ILLMAS

http://money.cnn.com/2014/04/02/pf/taxes/refund-lottery/

TP received an IRS notice letting them know they are eligible for EIC, however they are both over 65 and in prior years it has been disallowed, could this be an IRS mistake? MAS

Have you put in a date? Try using 12/31/13

This wil be husband and wife LLC, but here is more information I found out today. The TP's attorney set up the LLC's in this order: The XYZ Real Estate LLC - Main one - Federal number was applied for 1234 State St LLC - Property address of TP personal residence 1238 State St LLC - Rental property located on the same block 1245 State St LLC - Same as above ^^ The deeds of the three properties were changed to each LLC accordingly, so what I am getting from this is that on form 8825 I will only include the two rental properties, sort like having an LLC that is reported on Sch E? Any advice on how to deal with this will be greatly appreciated. Thanks MAS

This guy calls in to complain his VCR is flashing 12:00

I have a client that recently setup an LLC for his properties, this was advised by his attorneys for trust purposes, I finally received the paper work when the LLC was setup, here is my question: The properties are currently under Sch E., can I just create a copy of his tax return, import Form 1065 and move the assets to form 8825 instead of re-entering all the assets? Or do I have to start from scratch?

I am going on 4 years without setting up my cell phone voice mail system and I am happy to say I have disabled text messaging too. Although I have a separate number for texting, I limited my texting to a minimum. I hate texting and receiving text at any time of the day.

I think her doctor told her to drink a glass of red wine a day, but they didn't specify the size

In some countries they still corn and grass feed cows, in the U.S. now they have organic fed cows, which tends to be more expensive to maintain therefore the milk and meat cost more. My grandfather had cows, and he will tell us, you see that calf, that calf is yours and the next year we would visit his ranch and ask where is my cow, he would tell us, oh your calf drowned or it died of a snake bite.

TP is receiving imputed income for group medical and life insurance (1099, box 3 other income), and on last year tax return it appears on 21 and SE tax was calculated on the imputed income. I am confused, I have never encounter "other income" to be subject to SE tax before and wanted to see if someone else would know. Thanks MAS

WHAT $38K why did they quit?

How involved is their tax return?

So sorry, I was trying to type my question, while waiting for Muppets Most Wanted to start, it was a family night and I should not been working. Here is the deal, TP was trying to copy how the investment company works, and thought it was a good idea to create an investment company under his wife's name, once established he loan money from his IRA to buy rehab properties. The idea failed, and his wife's company ended loaning the money the other investment company. My concern is if the second loan even qualifies as a loan or a distribution since it was not used for the intended purpose. My mini family vacation starts, heading off to Chicago Field Museum

TP invested part of his IRA to purchase and rehab homes from an investment company, I have no issue with that, but this TP thought it would be easy for his wife open a corporation and for him to loan (was trying to copy investment co.) money to purchase and rehab homes for a profit. That didn't go well and ended using the money to buy building materials gave it to the first company he invested, he invested $60k at first, then he invested $40K in the wife's company, the 40k was used for materials. The legitimate investment company sold the property and the taxpayer recoup 100k and 19k in profits, how the heck do you account for this?

Just wanted to share this with QB users, Win 8 does not work with all versions of QB, for those still using outdated version, Win 8 is not for you or for me thanks to my clients. MAS

I didn't know they could be called 1031 exchanged for one vehicle, I always thought it was a trade-in and you would reduce the cost basis of the new vehicle by the trade-in value. Learned something new today. I have always used 4797 in the past.

Isn't 1031 exchange for automobile used when you have a fleet of trucks or like rental cars?

For the cheap folks out there using XP, Microsoft has a gift for you: http://money.cnn.com/2014/03/24/technology/windows-xp-upgrade/index.html?hpt=hp_t2

I had to pull out my beer goggles to read it.

I think they should make a realty show on tax preparers and all the crap they have to go through. Called TP and I get this from him, Oh no, I have never claimed my children, this is the first time and I don't know why this is happening, Me: I want for you to tell me the truth, have you ever had any issues with the IRS? TP: I have never had any issues before because I have never claimed my kids, but I did have a problem when I tried claiming my brothers kids and I had to pay money back

Boyfriend/Girlfriend are my clients, live together and have kids but they are not married, our state does not recognize common law unions. In the past the mother will claim the kids but in 2013, she quit work to earn a degree, so the boyfriend will be claiming the kids in 2013. I told the client there was a chance they might reject his return because this was the first year he was claiming them and the IRS has no previous record on you claiming the kids. Today I see his return was rejected and the error message is that I need to file form 8862, I have never filed the form before so I wanted to see if I include the form this will resolve the issue. But my question was the EIC was never disallowed before, the return simply hasn't been accepted for efile. Can someone assist me on this matter. Thanks MAS

Thanks, so the IRS will combine the two 1096s automatically. The reason why I am being a little cautious with this, I had an issue with SSA, client submitted the first W-3 via mail, a year later received a notice that they never received it, I gave the client a new copy and was mailed out, a couple of months later another notice came in saying no W-3/W-2 info was received. Client send another copy, two years later they get a notice from the IRS, SSA eventually received both W3/W2 packets and took the liberty of combining them duplicating employee wages.

For example if they submitted 25K in the first 1096, I would add another 5K to bring it to 30K and mark the previously filed returns as corrected even dough the amounts don't change?

How do you amend 1099's when they forgot to 1099 for 4 people? How are the additional 4 reported? Thanks Marco