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Thanks jklcpa, the 2nd one should be correct. That's what I get for having too many IRS tabs open at the same time.

My wrong link (fixing the above link) My corrected link (fixing my fix) -- Thanks jklcpa

The IRA & distribution were in his name (but not his SSN-- I think it was his late wife's SSN so probably one he inherited). The IRA and a checking account were at the same bank. The bank account was joint with daughter. The bank just moved the RMD directly to the still open checking account. Daughter was designated beneficiary. Checking account was left open for a few months to make sure all direct deposits & direct debits were canceled. IRA has since been transferred to inherited IRA at another institution.

Yes, they can take it. It is in the Q & A, but there are several pages & it can take awhile to find the right one. See the last question on this link: My link

OK, that makes sense. Thanks!

Client's father received IRA distribution (RMD) after he passed. How do I nominee this to my client (his heir)? Or do I? Thanks

Client's father received IRA distribution (RMD) after he passed. How do I nominee this to my client (his heir)? Or do I? Thanks

The offer I received in a e-mail from TRX said I had to order by May 1, 2010 (not March 31). I wasn't planning to evaluate their software until after 4/15. Do I need to jump on this sooner? I don't really need all the extra options. However, I may end up doing the occasional partnership and not having to pay extra would be great. Do I really have to renew in the next couple of weeks? Thanks

I've been a sole proprietor since I started my business. But when my husband retired he became a co-owner. I'll probably file us with 2 Sch Cs this year. But I haven't gotten that far on our return this year.

I can't believe I missed it! I love number patterns in dates. I even saw the Google graphic, thought it was interesting but still didn't make the connection.

Can't e-file OK non-resident. (I have this issue, too). This site might help: My link

Even though the MBA qualifies him for moving up into management positions that he wouldn't have been eligible for otherwise?

Generally when one spouse passes, I just keep filing the joint return & don't move anything anywhere (for year of death). When the decedent is single then I go the more complicated route you suggested.

Thanks for backing me up. He won't like it, but I'm just not comfortable signing that return. If he still wants to deduct, he can find one of his friends' preparers.

I have e-filed several returns without entering the EFIN of the bank. I've sent foreign interest before as well. They were accepted. (I haven't done the TD F 90-22.1 however.)

It looks like it doesn't qualify. Or, am I being too strict? He earned a Computer Science degree in 2002 and then started working as a Test Engineer. In late 2008, he became a Treasury Consultant. He started the MBA program in early 2008. When I asked why he took the MBA courses, he answered: "To increase my growth potential at Dell by learning more managerial and financial skills" The new skills he learned from the MBA: "Key skills learnt were management and financial knowledge to successfully manage teams and business unit" Is the MBA part of a program of study that will qualify you for a new trade or business (does not matter if you actually changed jobs)? "Yes, it would be beneficial for future leadership roles at Dell and outside the company" The degree wasn't required by Dell but would help him be more competitive with his co-workers (several of whom have MBAs). And he states that the degree will let him move into future leadership roles. This all sounds like it meets the definition of qualifying him for a new job, trade or business. But, of course, all his friends in the classes have been taking the full deduction. Am I just reading this too strictly? Thanks!

This is sounding more promising. When I was researching it before (2 or 3 years ago) I got the impression that IRS pretty much automatically disallowed MBA deductions. I do want to provide every legal deduction but I also want to make sure I don't cause an audit with a deduction I can't defend. That is no matter my reasoning they say MBAs don't count. I still haven't heard back from his e-mail.

@ taxxcpa -- That's reassuring! If it looks like he meets the qualifications and then the IRS questions it, would you be willing to help him in his case? I can write letters but am not eligible to represent him? Obviously that would be subject to your review of the case. I've sent him the e-mail with my questions. I'll see what he says. Thanks!

Point taken on clarification of convincing court vs IRS. His e-mail stated that he paid $14,161 in tuition and top portion (explanation area) of his W-2 states that his employer reimbursed him $3000 Non-taxable & $6000 taxable. Box 14 shows $9000 as "Tuition" (I haven't yet seen the 1098T for its limited value). I know I have to reduce his expense by the $3000, but I'm not sure about the $6000. I can make the argument either way. Reduce his amount because he didn't pay for it, but since he is on the hook for the tax on it, he should include that in his tuition amount to keep from having to pay that additional tax (i.e. treat like mileage reimbursement). I'll probably have some follow-up questions after I discuss with the client. Thanks so much.

I know Taxbilly already posted this link: http://www.ustaxcourt.gov/InOpHistoric/SINGLETON-CLARKE.SUM.WPD.pdf here: My link A WSJ article about this case was also sent to me by a client who now thinks he can deduct his $14K MBA expenses on Sch A. Of course, the WSJ article didn't discuss the legal details, only that she had been able to successfully convince the IRS to allow her MBA expense deduction. Do y'all think this decision changes the way we approach this deduction? Does it give us any more leeway in what we include? Does it change the questions we ask? I generally ask if it was required and / or paid for by employer. And I try to get a sense of what their job was before & after. I have taken the IRS stance that an MBA will typically qualify you for another job even if you do not change jobs. (OK, I've only had one other client ask about this plus this same client last year.) I just want to verify that I understand the implications of this ruling before I ask my questions again this year. I'm not a CPA or EA, so if IRS challenges this return, I won't be able to represent him. Thanks!

If it is a community property state, MFS can't be e-filed with out filling out worksheet for splitting income. No info from spouse, no worksheet, no e-file.

I thought the step-up stayed repealed (unless they change it). I would hope that's only repealed for one year. It's hard enough to get the basis from the owner. It will be next to impossible to get the basis from the heirs. They will have no idea what the decedent paid!

Thanks so much. I really appreciate everyone's help, suggestions and input.

The only entry on this K-1 is the depreciation -- right? I agree about tracking it separately. I'm using TRX, so I don't know what software I'll get next year for my $300. I'm sure the "unassigned" will not convert correctly. I should know this part -- but the partnership sold a bull in 2009. If I list all assets and stepped up basis as of DOD, what do I do about the sale? It's not a normal sale to my client since the sale is already reported on the partnership. Do I just recalculate the sale price to account for the difference between the gain to the partnership and the (smaller) gain to my client? OK, I have to stop asking the questions I can already answer (just thinking "out loud") and get back to work. I agree BulldogTom, I appreciate our virtual water cooler, too. Thanks!

Thanks, I'll try that -- when I get back to my work computer. Since I still can't link the depreciation directly to a K-1, I guess I'll let it sit there as "unclassified" and then link the total only to the K-1. That might work. I won't be able to give the K-1 and EIN, so it might just have to be paper filed. This is a big return, I pity the data entry person who has to tackle this one!!!