mcb39

I believe if it is homestead property and the life tenant is still alive, the remaindermen would pay on their share. If it is not homestead property, they all pay.

The "forever" stamps are currently .41 cents each and are good forever if you don't use them up before the rate goes up again. If the rate goes up, the "forever" stamps will then be sold at the new rate and will be good forever; for as long as you have any. I currently have 3 rolls of .39 cent stamps so will have to purchase 300 .02 cent stamps. I also have 200 "forever" stamps that I can gamble with and hold. I can continue to buy stamps at the .41 cent rate and keep the forevers for when the rate goes up again. Is there something wrong with this picture? I think there is.

That is exactly what I do, Catherine! They get the message and invariably the one or two stragglers will surely get around to paying before the next tax season starts. Seems to be some kind of game.....they all know that if they don't pay, they don't get another chance.

De.....I don't believe they can refuse to give you the time off or penalize you in any way for being away from work for jury duty. The option of whether to pay for the time off or not is strictly a part of the employer/employee contract. It is your duty to serve on a jury. It is not your employer's duty to pay you for it....

Hi Darlene...I figured that. They have already confiscated many thousand dollars from his savings account. They now want to see some sort of "pattern" so that they can settle this. The guy has nothing left for them to take. But, yes, they wanted me to start with 1997, but since his records are so haphazard, we figured if we got him current with 2006 and back, it might be better for him. Might be wrong thinking, but the last four years have the best files to work with. In two, he is already owing over $6K in Sales Tax and nothing in Income either Fed or WI......Nice talking to you!!!

Received a disk from TaxSlayer Pro this week; so apparently the ATX word is definitely out. Even though my mind is pretty much made up, will take a look at this. I heard that this is a privately owned company, but so was Parsons, and money speaks! Hopefully, all of us will find our niche for the coming year.

Thanks KC....I needed to have that "fact in hand" also. Had the State call me recently for assistance on handling a SE taxpayer???????? who has not filed since 1996. Somewhere in that timeframe, he had a stroke. He is still working, but has memory problems. MAJOR! Also, has a very ill wife who was supposed to be handling all of his bookwork. NOT! The unfortunate thing is that they let it go as far as a warrant. So far, no word from the IRS, but the two years I have completed, working backward from 2006; have no tax liability. Sales Tax is an different issue altogether and that is the concern of the State. Have a mutual friend helping me with this, but we can only do what we can do.....

Try 1-800-433-3243 or [email protected]. Sometimes it seems like they just keep questioning these because I don't think they believe that anyone has that little income. I have the daughter of a single mom (mom is in prison). They consistently think that she is leaving zeros off when she fills in her forms. Have another student who makes more money working his way through school than both of his loser parents put together. He will be graduating in Dec with two Majors. Makes you proud to be able to help theses kids....

Wow, Mike, you are one handsome guy. Are you any relation to Dick Tracy?

Mike, go to the "Go" box at the bottom right of the screen. Drop down menu has "Search".....click on Search, type in Drake and a lot of recent discussion will come up for you to read.......

If you are a frequent visitor, I have also found that clicking on the words "Last Post by......." to the right of the subject will also get you there in a hurry. Seems like erc thought of everything! :D

:) Eli....I love the chit chat and all of the familiar faces here. It is so Comfortable and, so far, I have not detected a negative note in any post. Not that we all have to agree...heaven forbid; but negative criticizm as opposed to honest disagreement (often correct) is just what we all need. IMO

Thanks G Sawyer; you are the first poster to suggest that it would still be passive income.....will investigate that avenue.

File the short year as Jake says. Use the form 1065 for 2006; at the top it says for calendar year 2006, or tax year beginning.........., ending..................! Fill in the dates... You'll have this one behind you.

I think we should put it behind us and move on. I don't believe that any more groveling or begging is going to do any good (if they even listened to it.) We need to act like professional adults and make our decisions about the future accordingly. How many of you would actually go back and search the archives for much? We still have all of our tax guides, handbooks; our own personal knowledge and best of all, each other. Whatever software each of us ultimately chooses for next year; we should be able to discuss tax matters and perplexing tax issues here. I, personally, like the feel of this forum much better than I ever liked the other board. There were times when I felt intimidated and even degraded there and I know of many fine posters who left for just those reasons. I am so happy to see some of them turning up once again; and all because someone CARED!

Thanks for all the input. We all pretty much agree here. I just wondered if (again) I was missing something. In actuality, this wasn't a strategic thing on their part. They were totally stunned when their application was turned down. The County had taken a strip of their frontage to widen the highway and they had a quite large payout. CG was reported in 2006. I believe that their banker advised (compelled) them to apply the money to the rental mortgages rather than the mortgage on their homestead property which also houses the taxidermy building. I have printed all of your replies and will let her read them so that she can, hopefully, see the corner they have backed themselves into. Thanks again.

De....maybe you have to explain FASFA to me. How are student loans the 'government supporting your child"? I have never been in this position personally but have plenty of clients who scramble to "do the paperwork" every year. Also, have many more capable of paying themselves than this couple. I don't know about the assets vs liabilities; but no, they don't have a lot of debt against these rentals because the equity has been used to improve and enlarge the Taxidermy business. The Rental income is pretty much what they live on. The U of Minn qualified them; the U of W won't! Old Jack....I have used that arguement with them. I don't see the sense myself. I think rentals are a wonderful tax vehicle and one of the reasons is just what you cite..the fact that you don't pay SE tax on the income. I didn't say I agreed with the clients; but just asked how I could address what they want me to do for them. Mom said, "I don't have anything going into SS now, so I will take the Rentals, even tho I suggested that she split the Taxid with Dad. If she understood the inanity of that statement, she would be doing her own tax returns.

Eli....don't file another 1040X. Call the Contact Person on the original CP2000 or else call the person you talked to about this. I might add that 2006 is the first year that I ran into this same problem and was able to handle it with the assistance of the Community Board....It will be fine as there should be no additional tax....

Mid to Low Income SE clients have 5 Rental properties as well as a Taxidermy Business and a Laser Business. They have been denied FASFA Student Loans for their daughter based on the Rental Properties being considered as Assets. FASFA contact tells them that if the Rentals were on a Schedule C as a business, they would not be counted against them to qualify for Financial Aid. How do we create a business out of these Rentals before same issue arises next year.? Is it necessary to create an LLC to contain the Rentals; file a 1065 and thereby move all of the Rental Activity to Partnership Income.; or is there an easier way? This one has me totally stumped. Home is not an asset; businesses are not assets; but Rental Properties are. Theirs is probably one of the most complicated Returns that I do each year and I hate to make it more complicated. They are a young, hard-working married couple with 2 daughters and are depending on me to "fix" this for them. Any advice out there?

John.....all good points. BTW, I had to look "egregious" up as I pride myself on the use of language. I also pride myself on the fact that I look things up that I don't know....always to learn. Did you notice that the new posters still continue to arrive. That is such a positive thing. erc,; the Pied Piper of forumland.. Pretty good day today in spite of sore throat. One tax return came in and one check from different directions. So life goes on and we survive. Ordered myself a new 2G flash drive and a spare power adapter for laptop. Just a little reward for me. Also am catching up on Husband's bookkeeping and filed his license renewal for auto dealership. One step at a time back to sanity.! :rolleyes:

John, I did take a look today at the Taxslayer Pro website just because certain posts here interested me just as they did you. I may still go back and ask for a demo. I only have dialup. In any event, I have definitely not made a decision to leave ATX. I have had virtually no problems with the software. I have never had to call support, but that is mostly because I could usually find the answer to my problem on the Community Board. Hence, the quandry and the concern that this forum may drift solely to tax issues and have very little support for ATX tax programs. On the other hand, I know preparers who use ATX and don't even know about the Community; and if they do, they don't have time or the knowledge to use it. So, there you have it. I am trying to enjoy the slowing down of the tax prep and the lessening of the pressure, but it would be a lot nicer without this cloud. I am sure that I will give it at least another month just to see what happens. I have received the renewal e-mail and also the renewal letter in the mail. :unsure:

Those of us who have "known" Eli for a number of years, can attest that he IS a wonderful person.

As I expressed some concerns in another post, perhaps with so many members here talking about leaving ATX, you may need a category just for posting ATX software questions as opposed to Tax questions. I am extremely happy with this board, as you know, an appreciate your all out efforts to make it truly OURS. You have done an amazing job and the feelings of fellowship here must warm your heart.

KC....I feel exactly the same way as you do about Intuit. But, doesn't Proseries belong to them or did that change? Anyway, my feelings go all the way back to Parsons Tech and that is a long time to hold a grudge. But, once stabbed..........etc. I am old enough to consider hanging up this business though that would not be my wish as present. I was hoping for at least a couple of more good years, mind willing. It also concerns me that with so many on this board talking about giving up ATX, what good will this forum be as regards ATX? We all know that it has been an excellent software. I have always known that the Parsons scenario could happen again. Who is to say that it won't happen no matter which software any of us chooses to purchase? <_<

Wisconsinites, also, don't forget about the adjustment on Sch I for HSA deductions that are taken on Fed returns. They are not allowed in WI. I didn't know this until about halfway through the season and, fortunately, did not have to amend any. I did, however, see that a few of the clients who came in with 2005 WI Tax Refunds on a 1099G had adjustments made by the state to their refunds for the HSA and MSA deductions. IMO, HSA's are one of the biggest tax prep headaches that I have ever encountered. Even have other preparers calling to ask how I reported them. Truthfully, I am never sure if it is totally correct. Must always remember to ask client what their high deductible is and a lot of them don't even know. :(