mcb39

. Can I apply for the credit if I bought a vacation home or rental property? A. No. Vacation homes and rental property do not qualify for this credit.

That is exactly what probably triggered my client's letter. He had paid property taxes on vacant land prior to the purchase of his home and marriage. He had sold the vacant land to his brother. However, the lady that we spoke to at the IRS did say that some of these were being pulled at random.

I was going to post the very same thing. Making the purchase from a linear relative disqualifies the purchaser from claiming the credit. Lady from the IRS brought that up when we made the call. I have a feeling they will be digging deep into this area..........and sooner rather than later.

I also check it myself. I agree that it is our job to figure out the deductions for our clients. Some states don't even have income tax. There is no way the software could accurately judge for sure whether the taxpayer had paid state sales tax or not. Catherine, I like the idea of the sticky note.

I always do, too. Is especially important now with people paying thousands for PMI. However, I can't keep copies of everything in my files. Luckily, the young man who got the letter came in with ALL of his closing and refinance papers in hand. After talking to the IRS, we just had to make copies, fold and mail. He said, "You will never get all of that in that little envelope that they sent." I said, "Watch me!" I certainly would never file a claim for a First Time Homebuyers Credit without seeing the closing papers.; no matter who it is.

Frantic client comes in with letter from IRS regarding his receipt of credit for first time homebuyer. He already received the $7500 credit (loan) and has spent it. He did qualify for it. We called IRS and lady told me after getting permission from him to talk to me that they are just randomly (or for some other reasons) checking to see if taxpayers really did purchase a home. Now, I don't find this unusual at all. I thought the form was extremely vague at the time of filing. IRS wants proof of purchase in the form of copies of dated and signed closing papers; including notorized tax transfer statements. I don't find anything wrong with this. I just wonder if some people really tried to claim the credit without actually making the timely purchase. Apparently, the IRS is wondering the same thing. We made copies of all pertinent papers, bundled them up in the envelope that they provided and mailed them back. Extra work for us and unwarranted stress for innocent taxpayers,; but not a surprise when you think about it. :read:

Thank you from myself and all the other mothers and grandmothers.

As Jainen points out, Taxbilly had a very good point. I keep a set of books for my business.; as well as my husband's business. I really pay very little attention to the few 1099's that arrive in January. I KNOW what my income was and unless there would be a 1099 Misc with an inflated amount, it would have nothing to do with the way that I prepare my tax return. IMO, the tax return in question should be amended for the sake of honesty and peace of mind. It doesn't matter if it is a small amount or a large amount, it is an incorrect amount. I, personally, did not appreciate dealing with the CP2000s that had to be responded to by April 8 this year; right at the height of the business at hand.

I would choose "squeezing a turnip" over dying...........Jainen, you have such a way with words....

There really wasn't anything to sanitize. The few posts regarding TRX were still there the last time I checked as well as the new post from the representative of CCH. Hardly anyone on that site showed any interest in the TRX "Deal"!

How could anybody be that far off on a QUARTERLY estimate? By that date, he should have already known if he had made any money in the first quarter... :scratch_head:

I have no problem NOW accessing the Community Board.

Margaret, you asked a question. The answer is May 31 for the CCH deadline.

I would expect to see it in the ATX news rather than the community. However, it really wouldn't be wise to alert their community members to the turmoil that has been going on with TRX. I think, perhaps, that the Community really is down for maintenance. There really was very little going on over there.

I noticed that too. However, the TRX issue has barely been touched there...I am thinking that there were maybe about 6 posts; then no more! (But, of course, it would not be proper IMO to tout TRX on the ATX Comunity).

File a final return for the Partnership through the date that the Father wants out. From that date on, convert to Schedule C sole proprietorship. Unless there is something in the Partnership agreement which negates this; just disolve the Partnership and then create an LLC for the Son if that is what he wants; Sch C; disregarded entity. See Pub 544 for special rules that apply to the sale or trade of property between related parties.

Customer Care will be unavailable via phone or email on Tuesday May 5th, 10:30am-1pm Eastern time. The entire department is involved in an after-tax-season meeting. Customer Care will reopen at 1pm. More ...

The ATX Website is, indeed, down for maintenance. That is the message that I am getting when I try to access.

I have a Priest, who also adds a generous amount to his check and places the check on my desk face down. He is a lot of work, but I enjoy him tremendously and he appreciates me.; and lets me know it. I turn it around by purchasing two ads for a year in his Sunday Bulletin. Yes, it gets to be a game, but so many clients bring such nice things as well as giving "tips" that it rather makes you forget about the ones you would like to see go elsewhere.

Eli, I had one of these this year. It was reported on a W2.....SS and MC taxes were withheld from part of it. The box in Section 13 that was checked was "Third Party Sick Pay". You are correct that it will come up as taxable income. In my case, after considerable research, it turned out to be correct that it was taxable and I had a very unhappy client who had no Fed or WI taxes withheld on $23000 of taxable sick pay. The rules seem to be rather complicate on this issue with a lot of ifs, ands and buts; however, in my case it was taxable and the client conceded that since she had been receiving full pay; she should have questioned why no taxes were being withheld. Disability and/or Workmens comp is usually not taxable, but why are you assuming that sick pay falls into that same niche. My client was not injured on the job. Was yours?

Way to go, Dennis!!!!! :lol:

I have a lot of questions going through my mind for this lady. Why hasn't she been filing taxes? How much is she going to owe? Is she going to pay you (since she apparently doesn't want to pay the IRS)? And, yes, as Jainen points out, the lawyer?????????? Who lived in the house and paid the taxes, etc and who did the child live with? Do you actually have any facts about the husband or are you just going by what she say....I believe you said she was a new client so you probably don't know a lot about her. I wouldn't really want her walking into my office at this late date.

Jainen, you are correct and WI is a community property state. I guess I just assumed that by now everyone should know about that distinction. The lesson here is to "assume" nothing. I am so glad that you are contributing again.

I wish there was a perfect guaranteed solution too. However, in the real world, that is usually not the case. I called ATX to hear their side of the story. I am also leaning in their direction because I feel that same "tug" as you do Margaret. I have not committed to them yet. They seemed surprised to hear that TRX was contacting us personally. The polite young man that I talked to said that they sell the program to TRX at the same price that they sell it to us. What TRX does after that they claim to not have control over or privy to. They claim to not have access to the contract that TRX will have you commit to. He told me that those who renew through TRX will have to use TRX for support. That is not an issue with me as I have only called support a handful of times in all the years that I have been with them. I rely on this board and my own research for support. Eli, one of the big pros for me is that ATX is offering "paper" support in the form of CCH 1040 Express Answers and also this year US Master Tax Guide (Kleinrock Edition). Many of you don't care about that, either, but I DO. Yes, $400 is a lot of money and I am also a sole proprietor, one person office. But, my gut feeling is leaning me toward ATX, and as I told their rep, since I am the one writing the check, I will take my time and explore all options before deciding. I expect many negative responses to this post, which is why I have been careful not to say too much. However, since Eli and Margaret have asked, here is my answer, for what its worth. :unsure:

I received a call last evening. I was not home, but did not reply to the message. I talked to an ATX sales rep this AM about the situation. Am still weighing my options., but have pretty much decided which way I will go.