Lion EA

Now via NAEA $186.73 for $500,000/$1,000,000 for just me preparing taxes plus one clerical employee, including three trailing years. Back in 2008 I paid $298.00 via EZ Insurance Solutions for $100,000/$250,000 for just me plus clerical on a new policy, no trailing years. It continued to jump each year, can't lay my hands on the amounts as my returns are filed away in a closet) so you can see why I jumped to the new NAEA coverage when it was time to renew!

I went with the new policy NAEA put together for their members, but I pay a lot more than you, for greater coverage. I let my old policy underwritten by Aon expire, because it cost even more. Found my actual numbers. Pretty inexpensive. See details under the Poll.

Thanx to all for 5045 info. I have two returns that have been transmitted, but not yet accepted. IRS has rationed software companies on how many they can send per day, hoping to catch up by the end of Friday 18 February. CT shows accepted, though. Now to get to all the people that dropped off over the last couple of days!

Paper file. But, I'd probably put in the $250 and e-file, then have the husband fight it out with the VA or whoever, if the cient chooses that route. $800 for MFJ. Had one where I had to put in $250 for client. Her minor daughter received SS due to the death of her father. But, the SSN is on mother's return as dependent, so IRS insisted on the $250 reducing her MWP credit of the single mother last year. Mother has been dealing with SSA all year to show were she received $250. Since the $250 was direct deposited, many of my older clients didn't realize they received it until I had them look at bank statements. Since the $250 was a 2009 issue, you shouldn't have many that didn't receive it until 2010, amendments, late filing, paper filing late in year, etc.

In 15 years of preparing taxes, I had only one couple who made too much to make deductible IRA contributions and made nondeductible contributions. They were smart enough to understand that it still had a benefit to them, after maxing out employer plans and self-employed plans and seeing the taxes they were paying on interest and dividends in their fully taxable investment accounts. I had a few who finally understood the benefit when Roths became available and heavily advertised and contributed to Roths, but had never made non deductible contributions to Traditional IRAs. Many made deductible contributions but stopped when contributions were no longer deductible. Don't worry about it.

What if the only thing on Form 5405 is the payback? Can that be efiled now? It was on the IRS's list of forms they're accepting as of today, but don't know if that meant via paper or efile. I have only one, and she's waiting on her consolidated 1099. I also efile through CCH but with ProSystem fx. They were holding one of mine, and another returned her signed forms this morning. Both continued to say Hold throughout the day, but now say Transmitted.

Good idea about a built-in rental program through their condo association. Might take some of the scariness out of being an absentee landlord.

There are ordering rules on Form 8888 in case the refund ends up being more/less than on return which would make the split other than the 50/50 expected. Make sure your clients understand. And, as has been mentioned, have clients check with their banks.

Wouldn't it be the same as paying a cemetery? Client paid monastery to house the spouse/urn on their memorial terrace.

This one doesn't try to push the envelope. And, his wife is a stickler for documentation. They're just asking questions now that they're thinking about selling. I think the 14 days has to do with rental, and this definitely was not a rental. Just need to ask him if they're using the condo when in FL or staying elsewhere (think wife had a home there, too, so a possibility). Both had parents pass away during the last few years that I've been preparing their returns.

Don't mix up qualifying child with qualifying relative or with HoH requirements re support. For the exemption, the child can't have paid more than half her own support. Grandma doesn't have to support grandchild; mother doesn't have to support child; as long as child is not supporting child.

The exceptions are on page 3 of the instructions. Do your circumstances fit any of them?

But, according to my last communication from this client, what sat vacant after inheriting has had some personal use over the last two or more winters, and not just during the renovations. I think it's a home, not their primary residence, and no loss allowed. I'll question him more re timing. Just spent a day there to make sure pipes were OK or vacationed for a couple of weeks, that kind of thing.

He emailed me again today. He inherited from father a few years back. While vacant, it had the water/mold damage and was gutted to the studs and rebuilt two years ago. They have spent the last couple of winters on and off there. It has never been rented. Sounds like what began as investment property has become personal use. So no loss. They were going to wait for the market to rise before selling it. But, the whole development suffered new water damage that hurt my client's condo. Developer's insurance will repair it, but my client is getting tired of repairs in another state and is thinking about putting it on the market after repaired.

No. It's compensation to the sole proprietor. SE income. She's in the business to receive income from Pampered Chef and receives more if meeting certain goals. SPIFF comes from a manufacturer represented by an employer with an employer-employee relationship to the tax payer/employee. Then she's one stage removed from the manufacturer and does not pay SE on those incentives. SPIFF comes on a Form 1099-MISC for an employee who's working for W-2 income. Your client should receive her reporting on Form 1099-MISC from Pampered Chef.

Bump!

They have to meet the state requirements in the state in which they reside at the time they want to hold themselves out as married. So, if they are exploring the idea, have then start researching on their state web site. If you are checking to see if you can believe what they're telling you, you start researching on their state web site or with a friendly, local lawyer who owes you a favor. And, yes, has been mentioned, a common law marriage ends with a legal divorce the same way a traditional marriage ends. There is no common law divorce on the books of any state. You're asking legal questions specific to your state, so try a legal message board.

If they are married under the laws of their state (if it accepts common law marriage and they hold themselves out as married) they can choose between MFJ and MFS. If they are not married, their only choice is S. (If children, HOH comes into play, but you didn't ask about that.) And, as has been mentioned, if they have been MFJ and held themselves out as married under common law, then they need a divorce before they can be single for tax purposes.

OK, I'm fuzzy. Client owns condo, not his primary residence. Inherited from his father. Spent lots of money after water damage from burst pipes while vacant resulted in mold. If he now sells it for less than his adjusted basis as inherited and then renovated, can he take the loss for tax purposes. Not rented out. May have lived in it while overseeing renovations as it's out-of-state. So, is this investment property and a loss available for tax purposes? Or, is it a second home and no loss? What do I need to ask him? Is he wintering there or just checking on his investment?

When a parent takes a PLUS loan and takes ten years to repay, does that mean he can no longer deduct the loan interest after his child graduates and is no longer his dependent, can only deduct while a dependent? Of do they have to be a dependent only at the time the loan is made? Which brings up another question: if divorced parents are alternating years, then the parent's PLUS loan interest can be deducted in only alternating years also?

If you're a QB ProAdvisor, you can avoid some of their fees. Probably some other package deals with Intuit products. Call and ask them. Might get some help from them to keep you from leaving...

Looks like Page 2, the repayment, can be efilied: Subject: 1040 e-file (Legacy) - Implementation of Tax Forms Affected By the Extender Provisions and Small Business Jobs Act ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs Please be advised the implementation date for the forms affected by the Extender Provisions and Small Business Jobs Act of 2010 will be February 14, 2011, after the 11:00am drain. These forms can be transmitted for PATS testing on February 15, 2011, for the 11:00am drain. Affected forms include: Schedule A, Itemized Deductions Form 3800, General Business Credit Form 4684, Casualties and Thefts Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (Page 2) Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit Form 8859, District of Columbia First-Time Homebuyer Credit Form 8910, Alternative Motor Vehicle Credit Form 8917, Tuition and Fees Deduction Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit ERC 0248 which blocked the above listed forms from being transmitted electronically will be disabled. Thank you for your patience and continued support.

He was not already a yoga instructor, so it's not a business-related expense, not deductible.

No CT form; CT accepts the federal Form 8879 for individual returns.

Can we really show them everything about all our clients? What happened to confidentiality? Does the letter specify certain clients by SSN? How do you even know that the stranger that showed up at your door is from the IRS? Anyone can see the list of EROs and send out letters,