MAMalody

I have a client that lives in a home in Alaska. They own the home, however, they are prevented by law from owning the land. The land is Native Land Claim Land that cannot be sold or traded to anyone but another native Alaskan person. They have been requested to vacate the land and the house will be razed (sp) so the land owner can construct his own home. They are able to buy a piece of land in a nearby city (65 air miles away) and are in the process of ordering a kit home to be built on the land. If the home is built and occupied prior to 31 December 2009 do they qualify for the credit? As I read they credit I don't think so, however, I would like to confirm this because of the unusual situation. Thanks.

I would simply ask the client, "When the job started did you or the employer expect it to last more than a year?" If they give you a nebulous answer, I would indicate to them that you are looking for a yes or no answer, that you do understand the variables they are talking about. Then go with their answer. I would not explain the temporary definition until I received my answer. What I think as a practitioner, for this question, does not make a difference. It is what the employee or employer thought that counts.

I had an interesting experience this morning. I read the ATX Customer Support update that indicated the 2009 tax organizer was available. I checked, it wasn't. Sent ATX a message at 9:37AM about it not being available and received a respoonse that I was redeiving an automated response. Two hours later, ATX corrected their e-mail and told us that they were wrong and it was the 2008 organizer that was available. Interesting.

The appraisal should be from someone certified or qualifed to make said appraisal. It is possible the University insurance company may have someone available. Make sure the receipt indicates that no goods or sevices were received by the donor in exchange.

KC, I like your signature quote. Do you know where it came from? document, speech...

<<<we all know how those celibate brothers get by>>> How?

I agree that a field audit is not a joke and will be, generally, a pleasant experience, until you get the results. It is almost impossible to limit an auditor in record searches when on the business premises. It is entirely possible in the search for an legitimate answer that something could be seen that could expand the audit beyond the normal scope. I even know of a case where a field auditor was also performing a field audit and at the same time looking for info for CID (I was an auditor in the 70's) for a partnership issue that had nothing to do with the field audit under way. I can't remember if it was said, however, unless you have a rock solid reason based on law, don't challenge the auditor. You will generally never win and could poisen the whole audit and eliminate any discretion the auditor would choose to use in your favor.

mcb39, generally, a pastor's income is not reported on Schedule C even though a Schedule SE is required to compute the self-employment tax. Jack, you did it. I had overlooked the box at the top of the ATX form. When I filled that in and deleted the election page and reopened the return, the software did not automatically open the elections page. The form also computed correctly. Jeez! Thanks for the help folks, I truly appreciate it. If I can ever confuse you on something, let me know.

No, however, he is a pastor and there is a Schedule SE in his package.

I did use Form 5405. When I indicatd the closing date and purchase price it was on the worksheet of the Form 5405. I believe it was the entry indicating a 2009 purchase being used on the 2008 tax return that triggered the election page. I don't see a reason on the election page that covers what I am doing. The program selected "Election to exclude property from MACRS depreciation" as the reason for the election. I can generate an e-file but I would like to know what is going on here.

I have a client that purchased a new home and wants to file for the credit. He meets the qualifications. ATX automatically added their election page to the return, but for the life of me, I can find anything I need to fill out on it. What am I missing? I should also mention that we are referring to the $8000 credit and the election was premarked by ATX and said, "Electionn to exclude property from MACRS depreciation"

I was told by a TRX (Michael) guy that their software could be either worksheet or forms oriented. Your choice. He had seen it demoed.

Doesn't Mozy have something like unlimited for $4.95 a month?

You are probably correct. I was going by memory when I was an auditor. I appreciate the update and the subtle way you correct my spelling of de minimus (deminimus).

If I recall correctly, the IRS considers a deminimus adjustment to be one with a total tax bite of less than $25. My guess is that you are talking greater than that. The average looks to be in the order of $40 to $60 dollars. In audit the IRS would not make this a deminimus (did I spell that right?) adjustment and not worry about it. I think the best course, would be to advise the client in writing of the situation, pointing out the originals were prepared on the data supplied by them and advise them that the 1099s should be corrected, also explaining the $50 penalty per 1099 that is wrong and not corrected. Let them make the call. In this way you are covered, the ball is in their court, and you have demonstrated that the original error was not your fault. After all, you can only do what the client asks you to do.

I would try to discover a common thread or problem, "business plans for hard times", "how to have a cash surplus when the bank won't loan you money", etc. Devise a solution and offer a free seminar to those specific businesses. Get the names, etc form the BBB. Chamber, mail house, and then follow-up by phone to confirm attendance. Don't try to sign them up at the seminar, however, have a company brochure available for every one that attends in the packet of materials that goes with your presentation. Follow-up a week later with a phone call to "get their response to the seminar. If there is any way I can help you in the future, just give me a call."

For this to be decuctible,the contribution must have no strings attached. Per the posting above, the individual only gave the money after the chairman said they would do something for the family. He then gave the money directly to the individual. It woud appear that the intent is to help the individual, not make a contribution to the benevolence fund that may or may not help the family. Based on the fact pattern expressed above I would say it is not deductible even if the church did give him a letter of receipt. In my opinion (for whatver that is worth): The fact that this man has a generous nature and has helped out in the past, for tax purposes is not relevant. What he actually did is what is relevant. The fact that his is not how he has done it in the past, based on the fact pattern above, is not relevant. What he actually did is what is relevant.

I called and confirmed that I had ordered 29 April and would get one the ATX software. I asked about next year and the answer dealt with their 5yr license or whatever it is called for Taxwise. Hmmm.

I have not looked for a year or so, but when I last looked the IRS indicated that you should go by the agreement you proposed regardless of when you receive your confirmation. They indicated that if you did not, it could void the agreement because you did not keep it. Just a thought.

Duh!! You mean you actually expect me to read the entire form? Thanks. I don't know how, but I missed that three different times.

For the life of me, I can't figure out how to enter a rollover. I can't find anything on the 1099R worksheets. Does anybody know how to do this?

I didn't make that connection. Thanks for the reference. I guess the question then becomes for the school, since the child is not the dependent of the parent, do I need the parents information.

I have a weird one, for me, at least. I have an individual who does not want to take the EIC and CTC because the college his kids go to counts it as income and it puts him over the edge for financial aid/scholarships/grants. I don't remember these credits as being optional and I can't find anything as I rapidly search for it. Can someone give me some input or a direction to look. Thanks.

I took the plunge yesterday and purchased the $699 package. We will see.

If that bank account number actually exists, the bank will not return the money because they are depositing those funds into the account they have been instructed to make the deposit into. The IRS will be no help because they transmitted the refund per the instructions they received. The best the bank can do is to ask that the errant account owner return the funds. If the account does not exist, it will revert back to the IRS and can be handled through them. I believe they would send out a paper check at that time.