taxguy057

Yes! If he owns more than 50% of the shares and is not entitled to take the credit.... Sorry! :(

The invoice you receive from them for the 5000.00 will suffice for proof of payment you made to them for tax purposes.

IRC reads "that if purchased from a related person..." I have to agree with jainen to say that the "trust" is a separate entity and the house may be now deeded in the name of the "trust" which now in capacity is the fiduciary so has all legal rights to manage and dispose of the property according to the wishes of the owner of that trust. If I'm not mistaken, He's buying from the trust, not the uncle/aunt.

Most banks request to ss# of the person you are putting on the card for use. They normally issue another card in the second person's name, just under original cardholders account number. If the mother goes "wherever", daughter would want to continue to pay on card unless she wants her credit to reflect any non payment. Same thing happen with my mother and grandmother, my grandmother put my mother on a credit card to use. When my grandmother passed away, the card company began calling her for the payments and the account was listed on her credit report.

I've done her return for the past two years. Its a simple 1040 and she claimed her granddaughter. No investments or other sources of income so we safe there. Just a regular o' garden variety 1040 tax return. PS Let "The Dragon" sleep! :P

I have a client who died in Oct. 2009. Her daughter contacted me about how we would go about filing her taxes. From what I researched you have to file a Form 1310 right? Anyone done a return like this and if so PLEASSSEEE, give me some insight cuz I'm lost. :dunno:

Good head you got there buddy! Right on both.... as usual! LOL! I figured on the first one, it had something do with it being "related" so would it be (20,000) if to someone outside the partnership? Now for second one, I see they gave the TI of the TP so is there a threshold amount that will affect capital loss amount and carryover or was that just thrown in to misdirect? Know you have better questions to answer but let me know if you want another. Seems like you're the only participant so far.... See if i can find one that will lure jainen out of his cave! :scratch_head:

Hey Guys! Back with some more brain teasers... Alf owns all of the shares of Waxman Corporation, a manufacturer of finished leather products. Alf also owns a 60% partnership interest and his friend Richard owns a 40% partnership interest in York Real Estate Rentals, LLC. York Real Estate Rentals, LLC owns and leases warehouse space to numerous businesses. In 2004, York Real Estate Rentals, LLC sold a building with an adjusted basis of $100,000 to Waxman Corporation for $80,000. What is the amount of York Real Estate Rent- als, LLC’s deductible loss in 2004 from this transaction? A. $(20,000) B. $(12,000) C. $(8,000) D. $(0) Yousef and Ramina (husband and wife) purchased 10 shares of stocks in Yam Company on August 31, 2003, for $850. They sold 25 shares of stock in Tray Company for $900 on April 10, 2004. They had purchased the 25 Tray Company shares in 1993 for $100. They also sold 20 shares of stock of Delta Company on December 1, 2004 for $500. They had purchased the 20 Delta Com- pany shares in 2002 for $4,500. Yousef and Ramina’s taxable income on their joint 2004 return was $33,000 before these stock transactions. Assume Yousef and Ramina had no other capital transactions in 2004. What is Yousef and Ramina’s currently deductible capital loss for 2004 and what is their capital loss carryover to the next year? A. They can deduct $3,200 in long-term capital loss and carry over a capital loss of $800 B. They can deduct $4,000 in long-term capital loss C. They can deduct $3,000 in long-term capital loss and carry over a capital loss of $200 D. They can deduct $500 in long-term capital loss

Once again you were right Pacun! I see now why it would be ordinary vs. short so thx! As for Jainen, I love reading his indepth analogies of the situations but it does get too confusing, but I know its from my lack of experience of those type of returns. I would love to see him argue a case in tax court! lol! I'll start another thread later this morning with more problems... I'm really enjoying this! Thanks for participating. I know you guys are starting to get busy with real problems. I'm just alittle fish in the pond and just got finish doing 4 returns and getting them ready for friday's launch! :lol:

Pacun you are a winner winner chicken dinner!!! lol! You answered correct. Yeah I saw you post with the mega tax gumbo! I saw how it started a battle of the witts! lol! Thx for letting me know I'm wanted round these parts! There have actually been some questions i have answered correctly for people on this forum but now i must challenge myself to step up those I attempt by researching more. Ya'll ready for another...I'll try to find one more challenging this time.... John is a furniture maker and carpenter. John makes half of his income as an employee of Concept Designs, Inc., a fine furniture manufacturing corporation. John makes the other half of his income from a personal busi- ness where he purchases, renovates and then resells houses. In January of 2004 John purchases a house that is not his residence for $50,000. He spends $10,000 in materials renovating the house, which he sells in No- vember of 2004 for $90,000. What is the amount and character of John’s gain from this transaction? A. $20,000 ordinary gain B. $30,000 short-term capital gain C. $30,000 ordinary gain D. $20,000 short-term capital gain I got confused on the "ordinary/short" part ...

Well Im A New Years' baby myself , but anyhoo, from what I've always known is that if they are born on Dec 31st they can be claimed for the whole year. Never heard or seen when the year turned over (ie... 1st of Jan) that child can be used on prior years' return. Of course I could be wrong, hence need to take an exam next year! lol!

Here ya go JRS.... In January of 2004, Mrs. Black purchased an office build- ing and used office furnishings. The used office furnish- ings consisted of chairs, desks, and file cabinets. $900,000 of the purchase price was allocated to the of- fice building and $50,000 of the purchase price was allo- cated to the used office furnishings. According to the General Depreciation System (GDS) under MACRS for depreciation, what recovery period must she use for the purchased items? A. 27.5 years for the entire asset, building and furnishings B. 39 years for the building and 5 years for the used office furnishings C. 27.5 years for the building and 7 years for the used office furnishings D. 39 years for the building and 7 years for the used office furnishings Batter up!!!!

This is going to be fun I see... CORRECT!!! How do you guys know this so quick! lol! Want another??

Here's a question of an old SEE exam. Started looking at old exams now to prepare for upcoming preparer test so please dont make me feel stupid for asking. How else will I learn things I dont do on a regular with clients. They gave the answer but I dont know how it was derived so whomever answers please explain. Thx! Tom Brown, who is single, owns a rental apartment build- ing property. This is the only rental property that Tom owns. He “actively participates” in this rental activity as he collects the rents and performs ordinary and neces- sary repairs. In 2004, Tom had a loss of $30,000 on this rental activity and had no reportable passive income. His adjusted gross income, without regard to this rental loss, is $60,000. How much of the rental loss may Tom deduct on his 2004 return? A. $30,000 B. $25,000 C. $0 D. $6,000 PS Thx Bob!!

I'm the same with my clients too. I don't think we "mom&pops" will go out of biz... in this economy we cant afford too! We'll just have to knuckle up and fight for our businesses and comply with the new rules and all will be alright. All these years our clients have stayed with us and I don't think they will bail out on us now. If anything, those of us who stay in business after "the change" will probably grow our businesses more because people who are use to the small home feeling of not so flashy tax prep offices will seek us out b/c they will still want that when getting their taxes done.

See that's the case and point... why should a client have to go through all of that hassle and inconvience to get their taxes done. They come to the #1 tax prep franchise in country and get passed around like a beer funnel until you just cant take it any more (b/c your tax preparer drunk) then you go to another office where 9 times out of 10 the same thing. You should feel at home and comfortable with your preparer. They should be in contact with you during the year if changes occur that might affect their taxes for that year. Most of time you come back and the preparer you had no longer works there and you have to start the bonding process all over again. I knw i wouldn't want to have to do that year after year...

Intellectually titillating with a hint of commical whimsicality! lol! Thank God I have a dictionary and thesaurus!

I worked for H&R for two seasons awhile back and trust me I know how raggedy they can be. I took the test they gave back then and it wasnt that bad so if the test is along those lines then we all will be ok! It wasn't that the classes weren't up to standard (they were great), but there has to be a passion factor to want to help people prepare their tax returns. Most are there to earn xtra money so they could care less if they do the returns right or not. Plus the culture in the H&R office is to get them out as quick as possible so you can get to the next unsuspecting victim of this madness. I have my 4 yr degree(BS MGT,Minor Accounting) and had taken tax classes in college. My professors always said you could make good money partime by doing taxes, hence me signing up for H&R, but I knew you were to treat it as a learning experience b/c of the fact that tax laws change and the public is trusting you to take care of their tax prep needs. Needless to say I didnt like the way they treated people in the office with the "we dont care about you we just want to get you tax fee" attitude so I did what i needed to do to become an authorized efile provider and went out on my own. That was 8 yrs ago and I feel joy in knowing I actually treat my clients the way any person would want to be treated, for one when spending their monies for services rendered and helping them with a task that must be done for the IRS. I think everyone in this community shares the same thoughts as I do as far as their clients are concerned and if it means taking an exam to continue providing that service for our clients, then I'm all in!! I just hope that once we get past the testing and so forth that we will all be recognized for that achievement by some certificate or letters we can put behind our names so the public will know that we went through to trials and tribulations to serve them like the CPA's, Attorney's and EA's.... Thank you and you all have been a wonderful audience!!! LOL! Taxguy

All the requirements they're asking for, we as ERO already comply too; suitability test, PTIN, EFIN, CIR 230. CPE not required, but I do 16 hrs per year anyway. I just hope this test isn't going to be so complex that it would just be better to take SEE or CPA exam. I got a feeling this exam they're talking about giving is going to be more than what's been lead on to be.... :(

jainen you are just too good! easy on the rest of us poor ole lil tax accountants... :P

Makes sense. Guess I will make some dummy runs and see what kind of totals I get on the finished product....

Great piece of reference material.....THX!

Have your clients exhausted all other avenues of paying back debt to IRS? It states they must "qualify" for an OIC. I read through the info on it and nothing tells if you can separate the debt since it was a joint tax liability to "them" in 2004. Now if the Judge made a ruling about in the divorce decree to separate it then she should be able to file hers separately.

Great way to price. I know that's how H&R does their pricing, but what would you charge for a worksheet as to not have an ungodly total for the client when done with the return???

MAN I NEED TO GET MY WEIGHT UP!! :lol: