Pacun

I agree, disco and whatever else they consume in it is part of support and some of the stuff they consume is very expensive, but FMV rent and food and school are very expensive too.

They will find you or they will find me, depending on the order they visit you and me. If they go to you first, they will walk away with the knowledge that as long as the child didn't provide more than 50% for his own support, the parents will be the only ones who can claim the child. They will also know that if the child provided more than 50% for his own support, the parents cannot claim him. By the time they walk to my office, the story is perfect and I will think "what an easy case, everything is working out perfectly for the student and for the parents". Same is true if they come first to me. They will come with the story already prepared with the information and arguments I provided.

I think you have to dispose off the asset. If a loss, mark it personal. Debt cancellation uses form 982 with two simple entries if it was their principal residence.

I have had just the opposite. According to my clients and children, students have spent their money on discos, ipods, cell phones, games, make up and cool things. When it comes to rent, food and school supplies, the parents have to fork out the money.

I had an 82 year client a couple of days ago. She used to send estimated payments but last year the H&R block preparer told her not to send estimated payments because she didn't owe any taxes for 2009. She had a tax liability but she sent more than $3K on estimated so she got a refund. In 2010, following the preparer's advice, she didn't pay any estimated taxes and she owed more than 4K. The lady looked calm but I did't want to be the one to let her know that last year she got a big refund and this year she was going to pay more 4K. I was affraid she was going to have a heart attack, so I told my partner to give her the news. She was got the bad news and very nicely and she even made jokes about it. We both thanked her for taking the news very lightly and she said, I never trust H&R Block anyways and I have always sent estimated payment for the last 12 years. Anyways, I told my doctor that I was coming to prepare my taxes and he said to take my pills prior to getting here and to be relaxed. Thank you Doctor. Based on my conversation with this client, she doesn't need the doctors advice because he is very much in agreement with the US tax system. I do thank the doctor because it doesn't hurt to advise them anyways. I had another single young lady who was getting a refund for $52 and I was happy to inform her that she was getting a refund (new client). In 2009 she only worked 4 months and she got a refund for 2K. She was expecting a refund for 6K since she worked the whole year in 2010. I said: "I have prepared your taxes correctly and based on your facial expression, I will not be able to convince you that you are not getting a big refund this year. I could spend the rest of the day explaining to you how it works and at the end you will leave and go somewhere else. You have to trust me that I am doing a good job with your taxes. Here are your paper and you can go to H and R Block to get a second opinion". I gave her the documents back. I send people to H and R Block because they charge more than me and they charge for estimates.

In total agreement with you. Ask them to go somewhere else for the amendment.

Samin gave a good explanation. Here is another logic. Let's see if this helps you. You add cost NOT only to inventory but to items that will help you make money. Let's say that you purchase a machine (which we know it is not inventory), again you add transportation cost and insurance. Investment property is somewhat similar to inventory or machinery, which have an end goal to help produce money. You would said that investment property could cause a loss and machinery not... we have to think again, what if you have a machine a nothing to produce... that machine will cause a loss. How about inventory that spoils? How about machinery you purchase and is down most of the time because it needs repairs. My answer is not from books but from logic so that you understand that you "capitalize" or add to cost any cost that cannot be deducted during the period. Most of the time when you dispossed of the property, you alculate the total cost.

Client prepares 1099-misc on her own for her 50/50 partnership (llc). She prepared about 5 1099s and when she was ready to mail them, she found out that one of the contractors had moved and she didn't mail the 1099. She didn't include that amount on form 1096. She asked me on an email what she should do with that 1099-misc. I told her to mail it to the address of record and to keep the envelop if returned by the postal office. There was a posting about efiling missing 1099 and its was an concensus that you preprare a new 1096 with ONLY the new amount and efile. How about for paper filing? It is my understanding that you include all 1099s' amount and send a new 1096 to the IRS with the grand total and you write on top of 1096 "AMENDED". I will not efile this one.

Yes, is the answer. Where, is the question? I don't see a problem on schedule E or A (except dep). E will be better if there is a contract and rent is FMV.

The same way you "capitalize" the cost of transportation and insurance of a product during a transition state. You add that cost to cost of goods sold or to the cost of the product.

Maybe you are missing the word "imagine". You do not qualify for the 2 year split (I believe). Since you are on your father's shoes, if you take money out, you will follow the same rules as if you were your father and you would will have the RMD tax liability. You are right, 1099-T deal mainly with the kind of transfer transaction regarding the penalty but NOT the tax consequences.

The last time I overrode something in ATX, I got different results. Make the calculations first and then plug in the right numbers without overriding.

It seems that all the forms you are receiving are wrong. I would call them and see if can change them. I don't think you will have a choice of paying part in 2011 and 2012 since the roll over didn't come for a 401K or IRA. I will suggest you to imagine that you qualify for the rollover and that you have two choices: (You select choice 1). Choice 1. Pay all takes in 2010 Choice 2. Split between 2011 and 2012

Before I continue, I would like to answer this question..."I feel like a babe in the woods this year instead of an experienced tax preparer. MM". We all feel that way every year in certain situations. There is always something new and we will always feel like babies in the woods sooner or later. Kid 1, use the AOC ONLY. Nothing else. Ignore completely grad school. Kid 2, There is no question about AOC on the $644. I feel that if you use those two AO credits you should be fine. File 2010 like that and... I would research the moot point. If payment of $4,791 was made in 2010 for classes taken in 2009, you could amend one of the two years and get a big AOC refund.

I would go with the AOC on both cases. I would use ONLY what was paid to the old univeristy on the first kid, including books. Keep in mind that he barely paid anything (if any) to grad University. Since the AOC has been here only for 1 year and the hope credit was only available for 2 years, I think you will be OK using the AOC for child #1. (which will be his 4th time using it). There is no question about kid #2, who should use the AOC. It seems that Kid 2 doesn't have much left for the credit but if you transfer any taxable scholarship to line 7, you can use both amounts to calculate the AOC. Also, ask if he stays in campus and find out more about the scholarship. Remember that 1098-Ts don't have legs. In an audit, they don't have a leg to stand on and therefore you must ask questions such as: How much of your money or your family money did you pay to the University in 2010? Most of the time, they don't remember but they can get on line an get a print out of the bill and payments (keep that for the records). The next question is: Did you or your parent apply or get for a loan in 2010 or 2009? With those pieces of information in hand, you look at the 1098-T and figure out the situation.

I love when all the information is provided by my clients.

I think you have a HH and a dependent. I have an 11 year old daughter and she makes my bed, looks for my keys and shoes. Goes and to check my mailbox and brings my mail, takes the rent check to the office and requests repairs. Looks for my remote control and sometimes changes my channels. I drop her off to school every morning and she warms my car. She is my dependent and no W-2 is issued.

How much money/profit are we talking about? I know that mortgage interest will be added to the basis or deducted. It will never be ignored. What did you clients did for a living before the S corportation? What do they do now? What was their intent when they formed the S corportation? Was the intent in accordance with what happened? Is the S corportion still in existence? I am pretty sure I can come up with more questions... lol.

I could read some machine language on your original post. I don't like what they did.

What did you do? Did you enter a W-2 as if you had one in your hand in addition to form 4852? I am affraid that the IRS will think you are talking about two W-2s if both forms are transmitted on the E-file.

There are two other "improments". On the W-2, they made the control number variable numeral. So when you enter a control number like 0430-13488, you get an error message. You also get an error message when you enter 0430 13488 or when you enter 0430XZ. Also, they made the employeer name and address an alpha-numeric variable. When you enter a special carather, you get an error message. So, if the company trade name is L&L, Inc. you get an error message. If you enter Smith & Wesson, Inc. you get an error. On the address field, you get an error if you enter C/O Steve Anderson or when you enter 1333-2 Wisconsin Avenue. Big "improvements".

I get the ATX sofware delivered to my apartment. I do not take care of business at all at home. I wasn't home and my family got a visit from person promoting the Western Union cards. Has anyone else gotten a visit from these people?

Graduated kid... It depends how much he paid to the old university and how much to the new one. Not having all the info, I will venture and say that he can use the American Oportunity credit using ONLY what he paid to the old university OR he can combine what he paid to both universities and claim the Life Learning credit. Kid #2, I am assuming again that he is undergraduate and he can use the American Oportunity credit if they paid in addition to the scholarship.

I believe you have to use Schedule C.

I always charge more for amending than for preparing. I ALSO charge extra for previous years. It is not my fault that they are not in compliance or not doing the right thing from the beggining.