Pacun

Now I am confused. "2000 deduction"??? Deduction of basis? We are concerned about deductible expenses for 2010, not deduction of basis. Closing costs are not points.

If a client decides to pay all taxes on the Roth Conversion, he will use his tax bracket for 2010. If client decides to split paying taxes between 2011 and 2012, we are going to use those tax brackets, correct? So, if a client asks me "what do you think is better for me"?, you pull out your crystal ball and tell them.

You should amend and a month later paper file the other return.

By definition IRAs are limited to 5K or 6K. Calculate the SEP first, then enter the IRA information and make sure you select that taxpayer is covered by a retirement plan at work.

Too much experience is not a good thing. Mid-expericience is the best thing. I have pinpointed it for you. WE ARE ONE YEAR OLDER!

You cannot take 10,000 SEP and 10000 IRA. You could take 10,000 SEP and maybe 5K or 6K IRA, depending on income.

Go with the information on the 1098 about the points and close your case.

Ask your client if they have another 1098. Maybe the loan was sold to another bank. It is almost impossible that they didn't pay any interest for 6 months.

Technically, the IRS already retained his refund. Up to this morning, he was the only one who had filed.

If you enter all the figures on the W-2 as they appear, you will get a credit on 1040 automatically.

Mortgage Interest: 41.40 Mortgage Insurance: 1,519.88 Points: 1,900.50 Taxes: 174.89 Sometimes banks include this information on the 1098. What don't you share the information provided on the 1098? Interest: Taxes: Points: Insuraance:

I would amend his return with his information and then file her as if nothing has happened. Of course I would file both of them for free. Before amending, show them what each is getting back or paying and then ask the wife to fork out his share. Don't feel bad because this is a typical problem with ATX. I posted a similar experience from last year where I changed the social security number and still kept the old one. I have also have the same problem with direct deposit bank account where it kept the old routing number and the client had to wait for paper check.

DON'T REINSTALL!!!!! Install on another computer and copy those fonts from computer to computer. If you have it on another computer, copy it from there. You might also use the previous year's folder from the same computer. Ask your tech to do it for you if you want.

Wow, I guess my brain is not working these days. Let say that the catch is 1000 fish and they sell each fish at $2. Does your client receive 250 fish or $500. If he gets $500, you just divide that between payment for the boat and insterest, no Schedule C or E involved.

It is not clear who gets the whole catch. If your client gets the catch, what does he do with it? That's the answer to both questions.

Does any one have an opinion on this one?

Get last paycheck stub and paper file. Another way is to request a copy from the IRS, which will take some time.

Sounds like you needed to file a 1041 in 2009 and continue in 2010.

Sometimes is easier to post questions when you know a little bit about the subject. The ones that don't understand the subject are a little shy. Since I am very shy about a lot of subjects, I want to bring this one up... so here you go. It is my understanding that banks mail a 1099-C when they consider that their money is gone for good or for the foreseeable future. Banks do that so they can get a tax break for that “casualty” loss. At the moment a bank reposes a house they issue a 1099-A, but if people have abandoned the house, they will not get the 1099-A and not report the sale. Even if they get a 1099-A, most of the time they don’t get the 1099-C because they moved. Since they are afraid that the bank will come after them, they don’t provide their new address to their creditors. This is the way I deal with 1099-A and 1099-C. Do you think this is the right way to deal with a 1099-A? I dispose of the asset using the FMV on the 1099-A as the selling price. I ask people for their basis. If the basis is not available AND there is only one loan, I use the amount of the loan owed from the 1099-A and use it as a basis. Sometimes this will trigger Schedule D with a passive loss and a $3K deduction. I do not want that and I classify this debt as personal. If the client is insolvent, I will use personal classification even if rental property since I will use form 982 to cancel any debt forgiven. If a bank issues a 1099-A and a 1099-C on the same year, I will file a disposition of the asset to deal with the 1099-A and a 982 form to deal with the 1099-C, correct? I will do this even if the client is not “personal liable for the debt”. (Remember that 1099-C was already issued) If the bank waits 5 years to give up on the debt and issues a 1099-C, I will use the financial status of my client 5 years later, correct? At that point, I will use form 982 if my client is insolvent or if the property was his primary home. I will also use form 982 if my client filed for bankruptcy and that debt was included in the proceedings. If you are a bank and a client sent you bankruptcy papers for the debt, what will you do? You will issue a 1099-C immediately and get a tax break, correct? What is the client never sent those documents to the bank since the bank is not harassing the client anymore? I believe the bank will eventually issue a 1099-C and you will file form 982 at that point. When clients come to me and they say they are about to give up their homes, I tell them to expect two or 3 forms: a 1099-A and two 1099-Cs if they have two loans. I also explain to give the bank their new address. When they tell me, that they don’t want the bank to find them, I reply: When you applied for the loan, you gave your bank your social security number, bank account information, the name and address of the employer, the name of a relative not living with you, etc. If they look for you they will find you now or 10 years later. The ones with half brain and above understand after I tell them that. I would like this posting help all of us to follow the right procedure since this is a tricky, new subject.

What do you think of this? If your client is permanently disabled and (let's say) 40 years old, you should amortize attorney expenses for the next 25-28 years, right? How about on years that your SS is not taxable?

Rollback?...not such an animal. The easiest is to enter by making the same mistakes as the previous preparer. Then, invoke the "amend return" command and enter the correction. Before amending, get as much information from your client as possible. A new client came this year without his 2009 return. I prepared his return claiming two children. He made about 30K with his wife and had two children under 17. Nothing was withheld and I felt I was going to give him a bad news. I told them that their refund for this year was only $1500. He said that's OK. He asked me if I could check his previous return because at that time they claimed their 19 year old daughter plus the two children under 17 and they only got about $300. They also told me that they made only 25K on the previous year and that only them and the 3 children lived in the apartment in 2009. I asked where he filed his return and he said he didn't know because his father filed for him. He faxed me his return and I told him... "you only claimed your oldest daughter last year and that's why you got a little refund". I also told them that I could amend the return but I asked him to check with his father what happened. He called me back and told me that they were not going to amend because his father claimed the children and they didn't want to cause him trouble. I explained that he might be in trouble already because the grandfather didn't live with those kids. No amendment happened.

I thought you would file as MFJ.

What's his basis on the property? If enough, you just reduce the basis.

Please start another thread sugesting backing up. Let's deal with this after the fact problem.