Tax Prep by Deb

But the way I have always understood this exclusion is that if it was her primary residence. She never lived in the home only her son did. Someone please correct me if I am wrong as this would make a substantial difference on her return! Deb!

Jainen, I truly respect your opinion and was hoping you would chime in. I too had misgivings about it being investment property but I was grasping for anything. So then I believe what you are telling me is that she has a non deductible loss, I simply report it on schedule D as a sale of a personal residence? She never did live in this house, not even for a day but it was purchased with the intent that at some point her son would take out his own loan and move his mom off of everything. So this being the case the entire cancelled debt of $119,432.00 is ordinary income to her? Thanks for any response! Deb!

I have a client who allowed her son to purchase a home using her name and credit for the purchase including loan ect... The son's name is not and never has been attached to anything except that for two years he lived in the home and made the mortgage payments ect... In 2007 he stopped making payments and instead of foreclosure the mortgage company allowed a short sale to take place that ended up with my client receiving a 1099C showing FMV $480.000.00 and cancellation of debt $119,432.93. The home was originally purchased for $601,591.00 (this is her adjusted basis) and the short sale was in the amount of $457,728.00. Does anyone have any suggestions on how I can reduce the taxable cancellation of debt? She is not insolvent because of a savings account her husband had left her when he passed away. The house was never treated as rental, (although had I been doing her taxes I would have suggested it)and if I simply treat it as investment property she will have a loss on the sale, however she can only use $3,000 of it each year, so therefore doing little to help her with the canceled debt. Any help will be greatly appreciated!

I just wanted to put in my opinion. Sorry it's taken so long but I have had one of those rotten weeks. I lost a printer, my dsl modem bit the dust as well as my network router died, plus I'm still trying to find out if my software for 09 will be coming from ATX or TRX. It appears I've been lost somewhere along the way. Enough about me! I have to say I love the changes. At first when I tried to log on the web page was unavailable, but as soon as I had access to the internet again I logged on and was shocked! I have played with all three difference settings and I have chosed the last one. The large print was too large (even though I wear glasses and have difficulty seeing) as I like to see all the options on my page without having to go looking for them. The regular setting was fine, but there is just something about the last one that I really like. Thank you Eric for taking such good care of us, and I'm glad to see the Donation button again. Just as soon as I get a check in I'll be hitting it! Thanks again, Deb!

I agree with John. I've had many such experiences, and although the POA doesn't get you in the door with IRS the phone call always does and most agents I have dealt with have put a note on the case regarding future correspondences so that we don't have to go through the same process. I have found in just about every case that the agency (federal or state) likes working with a professional instead of the individual. I have had great success in dealing with this type of situation. Hope everything works out well for all parties concerned! Deb!

My copier/printer just bit the dust and I am in the market for a new one. I do not need the scanner or fax, but would like a laser copier/printer. Currently I do about 225 returns per year and am looking for something reliable, speedy and won't cost an arm and a leg to replace toners. Any suggestions would be greatly appreciated! Deb!

Best laugh I've had all day! Deb!

I appreciate that taxbilly provides links. Even when I haven't raised the question, I will always check out the links as they help me increase my knowlege. And while I do not expect others to teach me, I do appreciate everyones willing to share their knowlege and expertise especially during the busy tax season. I have never been impressed, nor had a good experience with, before preparing taxes myself with CPA's. Over the years they have cost my family money because of the mistakes that were made, and I mean simple errors that they should have caught. That was until I met a CPA in my town after I became a tax preparer. This man was willing to teach me even though I didn't work for him and he knew I was a tax preparer. This guy has a brilliant mind and his willingness to share his knowlege is why I do not hesitate to refer my clients ,with more complex tax issues than I feel capable of handling, to him. I think if everyone was more willing to help the world would be a better place! Just my two cents worth! Deb!

Braeden Kehoe is still with TRX, so I doubt very seriously that he is learnmore. But I do agree, we all need to be cautious. Deb!

Abby Normal (abnormal) From the old Gene Wilder Frankenstien Movie. Deb!

And I thought that only happens to me! Actually I sent my last one out three hours ago, but have enough work to keep me busy till the beginning of TAX SEASON! (I'm not going to get much of a break this year.) Deb!

KC, Did you sign up originally with TRX? Are you still staying with them and receiving the ATX program, or did you cancel and re-new with ATX? Deb!

Which website are you refering to? I just went to www.trxalliance.com and it's up an running. If your referring to their community, your not missing much. Deb!

Thanks Jainen, I'm fully aware of use tax verses sales tax. Since I know all the in's and out's of this particular business I could make the above statements. They are a courier business, and with the exception of gas, purchase very little of anything else, and what they do purchase is through a literal store front. Neither of the people involved with the business would even know how to order something on-line. They are pretty good about not mixing business and personal especially when it comes to purchases. But all of these are great reminders! Deb!

Thanks, KC. I already had a client, who I do bookkeeping and taxes for bring one in. They thought it had something to do with the corporation's taxes, and was confused by the three years that was listed on the form. I thought it was saying they had not filed their corp taxes for three years. After reading the letter I told them what it was about and because they buy only local (in California) it really doesn't effect them with the exception of the need to fill out any reports that are sent. There is no hidden money here! Clients don't purchase anything from the Internet, so it will be a reporting requirement only. The client felt relieved, and I get to make a little extra money! Deb!

In case anyone wants it, Staples is having a one day sale, today only, for Quickbooks Pro for $69.99. 2010 version comes out in October, so this maybe your last chance for 2009. Deb!

Isn't it amazing how we have become our clients babysitters? Bonnie, perhaps what you can do is give them a deadline by which if they do not get you the info their returns will not get done until you come back. I am going to do this for the April 15th deadline as I do not plan on any pickups on the last day and all extensions for this next year will be done by the 10th. I'm tired of the babysitting. It's time that our clients accept some responsibility! Deb!

I think I may have one up on all of you. I am currently on vacation in sunny and mild San Diego, CA courtesy of a client who gave me and my mom a week of her time share for taking care of her cat! I really love this client!!!!!!! (I would have taken care of her cat anyway! I am an animal lover having a dog and a cat of my own and knowing the anxiety it places on me when I have to go away and leave them). She feels she got the better deal, but I know I did! I'll be back home on Monday and it's back to the grind stone! Deb!

KC it showed up under VMS and indicated it had been moved there. I responded simply to draw attention to it in hopes that it could be moved back. It was obvious it didn't belong on that forum. I guess I should have been clearer. Deb!

I don't know the answer to your question, but I am perplexed as to why it was moved from the general chit chat forum to this one? Hopefully if it was done in error it will be moved back so others who do know the answer will be able to respond. Deb!

I've been really busy so I didn't have a chance to chime in, but I also use back to school folders and my clients love them. I get compliments on my folders every year and my mom has fund putting my label on for me. I have a little over two hundred clients per year so my average cost for folders is around $20.00 per year. Deb!

I'm honored! Deb!

I wasn't going to do this, but I only needed one more post to reach the 500 mark. So here it goes, POST POST POST! Deb!

Congrats! Deb

Thanks KC for your vote of confidence. It means a great deal to me! When I grow up I want to be just like you too! Deb!