jasdlm

On the 3rd tab, Ln 4 - Asset Transferred, you have to enter prose about the statement (i.e. in the last one I did, for example, there was a covenant not to compete, but no value was assigned to it, so I included this in the comments). On Page 1, Part II of the 8594, you enter the Fair Market Value and the Allocation of the Sales Price (the acutal numbers from 4). Not sure if this answers your questions, but I didn't have trouble getting it to go through.

Had a client who received the exact same email . . . haven't heard yet whether she then received an 'error' email.

I'm sorry; I'm not following. Who is 'she'? The probation officer?

Rock Chalk! My husband was in Omaha last night for the game. He is headed there again tomorrow night (while I do taxes, of course).

Bart . . . I've been wondering where you were! Good to see you.

No refinance and no HELOC. Just the 'rental/personal use' issue.

Yes, it is. I thought about that, but I read several different places that the multi-state lenders check that box automatically without checking to see if the Statei s a non-recoure State. This makes complete sense to me; I just wish I could find something to show my client that specifically outlines why this is taxable when the attorney (and the client's own reearch) tells him it shouldn't be. I'm sorry to be thick, but it is taxable because it is a recourse loan because the home was not the client's primary residence, and therefore COD income rather than the gain/loss on a foreclosure analysis. Correct? Thanks again, Jainen. I really appreciate it.

Dear Client: No, I will not just 'quickly glance over' the return you did on Turbo Tax just to make sure 'you didn't miss something major'. I am, however, glad to hear that doing taxes is really easy because all you have to do is 'punch in the numbers, and the computer does it for you'. Why don't you hang a shingle? Ever so sincerely . . .

Thanks, Jainen. Just to clarify . . . it is recourse because it wasn't a personal residence? I actually wondered about that when he started the negotiation and asked him the same. He consulted an attorney (not me) and was told it was still non-recourse. Thanks so much for your help!

Client purchased a house in CA for Client's disabled brother to live in thinking it was a decent investment. Brother paid $500/mo rent . . . cost for house monthly was around $1,600. Claimed income on Schedule E - personal use, so majority of RE tax and Mortgage interest flowed through to Schedule A, no depreciation or other expenses - paid tax on part of rent income (based on personal use calculation). Client paid $285,000 for house. Market tanked. Brother died, and client Sold the house in a short-sale for $75,000 with $127,000 owed to the mortage company. Non-recourse State. (BAD investment.) Client received a 1099-C for $60,000. Client is not insolvent. I think that the $60,000 is not taxable because since CA is a non-recourse State - no COD. When I calculate the gain/loss on the foreclosure, I think client has a nondeductible loss because basis greater than the amount of the debt immediately preceding the discharge. I have read multiple IRS pubs and instructions. I think I should report the foreclosure on Schedule D. However, I no the 1099C is going to generate a CP2000 without a 982. In reading the instructions and studying the form, I don't see how I can use the 982 because none of those exclusions apply. Am I way off track here? Appreciate any help anyone can give. Thanks.

I laughed out loud (after sticking my tongue out and looking at the ceiling . . . like an idiot) . . . my husband came to see what was so funny. He read the post and did NOT stick his tongue out or look up at the ceiling. He doesn't fit in with us; I'm not sure what to do .

I can't go to the 'other board' because I can't figure out how to sign on, and I'm not going to hold for 45 minutes to ask. If I get any efile rejects, though, I'll have to. :(

How does one get the withholding to flow back to the bene's?

I had thought of that, but was really hoping I wouldn't have to do that. In that situation, I would have to have the Bene pay tax on the income flowing through and wait for a refund of the tax withheld from the 1041, correct? Thanks so much for your response.

Client's husband died at end of 2010. Fund company continued sending his minimum distribution until May of 2011, so there is a fair amount of withholding in the SSN of the deceased spouse for 2011, although 2010 is the last joint return. Any ideas re: how to handle this from a filing standpoint? I know an efile will not work. Would it work to paper file? I have tried researching, but I haven't found much. Thanks.

Same client who came in and took an hour of your time as he handed you documents one at a time? "This is my 1099 from so and so" "This is a receipt for lumber I bought for that project out West of town" "Ooops . . . this is squash from dinner last night" - yes, I really had a client do that . . . it was smeared all over one of her 1099s.

The software is making me enter a phone number for EVERY return before it will create an efile; refund or no refund. Mecurial software .

I still have a client or two every year that insists that the person who sold them the appliance told them it qualified for the energy credit. Every time, it causes me to have to take extra time researching because I don't trust myself enough to be certain nothing has changed. :unsure:

Miss you and think about you often!

Was it investment property that had depreciable components or simply land?

Jack from Ohio - I called you Old Jack -- My apologies. I guess I just saw 'Jack' and assumed it was 'Old Jack'.

I had this problem last year. I believe the issue is that if you are between 18 and 24 and your earned income is less than 1/2 of your support (which includes the education cost), then you are not eligible for any 'refundable' credit. I think Old Jack was right initially. I assumed the reason for this rule was exactly as he stated in his first post. (I know . . . bad idea to assume.)

Malibu Coconut Rum (Not that crummy Passion Fruit Stuff . . . talk about confusing!).

Was the Trust a Grantor Trust at the time of Client's Father's death?

I may be thinking about this too simply, but couldn't you just print out the list of the efiled clients (from efile manager), print out the list of returns from return manager, and have your assistants do a quick comparison?