MAMalody

Just took the RTRP exam in Fair Oaks, CA and, believe it or not, I passed. Thought I was too old to be taking tests. Guess I was wrong. I would advise a reading of Cicular 230 prior to taking the test. I was rustiest there. The computer research materials provided did lack seomething, however, it was good to have available. Will I ever find out what questions I actually missed or should I assume that I, of course, did not miss any?

Thanks for the input.

I was looking at the registration informtion and have a questions. My PTIN registration names is listed with a middle initail while all my ID has my full middle name. The instrustions only indicate that the testing registration information must match the ID. So if I register with the ID information will this mess anything up since my PTIN name only has the middle initial and not the name. The IRS web site indicates it may delay the issuing of the certificate but not that you can't do it. I can change the PTIN info, but it must be in writing and could take months. What do you think?

IRS Publication 544 speaks to the dispositon of assets. Publicatioin 537 speaks to installment sales. Publication 4681 speaks to canceled debts, foreclosures and repossessions. Publication 4849 speaks to not being able to pay taxes you owe. These are all free at www.irs.gov. If you are a good study, they will help give you some general information. Tax professional will tie the tax implication knot for you, however, he may need to be guided by an attorney based on the facts and circumtances of your situation and other nontax issues. Good luck.

I am not sure about today, however, when I was an IRS auditor in the 80s we were told specifically not to make any adjustments for under $25. We would write it up as a no change.

Amen to that!

LOL. I like it jainen. Hmmm. I will try a complete rebood and see what happens. Of course, no one is on the phone.

Is ATX have a processing problem of some type. Everytime I go to file a return it says there is a server error and indicates 12031. "Error: The transmission can't continue due to server error. Error: Received respons 12031; Unknownfrom the server insteadof an XML document."

Per the Tax Book: Losses on traditional IRAs are not deductible unless the entire account balance of all traditional IRAs are distributed and your client has unrecovered basis left in the traditional IRA. Distribution of the entire account balance applies seperately to all traditional IRAs.

My guess is that the 1040Clergy worksheet #4 is not picking up the Schedule C income correctly. You may simply enter the figure there and that should take care of the SE.

I talked to a tax attorney who specializes in clergy taxes a couple of years ago on this exact issue. Conclusion: pastor is not dual-status therefore does not qualify for housing allowance. Only solution is for the W-2 to be corrected. I get about one or two a year like this. Usually when it is explained to the church what is going on it gets corrected.

I don't do 1041s, however, I just received one from a client to review as he is a 50% beneficiary of his mom's estate along with his sister. Apparently she had the 1041 prepared and now wants him to accept it and pay 1/2 the preparation costs. Since I don't do these, I plan on telling him I don't do those and he needs to check with somebody who does to determine it's accuracy. I did note that a personal residence was listed on it being sold at a loss. Can you report a loss on a personal residence on a 1041?

I can use that this coming Sunday. Thanks.

Can you handle online preparers or only in office types?

I would be interested in seeing the agreement. Would it be possible to post the agreement or send it to me at [email protected] ?

The answer here is really easy. If this was just a curious question you came up with, don't worry about it. If this came up because of a red flag, then I think you are bound to follow it up. It looks to me like you don't believe the individual, therefore, you need to follow-up somehow. Maybe a simple reply like: I have received your information. Thanks. It is unusual for percentage of use figures to stay the same year after year. Do you have logs to support your percentage? In the event of an audit, the IRS will want to review those. Please advise.

I can't figure this out. I have a client who used two vehicles for business purposes. One a greater percentage than the other. The high percentage vehicle will not compute. It says in red: standard mileage method is unavailable. I can find no difference in the data entry when I compare the two. They are 77 and 83 percentage use vehicles. The 83 is the one with the problem. What is going on?

I don't think I agree. It would appear to me that if you bypass an opportunity to have the damage paid for by a third party of which you are paying a premium for, that you surrender the ability to take the deduction. It is not usual, ordinary or necessary for any business to pay an expense they do not have to pay. It could be possible if you could document that you premium would go up as a result and it would be cheaper to pay it directly you may have a case.

Don't forget that you are able to deduct any unreimbursed professional expenses from the SE income prior to the computation of the SE tax. Also, don't forget the IRC 265 adjustment to the 2106 expenses. The ATX 1040 Clergy Worksheet 3 and 4 should do this for you if the figures are entered correctly on the F2106 and Worksheet 1. My guess is that the meals he was provided would be part of his compensation. In reference to the vow of poverty; the earnings are tax free to the individual because the earnings are considered the income of the religious order. If the 1099 is for services performed for an employer outside the religous order or work that is no required by or done on behalf of the order, then that income would be taxable. You would be able to take a charitable contribution for the amount surrendered to the order.

I agree with Tom and Pacun. Working as a prior IRS auditor and owning my own tax practive and representing in audit for my clients for over 20 years, have ever disallowed or had disallowed a situation as described above. Have you Jainen?

<<<Housing allowance. Fair rental value of home (including utilities and furnishings). Actual out of pocket cost of home (including total loan payments, repairs, utilites, furnishings, lawn care, landscaping, custodial, etc). The lower of these three is what he can exclude from tax and SE tax.>>> The above statement is technically not correct. Nowhere are total loan payments taken into account. What you would use in place of Loan Payments, is principal reduction, mortgage interest, property taxes and insurance.

I couldn't remember how to correct a posting sorry. I was in a hurry and failed remember you were talking raw land. You would use the input tab at the bottom of the Schedule D, I believe.

Look across the bottom of the input for Schedule D, there is a tab for sale of residence. You will also need to check the appropriate box at the top of the 8494(?) that goes with it.

The Form 1040 instructions indicate not to use a PO Box in the entity section, however, the returns I have had in the past with a PO Box they have mailed the checks to them.

Tom has a good point. Most, if not all, financial decisions should not be driven only by tax considerations. Being debt free has much to be said for it, especially in the economic times we are currently in. I would not volunteer guidance on his investment plans. If I was asked I would share the prior sentences and then explain the tax impact of his decisions.