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Sorry Sonya, this site is for tax professionals using a specific brand of software not used by the general public. We do not answer tax questions posed by nonprofessionals here. You might try the Turbo Tax forum specific for its users.

I'm not sure what other comments you are looking for. You are correct that in this case the limit is the husband's comp IF he didn't contribute to an IRA of his own. Compensation is wages, salaries, commissions, SE income (but not a loss), alimony, and nontaxable combat pay. The SE income is after the reduction for 1/2 of the SE tax that represents the equivalent of the employer's share of the FICA and Medicare taxes. Technically, the withdrawal of the excess isn't required. The wife could leave it in and designate the excess as a contribution for 2016 and pay the 6% on the excess for the 2015 tax year, that is assuming that one of them will have at least enough taxable compensation in 2016 to allow for that excess to be a contribution. If they want to take the excess out and not pay the ~ $150 on the excess left in, get them an extension so that they have the additional time through the extended due date to withdraw the funds.

I have only a handful of federal extensions including for my own return. My state's due date is 5/2 so I'll finish most of the returns within a few days after a much needed break. Everything I have in is mostly complete at this point anyway. Like Lee, after that I'll get to the quarterlies and the accounting work

Correct, and we are supposed to report the income where it would ordinarily be reported according to the type of income it is. The problem is that these mutual funds can't/won't be able to tell the taxpayer whether it is dividends, cap gains, or whatever it is. The OP needs to go back to the client for more information on this.

Is this from an existing client whose return you've prepared in prior year, and did he have investments in a Canadian mutual fund? I think those were converted to reporting as on the NR4 and labled as estate/trust income now, and so this is most likely the reporting of investment income from a Passive Foreign Investment Company. I think that reporting can have some complexities, and luckily I've never had to deal with these. You might want to read up on PFICS and take a look at form 8621.

It was her computer or email that was hacked, and that may have included her email address contact list. The hacker used your name as the sender of the fake email to fool her into opening it or clicking the attachment. Anyone could fake your name, but that doesn't mean that you sent it. If your email was hacked and sent the message, you would see it in your sent folder unless the hacker went back and deleted all of the messages.

Add on to the aggravation of having to open the darn envelopes are those clients that give us additional information written as notes on the outside of them! I throw the envelopes away whenever possible. I have one woman with many 1099s from bank int, divs and iras, and she reconciles each one back to her other records with notations on each envelope. I can't throw any of them away, and worse yet is that I have to stuff the docs back into their envelopes after scanning them in. It is such a waste of time!

It was 4/15 for me, not too hard to remember. I wasn't using the official forum terribly much and remember trying to visit that day after I'd finished up.

The surgeon said it went well. He shaved and smoothed the detached part, inserted a gas bubble to push the flap back in place, and then used a laser to seal it. Husband must take the week off from work to lay on his left side for a minimum of 40 mins of every hour so that the gas bubble stays in the proper position. It will be healed enough in a week for him to be more upright but still no heavy lifting, flying, or mountain climbing. The gas bubble is eventually absorbed. There are no tacks or sutures and the patch will come off tomorrow. AI and abx drops QID.

How does someone forget about a baby?!

Well, the end of my season got a whole lot worse this afternoon. Husband went to the eye doctor for what he thought was a floater and was sent directly to an eye surgeon for a consult. He has a badly detached retina and is having emergency surgery on the eye tomorrow, must be there in the a.m. for a noon surgery, and who knows what time we'll get back home. He called on the way home to tell me the news and I immediately cleared my appts and pushed most to Wed. When he walked in he told me that he has a follow up to the surgery for a recheck on Wed. I hope he can drive himself there on Wed, but I won't know that until sometime tomorrow afternoon. The only good thing I can say about tomorrow is that at least it isn't the dog's day to have her diuretic!

First you have to divide the expenses by direct & indirect if there is personal use, and from then on the treatment depends on the amount of personal use. If it is more than the greater of 14 days or 10% of days rented to others, then it is considered as a dwelling unit used as a home. If that is the case, then the expenses divided and attributable to the rental cannot create a loss to offset other income on the return. The expenses up to the amount of income are used and the rest are carried forward, including the depreciation. Iirc, ATX would calc this automatically if the days of personal use and rental were entered, and it would divide the carryovers (if any) and show it as 2 lines, one for vaca exps c/o and the 2nd line for depreciation c/o. I hope that I summarized that correctly. Pub 527 if you need to see it directly. Are you talking about the box specifically for depreciation on the vacation home tab?

It does make sense if you look back to sec 1121 and the words " as if such individual were a resident" and all of sec 1122 and apply that 1124. If that nonresident were a resident, they would pay tax on the entire gain over the installment period. Delaware would say that it isn't an intangible, it is a deferral of the gain to future periods because of the installment sale. It *might* convert to an intangible in someone else's hands, such as someone purchasing the note at a discount, or possibly a nonresident beneficiary of an estate inheriting an installment note with future payments left on it.

Yes, because it is derived from a source of income or tangible property within DE. See Del code, Title 30 sec 1121 and 1124(b )(2) for Income Derived from Sources within Delaware.

If the taxes are in the purchaser's column of the settlement sheet, it is because those are taxes that are are attributable to the time the purchaser IS the actual owner the property because the taxes were already billed. Taxes in arrears are different because those can never be during the period when the purchase (new owner) has title. Example - my state's fiscal year ends 6/30 and r.e.taxes are billed for the coming year 7/1/15-6/30/16 and due 9/30 each year. Let's make the tax bill $2400. If a person purchases that property on 12/1/15, the new owner has title from 12/1/15 - 6/30/16 (7 months of the tax period already billed) that has already been billed and paid by the seller. The settlement sheet for the purchase of the property should include a charge for additional amounts due from the purchaser of 7/12ths of the r.e.taxes due back to the seller for a total of $1400.

cbslee is correct. The taxes in arrears paid by the purchaser must be capitalized as part of the purchase cost. Taxes are only deductible that are imposed on on the taxpayer. In this case, the taxpayer didn't own the property for the period in arrears; those were assessed on the seller.

Nope, they can't take the credit if the one looking for a job is unsuccessful in gainful employment. From the instructions: 2. The care was provided so you (and your spouse if filing jointly) could work or look for work. However, if you did not find a job and have no earned income for the year, you cannot take the credit or the exclusion. But if you or your spouse was a full-time student or disabled, see the instructions for lines 4 and 5, later.

~waves to say Hi~ I saw you on here! I worked until midnight, took a nap, gave dog meds, and was just going to bed when you were getting started! We sure are bunch with some crazy hours!

Happy Birthday, KC! I hope you have a fabulous day.

Right. The SE loss reduces earned income. No credit.

Maybe this would be a good place to mention and to celebrate the birthday of this forum. According to the membership list from way back, Eric "joined" on 4/9 and the next earliest was KC on 4/11 along with many others of you. So, the official birthday when it opened to everyone might be tomorrow when this forum will be 9 years old! Happy Birthday everyone, and many thanks to Eric. I hope to enjoy many more happy years here with you all! to the Community and love to everyone that makes this place the best.

Pub 225 Farmer's Guide: See page 37 under "Idle Property" and "Retired from Service" and see page 55 for "Abandonment" for proper treatment of any assets beyond any usefulness that are scrapped and no longer owned.

No, you don't get to write off the remaining undepreciated amount simply because the person stops farming. It is retired and out of service, and transferred to personal use if they kept it. The only time depreciation continues is if the property is temporarily idle due to a lack of market for the farm's product, otherwise depreciation stops at the time the equipment is no longer in service. When the person sells the asset, they have basis to offset the selling price and will receive the benefit of that remaining amount you are currently trying to deduct. At the time of sale, it will result in higher basis, lower gain or more of a loss.

Well darn. Who knew possums make good dates, and I turned mine away for lack of referral. At least I see they are cheap dates with all that's needed is a brick 'o bread. Dying of laughter here.

Oh nooooooooooooooo, don't tell me that.