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ILLMAS

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Everything posted by ILLMAS

  1. ILLMAS

    Odd 1099-A

    I think I should be a detective instead of an accountant, I had to do some digging around with the TP because this 1099-A didn't make sense, well it turns out there was more I wasn't told originally. TP had a line of credit on the investment property she lost to foreclosure, and she also had a loan. So here is what happened, Fannie Mae basically bought the loan (209K) and the remaining debt of the line of credit, the $85 was the only thing they didn't pay for, pretty good right? So at the end, the TP has a sales contract of 209K (Fannie Mae the buyer), the house was bought for more then the FMV, now here is a little problem, TP bought house for 134K, the adjusted basis is 110K, so would be safe to say she will have a gain if the house was sold for 209K-111K=98K, there was no bankruptcy, 100% investment property, rents were collected up the day the house was foreclosed. I had asked the TP to find out if the bank was going to issue a 1099-A for the loan, but the more I think about it, it sounds like if it was a sale between TP and Fannie Mae, your thoughts? Thanks MAS
  2. ILLMAS

    Odd 1099-A

    TP brought in the oddest 1099-A I have ever seen: Box 1 has date of abandonment Box 2 Show balance of principal outstanding (client owed more then 200K, but only $85 appears) Box 5 Borrower was not personally liable for the repayment of the debt And thats all, no FMV is show. What to do?
  3. So for example, if you are going to prepare a simple 1040 and you are going to charge your client $50, you prepare an engagement letter? And for every year they come back? I know the orignal post was for a business and I know times have changed from when things were done with a hand shake, but don't get me wrong, an engagment letter pretty much puts in writing what is and whats not going to be done and what will be the fees, but some of us have clients that are old fashioned. I think in my case I will lose some clients if I have them sign an engagement letter, but I think it's a good a idea to have one in place for new business clients.
  4. It's back to work for me, looking at it in a positive way, at least I won't have troubles money brings .
  5. No body here does business on a hand shake any longer?
  6. Add one more chance of winning for me, a client of mine gave me the winning lottery ticket today :)
  7. I would get permission on behalf of the TP and you call the other accountant directly, maybe there are other things the TP is not telling, for example there was missing information to prepare the return or they owe a balance that was not taken care of. Sometimes they forget to tell you important things like that.
  8. Incase I hit the jackpot tonight, I will be looking tax accountant, anyone? Really whom I'm I kidding, the odds of winning are not in my favor :(
  9. The employer is not going to deduct the expense as a mortgage or real estate expense, instead he will reported as wages, therefore it's like if the employer paid the employee and employee paid the mortgage. Worst for example if the employer paid 10K towards the employee mortage, employer reports 10K as additional wages and no federal and state deduction, employee will be on the hook for taxes on 10K basically. Perfect if the employer paid 10k for the employees mortgage, however he reported 13K in additional wages, but 3K is being used to cover the taxes on the 10K.
  10. If he/she was getting paid wages, and the wages were being used to pay the mortgage, it sounds the same to me, definetly a Yes from me.
  11. How is your stress level?
  12. I still remember when folks became millionaires from day to night by buying and selling real estate, hey I still remember banker, real estate agents, mortgage broker made their money too.
  13. Make sure to select Clergy, under special type, you'll find this in the W-2 data entry form, right above Box 1.
  14. It sound like an honest mistake, I would just amend it for her and have her pay the refund she was not entitled to and penalties and interest. The best outcome out of this, is you will now have a new client, someone that no longer does her own tax return :)
  15. That's another can of worms, I would not even intend to fill out a foreign tax return. The best you can do is just prepare the foreign tax credit form.
  16. try now MAS
  17. LOL I plead the fifth
  18. Thats the way I felt standing in line last week at the post office
  19. Something you need to see: http://www.cnn.com/video/#/video/crime/2012/03/20/ac-kaye-refund-robbery.cnn
  20. From the IRS: Question: Are the Canada Pension Plan and Canadian Old Age Security Benefits taxable? If they are, please tell me where they should be entered on Form 1040. Answer: Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program: If the recipient is a resident of the United States— are taxable only in the United States if the recipient is a resident of the United States, are treated as U.S. social security benefits for U.S. tax purposes, and are reported on Form 1040 (PDF), U.S. Individual Income Tax Return orForm 1040A (PDF) on the line on which U.S. social security benefits would be reported. [*]If the recipient is a U.S. citizen or green card holder who is a resident of Canada are taxable only in Canada. NOTE: Refer to Tax Topic 423 for information about determining the taxable amount of your benefits. Additional Information: Publication 519, U.S. Tax Guide for Aliens Publication 597, Information on the United States-Canada Income Tax Treaty Publication 915, Social Security and Equivalent Railroad Retirement Benefits Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits Category: Aliens and U.S. Citizens Living Abroad Subcategory: Canadian & U.S. Tax Issues
  21. ILLMAS

    TaxMasters

    This Is for those who have clients that have asked if they should call them to reduce their tax liability. http://money.cnn.com/2012/03/19/news/companies/taxmasters-bankruptcy/index.htm?hpt=hp_t2
  22. Thanks Manuel, I did a bit of research and it seems the TP can also file as MFS and use NRA (non-residential alien) as the spouse SS, since the spouse will be filing a return in their country.
  23. For example if you married someone from another country (not from Canada or Mexico) and you return to U.S, your spouse stays behind and works. How do you file your US tax return S, MFJ or MFS? Spouse does not have a visa, no SS# and is not a resident of Canada or Mexico to apply for an ITIN. How do you report your foreign spouse income on your US return? I am guessing you would file single, until your spouse is issued a SS#, but I wanted to see what others think. Thanks MAS Ah, you should treat your spouse with love and respect :)
  24. My associate just sent this information which I would like to share with you fellow tax preparers: http://www.accountingtoday.com/news/Tax-Preparers-Sue-IRS-Requirements-62000-1.html?ET=webcpa:e2300:#field2#a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_031312
  25. I'm I the only one that gives up having a drink for lent?
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