TAXBILLY

http://www.nytimes.com/2010/04/07/business/07tax.html?partner=rss&emc=rss

May you have many more! taxbilly

May you have many more! taxbilly

Dear Client: I'm sorry that it was my fault that you owe $3000 this year when last year you got a $1000 refund. I know it was my fault for not telling you to withhold from the 401(k) distribution that you received (and didn't tell me about it). I hope next year your new more qualified preparer will prevent that from happening and you will again be a happy camper. taxbilly

Does she draw social security? taxbilly

May you have many more! taxbilly

May you have many more! taxbilly

Pub 334, page 35. taxbilly

This is not uncommon. I have a client who was the beneficiary of his friend's military pension. The friend died November 13 and my client received a check for the month of November (1-13) in February 2010 and a 2010 1099-R which we will report on the 2010 return. taxbilly

>>Don't be so arch.<< Coming from the king of arch, I'll take it as a compliment. :~) taxbilly

So title insurance covers the property from future liens ... taxbilly

So the title insurance officer looks into it and says there is a lien. Now what? taxbilly

Rule Changes For Qualified Purchases Made After November 6, 2009: Last line: Credit Limitation: The credit limit remains $8,000 for qualified first-time homebuyers, however, long-time residents who owned and used the same principal residence for any 5 consecutive years of the last 8 years prior to purchasing a subsequent new principal residence, may now qualify for a tax credit of up to $6,500. Income Limitation Is Increased: The Modified Adjusted Gross Income Limitation at which the credit will begin to be phased-out is increased to $125,000 for single taxpayers and $225,000 for joint taxpayers. Purchase Price Limitation: No credit shall be allowed for the purchase of any residence if the purchase price of such residence exceeds $800,000. Restriction for Age and Dependents: No credit shall be allow for the purchase of any residence unless the homebuyer (or spouse if married) has attained age 18 as of the date of such purchase. In addition, no buyer may take a credit if he or she can be claimed as a dependent on someone else's return. Documentation Requirement: Buyers will be required to submit a copy of their settlement statement to claim the tax credit. Claiming the Credit: Under the new law, as under the old, 2009 homebuyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim their credit on either their 2009 or 2010 returns. taxbilly

My advice is to take the relevant paperwork and go down to your local IRS office to straighten it out quickly. taxbilly

492 1040s done as of this morning and 78 in various stages with approximately 200 more to come. Today is my last day of appointments. Next week we will only take on new clients. If someone drops off starting today we tell them we may get to it by the 15th but if not it's going on extension. If that is a problem they are free to go elsewhere. taxbilly

May you have many more! taxbilly

Why are you filling out a 8606? taxbilly

Not Fed or State retirees who did not receive social security but those that were not under the social security system when they were working. taxbilly

May you have many more! taxbilly

May you have many more! taxbilly

May you have many more! taxbilly

This might help: http://www.titleaccess.net/hud.asp taxbilly

TTB 6-2 The Tax Book, page 6-2. taxbilly

May you have many more! taxbilly

May you have many more! taxbilly