ILLMAS

I have a client that does the opposite, they hire software engineers from Mexico and pays them in US dollars, however when they cash there checks the currency changes from dollars to pesos. Since there is no tax treaty between the US and Mexico, my client does not issue out a 1099 or any other tax document, it is the reponsiblity of the individual to report the money earn. I would see it the same in your family member case, the company will pay in euro's (I think), but he would get dollars in the US, he/she will be reponsible on reporting income earned in the US.

This client is in the money transmitting and currency exchange business, similiar to a western union type of business.

That is how we are looking at it, however the walls that are put in place are fixed, they are not movable once the client ends it's lease, they knock down the wall and they only take the doors and bullet proof glass and counter with them, they can reuse it, they would just have to make a wall to accomdate it at a new location.

When are the cases when a leasehold improvement can be depreciated for a different class life then 39yrs? I have a client that has currency exchange and is very frugal when it comes to leases, he looks for spaces that would need the minimal improvements to open a currency exchange, plus he does not sign a long term lease. The leasehold improvements he makes does not change the structure of the building, the most common improvement is a wall to sepearate between the costumer and teller, they have many bullet proof glass and counters they resuse, so they spend very little on improving th space. In most cases, they leave the space back to it's original sate. When I mean they spend the minimal, they don't spend more the 10K a location. So I am just wondering if something different then 39yrs can be used for tax purposes? Thanks

Did anyone like me, didn't have time to prepare their own tax return? I prepared everyone else tax return, except mine :-(

Lucky you, 99% of my clients are in IL.

I guess for me is the other way around "Most repeated phrase from client to me": I forgot my checkbook, do you accept CC? How come they don't say do you accept CASH!!!!

I would prepare 1040X plus give priority to other clients first, client did not bring you all the necessary documents, so have him wait plus charge him for the extra work. MAS

TP son got a DUI, so they had to pay an attorney to clear his name, can these fee be itemize? I only found info in regards to discrimation. Thanks

Thanks everyone, the money on this return is not worth the headache!! Sending this client to curb!!!

One of my client does tax return for her family members and friends and I prepare thiers. Any she passed a tax return that involved a sale of property, but she wasn't too comfortable finalizing it, I said if the client pays my hourly fees I will take on it, I would just look over the sale of the property. Scenario: Husband and wife bought a home 11 years ago, however both had bad credit so they bought house under the husband sister and husband name who report the house on her tax return as a rental property, they were putting some bogus rent for 11 years and were deducting all the expenses you can think of and I only see one year, I don't want to know more. The house was sold in 2008 and there was a gain on the sale, another tax preparer had prepared the return but the tax on the sale was a refund (considering losses from rental properties and very low wages) huh??? I interviewed client via phone first and I told her, based on what you are telling me there has to be something wrong, based on the cost of the home and the sales price, there is a significant gain, so they faxed over the tax return prepared by other tax prep. I had to re-enter everything based on what they gave me and I also came out with a the same refund, so I called the TP let them I got the same results but there is something wrong with the accumulated depreciation, the report you gave is only for one year, so I prepared a depreciation schedule to estimate the depreciation for 11yrs, you wouldn't believe this but their gain grew by a lot. Now for breaking the news: Me: So you lived in this house for 11 years and your sister-in-law was reporting it her taxes a rental property? TP: Yeah Me: Don't get offended but why in 11yrs you didn't changed the title to you and your husband? TP: We were not planning on staying here long Me: Ok, well as I mention to you I estimated the accum. depreciation and your gain was so much $$$, and your tax due is $$$ for the fed and $$$ for the state TP: What @#&!@!!! the other tax preparer said there was a refund due and you even said that too. Me: Wait a minute, I right of way told you even without seeing the tax return prepared by the other tax preparer and based on the numbers you gave it would be impossible not to owe taxes for that type of gain. TP: So you are saying the other preparer doesn't know what they are doing? I was calmed when I said this Me: I never said anything about the prior tax preparer, don't put words in my mouth. TP: I already paid the taxes Me: Oh yes, when TP: At the closing Me: Are you referring to the property taxes? TP: Yes, I paid a lot Me: You are responsible for that anyways. TP: I should sue my attorney and real estate agent for lieing to me. Me: How did they lie to you TP: They told me I wouldn't pay taxes because it was my residence Me: But that is true, that's not a lie, were they aware of how the home is reported on your sister-in-law return as a rental property, probably not. TP: But I do have a personal residence so I shouldn't be taxes, I took the proceeds for the sale bought another one. As most of you are tired of this never ending crap, I wanted to shoot myself by now. Me: So did you leave some money aside to cover the tax due. TP: No, I was desperat to sell the house so I gave the buyers a 8K credit towards their down payment from the proceeds, rest was used towards the down payment. Lady you have to be kidding me, I wanted to smack her over the phone Me: Borrow the money to pay the tax, refiance your house, sell your house, do you have a 401k, you need to pay taxes (I was pissed off by now) TP: But is there help, I seen some commercials on TV that if you owe money to the IRS they can help you Me: Give them a call Me: You know that you are in a situation where your sister-in-law is liable for this, so it is now up to you however you want to resolve this. This call lasted more the 1 hour, TP was accusing everyone of lieing to her and wants for me to feel bad for her, giving me more BS, she had the nerve to ask me not to charge her that much, I don't think so. This can be considered a rant too

Are they itemizing? I find many non-profit agency that take cars as donation are not that clear when can someone take the deduction (Itemizing). My client donated a car and didn't get a benefit since he was not itemzing, so upset he called the agency to complain he was not able to deduct the donation, they told him, you should always check with your tax advisor, before making the decision LOL. From Sch A, go to non-cash donations, or add form 8283, you would need the date the car was purchased, cost and FMV of vehicle at time of donation.

It seems most here don't efile until form 8879 is signed, I usually get the consent of the taxpayer if I can efile return and then for them to sign the form once they come to pick it up. Most of my client drop off their return and pick them in a week, others take longer but the form is printed out the day it was efiled.

My client received a 1099A, I will use different figures for my question: Box 1 10/02/08 Date of Lender acquisition Box 2 $180,000 Balance of principal out Box 4 $233,000 FMV of property Box 5 Yes Was borrower personally liable for repayment of debt? YES This was his personal residence for +10yrs This is a recourse debt, however the canceled debt is less then the FMV (180,000 - 233,000 = -53,000), so using Tabe 1.2 (Worksheet for Foreclosure and Repossessions) Part 1, -53,000 is less then zero, so my client does not have to report the lose? He would he it was the other way around? I would appreciated if someone can help me on this one. Thanks

Does anybody know if one can create bulk extensions in ATX? Proseries would allow you to print out extension without adding the form, for my corp extension, I had to open each client individaully and add the form. I am just wonder if there is a way around this. Thanks

Is anyone else getting a error message when trying to efile or receive acknowledements?

Everyone tries to write-off as much as possible http://www.youtube.com/watch?v=Q7UVNH73eBY

If she is excepting a refund and the refund was already mailed out, it can take a couple of months before the IRS and re-issue her a new check. Have her submit the change of address as soon as possible or even try speaking to an agent to over the phone. I had this happened once before, client closed bank account and changed address and didn't tell me, until he notice his direct deposit didn't go through, I told him okay, the IRS shoud send you a paper check if your account was closed, and he asked me, do you know if they are going to send it to me to my new address? Anyway, the IRS had to wait for the check 3 months before they could issue a new check to the right address. Did your client inform you about the address change, if not let the take care of it and go through all the hassle.

I have a new TP that create a partnership (1065) with his brother, they are buying houses, rehabing them and selling them, however the houses are not selling, so they are renting them. Since there business is to buy, fix and sell, can the properties be setup as inventory? And how would the rental income be classified if they are considered inventory? No hurries on the response, this baby is going on extentsion.

Anyone??

The same thing has happened in IL, 20yrs cases were opened again because of a new computer system they put in place in Jan. 09, read the following article and see if something can be done. Sorry I didn't have time to go through the whole article. MAS http://www.thetelegraph.com/news/tax_24374...stem_state.html

Client recieved a 1009-A for his home he gave up in foreclosure, since this was his personal home for more the 6yrs and the FMV is under 250K, do I need to include it on his tax return? If so, what form to use 4797, even though it's not an investment property? Thanks,

Sorry, it's a 1120S and not a partnership.

I have a partnership return that is composed of 4 brothers, they didn't take a salary but decided just to take money as owner's draw. The only problem is the retained earnings is negative and tax year is a lose. I recommended for them to take it as a loan and repay it, get back on the payroll and to withdrawal something in relation to their salary when profitable. The fact that they are not taking a paycheck and taking money from the business, would it be ideal to reclassify it was other compensation to officer and issue them a 1099? Thanks,

Amen to that, I haven't been spending anytime with my 5 month daughter and I feel so guilty. Marco