Janitor Bob

My heart goes out to you and your family. I know you are going through many feelings (grief, relief, sadness, happiness) all at the same time. Just know that she is in a better place and take solice in knowing that...just as you described....she was surrounded at the end by a loving family.

This client purchased her first home in 2008 (settlement date 02/29/08), but does not get the $7,500 credit because it was settled prior to April 9...correct? Also....The 100K withdrawal from her 401k puts her income at a level that makes the credit zero anyways this high income (100K plus her regular W-2 wages of 48K) disqualify her for lifetime learning credit and tuition/fees deduction. Also according to her 1099-R....zero taxes were withheld from her 401k withdrawal. Client owes $32,560 to IRS, 4,450 to Ohio, and $1,354 to school district Client and her ex-husband (divorce final in early 2008) had their joint return prepared by a very expensive CPA last year......I know this client wanted to save money and come to me this year....but this amount due, I must admit , scares the hell out of me and I am afraid I am missing something.....I think I will give her my results, not charge her, but suggest she goes back to the expensive guy this year...and see what results he comes up with.

Client withdrew 100K from her 401k to pay for a new home. I know the amount is taxable, but what about the exception on the 5329. I would like to avoid the additional 10%, but exception 09 state IRA distribution up to $10,000 for purchase of first home. This is not an IRS....it is 401k.....does this count?

You and your family are in my prayers.

Is he on a cash or accrual basis...i.e. does he recognize his income when earned or when actually receved?

While in the return to be amended.....on the upper left of the screen sclick on "Returns", then click on "Amend Return"

Anyone? Buehler?

Not sure about this year...but last year, per State of Ohio, you could NOT e-file non-resident or part-year resident SD-100.....but ATX would allow it...what would happen is the part-year resident SD-100 would be e-filed along with the IT-1040....but the part-year or non-resident credit would NOT be included.....so I had a few part-year and non-residents that received notices of balance due because what was e-filed to Ohio did not include the adjustment for part-year.....Caused big problems and had to re-send all of clients SD-100s by paper along with letters of explanation.

The company I worked for did some service work in Canada (installed and repaired a machine). We received a T4A-NR (similar to U.S. 1099-Misc) lisitng Gross Income of $5,720.00 and $858.00 income tax deducted. Do I have to file a Canadian T-2 tax return? This is the only income we had in Canada.

I posted this same questions a few days ago...Because I am also thinking that...from what I read...this approx $400 will help now in the form of larger pay-checks (because less Fed tax withheld) but lower refunds/higher balance due on next years taxes....because in the end, they will owe the same amount in Fed taxes, but will have had less withheld from their pay....I really hope I am wrong Many people added their thoughts...and in the end I was still confused...maybe more will reply to this one

When I installed this newest version, a sock-puppet jumped from behind my bed....rolled up to Lila the giant dog...smacked her on the head...and rolled back under the bed. It was fun to watch

I have already sent an e-mail to the client.....I never assume......and yes I find the 1098-T less than reliable. another client received one with all zeros...what was the point of that?

Client has has education expenses the last few years.....1098-T with amount in Box 1. This year, however, his 1098-T has nothing in box 1 (received) and a large amount in Box 2 (billed)...also the box is checked at the bottom to indicate box 2 includes amounts billed for a perios beginning in 2009. Am I correct that the taxpayer has no education expenses to claim this year for 2008...as nothing was paid...only billed? Thanks

Does the client have his last pay-stub from 2008? If so, make sure the year-to-date gross earnings match the combines W-2's

I would enter the 1099-G info just like it is on the 1099-G Then I would enter a negative amount on 1040, Line 21 (bunny-hop then explain on the statement what it is for) Then I would enter the Fed tax withheld on 1040 Line 62 (again bunny-hopping to the worksheet and entering amount and explanation)

There probably should be...In talking to the client, I get the impression that the person doing the books for the partnership is not very good. In fact the partnership asked me If I would do their book next year so they could fire their current person (I declined, but told them I could do their 1065 next year). I also know the guy who did their 1065 and sent the K-1s....He is OK, but would probably not question any missing info...he is just a no-questions asked, input the numbers guy who runs on a quantity-based assembly line method of preparing taxes.

Thanks to both of you!

I know there is language that can be placed on correspondence that basically states that you cannot use anything in the correspndence as tax advice relied upon to avoid penalties...blah, blah, blah" Does anybody have that handy...could you post it, please?

The 1065 (I did not prepare) does not have any info in the M-2 area (Analysis of Partner's Capital Accounts)....and thus no such info on either partner's K-1.....If client invested money in 2008, should there not be an amount on both the 1065 and the K-1 to show that in her capital account? The only thing listed in this area on the 1065 is the partnership loss of $11,657 and a balance at end of year of -$11,657. The client's K-1 shows only this same thing...just her 40% share of the loss (-$4663) as her ending capital account

Where would Unreimbursed partnership expenses show up?...not sure where to put them?

The gas receipts are for trip from home to poultry farm...Did not think this would be deductible. She states that she did give the van to the partnership, but as of end of 2008, it was still titled in her name...just being used by the partnership...she paid for some various maintenance on the van in 2008 and was not reimbursed. I understand and agree that for 2009 (assuming van title transferred to partnership) that the FMV of the vehicle should be added to her partnership capital account She is not an employee...Just a 40% partner...receiving 40% of the loss on her K-1 (-4663) Currently the K-1 has nothing in her capital account....Just a decrease of -$4663 (her share of the loss). Next Year, (assuming the van title transfers to the partnership) I would expect to see an increase in her capital account equal to the van's FMV....correct? If client invested money into the partnership in 2008...should there not be an amount for capital contributed during the year? ...But if title of the van never tranfers....and she keeps paying for expenses and letting the partnership use the van....where do her expenses go? Should they be reimbursed by partnership (so that in the end they appear on partnership's 1065 as an expense). Or appear on her Sch A as unreimbursed employee expense (even though she is not an employee of the partnership)? Man...This is a confusing one!

I may be wrong (my daughter and fiance' inform me that I usually am), but I would lean towards expensing this stuff....It would seem to me that these improvements are not increasing the value of anything...only recovering value that previously existed prior to rentors destroying it. If, however, any of it is for items that did not exist or cannot be seen as a direct improvement...or that cause value to be higher than before rentors destroyed....that would be capitalized.

Client has a full-time job....but also invested in and is active in a poultry farm partnership on the side. She retained all of her gas receipts and vehicle expenses for traveling to and from this poultry farm. Can she deduct these expenses in any way. The partnership (K-1) had a loss for the year. Also....She has a van that she gave to the poultry farm partnership for business use....but it is still in her name. Can she deduct any of those vehicle maintenance expenses (yes, she kept receipts) or are those expenses for the partnership. Would all of these (if they can be used, simply Sch A expenses) or reported some other place? I will do my own research, but want to see opinions from the smart people here on the board. best answer gets a frikkin banana sticker on their paper!

Not unless they are referring to the option to claim sales taxes paid instead of income taxes withheld on Schedule A...sales taxes on an auto may be significant for taxpayer to benefit from this option.

Can you imagine being that young again...but having the wisdom that we have now?