank problem. According to SBBT ATX hasn't submitted Z records yet. He said, she said. My providers are about the same ilk as some of my clients. Anybody know what's going on?

2 clients share same household. The woman has 2 children - they are not his. The man has 50K income. The woman has 10K income. In the past, he filed HOH, and did not claim any dependents. And she filed single, with dependents, took child credit, and EIC. First of all - I don't think that that was right - because if they lived in the same home, then I believe EIC should have been based on his income. Any way - of course thats the way they want to file this year. Now - if he's filing HOH and no dependents, he must list child's SS# up there in that section now. (Can't remember if you had to before>) Well "RED FLAG". That kid is on someone else's return as a dependent and EIC kid...... See my dilema. I can't see how they can get EIC. Can he claim a kid as a dependent under qualifying relative rules, and at least take some credits on his return? And she takes the other. I hate EIC. I live in poor Western NY where the EIC game has been played to the limits, and I am so darned sick and tired of it. Any suggestions today will be helpful. Thank you.

"ATX EFC Reject Federal E-File is already accepted or pending acknowledgement" What on earth does that mean? What am I supposed to do. Sit back and hope my client's return makes it? And whats with ATX? I called the 800 # and now it tells me to go to the Taxwise website. Which is fine since I haven't been able to access the ATX website in months with my "new" password. Some lady named "Justice" keeps calling me from ATX. I'm not sure if I want to deal with them any more or not. If anyone has a clue what to do with the error, I would appreciate it.

I have called ATX on this, and they have told me I should not remove, delete, or mess with any database or client folders. Well - gee - why do I need to have all this old stuff hogging up space on my computer. We're talking 03 and 04. We can't even amend these anymore............. Or is this an excuse to get a new computer. Actually, I'm of the mindset not to purchase new until the old dies. But I also have no idea what goes on behind the scenes on my computer and what I can zap and what I can't. Every since we were forced to give up DOS, I've been at a loss. Any suggestions? Thanks.

THANK YOU!!

Whatever....

I have a client that had to pay back a pension payment from 2004. They were never issued a corrected 1099. I amended the 2004 return with statement reflecting the situation. IRS responds that since we do not have a corrected Form 1099 we will need to claim this repayment as a Section 1341 request and deduct the payment or tax credit in the year of repayment, not in the year it was received. Ok - found a few articles on the internt. No problem. But, how? Gee, I don't see a line item for this one. Does this have to go on a particular form? I don't really find anything. Form 843 doesn't work. Or do I just shove it on a payment line? Do I file a 1045? It seems like I should file a 1040x. Any advise out there today....or tomorrow... Thanks

Client claims he has agreement with IRS agent and is making monthly tax payments. He has a nice refund on his personal return this year, and I was hoping to safely take my fee from his refund in order to avoid chasing him myself. Will the IRS let me have my portion of the refund, or will they snag the whole bit?

Partner #1 in LLC holding 50% interest and basis of 26469 sells his entire interest to partner #2's wife for $500 on Dec 31, 2006. I do not do tax work for 1st partner. I do tax work for 2nd partner and new (wife) partner. Can it be that simple that she has new basis of $500, and I roll on?

If it would close when it can't find the server instead of locking you out of the program, that would be fine. I wouldn't care if it spent all day waiting for the server if I didn't have to wait all day for it too!

Guy moves to beautiful Western New York State to accept a new job in 2006. Claims a moving deduct on 2006 tax return. He is engaged at the time. She doesn't move with him. They get married in 2007. She moves in 2007. I had a family that the husband moved here and the kids waited til school was out to move. We were able to take moving expense over 2 years. In 2006 we took his. In 2007 we took theirs. Can I do that in this situation? She does not have job here. She moved because she is now the wife. In looking at the reference material I have, it refers to household members and does not specify the relationship of the household members. Any thoughts this fine morning?