Pacun

I would change it to... provided the child didn't provide more than 50% of her own support. In any event, this will not change the fact she is exempted from filing... but it will change her qualifying person status for her relatives. To reiterate, she doesn't have to file.

Do you have two places from where you efile? Home computer for friends or family for example.

I have a client, his 1098 shows $10K mortgage insurance. I asked him to call the bank and find out if it was prepaid. Bank said yes. I amortized. I have another client, his 1098 shows $6K morgage insurance. Client called the bank and they said that since it shows on the 1098 in 2010, it is not prepaid and that I should know that. How do we know if it is prepaid? Do you think there is an amount that will hint us if this is prepaid?

Line 13 schedule A. I think it is the life of the loan or 7 years which is shorter or whichever you choose if loan is longer than 7 years.

I like when I answer like Jainen. Your statement is not correct. If one itemizes, the other doens't have to itemize. The only thing that becomes true is that her standard deduction is zero. To be safe, please itemize deductions or if she has children or support her parents, she can qualify as HH.

lol. I like your answer. I don't think we have to report them but we need to tell the TP (tax payer) the consequences of his failure to comply with tax regulations.

It turns out a simple question after all. If you perform services in exchange for property, you report the FMV of the property received as income. What you report as income becomes the basis on the property. If you don't perform any services, the property is a gift. Casual services outside of my profession are reported on line 21. If I am walking down the street and Steven Spielberg is filming a horror movie and ask me participate in the movie and he will give me a camera with FMV $200, I will report $200 on line 21. If someone says, prepare my taxes and I will give you this camera with FMV $200, I will report $200 on Schedule C and pay SE taxes. If I sell any of the cameras for $300, I will report $100 personal property gain.

I will doubt that a property purchased for $400K will go down to $115K FMV. I said "What Jainin and KC said brings a very interesting point... Why do we have to wait for a 1099-C when a reportable and maybe taxable event occurs when a 1099-A is issued?", in responses to other posts that we are suggesting to wait for the 1099-C when a 1099-A is issued. My point is that when you receive a 1099-A, a reportable and maybe taxable event has occurred and needs reporting. In other words, since the "recourse" box was checked NO, everybody agrees that he needs to amend. I think he would need to amend even if that box was checked YES. I am saying that a reportable and maybe taxable disposition of an asset has occurred when a 1099-A is received.

I think it will be recapture of depreciation which is ordinary income and taxpaper might owe more. I doubt it will be beneficial to the taxpaper but it needs to be amended. What Jainin and KC said brings a very interesting point... Why do we have to wait for a 1099-C when a reportable and maybe taxable event occurs when a 1099-A is issued?

Yes, you have to send a form if you paper file and one of the choice is something like... I tried to efile but I got this error message.

You are right, I don't think the IRS will allow 1040X to be efiled for the next 5 years unless a miracle occurs. It is my understanding that the IRS really looks at each 1040X and that's why we can charge a contigent fee for amendments. I think the written explanation and the changes in amounts (let's say) on the additional child tax credit form are too hard for computers to handle.

"No yet" meaning "not this year" or meaning "maybe in March"?

I was discussing this exact situation with my partner because there about 3 preparers that do that. My partner said "I think the IRS will soon close those places". I said: "they don't register as E-file provider or even as preparers. To the eyes of the IRS, all these people file their returns by themselves". People go there because they know exactly that they will not sign the return and deductions will be inflated. When these taxpapers come to my office, I checked their previous year's return. Most of them don't speak English, and some barely know how to write even in Spanish. I asked them, on these return it reads that you paid $3,050 on child care, what daycare did you take your child? They said, I didn't pay any daycare, I show them, the name of the day care and the amount that they claimed was paid to that company. (Lately, those preparers don't provide copies of 2441 so I no longer can show the name and address of the daycare). At this point, these taxpayers, become the victim and they said "well, we trust the people that prepare our taxes, I didn't know they were doing that... I could demand them." I tell them, "you knew exactly what you were doing from the moment you went to that place... but anyways, let's continue checking your return". I asked, what University did you attend? Of course, they answer... "I didn't go to university". Again, they play the victim's role. I inform them that they should amend and explain the penalties, etc and I move to the current year return. I make a quick assessment of their situation and I tell them, this is what you will get back or this is what you will owe. They cann't believe it. I hand them their W-2 and I said... you don't owe me anything and you can get a second opinion. I show them their way to H and R block and call the next client. I do not want them as my clients and I don't care if I lost my time but I want them out of my door.

Report the sale and state it is a personal loss, so no deduction.

Can a couple who is legally married filed a joint return even if they didn't live together? As you know, tax brackets are easier for MFJ than MFS.

You are correct. BUT Terry waited until the I.O.U. matured and then he cashed it. What's in writing one time is more powerful than what it was said a million times. By signing and dating the check she is liable and it is a felony signing checks without having the funds.

File a retun with New Mexico for record keeping. Personal loss no deduction.

She already paid through her nose. No 30 days ultimatum since she owes nothing at this point.

If I ever get a question like this from a nice looking lady, I will say "it depends". I think your client practces the oldest, illegal profession and she saw in you a potential client. lol.

There is one event that needs to be present for it to be considered a short sale. Correct me if I am wrong. Client has not complied with the agreement he signed with the bank or the selling price doesn't cover the debt.

Yes and now. The other admin doesn't need to know the password in order to change it. If you are the bigger boss, you can threaten him/her that under no circunstances she/he should change passwords on returns without your consent. If your password is not working, then you will know that the other admin changed it and you can fire him/her.

Close ATX and go to your database folder on your server, locate the return and delete it. If needed, boot to safe mode and delete the file. Don't forget the backup folder too. Also, keep in mind that next year, you will not be able to roll it over until you restore that file.

This is the way I see it. You have a house that you no longer can pay because you were greedy and didn't want to rent an apartment that you could afford. But let's leave that discussion for another topic. You owed the bank $300,000. Since you couldn't sell in short sell and didn't have a leg to stand on, the bank made you an offer that you could not legally refuse. The bank offered you $100,000 based on the market value and took your house. YOU NO LONGER HAVE A HOUSE. If you file your taxes and report $200,000 loss. It is a personal loss, no need to mention it on your return. If the bank sells the house for $125,000, you have a cancellation of debt of $175,000, which according to the code it is taxable unless you are insolvent. You are tied to the papers you signed when you purchased the house and to the IRS code. The paper said that you were personally liable for the debt. If the bank sells, your former house for $700,000, the bank will report $400,000 capital gain or ordinary income on its return and will not issue you a 1099-C. Remember that at this point, you don't have a house and therefore you cannot have a profit. The house went back to the bank and only the owner of an asset can benefit from any profit. To answer original question (since no one tried to): If it was pure rental, you dispose the asset on a loss for 2010. Claim the loss and report 1099-C the year it shows up. Technically you could report everything in 2010: The disposal of the asset, the loss on the rental asset, and the cancellation of debt. For matching purposes, you should report the cancellation of debt in the year the 1099-C is issued by the bank.

no

The reason why I hold it is because of little issues like the ones mentioned above. After carefully thinking about it, there is no reason to hold the state, except for a forgotten W-2 or 1099. If the IRS will reject a federal, let's say for ss# matching, it will reject the state also. I was affraid that the 1040 was going to be rejected and the state would go through but I don't find an example when that could happen.