indyscott

The Government wants everybody to work right up to the day they die. It's the new solution to the Social Security shortfall.

I would say that while moving to live your new spouse is a good thing, I don't think that tax code contemplates providing an actual tax incentive or compensation for the move. My hearty congrats to the newlyweds.

I remember a long time ago, when I was studying for the CPA exam, all the depreciation problems had "salvage value" in them. How come none of our asset entry sheets have any place to put salvage value as an adjustment to the depreciable basis?

One of the reasons for using the Std Mileage rate is to be able to get the benefit of actual maint & repair costs being higher as the vehicle ages, as opposed to depreciation, which is higher when the vehicle is newer. That's why if you want to use the Stnd mileage rate, you have to start it in the first year the vehicle is placed in service. You can't take the higher actual depreciation when it's new, and switch to std when it's older. Sooo.. what you're computing as "over depreciated" is a misconception.

Jeanne, since you mentioned your annoyance at the program not adding the 8863 automatically, I thought, gee, someone ought to put that in the suggestion box at ATX. So, I did just that.

Gosh, all you guys who say to do the right thing are quick to reply! Surely, there's some dog out there thinkin' "I'd let it lay..." I guess I'll follow the voices of my "good conscience".

Sheepishly ashamed to admit that last year I did a return for a couple who paid son's college tuition, and I failed to manually add the 8863 for Lifetime learning credit. I did put the tuition payments on line 35 as an adjustment, but I guess when I tried putting the x's in the boxes to see which box gave the highest refund on the return, I didn't realize that the program doesn't automatically add the form for the Lifetime learning credit, so.. the L35 adjustment of course provides a higher refund. This year, I'm doing it and trying to see why is their refund so high this year compared to last.. oh,.. it's because I messed up last year. So, now I have an ethical dilemma. S/ I self disclose my error from last year, and do a n/c 1040x for them (to get about $1,000 extra refund), or s/ I keep my mouth shut, and hope they don't discover it themselves...

The basis for depreciation for the SUV personal vehicle put into business use, s/b the FMV at the date it's placed in service. I'm confused about the truck. It's abandoned, so you do a disposition of it. How could there be a 10K gain on a truck they've used 10 yrs. (?), and is now fully depreciated?

Generally Disability insurance benefits are not taxable. Premiums are paid for with aftertax dollars, and, in the aggregate, the dollars are just kind of shifted around among the plan participants, and the insurance company administering it. My premium dollars pay your benefits, kind of a thing. The confusion arises from the fact that the benefits are replacing what would otherwise be the regular taxable income earned by the worker.

Julie got it right.. I simply saw poor Chad's legitimate question slipping into oblivion unanswered, and decided to "bump" it back up to the top of message list where it might have a chance of getting the attention of someone who actually gives a .... I mean someone who might be knowledgeble enough, and care enough to take a few moments to give a meaningful reply. Hopefully Chad figured this out on his own, or else took it elsewhere.. How about it Chad? Chad? are you still watching? zzzzz

(plus parking & tolls..) But, in order to use Standard Mileage rate, you have to use it in the first year the vehicle is placed in service. Can't start out with higher actual, and then switch to standard when actual drops.

yeah, late returns can be efiled.

Where did the parent live? You really ought to consult your reference material on these dependency questions. The rules are very explicit, but not particularly short.

I hit the button for "fast reply", but there's really no "fast answer" except to say it's not all lt cap gain. Selling inventory, for example is obviously ordinary income. Selling cap assets used in the business is a sale of a capital asset, and if the asset was put in service over a year before disposal, it is long term. The sale/purchase agreement s/ have listed the things out separately and allocated the purchase price to them. If not, it needs to be done. You start out saying that the K1 lists everything as ordinary income. The 1120S on which this sale s/have been reported may need to be amended, and a new K1 produced. That's my "fast reply"

Schiralli, thanks for that link. That's a good brief explanation.

Ohh... Well, when I actually look at the TID on the 1099, is the g'kid's ssn.. I guess I s/ pay closer attention..

When Grandma/Grandpa open an investment account for the g'kid, and Gma/Gpa are listed as the account holder as "CSDN" and the second name on the account is g'kid "UTMA" am I supposed to be including this accounts int/div/brokeage sales on Gma and Gpa's 1040? I'm assuming so, because it's their taxpayer id on the 1099. I was just wondering, because how does it work when the kid is the owner of the account. I understand the theory of the kiddie tax, etc., but, not so much how it works in the real world. I'm almost afraid to ask this for fear that y'all will think, "omg, I didn't think that guy was THAT ignorant" :blush:

All Notaries are special! :)

I've created a 4868 efile for one client, and closed the return immediately after creating it, and transmitted it, and I get a rejection immediately from ATX, but when I select "display rejection errors" for the marked return, it says "no errors".. oh, nevermind, I opened the return and selected efile\display rej.. .. It shows that my 4868 is not a new enough version. I'm beginning to be able some of my own questions before I finish the post.. I guess that's a good thing. :)

Oh, KC you are so good! BUT, you'll NEVER be able to switch to any other tax package. ^ ^ ^_^

What IS that light I see at the end of the tunnel? Ok, that'll give me a reason to keep onboard past Apr 15.

I did a return last October where I had to prepare serveral W-7s for spouse & children. They're a pain. I recall for some reason, I notarized the passport copies I sent in. I think that was a requirement. Then one of the W7 apps didn't get signed by one of the kids, and, ... Finally, the return went "into processing" Feb 7th or so, and they told me mid-March the refund would get out in 3-4 weeks..

http://www.irs.gov/pub/irs-pdf/i1099ac.pdf Instr for 1099A & C It looks like the lender hasn't cancelled the debt yet, only taken back the property. Probably because they didn't happen in the same year. There will probably be a 1099-C for 2008.

I think I understand that the Tier 2 part is the Green form, and it's treated like a regular retirement income with employee contributions that get ratably used up, using the worksheet for line 16a. My question is, the Blue form part, the tier 1 part, am I supposed to enter this on the SSA line 20 worksheet.. Nevermind, I just looked at it, and the answer is "yes". Why in the world should there be Railroad Retirement Board, anyway.. grrr..

Ohhh!... sorry for being a little dense there.