taxbrewster

Everything here is good....so far....submitted 15 returns, no ack yet.

So, I have a new client who is still trying to get an undergraduate degree. This is her 5 year of schooling but classified as a junior. I believe in years one and two she took the hope credit, last year took lifetime learning (someone else did the taxes). Now is came to me, I think she would be able to get the AOC this year, should we go back and amend last year for AOC as well?

Thanks for the input. That is what I read on the IRS site as well.

Two questions to kick of this tax season. Of course they have to do with repayment of the 5405. 1. Woman purchased the house in july 2008, got the full 8k, but now is going to get married in March 2011, if they live at the new husbands house, is she going to have to repay the credit because it stops being her primary residence? 2. Young man purchases a home in 2008, got full credit, has a friend move in and pay rent in 2010, he can write off part of the home as a rental and claim the income correct, this does not effect him in any way, right. Thank you. Hope everyone has a good season.

Thanks for the comments. Yes, already have deposit in hand! I learned that the hard way. Yeah, that was my thought to, at least get the feds in and worry about the state later. Just need to track down some old withholding tables and go from there... Ok, feel better about this one.

So, had a client walk into today, actually a friend. Needs to file 05-09 tax returns, should get refunds on all, well, the years that have not expired. However, 05-07 just have the IRS transcripts. Any way, we can get a hold of what was withheld for the state of michigan while he was working? Was on the phone with the state for an hour today, time not well spent, ran in circles... Most of the companies are not around anymore, so contacting them is out...I was thinking maybe social security? Anyone run into this before?

Ok, thanks for the advice. That is just it, I don't want to push him and upset the apple cart and open up other years. There is really nothing to hide, it is more just the process and stress that the clients go through.

So, I am still dealing with this audit, it has been open for 7 months. Can not get a hold of the Agent. I finally got him on the phone 1 month ago, said he was very busy on a large business audit, said he would call me in a day or two...nothing for 6 weeks. T/P want to file because of student aid forms, between a rock and hard stop...any suggestions? Thanks.

Is it a new client? Sometimes you have to enter 2008 sch A deductions on the worksheet to deem it taxable. Should always rollover, but for a new client, the programs doesn't understand.

No, retired for the first year. Just is weird, they are owe money this year, I think they adjusted their withhold on the 1099Rs, side issue, but doing circles about the credit.

ok, T/P is married and both are retired. Both receive pension for local city in michigan, they were teachers. He started to draw SS toward the end of the year. Checked on the SS site, neither received the $250, so they are eligible for the $250 now, correct? thanks for the help on a easy one...it has been a long day.

I have run into the same problem. Not sure what to do.

The income would be included on the daughters return. Still waiting on the trust documents. The trust does have it's own EIN, the father explained they treated the income on the daughters return as "income from pass through". I think they did it as well, to save on the cost of filing the trust returns since the amount of income as so low.

Still though, a 1041 needs to be filed no matter what correct? Then that determines what type of trust it is and how to handle income, etc. You can't just input the information from the trust on to someone's sch b and sch d.

Ok, well I guess I need to obtain the trust documents, there will be my answer. Thanks for the input.

Those were my thoughts exactly, prep at 1041 and then issue a k1 to the t/p. I have not seen the guide lines yet as far as how the trust was set up, but I will. Thanks for the help.

I am doing my friends taxes. He married a very wealthy woman. Her father set up several trusts which have dividends, interest, and capital gains throughout the year. I spoke with her father and he wants me to report the trust capital gains on their personal returns. It is what his CPA advised him to do. But I think the trust should have it's own return correct. The 1099-B is in a different federal ID number then the wife SS #, so should that not be reported on the trust return and taxes paid by the trust? Is it possible to attribute that income to their personal 1040? I have been finding conflicting results on my research. Thanks.

Those are all good points. I like to at least keep one or two days where I may or may not have appointments. Just to know I have all day Monday to work, no distractions. Appointments ONLY, no walkins...Stay with a structured schedule and stick to it, I know it is tough but it works. Time set for phone calls and emails, time for working on returns, and time for yourself.

I researched a little more last night, I agree, off to the sch d. thanks.

Quick question for you all...I know it is late. T/P received a 1099-S for house in Washington state for $7500, thought he could make money on the house 5 years ago, sold it for a loss, this year. Bought it for 18,500. Maybe went to the property once a year to check it out. Never rented. Never told me about it until this year. Could it be classified as a capital loss? Should I just report it on the Sch D or 4797? Not sure what do or if it is even deductible? Thanks!

Ha, did my youth really show in my message. I agree, I wanted to let them sleep...Client had been very worried and concerned, I said we have nothing to worry about. I was very comfortable with the returned that was prepared. Thanks for the comment.

Looking for a little advice here. Had a T/P get a random audit in July of 09. We met the auditor within 2 weeks. T/P had a small mason business that has been going down the tubes the last couple of years, gross receipts around 100k. T/P wife gets a w2, two kids in college. They keep very good books, transfer money back and forth between business account and personal account to cover bills. Really nothing to hide, had a larger amount of miles cause of driving to job further away from home to make $$ in Michigan's down economy. Met with the auditor, he says looks pretty straight forward. Took all day to review info. Say he was leaving town for a week or two to do training, wanted to copy a couple of items to continue reviewing them, said this should be an open and shut case. He was upset that the IRS puts him on these small cases..He said he would call when he gets back to set up an closing meeting. 2 weeks go by nothing...I call left message. 2 months go by, couple of messages, no return call...I continued to call about every couple of weeks got voice mail, voice mail, voice mail....Finally called this morning. He picked up said he has been on a huge corporate case and has not touched anything else. Said he would call Friday to wrap things up. Has anyone heard of something taking so long, is there someone I can complain to or site the fact it has taken FOREVER for him to complete the audit?? Of course when they say jump we say how high, when we ask for an answer they turn into David Copperfield and disappear. Hope everyone is doing well...Thanks for any help.

I did a couple this morning and had no problems, credit was transferring over without a problem. Not sure what is going on??

yes, i have very similar thoughts, thanks for the comments.

Hi All, I had a T/P call me today to discuss an "opportunity" that was presented to him. Whenever, I hear that I flags go up... Long story short, his friend was going to be able to get precious gems at 25% FMV, they would appraise at full value and be certified by a gemologist. In turn the T/P would then donate the gem to a charity or "some charity" and receive a large tax deduction on his 8283 in the following year. Is this a scam? I think I understand what the friend is doing, it just sounds fishy. Can anyone shed some light on the this? Can't believe it is Sept already...