Gail in Virginia

I cannot provide a citation for my opinion, but I think the interest may be tax deductible. I know way back in the dark ages when I worked for a trust company in employee benefit plan administration, a lot of doctors borrowed their own funds from their 401(k) plan and deducted the interest. Normally, this would be income to the lender, but since the lender is the tax-deferred account, the interest is not taxed as interest but will be taxed when the funds are withdrawn as a distribution from the 401(k). Of course, if it is a Roth 401(k) and they meet the requirements, the interest earned on their account balance is never taxed. What a fun world taxation is!

I have a farm partnership that almost always sells some its older, breeding cows. This is reported on 4797 as capital gain, and carries through on the K-1 to the partner's returns in part I of 4797. I had no problem e-filing the partnership return; however, neither partner's return will e-file. When I attempt to create the e-file I get a message that "Section 1231 transaction adjustment amounts are an e-file exclusion. Paper file this return." I have never had this in the past; any suggestions? Do I really have to paper file? Just realized I should have put this in the e-file forum; my apologies but I don't have time to retype it.

I did finally log onto EFTPS long enough to make the one last payment I needed to make before tomorrow! Persistence pays off sometimes!

Thanks, Deb. I updated shortly before 11:30 here, and the 5405 was still draft. I just updated again and I am good to go!

I have not noticed a problem with e-file, but I am having a terrible time with EFTPS. Anyone else?

Even if there are no supporting documents? I have a couple that just need to pay the $500 payment this year because they were in the group that got a loan rather than an outright gift, and I had thought I would be able to e-file those.

I tend to agree with Lion. Unless the receipt state that no goods or services were received in exchange for this payment, I would think this is the cost of interring the ashes in their memorial terrace. Even if the receipt does have the appropriate language to make it a contribution, I would want to ask some questions about whether or not it was in payment for spouse's "burial."

Once the election is made to forgo the carry-back of an NOL, I don't think that it can be revoked whether it is corporate or personal.

Personally, I would rather hold those returns myself than to send them on to either TRX/ATX/whatever software or the IRS - at least then I know when they are actually e-filed and when to look for them. But different software companies chose to handle this differently. And by the end of next week, hopefully we will no longer be holding anything anywhere.

Normally, I would expect a prize to be in box 3. Who did he win this prize from? Does it have anything to do with his job, making it compensation rather than a prize?

I thought they were doing simple returns for free?

I am not running in XP mode - just "regular." I have ATX back to 2007 on my computer with my computer as a workstation. The server is running Server 2003 ( I think). I have QuickBooks back to 2006, and I am not having a problem with any of these. Good luck - no matter how smoothly it goes, I prefer not to change computers in tax season and I hope that you don't have to!

I am using Windows 7 Ultimate and having no problems with ATX in a networked environment. I assume it would work as well stand-alone.

SMH is going to be a very useful phrase. I learn something everyday on this board.

Are you sure there are no stray spaces or anything in the zip code? I never heard of a zip code not being accepted for e-filing. Is the dash showing even though you did not put in the four digit extension on the zip?

Try updating your forms -- I noticed when I updated this morning that there is a new version of that particular form.

I don't know whether to share this with my son or try to make sure that he does not see it! When he got into potato cannons, they got bigger and more powerful until he blew one up and his friend had to go to the emergency room.

For federal purposes, a Single Member LLC is a disregarded entity. Had he become an LLC, would he have filed as a sole proprietor and used a schedule C?

When I run the check on at tax return, I still get a message that Sch. A can't be e-filed yet, so I assume that we continue to hold them for the time being. Where did you see that Sch. A was approved for e-filing?

Bus as I understand this, she did not take a distribution from a 401(k). She rolled over her 401(k) money, then took a distribution from her IRA. And a distribution from an IRA can be used for first time home purchase without penalty. I agree, you should do the research, but I think that is what you have.

But, can one owner have dividends while the other owner does not? I know this would disqualify it from being an S-Corp, and I thought that it would maybe mess up this being a qualified dividend if it is not proportional to ownership.

The error when you check the return seems to have been corrected with the form update I downloaded this morning. Now it is only flagging it for not being ready to e-file until Feb. 15, which I expected. Thanks for all the helpful suggestions.

This is great, Pacun! Thank you for sharing - amusing and informative! A great way to start my day!

There are machines available for signing checks that are more secure than printing the signature as you print the check. It takes a little longer than the single step, but with 750 employees security can be an issue and often the signing of the checks needs to be in a different person or department in order to control opportunities for fraud. If you google check signing machine, you will get all kinds of companies selling all kinds of machines.

I have two tax returns where the filer took the $7500 credit for 2008, knowing they would have to begin repaying it this year. I have filled out the returns with a 5405 attached and $500 showing on page 2 as the portion due this year. On both returns when I run the diagnostic I expect a message telling me the return cannot be filed until Feb. 14 but what I get is a message telling me 'Error: Box 13a, 13c, 13d or 13g must be selected when a repayment amount is present." 13a says that they sold the home to an unrelated person, 13c they sold the home to a related party, 13d the converted the home to a use other than main residence, and 13g is that the home was destroyed and they do not plan to rebuild/reacquire within two years. None of these apply. Has anyone else had this problem?