TAXBILLY

May you have many more! taxbilly

Shouldn't this be in its own forum created for TRX? taxbilly

I did my own (Schedule C) and had no problem. taxbilly

Why 366? taxbilly

May you have many more! taxbilly

May you have many more! taxbilly

May you have many more! taxbilly

Went to the doctor last Monday and my left eye is 20/15 and the right eye is 20/20. Don't need to use drops any more. taxbilly

Isn't the mother and uncle the owners of the grandmother's trust? >>A trust is just a separate entity, no different than buying from a corporation or an estate.<< What if the taxpayer is buying the residence from his solely owned S-Corporation? Would they be related parties? taxbilly

Forty five dollars wouldn't even cover the PIA portion of this client fee. taxbilly

May you have many more! taxbilly

The procedure for late elections is here: http://www.irs.gov/pub/irs-pdf/i2553.pdf taxbilly

May you have many more! taxbilly

I know it's probably too late to tell you this now but my procedure has always been to get the monthly fee first before doing the work. As to your problem I would call and ask when he'll by dropping by your check for the work done in November. If he says he won't pay you, then cut your losses, return his documents and don't burn any bridges because if he intends to do it himself because he believed the Quickbooks hype he may come crawling back. As to your feelings being hurt, think of it this way ... he didn't consider it and you are much better off without him. taxbilly

>>If a child is going to be born on January 1st, I always suggest my client to ask the doctor to induce the mother so that the child is born on the previous year for two reasons: 1.- I can claim a full deduction and credits for the child on the year he was born. (This year is a little different because on January 1, 2010 new benefits start for children born in 2010). I have a friend who couldn't decide what benefit to take. At the end she decided not to push the issue and the issue was born on January 1st, 2010. I she had pushed, she had gotten that exemption benefit.<< Since we also give medical advice, I always suggest that the father pick up and turn the prospective mother to be upside down and use the reverse Heimlich manuever by midnight, December 31st. :~) taxbilly

Maybe the instructions will be clearer with the latest version of the form which should be official soon. taxbilly

>>I know I have read this before - - but I want to verify that a child born on 1/1 can be claimed on the prior year's tax return (ie born on 1/1/10 and used on 2009). Can anyone out there help me find the actual section that shows this?<< Child was not living in the prior year and therefore can't be claimed. taxbilly

May you have many more! taxbilly

http://www.ustaxcourt.gov/InOpHistoric/SINGLETON-CLARKE.SUM.WPD.pdf taxbilly

The theory of a Net Operating Loss is that it is a business loss and therefore can only absorb business income. If you have no business income than the NOL will continue forward. However, if there is business income then that portion will use up some of the NOL. There is a more comprehensive worksheet on pages 18 and 19 of the Pub: http://www.irs.gov/pub/irs-pdf/p536.pdf taxbilly

Other tax forums have discussed this issue. One example was a person who inherited 1/3 of his mother's home when she passed away. The other 2/3 was owned by his two sisters. The feeling was he would be eligible for 2/3 of the credit since he was buying the 2/3 from his siblings who are not direct descendants. taxbilly

What kind of income is the $10,000? If it's interest, dividends or pension it would not absorb any of the NOL. If it is wages and/or rental income it would absorb part of the NOL. If it is capital gains, is it business or non business? taxbilly

This is just my opinion but since the two beneficiaries are relatives I would tend to lean towards no but I have not researched it. taxbilly

May you have many more! taxbilly

Your answer is in the Schedule C instructions. taxbilly