joans

She is looking at the Divorce Decree tonight to see if anything is mentioned. They didn't really fight over much on the divorce. They split up some of the personal belongings, but she never challanged anything with the house. Like I said it was a pretty amaicable split.

That is what I was initially thinking, but the community state thing is the only thing I was a little worried about. She probably did help with the mortgage while married, but he bought the house and her name was never on any of the paperwork after they did get married. Again, just the community property factor comes into play. I will advise her with both options and let her make the final decision. Personally, I would take the credit too. This is her first home buying experience and she should be entitled to it.

>>didn't get anything from the divorce with the house<<

Do you make this statement based on your client's explanation, or have you read the actual divorce decree? It is common for courts to consider, for example, that because a year and a half of mortgage payments were made from community property funds the wife had at least some community property interest in what otherwise would have been separate property. The divorce decree would show the property division as trading such an interest for additional cash or other marital assets.

If that is indeed what the divorce decree says, then she had a "present ownership interest" within the last three years and is technically not eligible for the credit. In my opinion, this is a pretty good question first thing Tuesday morning!

I will have to ask, but I believe that because the husband bought the house before they were married, she didn't want anything from it. It was a pretty amicable divorce. They are both friends of ours. Now if the decree says that she didn't have a "present ownership interest", would she then qualify for the credit?

I have a friend who is looking to buy a new house. However, here is her situation. Her ex-husband bought his house before they even knew each other. They got married, never put her name on the mortgage or on the property taxes. 1 1/2 yrs later they are divorced. Would she qualify for this credit. I have tried to look and haven't found any information regarding this scenario. I would almost say yes because she didn't buy the house, name was never on mortgage or taxes and didn't get anything from the divorce with the house. My only concern is because we are in Wisconsin being a marital property state. Any opinions or thoughts would be appreciated.

Sara

This is the blind leading the blind. "Both inheritance and gift taxes for WI were completely phased out as of 1992. WI Estate Tax has now replaced the former inheritance tax. The WI Estate Tax is based on a percentage of Federal Estate Tax for estates exceeding $675,000. Refer to WI Form W-706." Page 41, Wisconsin Tax Guide. The next paragraph states that: Wisconsin Estate Tax Expired January 1, 2008

Do you want me to fax you the page?

Marilyn,

If you could, I would really appreciate it. 715-848-0818. Any help would be great. Blind is willing to accept from the blind:)

Sara

Hi all. Something new for me. Clients husband died in April 2009. State (WI) is looking for paperwork to set up estate return. Never have done an initial estate return so how do I begin to proceed on this? Any help would be very much appreciated. Do I start with a 1041?

Sara

That is correct. My husband is working in Iraq right now and he has to be out of country for 330 days out of 365 days so we are watching how many days he is home very closely or his wages are taxable. He left Sept 21 and has been home for 14 days in Jan/Feb and will be home again for 14 days in May/June and his term is up on Sept 21, so he will probably be home beginning of Oct to claim the exemption of taxes on his wages. Sorry, but for 42 days, wages are taxable:( I had to file extension because of the 2555 form. I still have to figure out how to fill it out:)

Sara

They took from you, but you got their money and go do what you want:) So enjoy on them!!!

Sara

I have an S corp that an asset was incorrectly entered on 2004. So I am amending 2004 - 07. Filed extension for 08. Then I have to amend the personal return where the k-1 flowed. I know this isn't an installment sale, but I would think that would be the same thing. I also had to amend an installment sale for 06 & 07 where we reported payments were made and in reality only interest was paid. So, I would show the installment sale from 03 and see what happens. You are doing the right thing and attempting to correct a human mistake. It happens:) Even to the best (or worst) of us:) Good luck with everything and it actually goes pretty quick when you get in the groove.

Sara

Just wanted to add my thanks for everyone's help and expertise. Could not have gotten through some of my returns without the help that is given here!! Special thanks to Marilyn for all the times I called her and bugged her when she was swamped with her "bon bons" Thanks again all and look forward to next year. Take care and take a well deserved break everyone:)

Sara

That's what I have been telling people, but one client said he talked to a buddy of his who had just come from his "tax preparer" who said he could:) Man, I love it when people talk to people and totally confuse the process:) Thanks for the feedback everyone. 2 more days!!!!!!

Sara

Wisconsin

Where on the federal form? I know about the self-employment health insurance, but can anyone take it even if not self-employed?

I have been getting a lot of people asking about deducting health insurance premiums from their Standard Deduction. As far as I know it is just property taxes if they don' itemize ($500 & $1000 respectively). Am I missing something or are they just misinformed? Please let me know. Thanks.

Sara

No Kidding - Very tired brain!! Luckily most of my bills are automatic withdrawal do I don't have to worry too much or I can pay them online and put future dates on them!! I filed extension for ours so I don't even have to worry about mine til October. Matt has to be out of country for a year or we have to pay taxes on his income. His year is up in Sept, so then I can do ours. Good thing the cops were sleeping regarding your license:) Been there done that. Take care and relax tonight if possible:)

Sara

Pub 587

Breakfast $1.11

Lunch & Dinner $2.06 each

Snack $.61

Don't work too hard:)

Sara

No Joan isn't make me work on Sunday. I just am to get everything done. I don't stay late during the week. At 5:00 I pick up Tina and go home. So I work weekends to catch up and this weekend I want to get everything done so I don't have to worry about crunch time. I don't mind. It's quiet, I wear what I want and listen to what I want and get a lot of stuff done. My mom is watching Tina so I don't have to worry about her. So I will be woking Sunday this weekend just so I can get things done. It is ok:) I have the motel booked for next weekend and my niece is coming up to watch Tina for me so I can go out with a friend on Friday night and have some adult fun:) Then I get to sleep in all weekend:) I cannot wait!! I haven't had a day off since the beginning of Feb. I have been working 7 days a week. But I knew this would end on the 15th - so the light at the end of the tunnel is getting brighter and brighter:) Have a great Easter and enjoy yourself and family.

Sara

Marilyn:

Knew you would know!! We had just talked about it:) Have a great Easter!! I get to work!

Sara

I have found that most people are somewhat aware when they take out a 401K early and don't take out taxes that they will owe. I had one guy say they figured it to be about 15K because his wife was self-employed and didn't pay estimates. So he was happy when we got it down to 11K with deductions and everything else. He had the money set aside so he was prepared. So, some are really good and some you just cringe when you tell them. I had one couple that were getting a refund and were upset because it was less than last year. Well, they made 15K more and had the same deductions. Different tax bracket. What can you do. They give you the numbers and you do what you can.

Sara

I just tried to transmit and it says server down. Didn't we go through this last year and the year before:) I think we should all play hookey and go home and enjoy the fine weather we are having here in Wisconsin!!

Sara

I know this is kind of pushing the envelope, but when I wanted to bartend many years ago, you had to be certified and take a class to learn how to check ID's and all that fun stuff. If a state inspector came into the bar and you didn't have that class to become a certified bartender, the owner could get a fine. Just my input. Thanks

Sara

Unfortunately, we take them up to the end, but file extensions. Usually, we don't get too many last day stragglers and once we tell them we file extensions, they go somewhere else. Truthfully, I would like to quit by Feb 1:). But to no avail does that work.

Sara

Tax season is hectic on everyone. I am working 2 part time jobs while working full time doing taxes and taking care of my 4 year old daughter by myself right now. At night, she comes first and I quit at quitting time. If people don't like it or get their taxes later than then like - too bad - take them somewhere else or do them themselves. Life is too short to worry about taxes. They will be here next year too. I like my job, but I love my family. They are first priority and clients are going to understand that or go somewhere else:)

Sara

I am just going to work non stop now so I can get them done. Weekends are for after the 15th:) It is what it is . I filed an extension for mine cuz of the hubby situation (in Irag). I just want them done so I don't have to work on them after the 15th. Here's hoping:)

Sara

I had a problem like that where the return would shut down. I called tech and they said there was a problem with the Asset entry form. Try downloading just the Asset Entry and try to open the return again. Hopefully that works for you. Good luck.

Sara