Pacun

Can anyone help me. I have looked on IRS website and not really sure how to find the answer. I am very familiar with residential rental property, but I have a client that just leased 39 acres of just land for cattle use. They leased it out for 3 years, but are receiving the payments as half in one lump sum and then 1 payment per month for 4 months to finish the lease payment. Can you divide the payments up between the 3 years or just put it all on the year they received the payments? And Im sure it goes on a schedule E. I know you can't depreciate land. Just wondering if there is any special tax incentives for land with cattle on it? Thanks for any information that can be given. Paula Owner of land should report rental income when received. The cattle owner might have to deduct expenses by allocating it in three years.

This is an excellent idea. But I do like to see the F B I indicators when I efile.

This will be a mess. I guess MicroSoft will get a 1099 from Visa/master card stating "from 2,000,000 clients, we paid you $10,915,153,234.54". How will that figure help the IRS any better? Of course this is already done somehow by this company so this will not represent a big change for either company. The postal office should be happy with this decision because they will get more mailings every Jan/Feb. Or you think the IRS wants to match records and verify if I really paid MicroSoft $199 for upgrading to Windows 7 and purchased Office 2010 for $499.99? If that's the case, Visa/Master card will have to send a 1099 for $699 and my name will appear somewhere in the 1099. I will love to see the 1099 or 1099s that Visa/Master card will send to DELL computers.

Line 63 "Making work pay credit" seems to be available for 2010. This was modified from 2009 which used to read "Making work pay and government retiree credit" Are we going to have the $400 and $800 for working people? I also noticed that PTIN is the only choice as advertised.

Thank you for the advice.

How about using a roll over transaction since the money was in his possesion (his representative's possesion) for less than 60 days?

This might help. Log on with the administrator account and add your regular account to the administrators group. Log on with your regular account and try to print. See if you can do what you "couldn't do". I am assuming that you need to update the driver for your printer and that you need administrator rights to do that. You can also open ATX and see what printers you have by pulling down the file menu and select change printer. If you are using the wrong printer, select the correct one. This will help if you have problems printing ONLY while using ATX.

One time I had a printing problem but I didn't need to reboot, I just added paper to my printer.

Client came this year to me. He lives with his girlfriend and filed 2006, 2007, and 2008 as MFJ because tax preparer suggested. We ended up filing as single for 2009 without any itemized deductions. In 2007 and 2008, IRS charged them taxes and penalties because they claimed too much in 2106 deductions that couldn't prove. He has an immigration case that will go in front of a judge in August and his attorney sent his taxes to a preparer to give an oponion if taxes were prepared properly. In the letter, sent to the attorney and then given to the client, tax preparer states that he is single and therefore he should NOT file his taxes as married. ALSO immigration doesn't recognize common law marriages and attorney wants taxes to correctly match his status in front of the immigration judge. Tax prerarer also questioned his 2106 deductions and asked him to amend all years except 2009 that I prepared. (remember IRS already charged taxes and penalties for 2007 and 2008). I know that you cannot change form MFJ to MFS after April 15. In this case, I will be amending from MFJ to single. Is that possible? How do I amend a return that has already been changed by the IRS? If I amend the copy that the client gives me, IRS might charge him again for something that was already paid.

I am using Windows 7 64 bit for 2007, 2008 and 2009 flawlessly. Jack from Ohio is 75% correct! Maybe 80%, I think 90%. After carefull thought, he is 100% right. When you have 5 years of taxes to prepare what do you do? You prepare 2004 first and make sure everything is correctly entered, correct? Then you work on the next year. Use the same approach when installing ATX. When you get a new computer, you don't want to install every single year on that computer (the reason you got a new computer was because there was so much trash on the old one, correct?). So you make a decision what years you will install and install the oldest year first.

I think there are a lot of people who don't efile but don't want to be noticed. I do agree with them and I will say this: With efile, the IRS will be able to know at anypoint what kind of mistakes were made, what kind of exams you have passed and IRS will be able to tell if the returns you are efiling go along with your qualifications. They will also know how many returns you prepared and the average price you are charging based on Sch A. AND MUCH MUCH MORE.

Compensatory Damages Can Be Tax Deductible A 2010 court decision that favored the IRS over a corporate taxpayer provides useful insights for other companies making restitution payments to the government. Robert Willens - CFO.com | US July 19, 2010 On January 18, 2000, Fresenius Medical Care Holdings Inc. and the United States signed a "Global Agreement" resolving a series of suits against the company on claims of Medicare fraud. The agreement required Fresenius to pay the astonishing sum of $486,334,232 to the United States — $101,186,898 under the criminal agreements and $385,147,334 under the civil agreements. The civil agreements provided that "nothing in this Agreement constitutes an agreement by the United States concerning the characterization of the amounts paid...(for tax purposes)." In its 2000 and 2001 tax returns, Fresenius claimed deductions for the entire civil payment. The IRS maintains that payments totaling $126,796,262 are not deductible. Fresenius moved for summary judgment but the court denied its motion. The issue, therefore, will have to be decided "on the Full report at http://www.cfo.com/article.cfm/14511999/?f=rsspage

JOHNH, whevener you decide to try efiling, please let me know and I will be glad to help you if you need assistance. I have been efiling as much as I can for the last 4 years. Reasons why I efile. 1.- Peer and client presure. 2.- Makes you look more professional and CURRENT. 3.- It is the cool thing to do 4.- Faster refunds 5.- Less mistakes. 6.- No W-2s to attach (sometimes one is attached double and one is left out) 7.- Some of my clients don't know how to fill out the sender's portion of the envelop (I have to do it). 8.- It is more accurate 9.- Less calls from people asking "where is my refund" 10.- Less toner and printer maintenance costs. Not to mention the less paper jams and out of paper messages. 11.- You get a next day message (not a scary letter 2 months later) when your dependent's social security number was by mistake used by someone else. 12.- Next day notification that your client owes federal, state or child support. 13.- Sooner than later the government will require e-file and I will be force to learn it quickly 14.- Less trees to be cut. Don't turn the lights off because I know my list will be extended by someone else.

It really depends on the state laws, the union rules and the labor contract. If the contract reads: "in the event of a union declared strike, the employer can lock its facilities 4 hours after the strike has began". When some unions declare a trike, it means all its members are on strike. The members that don't adhere to the strike (if the union prevails), they are fired by management at the request of the union without unemployment benefits. This easily becomes unknown territory. Don't you think that we are a bit off from taxes on this subject? Maybe we should NT it. In my practice, I don't know how they collected unemployment, the only item that tells me that my clients collected unemployment is the form on my desk or hand or from questioning my clients. Prior to that, I do not advise or suggest to them to collect unemployment, just because I don't feel confortable with it.

I wish I could share my codes but that's illegal. You can buy 10 years of ATX for $100.00. Sooner or later you will need to prepare or amend a 2008 tax return anyways. I am using windows 7 and ATX 2007, 2008 and 2009 with 0 problems.

Yes, current appraisals or cost, whichever is lower, correct?

1-800-TAX-1040 is a start.

Choice B was my original answer and it was wrong. There is no $100 (now is $500) minimum for bad dedt and income producing property on form 4684. Everything transfers to sch A.

73. Thomas loaned friend Susan $10,000 for a down payment on a home. Thomas and Susan signed a note in which Susan agreed to pay $100 a month with an interest rate of 4% until the loan was completely paid. Susan lost both her job and her home in 2003. Susan filed bankruptcy and went to live with her mother. Thomas sued Susan in court for non-payment in August 2004,but the court dissolved her debt to Thomas based upon the bankruptcy. When Susan defaulted, the outstanding balance due on the note was $7,000. If Thomas had only wage income reportable during the year, how much would his deductible bad debt be in 2004? A. $7,000 B. $6,900 C. $3,000 D. $10,000 This was a question on the enrolled agent exam in 2005. The IRS accepted answers are A or C, which means that you can use either Sch D or form 4684 with schedule A (provided you have other items to itemized). Is there a rule when to use Schedule D or form 4684 for similar situations? Is the income producing property the determinant factor?

From 2005 Enrolled agent exam: 56. John is a furniture maker and carpenter. John makes half of his income as an employee of Concept Designs, Inc., a fine furniture manufacturing corporation. John makes the other half of his income from a personal business where he purchases, renovates and then resells houses. In January of 2004 John purchases a house that is not his residence for $50,000. He spends $10,000 in materials renovating the house, which he sells in November of 2004 for $90,000. What is the amount and character of Johns gain from this transaction? A. $20,000 ordinary gain B. $30,000 short-term capital gain C. $30,000 ordinary gain D. $20,000 short-term capital gain Answer is C. I know this gives both Jainen and Oldjack equal ammunition. The key on this question is that "John makes the other half of his income from a personal business where he purchases, renovates and then resells houses." That's not the case with the taxpayer on this posting. From a logical point of view, Let's imagine that I buy a buiding for $600K, then spend $100K in materials and I remodel the building, meaning that I work doing this type of construction work. It takes me 13 months to remodel the building and then I sell it for $900K. Somehow, I should pay SE taxes on a good portion of the $200K profit, if not all. I don't think that reporting this on Sch D long term gain is correct. I agree that we don't know what kind of work the TP does in a construction but a hole digger will not have much expense for materials. I would not amend 2008, wait a minute, maybe I should amend because materials should be added to the basis of the house and the benefits of such expenses should be in 2009 taxes when the house was sold, NOT in 2008.

Since the IRS will require examination, I am planning to attend the National Association of Enrolled Agent conference in Las Vegas. Will I be able to deduct travel, logding, and conference fee on my sole propriatorship Schedule C? The main purpose of the trip is to attend 3 days of training to pass the EA exams.

Could the law also say that for child care expenses you are not considered married and you can use your income to qualify? Is that the route you are trying Sarah?

Title should read "Child and dependent care credit" Father leaves work because of illness in November 2008. Continues to receive paycheck until he dies in January 2009. His W-2 for 2009 shows $1500 income and wife 70K. They will file jointly in 2009 and will claim their two children ages 3 and 5, for whom she paid 7K in child care. Since he received a W-2 for $1500, form 2441 "Child and dependent care expenses" calculates the credit using the lower of the 6K and the lowest income from one of the parents (which is $1,500). Keep in mind that father could not care for children because he was dying. To make matters more interesting, wife participated on a pre-tax child care deduction at work. She put $5000 pre-tax and later collected those $5000 when she showed employer her child care expenses. ATX correctly is doing two things: Calculating 2441 using the fathers income $1500 and adding mother $3,500 to her income. Can they/she get some help since father was not able to take care of children?

It is interesting, isn't it?