Dan

What I have read from the Kiplinger Tax Letter says, "For 2011 only, the 6.2% tax rate for the employee portion of Social Security tax will decline to 4.2% This will replace the Making Work Pay Credit, which provided a max saving of $400 for single filers and $800 for couples.

Catherine, thanks again for sharing your document checklist.

I received mine today.

Question: Catherine I was wondering if you have put together a new tax organizer for the 2010 tax year. I remember you having one for us a few years ago. I really appreciate you sharing it with us. What tax organizer will others use for this new year? Is there a cover letter that goes with it? Looking for some ideas.

Question 1: You have question 2 marked as no. Can you deduct 1/2 of the credit or $750 dollars if you get the roof on your half of the house by the end of year 2010? Question 2: Do you need to own at least 1/2 of the house before 2010? What year? Thanks for responding.

Question 1: Can you take this credit if you are putting a new metal or asphalt roof on the home you live in but do not own? The reason you do not own the home: There is a trust and your name along with your brother's name is in the trust to receive this home. You live in the home but your bother lives in another town. Question 2: What happens if the trust finally deeds half of the home to you and the deed is recorded. How much can you take as credit to the question above? Question 3: Does the roof need to be completed before you can take the credit? Look for your reply! Thanks!

When I checked the version for form 2350 it had version 19. So It seems the form is up-to-date. I found these two things that I don't understand: error numbers 1. 1040FD10 Record Layout-The record layout is invalid-has to do with reject code 10 2. 1040FD321 Invalid Data-has to do with reject code 321 Where do you find information about these errors? What is the last up-date program version?

I e-filed form 2350 and it stated that there was no errors before I e-filed this form. Now It says that the form was rejected by agency. How does one review the rejection errors to determine the reasons for the rejection? Thanks!!

The instructions also say that the taxpayer's responsibilities (#4) is to sign and date form 8878 if taxpayer authorizes the ERO to enter or generate the taxpayer's PIN. This is in regard to e-filing form 2350. In chart, When and How to Complete. Is not this correct? Instruction under ERO responsibilities #5: after completing items (1) through (4), give the taxpayer form 8878 for completion and review. This can be done in person or by using the U.S. mail, a private delivery service, fax, email, or an internet website.

Thanks for all your kindness! Dan

To me the Snapper mower is the best one to buy. My wife doesn't mind using it.

On form 4835 there is the question "Did you actively participate in the operation of this farm during 2009" You could answer this question yes even if you live in another State if you for example: make decision regarding the selling of your crop; pay taxes on the land; and pay your share of fertilizer. You can have 100% active personal management if you do those things. This does not answer your question concerning cash-rent. Material Participation for landlords is on page 74 of Publication 225.

Tom, what if both names are on the account--The sister who passed away and the sister who inherited the IRA? Can the company who has the account transfer it to the company of the living sister's choice?

Are you saying the value of the IRA is the day he inherited it? Therefore he can't take any short-term and long-term losses on Schedule D.

Question: An IRA is inherited from a sister and transferred to another IRA in another company. The person receiving the IRA did not receive a check and transfer it but had the IRA transferred from one company to another company. My question is: Can the person that inherited the IRA take Short-term losses and Long-term losses on the IRA? The IRA account was transferred on 10/16/09.

Question: When you use ATX, do you have the program put your signature on the paid preparer's line or do you leave it blank when you file the return electronically? This is the line in the paid preparer's use only (preparer's signature). I am using Form 8879 to file electronically.

New program version on 1/21/2010 is 2009.2.82

I turned mine off also.

After you open up your ATX program 1. Click on Support 2. Click on About (there you will see the program version.) I am not having any problems doing the updates after I open up the program.

I have program version 2009.2.81

THANKS KEN

Thanks OldJack for your responses. Concerning the last one: What do you mean with the statement "there is an error in the books because someone does not know what they are doing?" What I have read in 1120S instructions is that "the AAA may have a negative balance at the end of the year." This S-Corporation has had a loss in the past two years and has taken property distributions besides. No property distribution is taken in 2009. In the next year, what can be done to make the AAA a positive balance?

The above questions were in regard to the 1120S return. Does anyone have the answer?

Question 1: Can a S-Corporation have $500 on Schedule L, Line 22 (Capital Stock) of the Balance Sheet? In the certificate of Incorporation it says, "The aggregate number of shares which the corporation shall have authority to allot is 1,000 which is divided into one class of common stock having no par value." Question 2: How does one change the amount in question 1 to another entry on the balance sheet? Question 3: What happens if you have a negative amount in Schedule M-2, line 8 "Balance at end of tax year? Look forward to your replies.

My understanding is that a trust becomes irrevocable only when a person dies. With both parents deceased, the entire trust is irrevocable by its terms and the Trustees are directed to obtain and report income to the IRS by using the IRS Taxpayer Identification number (not social security number). The Living Trust is known by many names: Living Trust, Revocable Trust, Changeable Trust, Family Trust, and Grantor Trust. This last name is the Internal Revenue Service designation for a Living Trust. All these names refer to the same Trust. In the event of the death of both original Trustees, the trust document should have who is to serve as Successor Trustee. He/she should manage the Trust according to the terms of the trust.