BulldogTom

TP claimed the $7500 credit in 2008. Does not have a filing requirement this year. Is there a way other than filing a tax return for the client to make the payment? I think I know the answer but I want to make sure. Thanks Tom Lodi, CA

There will be no 1116. There is not enough income to generate a tax in the U.S.

H is US citizen. W is citizen of Japan. Two children are have dual citizenship. They lived in Japan all of 2010. Been living there continuously for 6 years with occasional trips to US to visit family. Both worked in Japan. Filing status - he can only file as MFS unless his spouse elects to be treated as a resident alien, then he can file MFJ? She does not have a filing requirement unless she elects to be treated as a resident alien and files MFJ with him? Income - he can exclude up to 92,900 of income on form 2555 regardless of his filing status? If they elect resident alien for her, she can exlude the same amount on their MFJ return? CA should exclude all the income as they are domiciled in Japan for the entire year. Only need to include the rental income from their CA property on the MFJ return? Do I have this correct? Thanks. Tom Lodi, CA

50,000 new clients. Sweeeeeet. Tom Lodi, CA

Bahamas Cruise in July. It is our 20th anniversary and my son is graduating from high school. I am going to the Bahamas, I am going to the Bahamas, I am going to the Bahamas.... I keep saying that to myself as well. Tom Lodi, CA

Well silly me, I blew right past that part and went straight for the instructions. Thanks Jainen. Appreciate the help. Tom Lodi, CA

Does the Federal 1041 have to be attached to the CA 541? Are the rules the same as for 1040 returns (ie if you have a schedule other than A, B, M, you have to attach the federal return)? Couldn't find this info anywhere. Thanks Tom Lodi, CA

That has got to be redneck entertainment in its highest form. Tom Lodi, CA

No different than any other rental. Just make sure you get your basis information and the date placed in service correct for the depreciation. Make sure there was no office in the home in the past where depreciation was taken. Tom Lodi, CA

Does that mean you can't e-file the RITA Return? What about the SD100? Can it be e-filed? Sorry to keep bothering you. I think you must be getting rich off all these forms you have to prepare. Tom Lodi, CA

One more question....what form do you use to pay the RITA 37 tax due? Thanks Again Tom Lodi, CA

JB, Client says last year he filed exempt for the School District. Is this possible (I don't see an SD100 in his return) and how would you know if he is exempt? Thanks Tom Lodi, CA

If you really want to get into a fight with the spouse, file him as MFS but break out all the community property income and allocate her half to her. Send a letter to her attorney and show the split and ask for his share of her income from the community. I am assuming that she made a lot less than him. It will blow up her return at the IRS, and by putting the Attorney in the middle of it, you have great documentation that you have made the statutory required time to provide the information. It is going to guarantee your client an audit if you have to take this all the way, but it might make the spouse think twice about a MFJ return with a split of the refund. Tom Lodi, CA

I agree as well. You are just asking to make this worse if you put them in the same envelope. Tom Lodi, CA

Found my answer in the instructions for line 5 of form 2848. If a taxpayer is out of the country for 60 continuous days prior to the due date of the tax return, they can authorize a representative to sign their tax return. From the instructions Write a statement on line 5 that you are authorizing your representative to sign your income tax return pursuant to Regulations section 1.6012-1(a)(5) by reason of [enter the specific reason listed under (a), (b ), or ( c) under Authority to sign your return above]. Just in case some of you ever need this one. Tom Lodi, CA

Client is moving back to US from Japan. W is already here, hubby will not be back in time to sign tax return. They are trying to enroll children in school and need tax returns for scholarship awards. W wants to sign tax return for H. Is there a form in ATX that I can print for them or do they need to go to a lawyer to get a POA? Thanks in advance. Tom Lodi, CA

Last year code was 5101. That is the same number I got when I used the tool margaret posted. So I think that is correct. So we don't have to file a tax return for Marysville or Milford Center? When I enter the information on sch A of RITA 37, what do I do with retirement and SS? How about wages earned in CA? Thanks Tom Lodi,CA

Doesn't the IRS use the social and the first 4 characters of the last name to check a return. If that is the case, it would make perfect sense that Husband named Smith would go through as 123-45-5678SMIT and Wife also named Smith would go through as 876-54-3210SMIT if they are both legitimate SS#'s. Just thinking out loud. Tom Lodi, CA

3779 Prospect-Richwood Road Richwood, OH 43344. My wife says please say they are exempt!!!!! Do they need to file city returns? JB - you are the best for helping us out here. Any tips on completing these returns? Thanks Tom Lodi, CA

I think I mis-phrased that response. What I meant to say is that I think there is a simple way to correct a depreciation error. I think (but I am not positive) that a 481 election is for spreading the tax over 4 years when changing accounting methods. That is not what she needs to do. Sorry if I added to any confusion. Tom Lodi, CA

New client walked in off the street today. Moved to CA from OH. They lived in Richwood, H worked in Milford Center, W worked in Marysville. Local withholding from Milford Center and Marysville. How many darn tax returns does OH require for this couple? In reading the instructions, it seems like they don't have to file returns for Milfor Center or Marysville because there was withholding. Do they have to file a school district tax return? Which one? Any help appreciated. I am thinking about a new policy for my company that we will only take Ohio transplants after they have been in CA for more than one year. Tom Lodi, CA

I think you are overthinking this one. If I remember 481 adjustments, they are for changing accounting methods. Like when the IRS forces you from cash to accrual. I don't think you need to go there with a change to correct an error. It is a simple depreciation correction that you need. Tom Lodi, CA

OK, I get that. But I think you have to segregate the activities. I don't think you can combine 2 unrelated business activities for the deduction. Or can you?

TP has K-1 from patnership, an activity that builds and sells houses. As you can imagine, there have been nothing but losses for the last couple of years. This year, the K-1 has a negative amount for DPAD. That seems very strange to me. I know enough about this to know that it is limited by income. You cannot take a deduction if you don't have income to offset. So why would they put a negative amount on the K-1. You cannot have a negative DPAD. Or am I missing something? I do the calculation every year for the company that I work for in my day job. One of our divisions qualifies as an activity for the deduction, but that division does not always have income. And when I break that division out and apply the overhead, I know if it is not a profit there is no deduction. That is pretty much the extent to which I work with this form. Never for any of my clients. Any thoughts appreciated. Tom Lodi, CA

I have a new BFF on the forum. Looking forward to seeing if Derek Carr is everything his brother was. Should be an exciting season. Tom Lodi, CA