Lion EA

No, the 1099 usually triggers a letter if it wasn't reported on a return. The computer fails to match what was filed with the IRS with an amount on a return of the corresponding SSN -- for income. For deductions, mortgage interest for instance, the computer tries to find the amount/SSN in its computer to confirm what a taxpayer deducted. I have talked to taxpayers who receive W-2s and don't receive letters for years of non-filing, then suddenly a letter. Maybe employer never filed 1099s with IRS, so computer is not looking for your cousin. It will be a big problem when it surfaces!

Actually, the computer is trying to match. When it cannot, it generates a letter to the taxpayer that they have unreported income. Don't know why your cousin has not received a letter, perhaps his employer never filed the Forms 1099 with the IRS. Or, it's really a W-2 with withholding and a lower priority to the IRS, because it might be a refund instead of revenue for our government.

Definitely report half of it. If soon-to-be-ex hubby reports half in her SSN to IRS, she'll want to have reported her half to match.

SInce some of the filing requirements refer to GROSS income, such as on Sch E, they have to file even with losses. Explain to them that the IRS knows only their revenues via the Forms 1099 and not their expenses until they file. In fact, if possible NOLs, wouldn't they want to file?

His W-2 Box 12 Code V $3076. Form 1099-B Box 2 $1,392 Box 4 $390. Confirmation of Sell to Cover letter gives Total Gain $3076 but Total Sale Proceeds $1392. I was especially confused by Box 4 W/H on Form 1099-B, but the letter does list Backup W/H $390 as well as Taxes - Federal $769 Medicare...etc. so the $390 is in addition to the usual payroll taxes which were withheld and are already reported on his W-2. I think I can make this work, but it's not what I usually see. I would've expected the gain $3076 on his W-2...

I told the old two-day tests with NO calculator, sitting there doing long division by hand. Basis, basis, basis. You had to wait a year to have another chance. I was not going to go through that twice! I actually got a room at the hotel to be well rested and not fighting traffic for the exams. It was worth every penny to get it done and over with. Congratulations on your 66% EA. I know you'll be back soon to top that off.

Client was in today picking up returns, so got to talk to him face-to-face. Inherited condo from an uncle in 1989. Client never lived there. However, he allowed his father to live there for some years prior to his death in 2004; father paid condo fee and utilities. Never an attempt to make it a FMV rental. So, now we have personal use, right? From 2004, the condo has been vacant. Major water damage and resulting renovation. And, now another broken pipe creating more repairs. So, client or his wife have been there from time to time to pick out materials, oversee renovations, etc., but never for more than a week at a time. Is there such a thing as converting a personal use home to an investment property, or only the other way around? Turning it into a rental is now out of the question. They do not want to be absentee landlords. The condo is managed by a board of directors of owners, and not a professional management company. It's a huge complex. My clients have heard horror stories of tenants trashing units, leaving water running when moving out, fighting evictions, etc. They've had so many repair problems with it empty, that they do not want to add the wear and tear of strangers. They recently put up their daughter, son-in-law, and grandchildren in a hotel so as not to have people (yes, their own daughter) in their condo when they won't be back to check on it for some time. Just wondering if something that was personal use no more recently than 2004 could ever turn into investment property in the owner's hands.

On the Balance Sheet in QB or Form 1120 (Schedule L, I think). Should have bank account(s) and car, at least.

Client sent me his W-2 with a V in excess of $3,000. Then his 1099-B with a sale from the same name as him employer with ADR after it but for less than $1,400 and FIT W/H of nearly $400. Was wondering if the two things are connected, but doesn't look like any NQ stock option I've ever seen since why would he sell it for less than he paid via compensation? Just trying to learn something before I question him! He works for that company in NY, resides in CT.

What does ADR mean along with a stock name on a Form 1099-B? ASML ADR shares sold, for instance.

Paper file deadline is 28 February; e-file deadline is a month later. Anyone sure if it's 31 March ?

The very best of luck to you! You can do it, Jack.

But, I have three client appointments today, maybe tomorrow, and at least one pick-up scheduled for Monday. And, multiple phone calls to make asking questions; that means I'll be waiting on and receiving return calls all weekend. A flurry of drop-offs this past week, also, so lots to do. Hubby's now retired and underfoot; I may need to rethink this OIH. I sent him away to son's Inn to play Innkeeper for a few days, but he's back!

The depreciation allowed or allowable cannot be excluded from gain on the sale of a primary residence. If the OIH is within the home, it's just a line on Schedule D. If a separate structure, Form 4797.

What about SPDR for gold?

So, son is a sharecropper and in the business of farming, yes?

In CT, it includes sales tax paid to another state but at a lower rate -- gotta make upf the difference to CT's 6% rate. If left blank on the CT return, then no S&U tax is filed and collections can go back to the beginning of CT sales tax and is not limited by the SOL. So, I make sure to ask. CT has been getting very aggressive on S&U tax audits of small companies and individuals, expecially here in Fairfield County with a good number of NY commuters who might shop on their lunch hours and have items shipped home.

That was very helpful, Reece. Thank you very much for sharing. :read:

SFS also has TaxWise or whatever that other software program is, and maybe some other products, too.

Good point. I usually push them to do it immediately to get their money working for them or by 1 April and to make a big point of it being last year's contribution, asking their broker their deadline to process for a prior year contribution. In this case, I may know her broker.

Great. Next to getting money back for myself (never happens), getting money back for family members is the best. Thanx!:D

Didn't unpack my receipts, but did look at my old returns, one of which I'd listed details under Insurance. So, if 1st year was $298, 2nd was $410-463, 3rd was $516. You can see why I jumped ship to the new NAEA plan at only $186.73 for more coverage.

OK, so I rushed to prepare her return while my stepdaughter visited one Sunday at the beginning of the season (was talking about retirement plan at work, first full-time job, first time claiming herself, never got anything back before, many differences, I just didn't slow down and interview her) and missed the fact that she would've qualified for the savers credit if she made an IRA contribution for 2010. Can she still make a 2010 IRA contribution by 18 April, me amend, and take the Saver's Credit? Is that limited to an original return? It's always the shoemaker's children...

If it's the same business, you can do one Sch C. However, I'd alert my client to the liability issue and let him make the choice. After all, 2010 is over, so unless he has a skeleton he hasn't told you about, it may not make any difference in his liability. But, you don't want to make that decision for him and tie your liability to his! 2011 will have his LLC reported under it's own number, but on his return, no issue after his first year as an LLC.

If you don't see a clear reason to form an LLC or make a change in your entity, then you're probably fine as you are. Now, you asked us and could include your friendly, local lawyer and insurance agent in the discussions. Even with an LLC, you are still liable for what you do professionally. With little in the way of owned assets, you can probably rest easy with reasonable insurance. I went from a sole proprietor to a SMLLC but owned a house and have a home office, had a second marriage with a child from each of us, was hiring employees, and at that time CT charged about $60 to organize and $10/year to file annual reports. Now, those fees have doubled and CT added a business entity tax of $250 per year separate from any gain or loss on my schedule C. I might not have made the same decision with the new fees, but am continuing my SMLLC for now.