joanmcq

The ordinary income is usually added at time of sale because the holding period dictates whether it is a qualifying or disqualifying disposition. Of course, by this time it would be a qualifying disposition. Were the shares still held in the ESPP plan when he quit? Qualifying dispostion ord income is often NOT on the W-2.

Danke Schon!

I've only done ESPPs in ATX where the ordinary income was in the wages on the W-2. Could you put it on line 21 if it doesn't affect anything revolving around earned income?

I had the same problem when I got locked out. Activation code they had was not what I had from my packing slip. Although what I had on my packing slip activated my software. off by two numbers.

I'm glad you are on the forum right now. AR audit, guy has part-time National Guard pay. not active duty. does he qualify for the military deduction of $9000/6000? The instructions say ALL military pay. The Tax Book says US Military Enlisted/Officer Compensation. This makes me believe the DFAS pay for National Guard qualifies. 'The box' screen says its US Military Active Duty Enlisted/Officer Compensation. So which is it? Trying to figure out what TT is doing (and also wondering about Proseries since it is essentially the same programming) is a real pain in the patootis. Trying to discern what the average Joe reads into the instructions (and what they did to screw up their returns) is even worse.

I heard that they were going to scrutinize payments that weren't the standard. But just a rumor, not set in stone. Since it is a refundable credit, I can't imagine them not scrutinizing some of them.

ATX will import a spreadsheet.

Ok, add another one; we have 4 audits now. This one COULD be input error or qualified because it looks like it is a 401(k) or other plan, but the same form. Another reason not to ask the box!

The software is not ATX; it is a, shall we say, popular DIY brand return that I am fixing. And trying to figure out why it did what it did. Seems that no matter what age you enter, as long as you have an IRA distribution, this software automatically takes the pension deduction. And this isn't the only return; this is the third MI audit we've gotten on the same issue.

TP has a $12,000 early IRA distribution used to pay for his daughter's tuition. There's no penalty on the federal side because it was used to pay for higher education. MI gives a deduction for amounts paid out of IRA for higher ed, so he gets a $12,000 deduction on Sch 1 line 20. Software (not ATX) is also giving deduction on line 12 for qualified retirement plan. He is only age 48, and from reading the instructions, it seems to be a qualified distribution he must be over age 59.5. Also, it doesn't seem right that he would get two deductions for the same amount if he was over age 59.5 for the same distribution. Am I right, or is the software right?

I did not have any problems with the program this year, and only called CS once to get onto the website since I had gotten locked out. I'm paying about $10 per return with Max with about 100 clients and I know that whatever states I might get clients from, I've got the forms. I rarely use the CCH Express Answers..I'm really used to Quickbooks, and have been getting The Tax Book for the last two years (have QF at work and TTB at home biz). I may research other programs...the only thing I dislike about ATX is that it is a memory and hard drive hog. So I guess I'll up and renew early for the discount...and if I've paid in June when I'm flush from tax season, it sure helps the budgeting!

Are they actually incorporated? Sounds more like an associatation of some sort. Do they even have a filing requirement if NOT tax exempt with only $300 of income?

Ok, I just did a stimulus for $20. My cheap returns are actually somewhat of an 'early bird discount' the one W-2 EZ filers that come in the last week of January. The former tenants I even let pay me when they get their refunds. I know they are good for it.

Hey, you lucky; gas here is $3.93. lucky I drive an accord, I might get a tank &1/2.j My van conversion wont' even get a tank.

I love the fact that I started a 2 page discussion. new floor (lino, not underflooring), new stove (5 year dep, yay!). new cabinets, since old ones unusable. new window, old one deteriorated to point of necessary replacement. New counters. Rent did not go up. That kinds stuff section 8 would require done, or they wouldn't approve the rental (but this isn't section 8). Client said they were afraid someone would get hurt because of deterioration. My kitchen is 70 years old and the cabinets are fine (and very simple, very cheap construction, but hand made by previous owner). Any change would be capital improvement. some of the windows in my house were held together with duct tape, but we replaced them with double hangers we found at a garage sale (same for same) so repair. I'm wondering for the one window that is still boarded up, and has been since the house was bought. Is putting a window in an improvement or repair? Bought the house with a missing window. The one apartment building I had, we had to rip out cabinets, counter and sink etc, to do repairs, and it made no sense to put back originals because they were so deteriorated. I didn't have to make the call at that point because it was all an expense of sale, but I think that is close to what was done in the case under discussion. Arghhh! at least the client is happy I am spending time on this. And this is what we do off season, quibble enlessly on minute points of tax law. If these guys had come in in march, they would've gotten depreciation 27.5, NEXT! but because they came in so late they went on extension, I have time to research....

adding on info: new cabinets were from IKEA; had to be replaced becasue the old ones were falling apart & had dry rot. Kitchen had dry rot, some black mold behind cabinets. new flooring. so a remodel; definitely not top of the line. everything in there was original (so 50-60 years old). repair? remodel? Client said anything would be an upgrade from what was in there, and the kitchen had to be brought up to code. I do get to break a stove out of the total (see what you get when you interrogate your clients? after tax season?

Ok, they are not a huge expense (I think $3-4K is it including labor; I don't have the file in front of me) and the house rents for $1000/month. I will ask how old they were, why the tenants got cabinets before the owner did (client's wife's complaint) and if it was a full remodel, or what the extent of the remodel was. this reminds me of what I tell my tenants....you'll get heat when I get heat dammit! somehow they always get heat, while I'm still freezing from lack o'insulation and leaky windows though....

I really don't have a minimum. I'm doing a stimulus for about $20. or maybe I won't charge if I'm in a good mood. Two volunteers for an organization I like got free returns. They may send over some Odwalla or organic blueberries from the food closet if they've got extra. Usually the minimum is $55 for a 1040-EZ. I'm in CA and I can't see a $250 min. but then I don't have an office, etc.

Oldjack, I am not of the 'what are the odds of an audit' kind of person. I'm just asking questions, since I was a little overly conservative on some of my rental depreciating, and wanted to get some feedback regarding cabinets. Like I said, my first instinct (and the way the return is prepared at the moment) is depreciating at 27.5 years. So the question to me is why they replaced them. I bought a rental where half the drawers were missing and the countertops were broken...even a 'complete remodel' on that property could easily have been considered a repair..but I depreciated the bathrooms when 2 of the 4 apartments had to be gutted because they were so bad (and the other 2 were half-gutted). So my question to the group was is there an instance where you would NOT depreciate over 27.5 years, and am weighing the advice I've been given. KCs gets a lot of weight because I really respect her opinion. So actually the question is, what is the reason for the remodel, and what was the condition of the kitchen. And most likely, I'll keep it at 27.5 years.

my ex (I do his taxes) just married a girl in Thailand, so I will get to deal with all of this probably next year. Yay.

Ok, so the question is 'were they old and broken down?'.

Ah, I read your answer wrong. I was reading 'I would just document it' rather than 'I would, just to document'. What a difference a comma makes! How is your husband doing?

Oh well, I'm trying. My first gut is to depreciate over 27.5 years, but I thought I'd put it out in case I was thinking wrong, like I was for interior paint all these years.

I'm on hold with the FTB right now. Client got bills for years he didn't file; he was on disability after going through a divorce and didn't have a filing requirement. From a contact at FTB I learned they had sent out requests for returns and had filed their version of an SFR.....on the basis that he had a cosmetology license during that time, and they estimated how much the average cosmetologist makes. Checked w/the IRS and there was $316 in an IRA and $25 of interest. Most letters sent came back undeliverable.

Nah, seems to me he would have owed $300 on the original return, but instead had a $1000 refund which he applied to 2008. So now he owes $1300 because once applied, it can't be pulled back.