Margaret CPA in OH

I hope someone reveals it because it is a royal pain. I have one client that had 22 different contributions that required separate entries. At least I had many of the recipient's info from 2011 and on the other monitor to type in but it would have been great to have that donee manager like the payer manager.

Client has now provided the paperwork. It states that the consideration, $1, "for said deed was and is for the full cancellation of all debts, obligations, costs, and charges accrued by a certain mortgage heretofore existing on said real estate." At the end is Limited Warranty Deed stating that the bank then 'do bargain, sell and convey to Federal Home Loan Mortgage Corp'...for $1 the property. What does all this mean? Pacun, the only amount shown is $1, no mortgage balance or FMV of property Should there be another document? If so, does it have a title? Thanks again!

Thrift store value and various, which I seem invariably to spell variouis and have to do it again.

I just scrolled through a trust return I have. The number flowed through from the deductions from page 1 as a tax-exempt item, Ord. Divs, Private Activity Bonds. You may have something different.

Thanks so much, Pacun. I figured there must be something in the works and more to do but not sure what. I will contact the client and have her provide the documents. I sort of knew about the iffiness of COD and that it was a waiting game. Thanks again!

Yes, that is what happened. They did take back the property and did not go through foreclosure so her credit is still good. My question is whether she may expect a COD if the property value is less than the mortgage. From what I can gather that is still a possiblity and is up to the bank. Just wondering if others have handled this as I know several on the board have had full blown foreclosures and accompanying baggage.

Client couldn't sell condo for about 3 years after divorce, moved out. She settled in 2012 with Deed in Lieu of Foreclosure but has not received any 1099-C or other forms. I haven't found where she is either free and clear or may yet have COD hanging over her. At least she didn't go into bankruptcy or had a foreclosure but what next? Thanks - first, only so far and I hope last client with this issue.

Sooooo funny! That's going to 'stick' with me for days! Thanks again, KC, for sharing so many smile makers with us including the tearjerkers and this is one.

I submitted a return last night at 6:05 and it is still transmitted to agency status. I submitted anther this morning at 9ish and it is already accepted. What to do next? I told the client I would send vouchers to pay the balance due, federal and state, and paper file extensions. Other ideas? I don't think I can recreate an efile when it is in this status, can I? I will check out the KB on the remote chance that it may be addressed but maybe someone here has experience. Thanks.

I saw that, too...cracked me up! I have also cut it from the paper to add to my funnies file.

Yes! And overdue bills, and letters and tax department notices - I could go on. I just don't understand why people don't open their own mail.

You go, Catherine - inspirational to me. I have to stiffen my back bone and willingness to be firm. It is annoying when you just know that choices they have made for their convenience are so stressful for us. In a way it is warming to think each of these has decided for some reason that they are the 'most special' and deserve this attention. I guess we may have given the impression (I know I have) to at least some that they are, indeed, special clients but then they really can take advantage of that. Must modify behavior, must modify behavior - mine and theirs!

I've been using since yesterday and, like Marilyn, notice the longer time to open. It seems that printing is faster at putting together the forms and less delay in moving between cells. But I have had very few issues all along, nothing that I couldn't live with.

Thank you, KC.

Chiming in here, too, to say Hello and so glad to see you post. Any time feel free to bring us up to date on what has been happening. If you read past posts here, you will know this hardy band of colleagues still shares trials and triumphs along with the odd joke to lighten things up. Many of us do fondly recall back in the day but the group has also evolved in many ways to be a great support group on whatever level is needed. Again, good to hear from you!

Ranger, that sentence gets me every time, too. I have trouble with the idea that a return can be filed knowing in advance that it is not really correct and/or complete. There may be 'good reasons' but personally I don't sign those returns.

Eric, whatever we do, we cannot express enough our gratitude to you for making this possible. You've surely read how very important it is, especially to us sole props, to be able to reach out to so many colleagues in this way. Without your expertise and willingness to provide this forum, many of us would not be the practitioners we have become or mentors to others. It is we who are very, very grateful!

Catherine, I have a similar problem with an Australian client. I actually received a tech reply weeks ago to send the return but have heard nothing back. When I entered bank interest the recipient's name and address shows on the bottom section of 1099-INT but I get the red error message that it is missing valid state and zip code. Of course it is, they live in Australia. I did extend them to October as they will meet the physical presence test by then so maybe programmers will have 'fixed' this by then. Otherwise, I will have to figure out another way to enter it. I think the programmers of this new version are too narrow in the possibilities, combinations and permutations of a variety of data items that are quite legit. Inexperience, perhaps?

I think both are the correct answer, depending on the responder. Many of us have experience in particular areas so answers to some questions come from that (CRUT returns, minister's returns, etc.). For some of us, we may be fairly sure of the answer but double check and quote. For some, we may also want to know so take the time to do the research. I agree, though. This board is invaluable to many of us for a variety of reasons including tax research support, working through issues to get to the right questions, moral support for bad days and clients, emotional support - I could go on. But I don't think I could go on without this network of intelligent, kind, generous, experienced professionals. For myself, I am always glad to see new contributors, too. CPA 20 years, sole prop 18 years here

I think you will feel better if you reread the instructions for 5227. It's been a couple of years already since this sensible change. Between us and the two or three folks here that will read this, I am not entirely convinced that the folks that process these things are completely solid on the requirements themselves. It seems to me the important things are to characterize the bene distributions as to type and that the benes include in their income. That and that the calculations match the original forms sent stating percentage and that any charitable distributions go where and when they are intended. One of mine had 50% distributed 2 years ago when one of the benes passed away. The terms of that one were 50% distributed at each death. The second one was distributions to be made at the second death which happened in late December. When the survivor of the first one passes (she will be 100 this year), I likely will never do another one. It's been a great learning experience though!

When you figure out what that software requires to file, let us know. Does it expect a 1041-A just to provide the K-1? I don't understand why the 5227 doesn't just have it but I use what works and follows the instructions. It could be crazy if efiling was allowed or required. Programmers would have even more problems.

Yes, I filed 2 CRUTS already this year. Yes, 5227 now incorporates info that was on 1041-A but ATX still requires it to be present to prepare the 5227 and K-1. You just don't file it. The letter also doesn't work as it doesn't have the Ogden address. 1041 isn't needed at all. Maybe someday it will all be worked out but that day isn't yet here. Oh, the 5227 cannot be efiled, either.

Thanks again, friend. Take care -

Kind of creepy. I have a 2 for 1 deal from TaxSlayer Pro today.

Thanks, Catherine. Yes, he and his late wife were just wonderful people. This was quite unexpected despite his age. Undiagnosed cancer gone too far. I didn't even have time to make it there for good bye. It is the final personal return and an attorney is handling the estate return. I found the check box and will just mail to his daughter to sign and file. Any ideas on how to complete 8948 or is it self explanatory with a deceased taxpayer? It would be easier with a refund as the 1310 has to be signed but this has balances due both federal and MA. Thanks for condolences and guidance. I may yet get back there for my friend in Quincy this summer. Will let you know.