Pacun

Give us some numbers and we might be able to understand better. For example, Keogh contributions were $30K but it grew to $40K and those $40K were rolled over to an IRA. Non-deductible IRA contributions totaled $20K. Currently there are $75K in the rollover IRA. Just by looking at the numbers, any one would say that the percentage is 66.67 for Keogh and 33.33 for non-deductible IRA. If that percentage is a very conservative number before the IRS, you might want to go with it. (I believe amount rolled over from Keogh is important, not the amount contributed). How about this: Imagine that the Keogh rollover occurred in 1990 and that the non deductible contributions were $5K each year for the last 4 years. Do you think you should make calculations every year since your non-deductible contributions didn't make any money and the percentage will change? I think we need amounts and years to make a good calculation.

http://www.flixxy.com/200-countries-200-years-4-minutes.htm http://www.flixxy.com/rc-flying-brazil-fpv-hd-camera.htm http://www.flixxy.com/laptop-fan-repair.htm Quote of the day "I told my psychiatrist that everyone hates me. He said I was being ridiculous - everyone hasn't met me yet." -- Rodney Dangerfield

No, based on what Don said previously. All preparers (no EAs or CPAs) MUST register with NY. Registration is free if you prepare under 10 returns or $100 if more than 10. According to LION you can efile if you are register to efile with the IRS. How about states that require separate efiling registration? I know NJ requires separate efiling registration. Any other states that require separate registration for prepering returns and for efiling?

I know that New York requires a preparer who files any return to register. Registration is free for 10 or less returns and $100 is charged if over 10. That is true for paper returns. I think I read somewhere that if you efile with NY, there is another e-file registration. Is that the case?

Did you receive the CD along with the blue book? I only received the blue book and I wonder if the CD was lost.

If the beneficiary of one of the IRAs is her nephew, Terry D, do not take out the money from that IRA! Use the global amount from all IRAs and take it from the other IRAs. Agree?

I received ONLY the blue ATX User Guide for Tax Year 2010 on a destroyed envelope. Should I have received the software on the same shipment?

7. Jane bought an old mountain cabin as a second home and began to remodel it. Immediately after she had removed the old appliances and cleaned the cabin, a fire destroyed it. The cost of the cabin was $100,000 (including $10,000 for the land). The fair market value (FMV) of the property before the fire was $120,000 ($105,000 for the building and $15,000 for the land). After the fire, the FMV was $15,000 (value of the land). Jane collected $85,000 from her insurance company. Her casualty loss (before applying the $500 and 10% limits) is: a. $-0- b. $20,000 c. $5,000 d. $15,000 1. Sam uses his personal vehicle to make business deliveries. He submits the number of miles he drives to his employer and is reimbursed an amount per mile which exceeds the federal rate. Sam’s actual expenses are more than the federal rate. His employer includes the amount up to the federal rate in box 12 of Form W-2 where it is not taxable to Sam. The excess allowance is included in box 1 of the Form W-2 as wages. How should Sam report or claim this mileage? a. file Form 2106 to deduct the excess expenses b. repay the excess to his employer c. he cannot claim any of the expenses since his employer reimbursed him for all expenses d. if he files Form 2106, he need not reduce his mileage expense by his reimbursed amount Can someone answer these questions?

10% penalty is waived if used for qualified post secondary education for Tax Payer, Spouse or dependents.

Go Windows 7 professional, 64Bit AND just close you eyes. Where you are going, you don't need eyes. That combination is the best ever.

File a 1041 using the amount on 1099 as the income portion and then distribute to the beneficiaries the amount they received.

The IRS doesn't care what number they use at work as long as Tax Payers correctly report their income. Everybody knows that.. and that's the reason why we have ITINs. All people with ITINs don't have work authorization in the US. I don't understand your explanation or question about amending the return. I believe a lot of people don't understand either and that's why you dind't get any responses to your post. Please give us more details about the amended return.

If he wants some LLC protection, he needs to register a new one.

We are here.

That's what I try a lot of times. it helps to keep the subject alive. I agree, Jainen is right. So, If a client says: I have ran my car 2,412 business miles becuase my employer sent me to a different/far away location for 2 months. After I agree that those miles were not commuting miles and TP didn't get reimbursed by his employer, I should asked: When was that? Let's say that TP says January 1st, to March 1st 2009. I should asked: How much did you pay for the car? Let's say that taxpayer says $10,000. My next question will be: How much was the FMV of the car on January 1st 2009? If the tax payer says: $800. My next question will be, how many miles did you run your car in 2009? If the tax payer says 24,120 miles, I will say: The itemized deduction benefit will be $80 and you car will be fully depreciated (10% business usage). Correct? What will happen when my client goes to you next year and he ran 2,000 business miles on this car and he ran the car 20,000 miles (same 10% business usage)? How will the IRS or you know that I fully depreciated this car? Will that change if the car was only ran 4,000 the whole year (2010)?

I stated: "Every year, he runs the car 30K miles of which 20K miles are business miles (un-reimbursed business expenses). For 5 years he uses similar mileage on form 2106." I meant that he used the standard mileage NOT depreciation. (I added this after a couple of replies: I meant "actual expenses") If the $2K floor for 2 percent on for 2106 is not part of depreciation, then JohnH might be right. So I am not sure if JOHNH or JAINEN is right on their answers. Which one do you think is right? Imagine that the car was purchased on December 28, 2004, placed in service January 2, 2005 and sold on December 31, 2009.

So, if we use the last 5 years, the average is $.19, so Jainen is right. TP should have a 2/3 gain of the $3000. Are you able to depreciate a car using the standard mileage rate below 0 basis? It seems you can, so could this person could have a profit higher than the $2,000 Jainen is talking, correct?

Do you know what percentage of the 50 cents per mile is for SMR of 2010?

JohnH Posted Yesterday, 10:42 PM "He has no gain or loss on the sale of the car." I would like to answer to both of you "NOT so fast" but I will hold my caballos. Let's analyze it. So, he has gotten 40K in somewhat "depreciation". That includes oil changes, tune ups and tires, correct? So, maybe he hasn't fully depreciated it. What do you rethink?

Client bought a car for 20K. Every year, he runs the car 30K miles of which 20K miles are business miles (un-reimbursed business expenses). For 5 years he uses similar mileage on form 2106. At the end of 5 years, he sells the car for $3,000. So, he has received tax benefits for about 100K miles which is about $40K. How can he calculate a profit when he sold his car? Let's imagine that this is the only schedule A deduction against the 2% floor. Will that change his basis? Let's say that he made $100K every year so in 5 years the 2% floor amounted to $10K.

"Why doesn't he borrow instead of withdraw?" Let's say that this person has two hardships: One economic and the other medical. I like Jack's answer since that section of the code is for you, your spouse, your current dependents or for dependents who were your dependents when you pay the bill or when the treatment was received.

I agree with Jainen and Jack. If I never had any certified, priority or express mail from the IRS, the IRS would not be able to ask the postal office where I am receiving my mail. The FBI would but not the IRS (I think). If the IRS sent me a certified mail and I sign for it, the IRS will know where I am receiving my mail. If I live in an aparment building and all certified mail is signed by the front desk guy AND I HAVE A GOOD LAWYER, then the IRS would NOT know for sure where I am receiving my email. (keep in mind that mail delivery guys are always rushing and the front desk person doesn't have time to see the list of tenants). As you can see, the direct answer to your question is..... NO, YES, IT DEPENDS. I am glad I cleared all doubts. lol.

The 401k plan reads: "To be eligible for a hardship withdrawal, you must demonstrate a need for the withdrawal due to a qualifying hardship provision. Hardship withdrawals will be reviewed carefully and will not be issued for any amount over the documentation supplied for the hardship even when the participant requests. Documentation supporting the amount needed for the hardship must clearly state the amount needed. If there are multiple documents each document must clearly state the amount and reason for payment. The Internal Revenue Service has the following established guidelines on what financial situations qualify as a hardship: * To prevent eviction from, or foreclosure of, the participant's primary place of residence * The purchase of the participant's primary residence * To pay medical expenses that would be deductible under Internal Revenue Service (IRS) Code Section 213(d), determined without regard to whether those expenses exceed 7.5% of the participant's annual gross income Note: Nonprescription drugs (excluding insulin) are not deductible under 213(d). Therefore, these are not considered medical expenses for hardship withdrawal purposes. * Paying tuition, related educational fees, and room and board expenses for the next 12 months of post secondary education for the participant, their spouse, children or dependent(s) * Burial or funeral expenses for a participant's deceased parent, spouse, children, or dependent(s) * Certain expenses relating to the repair of damage to a participant's personal residence that would qualify for casualty deduction under Code Section 165 without regard to whether the loss exceeds 10% of adjusted gross income" I know this is long but it is good information to read anyways. Now my question, client's mother is NOT in US, Mexico or Canada and she is suffering from terminal cancer. Client wants to withdraw $10K from 401k to cover medical expenses for her mother. Those expenses would be deductible under 213(d) if other provisions were true. Would this qualify for hardship withdrawal? If parent would be in US, Mexico or Canada, she would qualify as a dependent. What do you think? I am saying no, but I would like to read the arguments.

Use Internet Explorer if Firefox is giving you hard time. Lower your security settings on your browser for Internet and for trusted sites. You also need to add the link to the trusted sites.

I am doing these amended returns but I have some questions and maybe someone has done this before. Originally filed MFJ got a refund for 5K. On the amended return, the refund for MAIL filing as single is now $2,700 and FEMALE refund is $300. How do I distribute the refund they got when they filed jointly? Should I include $2,500 for each? Currently my 1040X reads that MAIL owes $3,300 and FEMALE owes $4,700. Someone will have to pay $2,000 to the IRS which is the net result. FEMALE made 10K in wages and MAIL $60K. FEMALE's 1098 shows mortgage interest for $28,000. MAIL and FEMALE are in the title of the house but she is the only one in the loan. Since he is 50% owner of the house, should I deduct some mortgage in his schedule A? He was the ONLY one who paid all this interest but I want to be very conservative. I would go with half or zero mortgage interest for him, what do you think?