Terry D EA

I am understanding that the fees a broker would charge for puts and calls are normally added to the basis the stock transaction. I have a client that has a list of puts and calls that shows the purchase price, selling price, dispostion, and gains or losses. The cost column says "Costs or Other Basis". The account management fees are listed at 3800.00. Is this fee added to the basis or deductible under miscelleanous deductions on Sch A?

In my original post I stated that the husband claimed HOH with one child. The wife has the second child who the husband did not claim an exemption for. In my opinion, the wife should be able to claim HOH with her child as she is the parent and the child did live with her all year. Just need someone to back me up.

Simply put, his SS# has been used as a taxpayer on another return that has already been filed. I do agree this may suggest identify theft. You could get him to sign a POA so you could talk to the IRS and find out what's up

Apparently folks in the South haven't graduated to the sheet protector. Mine come in plastic WalMart bags. It is a mystery however, as to what is actually in the bottom of the bag. The best one I have ever had was the phone call when the client stated " Go look in the bushes for a garbage bag in front of your house, you weren't home so that is where I put'em to be safe". No, I'm not making that up. :spaz:

I know this has been kicked around before but I am tired and unable to think clearly. Couple is separated and living apart from each other since 2008. Hubby claimed one child and filed HOH. As far as I can tell, the wife (my client) can claim HOH as well because she is using the other child which would be her qualifying child. Am I correct here? This stuff can get confusing real quick this late in the game. :wall:

I hope this works. Just what I needed at this time of year IMPORTANT_Medical_Test.pdf

I have a husband wife partnership where the husband passed away in Jan 2011. I am filing 2010 at the final return. I normally would like to leave at least one year open for winding up of business and distributing the assets. However, there is no money nor estate and I am trying to avoid having the client pay another year of annual report fees to NC. We will be dissolving the partnership as soon as tax season is over. Is there any special form to notify the IRS of the dissolution or is the final return enough. Thanks!

Boy, in my opinion, somthing smells bad about this. Why did this employer take the funds to begin with if the person didn't qualify for the plan. So, not qualifying for the plan still constitutes being penalized because apparently an error was made. If I was this 23 year old, I would argue the death out of the 1099R. How can you withdraw funds that seem to have never been part of a retirement plan and classify them as an early withdrawl???? Is there a line on the 5329 for an exception due to Dumb A employer mistake? :wall:

That is way too cool! Looks like he might have gotten a littel disoriented at the end unless he meant to accelerate towards the crowd. What a rush and I can only guess at what it is like in the driver's seat

No problem

I would file it as well. More than once a client has been asked for a tax return that didn't have a filing requirement. I share office space with a real estate agent and one of her potential buyers who did not have to file, had a significant amount of trouble getting financed due to no returns filed for several years. So, again, I say file it.

How does this work with your software package? Please give a little more detail

After looking at the Hud 1, you are correct on everything except the 2,000.00 closing costs paid by the seller. This amount was added to the buyer's loan and again, not a cost he/she incurred as part of the settlement charges. You should tell your client that you are deducting everything permissible by the IRS code. Hopefully that will satisfy her/him. You could look up the PUB on this and have it handy to substantiate your position. Most of the time, when a client is not happy about the amount they are getting or paying, it is due to misunderstanding on their part. However, this doesn't apply in every situation but for the most part, the majority of them. Hope this helps you.

For some reason your last post didn't show and after I asked if you needed help, there it was. The only thing I am questioning here is the points paid by the seller. These are not deductible to the buyer as this was not a cost he/she incurred.

JB do you still need help with this?

I agree one SE should do the trick here. If you would split the total between the two, the bottom line would be the same. Just unnecessary paper toner & time.

I dont't know what play the community property state has here. It appears your client has no choice but to file MFS. He cant' file MFJ which you already know. Don't you just love the courts? You are correct when you say the IRS could care less about the court's position with this.

I can't add anything additional so be sure to follow the others. DO NOT put more than one return in an envelope. Doing so will just make matters worse. If you could even get inside the mail room at one of the IRS processing centers, you would see why.

Thanks for the replies. The processor is an intel dual core somthing or other. I could post the specs if that helps. This computer will be put into use for next season as it is too late to begin to think about data transfer; etc.

If Ryan is still monitoring this board, I have some questions. I just ordered a new HP ProBook laptop with Win 7 Pro 64 bit. Are there any known issues with TRX and Win 7. I did this without really investigating this. I see some folks are having issues with ATX and italics. The new machine has 350G HD, 4GB memory upgradable to 16GB. I thought this would be ample computer for quite a few years. I did get 7 years out of my dell but it is now displaying resource deifficulty when opening both 2009 & 2010 TRX. Any input is appreciated.

Okay you guys are scaring me here. I just ordered a new laptop with Win 7 Pro 64 bit. I trusted the guy at HP on why I needed the 64 bit. Before it is too late, is 64 bit the way to go? He said it is for memory upgrade capabilities.

Are both computers running the same update? That would be the first place that I would check.

I agree with bcolleen but, there may be a question of timely filing of the 1041 due to the fact the spouse died in 2009. Without all of the facts, it would appear that her estate is insolvent. If Jainen would chime in here I am sure he knows the proper action to take. This will be interesting to see the outcome.

Same here. I too plan on renewing but not at this crazy time. I do feel left out though, I didn't get the e-mail unless it went to junk mail or spam.

Taxbilly, John H is correct with his instructions on how to handle this. Social Security is not taxable to NC and I don't think there is a residency requirement for the credit for private retirement benefits. If you input this on the W-2, then the program will calculate for the credit. BTW, I have not ever heard of different filing status's for Federal and State. Matter of fact, I have not ever seen the option to change the filing status when preparing a state return. I would ignore that suggestion.