joanmcq

The house was converted to a rental about 4 months before the foreclosure. does that change the answer? The tenants didn't pay but one months rernt, and then trashed the place which left it unrentable, and thus caused the foreclosure.

KC, what's your rationale for expensing? I don't think the old ones were trashed, ie unusable. Of course, the client would love to expense 'em or at least not have to depreciate over 27.5 years. Being as they are up there in years, I don't think they will see the end of 27.5 years!

Probably is Medicaid; I was typing very late last night on a return that is a complicated, well not mess, but not what I wanted to be dealing with late night. the extensions are coming back to bite (with a vengeance and I really really need a vacation)

The problem with the IRS records is they don't have state withholding. And I doubt CA has it that far back. So unless you've got W-2s showing the w/h, he's up a creek for CA. Although filing whatever he's got can't hurt.

Should I treat a foreclosure as a sale (subject to 121 exclusion) even if a 1099-A wasn't issued? He got a COD for the LOC on the house, but nothing from the main loan. Nonrecourse I beleive, as it was the origninal loan and this is CA.

Education is for the brother in the field. I'm not sure about the whole 'vow of poverty' thing, because he is giving to the church, not being paid by the church. Odd situation. and, like I said, it was a panicked april 15th extension (he wasn't happy with his preparer who had had his papers for a few months) so called me. If I don't like it, I'll send him on. Too busy for late april as it is. (the extensions are coming home to roost, or at least calling to see if their returns are done)

Can a taxpayer deduct a parent's medical expenses? The parent was a dependent until mid 2006, when medicare took over because she went into a nursing home. TP is still paying for everything medicare doesn't cover.

Fully depreciated.

I got DSL as soon as it was available (which was coincidentally right at the time I was starting my biz at home and started efiling) and just upgraded to a faster speed. I remember the first time I ever got on the internet and it took 20 minutes for a page to download (circa 1995) and now I get antsy if it isn't instantaneous. US internet is utterly pokey by the rest of the techno world from what I hear; in Japan speeds 4X as fast as what we get is routine.

I have a new client who is an abbot/ordinary and gave me a letter from his superior stating he has taken a vow of poverty and donates a minimum of his post-tax income to his community. His income is primarily from social security and a small pension. I am under the impression that his former preparer took a charitable contribution, but I do not have a receipt or letter stating an amount. I am not sure what is or could be customary under these circumstances, and feel he should still have a reciept for the amounts donated. He stated he also gave amounts directly tp a brother (friar-brother, not familial) in the Phillipines towards education, but I am thinking that this is a gift, and not a donation since it is directly to a particular person. Am I correct in this? This client was a last minute pick up/extension on April 15 and I didn't get much time to interview him.

What life would you use for kitchen cabinets in a rental? 27.5 or 5 years?

Looks like they fell for a scam. However, with the CP200 being that old, its likely an NOD was issued and the 90 days passed and the tax assessed at this point, which leaves them SOL.

Ouch. She needs to take a lot out. Now. I've heard file without the penalty and beg for forgiveness.

ID theft is definitely possible. If they haven't pulled credit reports this year, you can get them all at annualcreditreport.com for free. Its the law that you have to be able to get one copy free each year to review.

I used to have possums. They'd come in my kitchen and eat the cat food. The babies would hide out in my stove. You would have to check the stove for possums before you cooked. Then the dog showed up and no more possums.

Ca & NY too.

Jeez, I thought that was a picture of JB!

The last one's a bit hard to pronounce. Frozen Moose Trax Tax. I just found out the stereo got stolen out of my rv/van thingy. What a day!

Well, he'd better get his 2005 stuff together pretty soon!

I'm constantly afraid one of my cats will pee on my client files. Hasn't happened yet, but I get nervous when I have 'em piled on the floor. Like now.

Yeah, my extensions were told 'I'll make sure you don't owe anything and if you do I'll give you a rough estimate.' EVERYONE coming in or making an appointment for after March 31 was told that. Last saturday and sunday were a frenzy of entering data like all income and expenses until they got to refund status, then add 4868, create efile, next! so I've got a pile of semi prepared returns. Some just got the W-2 entered and I didn't bother with the piddly interest etc, refund, next! I really liked the refund indicator for this one, so all I really had to check was the state. Most are pretty much done, so I can finish 'em at my leisure.

I still don't have acks. but if I go to my atx all are showing as accepted. WTF? CCH move ATX back to Caribou, because evidentially you don't know what your'e doing!

That's a pretty basic issue though; how to fill out a Schedule E. The asset is personal for the 1st 2 months and then converted to business. Interest and RE taxes would be prorated for the 2 months/10months and the rest of the expenses, such as utilities ect taken in the whole during the rental period. It is a CONVERTED asset and does not fall under the vacation home rules. This is what the posters have been trying to tell you. It helps if you ask the right questions, like 'do the vacation home rules apply here?'. And of course you need to give them the 8582 and the 4952 and every other form that is applicable to the return. And if something too complicated for you comes in late in the year, put it on extension until you know you have it right.

I looked on My Atx and my last extensions sent have accepted status, even though I don't have acks yet. GOODNIGHT!

What I said today, come on in and we'll file an extension. Here it is, go to the mailbox. I'll get to your stuff next week, or the week after. but this is the first year everyone who came in the last week all went on extension, and some that came in earlier. I'm just getting a lot busier. So if you've got the time, do it, but if you don't, don't. And don't be afraid to tell them extension. They know they've waited too long!