schirallicpa

Oh they have a beauty of a return anyway - they drew their IRA's to pay for a $70000(!!!) wedding and now have all that extra tax. She can't find last years return because they moved. Can't find moving expenses. Didn't know she had to change her last name with SS. Want to file separately because she owes NYS a ton of money (not that they are going to have refund anyway). Have house in NH (thankfully no filing in NH) that takes a loss. And I believe they won't get any benefit from that because filing separately and income is too high (because of IRA distribution!!) ..... I have to take a quick refresher on the 6198 and 8582. YUK!!!

Hold on - there's now more: He tells me today that the income is not Mass sourced, it is Italy sourced! And the address of Mass is only because that is where his partner resides. Hmmmm....

Thank you Catherine! Thats what I thought.

Client has been member of Mass LLC 1065 and gets K-1 for number of years, including the Mass K-1. K-1 has always shown some income. Has never filed a Mass return. Was previously a NH resident, now a NY resident. Any reason why I don't need to file a Mass return? Other than it will piss off the client to have to pay Mass tax, and may cause Mass to look back? Any help today would be greatly appreciated.... Thanks.

Client has LLC set up, and is also "self-employed" doing the same business. (It's a wonderful treat to sort thru their transactions to figure out if it's his or llcs......) Anyway - LLC gives him a 1099 for rent of equipment - that equipment being the schedule C equipment. (No - I did not set this up!) Of course they expect the 1099 rent income to be free of SE tax and reported on Sch E. I'm thinking this is still schedule C income to him.... If it can go on Sch E, how on earth do I allocate depreciation of the same equipment between E and C. Shouldn't Sch E rent only be "passive"? I don't think this money is passive. This is the business that he is in! In my mind, I'm relating this to other clients I have who get "royalty" income for crude oil production, when in fact, they are the producers and therefore it is SE income on schedule C. You always get the best clients late in the season! Any thoughts out there today?

Black stockings as well...

And then how many thousands can go back and amend for the stock they wrote off. Sure - makes sense to me.

Don't forget per diems. Usually the per diem beats actual. Use the GSA website: http://www.gsa.gov/Portal/gsa/ep/contentVi...tType=GSA_BASIC

I have an older couple that did not report Enron worthless stock in 02 or 03 when it went worthless. Can it be taken now? Don't tell me I have to go back and amend and carryforward and amend and carryforward and amend....... Any thoughts on this today?

Client purchased yacht in 2003. Took on loss on sale in 2007. Contends that it was purchased as an investment. Treated bank interest as 2nd home on schedule a in 03, 04, 05, and 06. Any thoughts on this today? Thanks.

I have 2 clients this year that received late in 2007 notices that in 2006 1099C's were filed. (Funny, they forgot to mention that before. I think that people don't realize that the 1099C means something to their taxes. Or perhaps they are in denial.) Anyway - 2006 returns have long been filed, and now the IRS is assessing additional tax and penalty for the 1099C. Can an amended return be filed, submitting a 982? In reviewing the instructions, it looks like you have to within 6 months if you're making said elections. So is that it? Do it within 6 months, or you're out of luck? Now, if the debt is discharged in bankruptcy, it is not income at all....Correct? Just looking for someone elses interpretation on this. I haven't ever filed one of these before. Thanks for any help.

In looking at the IRS website, it isn't exactly obvious that the 8863 nor the 5695 are to be delayed. A few days ago the ATX website said they were expected to be ready Feb 5.

Is the 8863 or the 5695 really that complicated? It is Feb 6, and my clients should be getting refunds already! I can't believe that I am again telling clients that I don't have forms available. This is so frustrating! Do other softwares have such incredible wait times? Does ATX not have enough IT people to take care of the changes? Grumble Mumble.