BulldogTom

Nope, as Jainen said, all that went out the window when THAT GREAT AMERICAN PRESIDENT REAGAN changed the system to class life from useful life. Tom Lodi, CA

How about amending 2005 and 2006 first, then proceed with 2007 without the complications. If it is a hobby, those losses are going bye-bye anyway. Proceed with 2007 as if they don't exist. Tom Lodi, CA

In the title, Janie mentions an 83( election. Doesn't that mean the taxpayer took the income in the year of the vest at FMV on the date of the grant? Wouldn't this be a straight Capital Gains situation with the basis established in 2005? Janie doesn't mention the election in the body of the post, but does in the title. tom Lodi, CA

JB, There is a school of thought that if the previous floor was in such bad shape as to need to be "repaired" in order for the home to remain useful as a rental, then you should expense as a repair. Jainen is going to rake me over the coals for bringing this up, but there is an airline case (I forget the name) where they were allowed to expense the cost of engine overhauls in order to keep the plane flying. It came down to a repair that did not extend the useful life of the plane versus an improvement which did. You may be able to work the repair angle, but it is an aggressive position, and you should have all the facts and circumstances well documented before you go this route. Tom Lodi, CA

Julie, What a great post. Women are always better at expressing their feelings than men. I think your post is exactly saying what I feel (except I have a little anger mixed in too!). You can't beat a California woman. Well done. Tom Lodi, CA

Reprint it. I don't remember. Oh yeah, and someone re-post the Frikkin Bananas one too. That one should be pinned. I will never eat another banana without thinking of that post. Tom Lodi, CA

The CA Board of Equalization is responsible for collecting sales tax in CA. Their web site should have all the county, city, and district sales taxes. www.boe.ca.gov Hope this helps. Tom Lodi, CA

Are you renewing for next year?

Well, if they increase prices to the highest level ever, then give the 10% discount, it would be the biggest discount ever. It is all about perspective. Tom Lodi, CA

Thanks Linda. Tom Lodi, CA

Well, cut and paste it over here. I won't go there, but I would like to know what KC said. Tom Lodi, CA

Eric would have to censor me if I told you how I really feel. My pastor would have an excorcism on me too! CCH is the third most evil company in America in my opinion. Only AT&T and Blue Cross are worse. It makes me feel dirty to know that I have profited them. Tom Lodi, CA

That is why I would not know about it. I have not visited that electronic rag since I had to sign up for bank products on it. I refuse to support their efforts to make me a slave to their electronic home page. I will not buy my research materials from them and I am not going to visit their crappy sanitized discussion board. Tom Lodi, CA

<<should the 1041 be completed as a complex trust and pay the tax on the income or must the trust pass through the income to the beneficiary? >> The Trustee/Executor needs to answer that question for you. It sounds like you have the tax treatment figured out depending on what the true fact pattern is. Don't let the client make you make a decision they need to make. The Trustee/Executor is responsible for acting in the best interest of the beneficiary. Don't get into that part of the discussion. You are asking the right questions, but the answer needs to come from the person responsible for making that decision. Tom Lodi, CA

Ask for a retainer. They will remain "distant" relatives if you do that. Tom Lodi, CA

I am going to try that on you when I buy your software. I will order one and send back 2 for refund. Tom Lodi, CA

I think to be deductible, it has to be a different lender. I don't have time to make sure right now. Tom Lodi, CA

Terry, I know you don't want to hear this, but the first thing you need to do is calm down. You are justified in your anger, but that will not solve the client's problem. I know it is the last thing you want to hear (I know this from experience) because you have every right to yell at CCH. It seems to me that a letter from you with a copy of the return you believe you filed electronically will solve the issue. jklcpa also has a place for you to look to see what happened. If that does not fix the issue, an ammended return would probably do the trick. I would love to see what happens if you ask the IRS to use its supeona power to compel ATX to produce the record of the transmission. Could be fun to watch them try to explain that one. I hate it when I can't bill for work that I have to do because of no fault of my own. It is not fair, but it is the life we choose. Good luck, have a cocktail this evening, watch a game on tv, throw pillows at the wall. It will work out in the end. Tom Lodi, CA

I did not say I would stop worrying, just that i would stop bothering you. I know it is tough this time of year. I hope your hubby is good and you can concentrate on work. I know it is terrible to get behind because your mind is off on more important things. Hopefully, more family in town will make for a more restful, peaceful life and get you some help. Tom Lodi, CA

Ah - then your client believes that they have an erroneous 1098, which is much more plausible. If he has all the checks, run an amortization schedule and calculate the actual interest to use on the A. I would guess it has been double reported because of the transactions being moved between companies. But do not file a return that your client does not believe represents the true amount of interest paid. Tom Lodi, CA

Yes it looks funny on the surface. The question is, how did she get the money to pay the deductible expenses and all of her other non-deductible expenses? If a reverse mortgage explains it sufficiently for you (no opinion on this because you did not give enough figures to make one) then tell the client to document the facts in case of a future audit. Tom Lodi, CA

Steve, It is a quirk in the software for CA. I don't call it a flaw because it is like the Alt Min form coming up automatically, even if you don't need it. The error check in ATX will tell you that if basis is the same, don't use the CA D. I am not sure why the amounts changed on your income, as it generally just populates and gives the same income figures. The one thing that will screw with you is a new client with a Capital Loss Carryforward. Entering the amounts into the Federal D does not get them into the CA D and will cause more income in CA. I would go back and check the form for the previous years and find out why the income changed. I can't remember it happening to me. Tom Lodi, CA

I have always deducted it on a rental. All costs associated with the production of rental income are allowable. MIP is a legitimate, necessary cost of producing rental income. Tom Lodi, cA

Sweet. Glad to hear everything is good and your family is with you. I won't bother you anymore. I promise. Tom Lodi, CA

Remember, it is made out of gopher wood. Would you call it the Ark. Ark? It took you long enough to respond. I was worried about you. I don't know for sure how close you are to the White river, but that thing has been making lots of news. I think I read 30 something counties in Ark were under flood watch. And especially in the north east part of the state. Glad to hear you are OK. Tom Lodi, CA