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When filing the MO CR for the MO 1041 the line instructions refer to the MO 1040. I could not find a CR form with specific line references to the MO 1041. My software picked up the taxable income from line 13 of the MO 1041 for the line 1 input on the CR. Is this correct? My only non resident income is from farm rentals in IL. I assume this would go on line 4? The net result is that the IL farm rental income exceeds the MO “taxable income” so we are deducting 100% of the IL tax liability on the MO 1041. Am I on the right track here?

Sorry, I got ahead of myself when I posted the question. The legal fees, appraisal fees and title transfer fees are all in connection with the transfer of the farm land and liquidation of some small investments that were held by the decedent and passed throught the estate to the estate heirs.

1. Are attorney fees paid by an estate fully deductible on the 1041 line 14? Estate consisted mostly of farm property in which the decedent had a partial ownership. Farm was actively operated on crop share basis, but decedent was not active in the business. The other assets consisted of small bank account and some savings. Ownership of the assets were transferred to children from the estate. From reading past posts there seems to be a disagreement on deductibility of legal fees. Deductibility allowed for preservation of income producing property vs transfer of title/ownership of personal assets. Is this the proper framework for determining deductibility? In this case fully deductible? 2. Second issue is deductibility of appraisal fees, title work and transfer on death fees. Deductible, subject to 2% of income? Fully deductible? Non-deductible? This issue is always troublesome. I would appreciated response from those with experience on these issues.

I also purchased Kodak i1120 a few months ago. Mine works fine too. I have a lot of single-side scanning so I set up a custom set up so I won't create a "blank" image for the back side of a scanned document. I found that Adobe Standard works well to save an image name when scanning documents to client's tax folder. I too am waiting to see how well the unit holds up during tax season.

I now understand that I need a more robust version of acrobat-either standard or professional. I have looked on line and prices are really all over the place. Does anyone have a reliable source for version 9 that they would recommend? I found a price under $ 100, but seems to good to be true.

Great, and I just started using Paycycle for a couple of new clients! It seemed like a really good deal, but you are probably right. They will try to kill it off and move everyone to their rip off high priced Quickbooks products.

Finsihed the last one. Hope you guys are done soon. Have a great after season break. I know I am going to.

Thanks, I will give that a try.

What if the wife filed as HOH (another prepare did her return) and the husband (my client) has not yet filed? What is the best way to get to MFJ? Do I need to file husband as single first and then do the 1040X?

Has anyone been able to efile a 1040 with the first time home buyers credit using form 5404?

KC & OLD JAck Thanks for the quick reply. Sorry I did not respond sooner.

Farm client is wanting to take depreciation in 2008 for a used combine he will be purchasing. Assuming he has sufficient income from his farming operations, I believe he would be be able to use Sec 179 but would not be eligible for the new 50% bonus depreciation since the combine is used equipment. Correct? If he takes possession before 12/31/08 is that sufficient to meet the "placed in service" requirement? He may be taking delivery late in Dec and therefore would not be using the combine to harvest any crops in 2008. Would this jepordize taking the Sec 179 and regular depreciation in 2008? Could he then take it in 2009? Farmer is expecting substantial profits in 2008 and needs the deduction this year.