Mai

I agree... However, the taxpayer has very strong belive in the charity organization per religion reason.

It seems a reasonable approach to report as Interest Income and Investment Expense. Thank you very much!!

Hi, A taxpayer plans to loan his line of credit ($300K to $500K) to a non-profit charity, which agree to pay for the morgage interest. How should this be handled and what's the tax consequence on both parties? Option one: The taxpayer pay interest to the bank and the charity pay interest to the taxpayer at agreed rate. -> The taxpayer need to report the interest received (1099 from the charity) as misc income, and claim morgage interest on Sch A. Option two: The charity pay the morgage interest to the bank direcly. The taxpayer doesn't report interest income, neither morgage interest even he has form 1098. The charity can still report the expense on their side. I think option two is better, becasue there is no $100K loan limitation or phase out concern on the taxpayer side, but I am not sure if my assumption treatment is correct or if there is other option make more sense. Appreciate if someone can share their thoughts. Thanks! Mai

Hello, Can someone share their experience re: theft loss claimed for criminally fraudlent investment? I read some document, but still not quite sure about the appropriate procesure. Should I file Form 4684 page 2 as Income-producing property and report it under Schedule A, Line 28, other misc deduction, then attach the executed statement referred in Rev. Proc 2009-20. Is that the right process? Thanks Mai

Thanks for the information. We have filed extension because I am not sure how to handle this. What prosys fx you were referring? Is that different software?

Does anyone has experience in preparation of theft loss as result of Fraudulent Schemes? It's similar fraudtlent schemes like Madoff, the client and other victims had filed a case with FBI, and has letter from Dept of Justice in file. I read some articles exlaining the ruling/guidance issued by IRS on March 17, 09, but not sure how to apply those special tax treatment in ATX. Based on the guidance, the investment theft loss is not subject to the $100 per event or 10% AGI limit and the deduction can be treated as business deduction for NOL purposes. I wonder if anyone has experience can share how they imply the tax treatment for 2008 return. much appreciated!! Mai

What's the criteria to determine where to report 1099-MISC box 7, nonemployee compensation? Should it be on form 1040 line 7 wages or Sch. C. The client got a temporary job at a company and was given a 1099-MISC. If he doesn't has any expense to claim, can it be reported on 1040 line 7 instaed of Sch C?

Quick question.. Can tax payer still convert Tradiitonal IRA conversion to Roth IRA for 2008 before Tax due date (4/15/2009), or the conversion need to be done before 12/31/2008 for Tax Year 2008? Thanks!

One of my clients said she was told there is some kind of tax deduction/benefit for vehicle bought in 2008. But I am not aware of any other tax benefit for vehicle other than license and sales tax deduction on schedule A. Can someone help? I am afraid if I missing something important. Thanks for the help.

If the taxpayer's parent is a US citizen, or resident alien(green card) but does not live in the US most of the year. Can they be taxpayer's dependent if the taxpayer can prove he provided over 50% of his parent's total support?

Hello, In order to claim the health insurance premiums paid by the taxpayer, does the insurance policy need to be in the name of the business, or it can be the name of sole proprietor? Mai

Thanks very much. it works!!

I have been triying to update my ATX program, but still not getting CA 540 form loaded. Can someone tell is that right the form 540 is not available, yet, or I am missing something during the program update? Thanks!