Pacun

If she is not in your computer system for the amended years, create her the way she filed and make sure everything matches and save. Then... Usually I open her return, pull down the file menu and select "amend" and add amended to her name. Change the 1040 from HOH to MFJ and add his info and income. Make sure to attach any schedule that changed and is required under the MFJ status. For 2009, make sure to include the "making work credit" form since it will change from $400 to $800, etc.

Your client doesn't have to pay any of the credit back if the house was sold at a loss. If the gain had been less than the $7,500 her repayment would be limited to the amount of the gain. If she sold it for a loss then none of the credit would have to be repaid. In your case it is clear that the house was sold at a loss.

Windows 7 home will work on networked environments too, but Windows 7 Pro is better to set up and maintain. I have ATX 2007 - 2010 on a Windows 7 Pro 64bit computer and the only problem I have is that it opens too fast and I don't have time for my coffee. My old computer took about 5 minutes to open ATX and it was coffee time. Remember that supporting means nothing. Do you know that Microsoft was scheduled to end support for Windows XP Professional 04/14/2009 and that date was extended to 2014? It didn't mean that Windows XP was going to stop functioning in 2009. What does "we don't support ATX 2008 on Win 7 64bit" mean? It means that if you have serious problems, you will need to reinstall or call your own tech support to solve problems. It doesn't mean that the program will not work with windows 7. Win 7 Pro automatically install all 32 bit programs on the (86) directory. You don't need to do anything just install and Win 7 knows how the new program likes to be treated. Close your eyes and install windows 7 64bit and you will have no problems with ATX. How frequent do you use ATX 2006? Once a year if you are lucky, correct? For that, please keep your old computer (you might have to pay usage state tax) and install ONLY ATX 2008, 2009 and 2010 on you new computer. Remember that you don't to install programs on your new computer that you will use only about 3 times in the next 3 years.

I used to know if the guy was in India when I used the phone. Now I only go to www.support.dell.com and enter my service tag number and all the time I chat with a person in the States. If you want a new motherboard, it is because your computer "only blinks when you power it up and you have tried two different chargers or power cords". You also unhooked the hard drive and memory to no avail. If you need a hard drive, it is because your "hard drive is not detected by the BIOS". If they insist, you run the diagnostics while holding the hard drive on your palm and you give them the error code. Most diagnostics will not detect your hard drive while on your palm (especially if you are using the HD to scratch your belly). If you dropped your computer or dump some water on it, you tell them that your computer suddenly died and you have no idea what happened (That's what users tell me anyways). If you need a keyboard you tell them that "X key came off". When they asked you why the key came off, you don't need to lie and just tell them "poor design that cannot support normal tear and wear" (do not mention that your cat was making a nest on the keyboard or shapenning its paws). I used to be very honest with DELL technicians. When I called for a motherboard, they would spend more than one hour with me testing and explaining... at the very end, they would agree with me that a motherboard was needed. After a bunch of calls and chats like that, I just trust myself and ask for the parts. Now, I don't waste my time and I use shortcuts to get my parts. 99% of the time I have been right with the parts I have requested. I do chat with DELL every week and they seem to provide decent service. The company I work for owns about 7K DELLs and I support about .3 percent of them. Going back to the original question... Please DO NOT order Celeron processors and double the memory that the computer comes with from the shelf. Get Windows 7 Professional 64bit and you should be "in love" very soon.

You are too young to retire. Just raise your price and that will reduce the amount of returns you will prepare and you will make about the same amount of money.

No. She can, however, file injured spouse or something like that. She can ask the court to order husband and wife to amend and pay the debt before splitting the wealth.

Correct. Father cannot claim HH with 49% ever.

Do you have expenses? Didn't you charge them $50 for preparing their C corp last year?

I would take the American Opportunity credit.

Just file and explain later if asked.

I am traveling this Sunday, April 17, to Central America for one week. I will miss two days but it doesn't matter because I hate when people wait to the last minute to prepare their taxes. I am going to study: 1.- Quickbooks 2.- Full Acrobat 3.- ONE tax treaty with the help of a lawyer (who will do it free). I have noticed that most of the tax treaties are about the same. 4.- I will file form 23 to become an Enrolled Agent and I will attend one IRS tax forum. How about you? What will you study? Are you EA or CPA? Thank you for participating.

Correct. I make them sign and date anywhere in the 7004 just in case.

Let's wait for other replies to your post. It is good idea to read between the lines and read what everybody has to say.

Today, I was listening to a latino radio station and a tax preparer was talking about taxes. People were asking questions live. The tax preparer was from a famous latino accounting firm but his answers sounded good but were not correct. I heard about 3 questions and none of them were answered 100% correctly. I thought circular 230 prevented tax preparers from engaging in that type of marketing strategy. We can only air pre-recorded advertisements, is that correct?

Depending on the type of business he engaged... if he made 13K, 3K is easily a necessary and ordinary expenditure. In any event, commuting miles are not deductible but if you have to go to different sites in different cities, you can deduct them. As long as he is willing and engage on the business, he can deduct his tools. This is clearly not a hobby since he more than quadrupled his expenses and had a big profit. If he has losses next year, he should be OK as long as he is ready and willing to continue this line of work. If you feel more comfortable, you can 179 the tools or equipment.

It is very embarrasing to amend a return when the mistake is yours (and your clients for not reporting that they didn't received such a big refund). I think the materiality rule/principle will save you from any trouble, but the correct way is to amend 2009 and report the income in 2010. My first questions to my repeated client are something like... "Was everything OK last year?" "All refunds received?" "Any letters from the IRS or State?". Then I move to the current year.

No HOH status.

Correct, form 1099-S should be filled out. Why do you need that form if you have both HUD-1s?

Report it on Schedule D as short term gain. The attorney is not in a possition to issue a 1099 since he doesn't know what the basis for the seller is. Even if he knew all the details and audited the expenses and cost, attorneys are NOT hire to determine gain on the transaction.

What does your smart client do for a business? If he is a Tax preparer, Sch D. If he is in the business of reconstruction, maybe sch C as Jainen suggested.

nice story. Thanks for sharing it.

If you keep on reading, you will find... "However, nonresident aliens married to U.S. citizens or residents can choose to be treated as U.S. residents and file joint returns. For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1." The reading sends you to chapter 1 which reads: "Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Example. Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. In June, Bob became a resident alien and remained a resident for the rest of the year. Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information. A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year. The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)" Thank you Jainen for reminding me that NOT only do you have to add GLOBAL income BUT they also have to make an election. Yes, we do need an international taxation class since this type of situations are becoming very interesting and firms that prepare "international returns" charge a lot of money for simple returns. Normally, I charge $75 for a regular return. I just charged $400 for a diplomat who left behind a house and he is collecting rent in Washington, DC while in Paris.

It is a simple Short term gain and just either add some expenses on the basis or look on Sch D and enter them there. I would be careful with this client... he seems too smart to be my client.

I know you will ask for substantiation. If you get married before December 31, it is considered that you were married all year and who cares where you were as long as your wife was in the US.

Non of them can deduct their IRAs