RitaB

It's time for everybody to smile. And you should know that my recommendation is essentially a guarantee.

Yes.

You have cat to be kitten me right meow. Cats know. They just know.

I was working on a spreadsheet in that new, sexy office stupid thing today, and thought I'd never find the button for "header". I haven't seen so much crap since all three of my kids got sick at the same time in 1998.

Well, yeah. I was actually thinking, good grief, why didn't I think of that? Duh. LOL.

It worked. You are my hero. Oh, yeah the reports go to Santa, I'm pretty sure.

Windows Live Mail is stuck on the screen where the tabs are "Task" and "Errors", and the bar is green as if something has been completed, and at the bottom it says it is executing the sending of three messages. Well, that has been going on for a couple of hours now. And zero of one tasks have completed successfully. You don't say. I can't do anything with email now. Help?

She still has time to get a Traditional IRA if she has the funds. Just throwing that out there.

You are quite a gentleman. Well, yes, we ARE exhausted, and my mouthiness was due in part to a woman wasting 30 minutes of my time yesterday complaining about having to report $19,200 in alimony, how awful her ex-husband is that he STILL had not paid all of HER medical bills, how she has never had a job or dealt with taxes (like that's his fault), blah, blah, blah. And, yeah, he also pays child support. She was in here, because her landlord, Jessica, was trying to do her tax return for her, and Jessica does not think alimony is taxable. True story. And then, sometimes I am just mouthy for no good reason.

Well, investment income is not earned income either, so if she had 30,960 in rental income, you'd have the same situation with the EIC. Of course, if she were a pastor and it was housing allowance... But I digress. I apologize for my smart remark, I wasn't judging your client, just seeing the silver lining in her financial situation. That is saving you and me tax dollars, BTW. I'm sure she's a fine person.

LIKE. (I am still out of likes from yesterday.) Also, what Jack said. She's staying in it, and I'm guessing it's not a deep spiritual conviction going on, and hoping you rescue her. Sometimes you gotta rescue yourself.

I wish somebody would nail me with $30,960.

I have run out of my allotted "likes" for the day, or I would "like" both Tom's and Bob's last posts to the power of 10,000 suns. We are all family here, I really would love to hand out "likes" much more liberally, but they are in short supply, I guess. Wait, here are some smileys:

I like swimming.

I love you more. And no, the numbers were not $200K, they were $218,866.37. Now I will have to kill you since you got that out of me, you sweet talker.

Well, I thought my post about why the hell would you put $400K income on a $200K transaction was pretty good, too, but I didn't get any love from you on that, JB.

Well, I gotta say, I don't file until the client has had their copy for 24 hours at least. Stuff happens. Also a one man shop, so to speak, but if I mailed the returns with a SASE, most of my clients would still come in to pay. Don't ask me why.

I would carry a solar calculator. And a mechanical pencil.

This was the only loan. And, you are exactly right, I never said if the client was or was not insolvent, so nobody should be talking about the 982. I respect your opinion about getting a corrected 1099-C. Thank you.

So, you think this lender sold this house for zero? The borrower owed $200K, so if the bank issued the 1099-C for $200K, they musta sold the house for zero is what you just said.

Well, just because Fred Lender writes it off, don't make it right. Jack. I got hairdressers whose previous preparers wrote off their do-overs and gift certificates they issued, too.

Where have you been all my life, David 1980? Yes, FMV has EVERYTHING to do with how much debt is "forgiven". In this case, they didn't "forgive" anything. The lender got a house worth $200K that exactly covers a $200K debt.

Were you the Energizer Bunny in a previous life?

Well, it worked out, cause I had not transmitted the return. Five minute party!

1099-A Box 2 = 200K, Box 4 = 200K 1099-C Box 1 = 200K Yes, the debt is 100% acquisition of the house. Yes, the house is worth $200K. Yes, the debt was $200K. Yes, the lender has the house. No, the taxpayer does not have the house. The sales price of the house on Form 4797 = $200K. If you also enter $200K on Line 21, cause the lender is apparently writing off $200K at the same time they took back a house worth $200K to satisfy a debt of $200K, your soon to be ex client has no rental house and a $70K tax bill. You have entered $400K income for a $200K house. $200K on Line 21, and $200K on the 4797. This is not the best accounting work you have ever done. Yes, I can use Form 982 incorrectly, as it is supposed to be used to exclude gain and there is no gain on this deal, no matter what the 1099-C says, but I hate half-assing things. I would prefer to subtract the $200K off Line 21 with a statement saying, in essence, "The 1099-C is wrong."