BulldogTom

OMG - Jainen taking the side of the stupid taxpayer instead of just letting them suffer the consequneces of their own stupidity. NEVER, NEVER, NEVER let the client go it alone. Because when they do.....well....stuff happens. I am 100% in agreement with Jainen on the strategy to use. Appeal that muther....and with good ammunition. I would almost do it on a contigency (which is legal if it is an appeal) just to prove to the clients how dumb they are and how smart you are and how they should NEVER NEVER Ever do an audit by themselves again. Tom Hollister, CA

We have moved to a new city and are attending different churches looking for a new church home. Saw this on an envelope just this Sunday and thought it was brilliant. "While we try to honor your wishes, we cannot guarantee your gifts will be used as designated". Tom Hollister, CA

Ever since "cloud computing" came along, I just get this mental picture in my mind of bill gates sitting on a john deere tractor pulling a big server behind him plowing through the "clouds" with a big smile on his face as dollar signs go flying up from the server. Tom Lodi, CA

who will be able to plow your data in the cloud? I am certain that "they" will tell you that your data is secure and no one can take anything from it. I don't believe it one little bit. The first one of these companies that figures out how to farm out the data in your files will do it without thinking twice. Just my humble opinion. (it isn't paranioa if they really are after you). Tom Lodi, CA

I have this problem with Foreign Income Exclusion. If you exclude all of the income, you can't efile. So we exclude all but $1. Tom Lodi, CA

I would tell him. The story that will get around about you is that you did this to him intentionally and your business will suffer because of it. Call and let him know that the deadline is Tuesday and until you have the signed forms and the payment for your work, you cannot process the returns to the IRS. Then, he can decide to file or not file (ie pay or not pay) Tom Lodi, CA

I had one IRS auditor tell me one time that the quickest way to get an audit is to file MFS in a Comm Prop state. Nothing matches, and the computer will almost always kick it out. They "suggested" that if they really wanted to file MFS, keep any income that is reported via third party on their own return (W2, 1099's). You have to remember that in CA, community income only starts when the community starts, so the first or last year of marriage may present some planning opportunity. Community ends in CA when the couple splits with no intention of reuniting. Tom Lodi, CA

Doesn't he have to start taking distributions? And if he does not, in the 5th year, it all dumps on his tax return? I think he has to take it over the life of the decedent because only a spouse gets special considerations. I would double check or you might be getting a nasty letter in 6 or 7 years from the IRS. Tom Lodi, CA

I know this is got to be simple, but I can't find the answer right now. Is the American Opportunity credit good for 4 tax returns or four full years at school (which would mean on 5 tax returns)? Everything I see right now just says first 4 years of school, at least a 1/2 time student, yada yada yada..... Example, my son enrolls at Fresno State in Fall. On my first tax return I take the AOC. He goes for the next 3 years spring and fall semesters. I take the AOC on 3 more tax returns. His final semester (the end of his 4 years of education) would fall on my 5th tax return. Do I get to take it, or have I used up my 4 years? Tom Lodi, CA

Does the Chevy Volt Credit have a carryover? If you qualify for 7500, but you only have 2k in taxes, can you carry the rest to 2012? Thanks Tom Lodi, CA

That was how I was taught to do it many years ago. See others just put in an amount that zero's out income and carry the rest. Tom Lodi, CA

Sounds absolutely how I would expect it to come out. Tom Lodi, CA

Every client (besides my mother in law - but she doesn't pay, so she may not be a client) signs an engagement letter in my office. Every year. If anyone balks, they don't get a return. No one has ever balked. Tom Lodi, CA

Have you gone into the Sch E and clicked on the box for "Complete Disposition of a Passive Activity"? I think that is your problem. It is a two step process to dispose of a rental activity in ATX. You have to do the sale in the Asset Entry form and then click the box on the Sch. E. Tom Lodi, CA

Amen & Amen

My prayers are for you both. Keep the faith. We love you, and so does HE. Tom Lodi, CA

forget it. After completing the joint return, there is no tax. Tom Lodi, cA

Clients are still married (and will stay married if he can ever leave his momma - according to her). She moved to Idaho with the kids. He says he cannot find a job there and is still living in CA. I know Idaho is a community property state. Can I file a joint return for fed, and a separate return for her for Idaho, as he has no tax ties to the state? I would really not expose his CA income to ID taxation. Tom Lodi, CA

It is on the input. Make sure you have the right tab (look at the bottom of the screen for partner, Shareholder or beneficiary). The CA amounts are generally entered over the top of the federal amounts. Tom Lodi, CA

Hey Eli, You are going to have to get this info from the taxpayer. Hopefully he has a clue. Otherwise it is the client who is going to get the tax bill for the gain when IRS does the matching later in the year. Tom Lodi, CA

I used that feature this year for the first time, and I can see how it will help in the future. But, it does require some playing around with to get used to. I think I got it right on the 3rd try of importing, and then I could make any changes on the detail page. I still want to know why we can't import the CUSIP numbers? This is a head scratcher. The functionality is obviously built already, and if we are getting the CUSIP in the file, why not allow us to import it. Sounds like the programmers at CCH ran out of time before the release date. Where is our resident CCH summer tester/evaluator/test group member. This is one thing that is small but seems incredibly simple to do. Tom Lodi, CA

Call an appraiser and get a late appraisal based on date of death. Hopefully, they will have comparables from the period that will get you an accurate number. It is better than nothing. Tom Lodi, CA

I think he is asking a different question. Are you saying that the 2010 was correct, but should not have been final. There is a 2011 1099DIV that needs to be taken care of on a 2011 1041. So your question really is -- "Do I need to file an amended 1041 that is correct except for the fact that it is marked final - so that I can now file the 1041 for 2011?" Is that what you want to know? If so, I would say no - just file the 2011 1041. Tom Lodi, cA

Does "Deed in Lieu" mean the mortgage is in the toilet? Tom Lodi, CA

I think you are on the right track. DOD FMV + Improvements = Adjusted Basis (providing they were not renting the property after DOD). Now the big question is - did the trust sell or did the beneficiaries recieve a distribution of property and then sell it? Tom Lodi, CA