schirallicpa

I read in a Kiplinger letter that the states are working with the Feds to give the Feds real estate transfer records. When real estate is transfered at below market values, then the Feds can go after the tranferor looking for a gift tax return. Even if no gift tax is due - penalties are. Way to go Feds! Who thought up that great revenue stream..........

As in everything bad, take the opportunity to pass along to your attorney friends, and maybe you can pick up a couple extra gift tax returns.

Kinda sad, really.

ok- that's what I thought, but geezsh - I just can't believe the credits given to some, and the ones that work hard and have a decent income, don't get anything. I have a lot of clients this year who earn to much for the "work to pay" credit; who have paid for their children to go to school, but have too much income to get a credit; who can't qualify for a deduction for student loan interest. And I have clients getting hit with AMT. Then there's these people - I'm sure she collects other benefits from the county and state, not to mention free lunches at school, and eventually free ticket to college.

I know - I know.....grumble mumble.....

THANK YOU everyone for your help.

yes

Couple live together.

Woman has child from previous relationship and child with current beau. She claims the first, he claims the second. His income is $50K. He claims HOH. Her income is $18K, she claims single.

Can she take the EIC?

I'm remembering that when you live together, and the other party has more income, then the childs EIC-ness (is that a word?) goes to the other person (if qualifying otherwise), and the other person then doesn't get EIC because income is too high. But in this case, the child is not his anyway.

Clear as mud.

Any help would be appreciated.

Circular 230, which includes all paid preparers, prohibits us from giving advice based on fact that the IRS might not audit the return.

The United States recognizes marriages from other countries where poligamy is not legal. The fact that they got married somewhere else doesn't make them single. What do you think they will say if one of the spouses is killed while in the US and there is money to be collected? Will they say they are single? Will the US Government accept their marriage certificate?

Oh I would not give unethical advice. It was just a point that was made. And your points are well taken as well. I appreciate all the feedback on this question, but I certainly didn't mean to raise a topic that would raise so many tempers.

wow - I certainly didn't expect this question to raise so much animosity.

I am thinking about the situation where the lady starts filing HOH because her husband leaves her and she has a child at home. What happens when the child is no longer a dependent. Then she goes back to filing joint or separate?

I was discussing this with my assistant, who happens to be British. She figures we just have too many choices:) She also posed the question - How would the IRS know. There's not a tracking on that, is there? Also, she knows the couple a little bit better than I do, and she knows that they too are foreign. She wondered if they were not married in the US to begin with, does that matter.

Just thought I'd throw another wrench in.

thanks.

I have an old client who has always filed single. I have known him for years. Never realized til last summer that he was legally still married to his wife who left him many years ago.

This year I have a client - who was new last year - who's husband had left her in 2009. We filed MFJ for 2009. But this year, he has already filed his tax return. She thinks as single. They have not gone to court, or even begun to talk about divorce. They just aren't together. So - is that okay for them to file single now? Is there an amount of time required to be apart before single is legit? I have referenced the JK lasser book and it desribes the couple as living apart but with nothing finalized, then your not considered divorced and you must file joint or separate. This contradicts my first sentence which the older man files single. And really creates a burden on people like this client who cannot force her husband to divorce her. She isn't even sure where he is.

So that leads me to a secondary question - if he filed single, can she file MFS? Or will it kick back?

It's my understanding that some types of organizations are tax exempt automatically, and only need to file application for exemption when they reach an income level that requires them to file 990. So - if they are expecting to only have nominal income and are not trying to "profit" so to speak, then they stay under the radar.

What type of org are you dealing with?

Will there be tax consequences? What is better method? the 2 minority shareholders are giving up their shares in exchange for $30,000, which was their original investment in the corp. Do the shares just go back to the corp? Or do the shares get allocated back to the majority shareholders?

I'm dealing with a blistering headache with our lovely March weather ups and downs. Looking forward to April for many reasons.

thanks for your help.

I want to "rant" again. Can I rant again?.....

How 'bout clients that come to pick up their return, and they "forgot" their money; "forgot" their card; "forgot" their checkbook. Okay - when you went to K-mart to buy stuff, did you forget your money there? And when you drove thru McD's did you tell them you forgot your money? Did they give you the milkshake anyway? How 'bout when you filled the tank. Did Sunoco say ' Hey - that's okay. You can take all you want and stop back some other time to pay'? No - you paid to take their product. So pay to take mine!

there.

I feel better.

thanks.

The entity is probably still in existence in 2011, right? Did they file paperwork with their state for dissolution of the corportion? If they hadn't yet, then 2010 is not the final return. If they get it done now, they will have a short year final return. (I too am assuming they have a calander year.) The assets are distributed to the stockholders. Is it an "S"?

I'm the one who has the problems in NYS with the state not allowing dissolution for 2 corps due to their having outstanding tax liabilities. We have decided we must file returns again this year, due to the fact that NY shows them as active corps, and therefore requires a franchise fee.

I just did one of those yesterday. Isn't that nuts? I wonder if any one ever marks no, just to see what happens.

I would bill it in full, and then deduct a "courtesy adjustment" on the face of the invoice. Then make sure I point out to them that this return would have normally been $300, however, in light of the fact that much of the work was already done correctly , and I am amending only a specific portion, I am only charging $150.

If the amendment is because of my mistake, I eat it. If it is their mistake, they are billed. If it's because they get a corrected 1099 late in the season and its not really anybody's fault, I try to discount more, but a least bill my basic flat rate.

I WOULD FILE AND PAY THEM THE $25,

Yep - you're right. I had a corp try to dissolve a few years ago and NYS wouldn't let them because they had never filed a return for their first short year of existence way back when. They had no income nor exp, and so had not filed a retun. Ok for Fed, but not for NYS.

thanks for commenting. I appreciate it.

The instuctions for this form talk about seasonal employees - "Seasonal employees who work for you 120 or fewer days during the tax year are not considered emeployees in determining FTE's and average annual wages."

I have 2 clients (a nursing home, and a pizza place) that have a huge turnover of employees, and many of them would work less than 120 days. But, they are not hired with "seasonal" intent. I also have a client who in in the road constrution business that has many employees working less than 120 days. I know his employees don't qualify. I'm just wondering on these other people if I consider them as not FTE because they are less than 120 days. Or if I consider them because there is no seasonal intent.

any thoughts would be appreciated.

Many thanks.

I'm glad you answered that. I have one of those.

thanks!

I have a couple of these. Drives me nuts:

The wife works and has significant withholdings. The husband is self-employed and eats up her withholdings with his self-employment tax. She gets all mad because he hasn't paid in, and she's not getting anything back. Hello! If you want more money, go to HR and change the w/h. Make him write checks. In the big picture, as a married couple, does it matter if you withhold or write checks. My husband has huge withholdings to cover my s/e tax. I don't like writing checks. It's much easier to withhold on his end.

grumble, mumble.

Now one of these couples has incorporated his business, and has given the wife part ownership. Now I'm hearing about how she wants a paycheck. Which she will get. But they just go on and on.................And who lets a spouse have ownership? They didn't appreciate that I wanted their atty to talk to them about having a buy/sell agreement in place in case of divorce. I love my husband very much, but I would never make him part owner of my business. Love and money just don't make a nice cocktail.

I have 2 of these this year. We filed final returns in 2009. NYS will not "dissolve" a corp until all past due taxes are taken care of. In both cases there was still NYS sales tax liabilities outstanding. So - since they are still on the NYS rosters, do returns need to be filed this year? I think yes - but of course my clients do not appreciate another bill.......

Any thoughts?

Many thanks.

Are you sure the VAGI is such that they have a filing requirement or tax amount due? My link This link gives the filing requirements for the year, and points out that the Virginia Adjusted Gross Income is after the subtraction for income earned in another state.

AH-HA!! I'm under by a few dollars. I was referring to old table that showed I was over. How 'bout it. Thanks!!

You're awesome.

And my client will love you too:)

I am attempting to prepare a part year return for a couple who moved to VA during the year. I cannot make the tax calculate on Form VA 760PY. Can anyone give me any tricks on making this one work. I have open the VA760PY, VA760 PYADJ, VA sch ADJ, and VA Inc/cg, VA sch of income. VA is making NY's return look easy.

Thanks for your help.

no basis. but long term capital gain. she won't get hit too bad.

Thanks for pointing out Sch D, not 4797.

Have a great weekend (and a productive one, because we all know that this is when we get the most done with no clients hounding us.......;0)

ok - I cannot count the number of times I have taken on a new client who has been taking home office expenses and does not take depreciation on the home. I am then told that they don't want to de-value the home by taking depr on it. But, this was always my understanding - that the business portion of the home is no longer considered "residence" under the home sale exclusion rules, that the business portion is reported on 4797 when sold, and that on the 4797 you have to determine what depreciation would have, could have, should have been regardless of whether the benefit was taken.

Can someone else chime in on their opinion of this for me?

thanks.

I have a client who has a NR OK return. I am not getting the option to create an efile for it when I click on the icon. I am only getting fed and NY. OK is not an option. However, everything on the efile info form and return looks like I should be able to efile it. Is there a hold up with the return? Or am I missing something......

thanks

Whats the final answer? And how much longer until "draft" goes away on the form?