Janitor Bob

Greetings Kerry! It is wonderful to see your post. You assisted me on many occasions back in "the good ole days". Please do NOT be stranger to this forum!

Exactly, RitaB

Are any of you on a stand-alone XP machine? until I hear good reviews from people sharing my specific set-up, I will not update...just too risky.

the rule in my office is that if any folder exceeds 3/4" in thickness, Lila the giant Dog is allowed to chew at random until thickness is sufficiently reduced....works like a charm and no client has ever complained about he excess dog slobber. they like me because I'm quircky and my big dog is adorable....they keep coming back because I'm good.

Yes...this would be almost impossible to accurately assign cost. Is it acceptable for me to look of the average cost of the fund shares over a period of years (or at least one year) and assign that cost to all shares sold? Client just brought me another 1099-R.....this one, along with a gain of $8,000, would cause her to owe approx. $80 in Fed taxes.....So now I have incentive to reduce that gain. However, I want to do it in a way that would be acceptable to IRS. A CP2000 from IRS might just be the nail in this ladie's coffin.

Thanks to both of you...this is what I suspected, but like I said...it has been a long time since a client sold a principal residence.

elderly client had a mutual fund with a certain bank for many, many, years. a few years ago she moved it to a different bank. Client received a 1099-B from the new bank showing gross proceeds from the sale of many shares of bond fund. $8,000 proceeds (non-covered, no cost reported, term unknown). I know these are long term because client told me she had the fund for many years prior to moving to the new bank. How do I find the cost/basis of these shares sold? Client has absolutely no idea, apparently the new bank that sold the stuff has no idea. Clients only other income is $21,000 social security, a small pension, some interest and dividends...all of which added to an $8,000 taxable gain, would still leave her with zero taxable income....so no taxes due. Should I tell client to pursue new bank/old bank to try to come up with costs on these shares or just let it go as a $8,000 gain?

For the first time in probably 5 years, I have a client that sold their primary resience in 2012 and purchased another home. I am familiar with the concepts of the exclusion and I think I have all of the needed info....but since it has been so long since I have done one of these.....Do any of you have any words of wisdom/caution? Client does have a 1099-S. It looks like thsis reported on Sch D via the 8949. Client meets all the tests to exclude maximum amount of gain. She built the home in 1970 for $30,000. Sold it in 2012 for $144,000. so based on this alone, she would have a gain of $114,000....and she can exclude up to $250,000. Soooo...Is there any reason for her to go back and get the cost of any improvements she made that would have increased the basis? Her husband (who passed away 8 years ago) was always the record-keeper of such things and I know she will have no idea where to look for such expenses/improvements.

Yup....I am a wealth of tax knowledge,,,but this time of year, I am lucky if I can focus on other life functions enough to wear matching socks. navy looks a lot like black when you're in a "tax fog"

I have three returns that did this for some reason.....I had to duplicate the returns, then I was able to open the duplicate....Nothing I have tried has ever allowed me to open the originals again...just causes the program to shut down

I like how it makes toast perfecly....not too soft, but not burnt

I hate getting new clients like this in April, but I must admit.....it made me smarter and better at my job.

In reading information about OH, it looks like Ohio allows for a legal seperation to legally state certain things, such as assets, dependency, etc, but Ohio still views a couple as legally married until one of the three decrees is final...dissolution, annulment, or divorce. I informed clients that it was either MFJ or MFS....they wisely chose MFJ and will stop back (separately) and sign the 8879 and pay.....giving me separate checking accounts with which to split the Federal and Ohio refund direct deposits. Next year, I think I will do his (since he is the on that originally contacted me) and tell the ex-wife to go elsewhere...I forsee issues and (as many have mentioned) predict conflict of interest on separate returns

the guy moved out in October, so they do not qualify for the rules that allow one to file as HOH. My delay and confusion is caused by the words "legally separated"....WTH does this actually mean for tax purposes? I have not seen the seperation agreement, but I am not an attorney and am not qualified to make tax decicions based on "my opinion" of any seperation agreement. I am assuming (since divorce was final in 2013) that this "legal separation" the couple speaks of is actually an interlocutory decree and that there only choices are MFS or MFJ. I did the MFJ/MFS comparision and it is MUCH better for them to file joint. This is no surprise to them....his attorney already suggested it and my understanding is that they are to share the refund/balance due. He is OK with that......However SHE wants to stick it to him and file as single/HOH and claim the kids because doing so would get her a large refund (EIC) and he would owe a ton....and in her mind, filing single would be a way around the joint sharing of refund/balance due. What I need to explain to her is that even IF she was able to file as single, she might get a small EIC based on her income ($9,000), but would not get dependency exemptions and HOH because he (with $85,000 income and living with kids until October) would have provided more than 1/2 of the support for kids and keeping up the home which is in his name. What I was hoping is to avoid the above conversation entirely by only having MFS/MFJ as available options for them.....Next year will be fun.

I did not see it, but wife says they were "legally separated" at end of 2012.

I was thinking that too, but wanted to confirm

Married couple lived together (in Ohio) with their 2 kids for all of 2012 until October......That is when he moved out and they obtained a legal separation. The divorce was not finalized until later in 2013. Can they file as single with one getting HOH or must they file MFJ/MFS since they were legally separated but not legally divorced on 12/31/12?

Make sure you update the 2011 software before creating the e-file...otherwise you'll get an error stating e-file signature date must be same as current processing year (or some similar wording) I know you said never mind, but I don't often have the answer...so I am gonna share it!

Upon further review of my situation, I realized that the current roof was over 30 years old end of its useful life. Therefore, since new roof IS extending the life of the home, I am capitalizing and depreciating

Deb...make sure you update the 2011 program.....that error went away after I updated and re-started the 2011 program.

True...unfortunate, but true

I thought so too...but wow.....$43,000

Elderly client was hospitalized end of 2011, was allowed to come home in early 2012, but only is she had assistance. Per Doctor's instruction, she has registered nurses come to her home twice daily to check vitals and prepare/administer medications. These nurses do not perform any non-medical tasks. Does this sound like a deductible medical expense?

The problem was with the non-business deductions....in other years, ATX automatically pulls this from 1040 line 40....For some reason, in 2010 ATX did not do this....and I did not think to check it...shame on me.....so it was erroneously carrying over to later years....I went back to 2010 and entered the Sch A deduction on the NOL worksheet for non-business deductions and the carry-forward was gone. A shameful example of relying too much on the software....I should have caught this in 2010!

Now I am re-thinking along the same lines that led me to the original post.....This roof "repair" (which at only $6,000 is likely only removing and adding a new layer of shingles as opposed to new substructure) does not increase the value, size, or useful life of the house....I think I'll expense