Terry D EA

You are correct, this is income to NC and there are no provisions to deduct this from the Federal Income. The sale of this property is taxable as a gain to the Fed's then it is taxable to NC as NC begins calculating the tax liability based on the Federal taxable income. Hope this helps.

This is another perfect example of the importance of constantly backing up information. I too learned this valuable lesson the hard way. If your machine backs up to an online source, you may be able to retreive a copy of the file that you deteled there. If you have a backup such as an external HD or to a CD, you may be in luck. Otherwise, I don't see any other way. No back up no chance of restoring. Sorry

I agree JB. Use the figure on the 1098. What the others are saying is you can use the information from the HUD 1 if the points paid are not listed on the 1098. The deductible items are the loan origination fees, and of course, taxes paid. I hope all of the replies clears the mud for you

Karen, I am sorry for your loss as well. Just to reaffirm, I agree totally with Jainen on both. Our prayers will be with you and your family.

Jainen I see where you are coming from and I agree, there are alot of low income people working their tails off for little money and, in my opinion, deserve every break they are entitled to. But, I also see those who are working the system as well. However, I guess it is not part of our job to judge how and what the client is doing. Our only responsibility is due diligence for EIC purposes. I agree with KC as well that this is just another way our Government promotes poverty or other immoral practices.

First reation out of the gate was to do exactly as you stated. Conver to personal use. The only way that I see to to handle this is to do the conversion manually. Record the depreciation take for this year and do not go forward in 2011. Maintain good documentation for your client that supports his/her position. If there is another method within TRX, then I would like to know as well.

I agree with the responses to the boss question. I also agree with the responses to the original post. As long as the property was available for rent then the losses are deductible. However, it is note worthy that the loss of rental income is not.

Maybe I'm think of something different, but I asked ATX, when it was still ATX, if something like this could be done automatically in the return manager. Say, like when the return is transmitted, pending, accepted, rejected, held; etc so you could see the return status fromt he one screen. Unfortunately, it never happened.

I wish things were this exciting around my neck of the woods. JB where in the world do you get'em from? I mean clients like yours. I thought you were in the big city of Canton or Massillon where there aren't many farms? Of course, the poop could have come from anywhere but just asking. :spaz:

If they are filing a joint return, it would only make sense to include the total for both on one form 5405. Question, if you do complete separate forms, will the total flow to the 1040? let us know.

Your only option may be paper filing. Of course, that means extra forms to complete and have signed.

If conditions are such to require the AMT, will the AMT automatically trigger in TRX? I guess I was used to ATX automatically populating the forms for me.

Spoke with the NC DOR yesterday. Using my own return and refund, I inquired about when the direct deposit could be expected. After the little laugh, the agent told me 45 days from the date of acceptance. Refunds from NC State were coming thru faster at the end of Jan. Obviously not now. Just thought if there are any other NC preparers here that you might want to know if didn't already.

I would love to have access to those types of emotion icons as well. They would indeed be fun. Thanks Catherine, we can always count on you to come up with something unique and different.

We all get a few of these each year. In my opinion, it only proves one thing. Taxpayers fail to fully understand their position with related taxable or non-taxable items. I try my best to make sure the client understands that regardless of what I or any other accountant, broker, tax preparer, etc; do or tell them, they are ultimately responsible for each and every line on the tax return. Too many times I have had to ask the question of why didn't you call and the usual response is because they were trusting someone else or didn't think they would have to pay. Folks don't appear to understand the necessity of good planning or any kind of planning at all. Over the years I have had to learn to not feel bad when a client owes because of their own irresponsiblity or ignorance. I too have gotten caught as Jainen mentioned but again, I usually follow up my recommendations with the following statement: "Call me at this time (usually 6 months into the year), make an appointment for a review so we can make any adjustments to avoid any unforseen tax liability." You guessed it, no calls or appointments but alot of crying before April 15th.

I had this problem a while back and according to Ryan, the programers had an idea what caused it and it shold have been fixed in a future update. Again this has been a while ago.

Only thing that sticks out at me here is kid #1. The AOC can only be used to pursue a bachelors degree or for four tax years. Knowing the status of the AOC taken in earlier years would help with your decision. Most likely though you may end up optimizing between the life long learning credit and the tuition and fees deduction for this one. Kid # 2 us pretty clear, the AOC should be the better choice. Again optimize between the two credits. Box is the fees billed or paid which may or may not be the same amount of scholarship in box 6. The difference between the two that the student did not use for his/her education is taxable income that is to be reported on line 7 of the 1040 form with the words Sch. We have a local community college here that issues checks back to students for the portion they don't use towards their tuition. Makes em mad when they have to claim it.

Having this feature is very useful but, I for one, don't charge anything extra for a few extra W-2 forms. Some of these returns can be completed quite quickly and I have a hard time justifying additional fees especially if the return is rolled forward from a previous year where the base information of the W-2 already exists. I'm not saying it is wrong to charge extra but that it doesn't work for me.

I have had a couple of wierd scenarious this evening too. I was reviewing a return in front of the client and the refund amount changed part way thru the review. Why???? I don't know. All I know is the tax was calculated different so I verified everything manually and it is correct. However, this makes one look bad in front of a client. I know if I call TRX there will be no answer because it is now showing up now. I wonder if the last update has anything to do with these issues.

Input the information as it is on the corrected W-2. If the figures are off, which apparently they may well be, then I think you can mark this as non standard W-2 with the correct figures. I think that is what it is called.

I'm glad it came out the way that it did as well. However, I do agree with Tom on all points. I also noticed that the female reporter mentioned that not all CPA's are alike as well. Best advice is research and find someone you can trust which is well worth the investment. Naturally if the fees are outrageous then one should question that as well. Being the most expensive doesn't mean you are the best at what you do.

These situations can get sticky at times. I am of the opinion that each is 50% owner in the home. That in and of itself doesn't address the FTHBC and would be two separate issues. However, if you are trying to qualify them for the FTHBC, then you need to allocate it as outlined here: A. Co-purchasers who are not married may allocate the credit using a reasonable method. A reasonable method is any method that does not allocate any portion of the credit to a taxpayer who is not eligible for that portion of the credit. The maximum credit for a taxpayer who qualifies under the long-time resident test is $6,500, and the maximum credit for a taxpayer who qualifies under the first-time homebuyer test is $8,000. One example of a reasonable method is to allocate $6,500 to the long-time resident homebuyer and $1,500 to the first-time homebuyer. (12/14/09) This makes perfect sense to me to do the allocation this way. I hope this is what you were looking for.

DITTO KC and Old Jack. I have a S-Corp that irritates me in the same way. Always trying to get me to reduce my fees. I already do too much for this client that I don't bill for and this year this thread was out exact conversation. Our time would be better spent filling up the hold left from this client by a few new clients. Plus, we would be able to address others more efficiently as well. Sometimes you have to weigh all of the odds.

This is my second year using TRX. Like many of you, I had used ATX for 12 years prior to switching. I had minimal problems last year and even less this year. I do think I made a good choice the support is much better and for the most part, TRX support is courteous and will stay with you to solve any problems. I hope the price stays the same and if so, then I will renew again for next year.

Just completed one this evening and have completed others prior and have not had this problem and hope that I don't have this problem. Thanks for the heads up