BulldogTom

Client was a CA resident until 2010. PY in CA and PY in OR in 2010. Collected CA unemployment while a resident of OR. Moved back to CA in 2011. PY for CA and PY for OR. Question on the CA UI paid to him while a resident of OR. Is it taxable to OR? Is it OR source income since he was a resident while it was paid? Thanks - and yes Jainen, I will get around to reading the instructions on this one, but I am looking for a little direction. I think it is taxable to the extent that he collected while a resident of OR, but not while he was a resident of CA. Tom Lodi, CA

Sounds like income to the business to me, and the 1099Misc with non-employee comp sounds correct. If you can find a way to get it to Line 21, I would like to hear it. This was and is a business transaction, and his business got the benefit. Someone else can chime in if they think I have this analyzed inproperly. Tom Lodi, CA

I trust all my clients and believe everything they tell me. Tom Lodi, CA

Possibly. Are the fences his? or the local government? Did you capitalize them? Was it mandatory that he take the fences, or did he apply for the grant? It might be subject to SE tax depending on how it went down. Because if he got an asset for his business, the way he would get basis in it would be to take the value into income. Lots of questions, not sure what the answer is. Tom Lodi, CA

Marilyn, I was just reading my post and it does not sound very nice to you. I hope you don't think I am being ungrateful for your opinion. I am just tired and frustrated, and I hate it when the government (any government, and I have the worst one out here in CA) tells you something and then does something else. But I am not going to fight the state of WI over this. I was just hoping I was not seeing the solution to get his taxes reduced a little bit. Thank you for your help. And Jainen, the next time you are coming over to the valley, I will get you another bottle. The cost of shipping is more than the bottle. Tom Lodi, CA

I have a simple 1120S with a CA 100S. Rental Real Estate, so everything is on the 8825. I have one asset that is depreciated differently from the rest, meaning I have a depreciation difference for the CA 100S. The CA sch B is not populating from the federal return, and I had to override every cell to get the numbers correct. Not a lot of assets, but a pain in the asset just the same. And the amount of the difference is not flowing to the front page of the 100S. Override that, and I get a red error that if there is an amount on line 5, there has to be a sch B attached. This is way to simple of a return for the amount of time I am spending on this. Any program help is appreciated. Tom Lodi, CA

Marilyn, if that is the case, then how do I get the SS out of the WI non-resident return? I wish you were right, but when you say that Federal Taxable SS is included in the tax calculation, and then you take a portion of that tax that bears the relationship to WI source income, you are taxing SS benefits. The form does not make an allowance for SS benefits to be removed from the Federal Income before taxes are calculated. How does the book say to take out the social security from the federal agi? I really would like to find a way. Tom Lodi, cA

I think you are correct my friend, there are two standards of taxation in Wisky - one for residents and one for non-residents. I have now read the instructions, and my conclusions were wrong. WI taxes the social security benefits of non-residents. Sucks. But it is what it is. Tom Lodi, CA

OK, I will give you that I need to read the instructions, and now I will because I did not get the quick answer I was hoping for here. But I need to take exception to your post my friend. If I am using federal income to calculate the tax, and SS income is included in that amount, and then I apply a percentage factor to the resulting tax, I am still paying tax, even if only a percentage, on SS, which is not taxable income in the state of WI. There has to be a way to pull the SS out. Let me give you an example. Say I have 17K in taxable SS and 3K in gambling winnings. My income for federal purposes is 20K. My ratio is 15%. My std deduction and exemption is roughly 7,500. My taxable income is now 12,500. Say tax on that is 1,000. My ratio is 15%, so I pay 150 in tax. That is not proper, because the SS is not supposed to be taxable at all, so I only have 3K in WI income, and with my std deduction and exemption, I have 0 taxable income, and therefore 15% of 0 is 0. Unless WI taxes SS benefits of non-residents, and not the benefits of residents, I need to adjust the SS benefits out of the federal income before the WI tax rate is applied to that income. Tom Lodi, CA

Taxpayer has no liability in CA. He is retired, SS and a small pension, and this win at the casino are all of his income. CA credit for taxes paid to another state is non-refundable, so he gets no credit for paying the tax in WI. So I am putting in the WI Non Resident Return, and it says that SS is not taxable to WI, but when it is calculating the tax, it is taking Federal AGI, which includes SS, figuring tax on that amount in WI, and then calculating a percentage of that tax based on the ratio of Federal Income to WI income. How do I get the SS Income removed from the Fed AGI so it is not taxed for WI purposes? I could really use some help on this. Tom Lodi, CA

Client was visiting WI and won a jackpot at a casino for 5K. Client is a CA resident. Does WI require a tax return for these gambling winnings? Any help is appreciated. Tom Lodi, CA

No credits, no issues like that (yet?). Just a kid who goes to a foreign country and decided to get married.

I think the answer is paper file, but I thought I would ask first. Taxpayer has been oversees teaching for 2+ years. Recently married a foreigner while abroad. Needs to file his tax return. Spouse does not have SS#. How do I file this thing? Filing status is MFS There is no income from the spouse. The taxpayer makes almost nothing and it is excluded anyway. Have the spouse name - but she does not have a SS#. Can't E-file if she has no ID number. Am I going to have to fill out a W7 for her and mail the return in? Thanks for any hint on how to make this less painful. Tom Lodi, CA

Terry, my apologies. I have not done a military return in a very long time, and I blew that one. Just looked up the pub 1032 and you are correct. They file a 540 NR and the income includes 1/2 of military pay because the spouse stayed in CA. Sorry, and thanks for educating me. Tom Lodi, CA

I don't go to myATX unless I have to. So I am blissfully ignorant of the problem and I hope to remain so. If KC was around, she would agree with the "blissfully ignorant" part. Tom Lodi, CA

CA taxes all worldwide income of its residents. The taxpayer and the spouse are CA domiciled, that means CA residents. CA 540. Not a CA540NR. All income goes on the return, regardless of where earned.

Above 5000 = auditor? Congrats Joan, but you did not need the ttitle from Eric to be a master in my book

it is fixed now.

Just sent a return to fed and CA. CA rejected within 2 hours with a code of ERC: 1040CA571. The explanation was that the federal forms were not in numerical order. Never saw that one before, and I have no way of putting the return in order, ATX does that when we create the return. Anyone seen this reject code before and know what it is referring to? I resent the return and will see what comes back. It was a simple return - HOH EIC and 8812. Tom Lodi, CA

I love the pampered chef items. They have the best can opener (manual) and the best apple corer/slicer. I have seen there cooking stones for baking cookies, but I was not impressed. I think a non-stick cookie sheet is still better than the stones, but alot of people like them. As for the tax return, I have not done one, but I would treat it like Avon or tupperware or any other home sales business. If they have inventory to show at their parties, then they have inventory. Having inventory also means they have to have a place to store the inventory (which is one of the valid reasons to have an office in the home). And if they have an office in the home, then they have mileage from the office to everywhere they go for their business. Good mileage logs are nice to have, but if you have not trained your client about that yet, then you can use the sales logs to figure out where the parties were and google or mapquest the route for the miles. Don't sweat it, it is a fairly simple sch. c if your client is willing to listen to you. Tom Lodi, CA

OK, I am confused. Can someone straighten me out? The rules used to be that unless a rental activity rose to the level of a business, they were not required to issue 1099's for services. If they rose to the level of a business, then all the 1099 rules that applied to a business applied to them. Then they changed it so that all rental activities were a business for the purposes of 1099 reporting, meaning issue 1099's for services in excess of $600. Not for goods. Not to corps. Then they passed the healthcare law, and it was anyone you pay over $600 including products and corporations. Then congress repealed part of those rules. What is left for landlords who don't rise to the level of a business? The form Sch. E has a box at the top and asks if you are required to file 1099's? But the Spidell update book says the 1099 rules were repealed. I think Spidell is wrong, but they have been a very good source of info for us for a very long time. Anyone have a definitive answer? Thanks, Tom Lodi, CA

Not what I wanted to hear, but thanks to both of you.

quit picking on the ed credits! My oldest just finished his first semester. I was working on my own return today and was very happy to see the credit. I have 7 more year to collect on that credit. Leave it alone! Tom Lodi, CA

To all of you who are fluent in Church issues, and in CA payroll. I know that in CA you have to pay an exempt employee 200% of the minimum wage. Are church employees exempt from this rule? What if their duties are only part time? Can they be paid once a month? Here is the scenario. Our church has 3 employees. All are paid a salary once per month for their services. Employee 1 is the secretary and she comes in 3 days per week for 4 hours each day. Employee 2 is the custodian who is given freedom on when to come in, but generally works one day per week. Employee three is the treasurer who comes in 1 day per week generally, and works a little more on the quarterlies, year end, w2's, etc. None of these employees earn 200% of the minimum wage. Is the church OK under CA law? Thanks Tom Lodi, CA

I like Depreciation Calculator from Cellutionware Software. It is like $400 to get it and it cost about $190 per year for upgrades and support. Kinda weird that they only talk to you via email. No phone calls. I have used that software for about 15 years and it is good stuff. Prints out reports that look just like CCH printed them out. Book, Tax, State, and AMT calcs. Groups and locations. I really like the product, and I think it is a steal fro the price and what it does. But it does not run on a network, and they have no plans to make it do so. Hope this helps. Tom Lodi, CA