Maribeth

Okay, I haven't done one of these for awhile. Involuntary conversion. Basis of the truck stays on the books at $13,000. Received $29,000, used $7,000, gain recognized is $22,000. Maribeth

None of our 1099 filings have been acknowledged. As I remember from last year, it took a little bit of time before the acknowledgments came back. Maribeth

A 2006 NOL would be carried back two years. The oldest year would be the first year to which it would be carried back. So 2004 would be the first year, 2005 the second year, and then unused NOL would be available for 2007. Since the election to carryforward was not made, you MUST carryback even if there is no tax benefit. Maribeth

Jainen, you're right. I checked the code and the 4562 instructions. Attach an election to the return. Thanks. Maribeth

I don't know for sure but could you use the 8453 and attach the statement to that? Maribeth

Tom, the election is made by deducting the expenses on the return. No statement is required. TTB pg 8-18. Maribeth

If the program is the same this year as last year, you cannot take the deduction through the asset manager. You have to just deduct the costs and not show it through asset manager. Maribeth

Tom, they are down in your part of the world and they did have some sort of affiliation with CFS (tax tools). The website is www.amesoft.com. I have used their product for years, both indivdually and through CFS. Maribeth

We use AME Software out of California. The payroll module will do just about anything. We write checks, direct deposit, tips, retirement plans, sick & vacation accruals. They also have the ability to electronically file. We have been using ATX for efiling our payroll forms but after the fiasco this year we will be looking at that function in AME for next year. Maribeth

I agree with Bart. The kids gifted the money to the parents; the parents bought the windows. The parents are entitled to the credit. Substance over form here. What really happened? A gift from the kids; a purchase by the parents. Maribeth

If the property was available for rent for the entire year, then a full years depreciation is allowed. She may need the loss this year because she wasn't able to rent the property. Maribeth

I customized the master 4562 with the print options. So far it looks to be working okay. Maribeth

Deb, did you try to adjust the husband's W-2 reduction by putting it on Line 21? I have not used the community property worksheets yet, but do have a client coming in next week that I'll have to do a split on. In the past, I have always entered all information on each relevant line and then have put the "adjusting amount" on line 21. Or did you just paper file the husband? Maribeth

And here is the shredder . . . . http://www.youtube.com/watch?v=xG-swkL0s7M&NR=1

That is correct. The NOL used in a carryback year is determined by modified taxable income which does not include the deduction for exemptions. Your modified taxable income is 5,059; NOL carryback used 5,059. It probably would have been more advantageous to the client to make the election to carryforward the 2006 NOL. Maribeth

If none of the NOL carryforward is used in the current year, then Line 21 will have nothing on it. Only the amount that is being used should show up on Line 21. The NOL worksheets in ATX have been in the past a good starting point, but you have to know what is and what is not allowed in order to get the worksheets to calcuate correctly. Roydaleone's suggestion to use Schedule A of the 1045 is an excellent suggestion to determine what has been carried forward and used up in the intervening year. Maribeth

Mel, we are here for you when you are ready to start testing. I did not know about your personal situation and please know that my heart is with you. Maribeth

Joan, some of this doesn't make sense. How has she been reporting his earnings on her 941's. She should have already paid in his social security and medicare tax on the returns and also his federal withholding tax. What should happen is the employer needs to gross up his salary for the FICA already paid in. How can she reduce his FWT if she has already paid his FICA??? Maribeth

My first desktop computer? Back in 1981. It ran on an operating system prior to DOS called CPM. It had a 9" floppy disk and it was floppy. The partner I worked for came into my office one day and said there was a new operating system coming out by a company in Redmond and I should buy some stock in it. Well, he was the partner and I was just the junior accountant. The stock did not get bought and I have regretted not doing so ever since. Maribeth

Yes, just enter the 1099 as revenue and then show the difference as an expense. If she has more income than just what is on the 1099, you could also show it as a "refund". Maribeth

Eric, I don't care what it looks like just as long as it is here and will be here. You do a fantastic job -- thanks so much. Maribeth

Two Quaker Oatmeal low-fat breakfast bars. Elrod, I have missed you! Please keep us posted on your dinners also! Maribeth

Just talked with Steve in Georgia. He said that all the 941's have been transmitted to the IRS and they are now waiting for the IRS to acknowledge them. Even though my return manager indicates only "validated by EFC", the 941's have been transmitted. Maribeth

It's now 4:30 PST and the 941's are still just sitting there. No activity at all today. I can't think of any difference between this year and last year except CCH is now fully in charge. I wonder if the 941's are flowing smoothly for TaxWise? Maribeth

We bit the bullet a few months ago and bought the full network versoin of pdfFactory pro and Fine Print. The absolute best use of my money ever. It is a great product, it has saved us reams of paper, it has saved us hours and hours of time. I can't recommend it higher. An absolutely fine, fine product. Maribeth