Tax Prep by Deb

I'm glad I could help. Often I have relied on your expertise (all on the community) that it really does feel good to be able to give something back! Actually since that first client came in last week I have had another call yesterday and two others that are facing the same situation. The property values here have really taken a nose dive and there are so many houses to rent that it's very difficult to rent them for what the payment is. I really look forward to working with all of you this tax season. I've said it before and I will say it again, it feels sooooo goooood to be home again! Deb!

I just found this and I am going to try to post this link, however I'm still interested in hearing from any of you that have experienced this. Deb http://www.realestateinvestingtax.com/shortsale.shtml

I had a client come in on Friday. Although I expected this to happen to other clients of mine, this one took me by suprise. My client purchased a home right at two years ago. The home was purchased for $595,000.00 which was what it appraised at for their loan. They were sold an interest only loan, which means that today they still owe $595,000.00. Problem is home is no longer valued at $595,000.00. If they could sell it, they may possibly get $360,000.00. In the meantime they bought a second home (do not ask me why) I believe from what they told me because they could get a larger house than their present home, for less money. It seemed like a good investment to them especially being that they thought they could rent the other house. Problem is the person who was going to the rent the other house backed out, now leaving my clients with two large mortgages. They feel they can handle the payments for a couple of months in hopes that they find a renter for the other house. In the event that they can not they will have to unload the home they owe $595,000.00 on. They asked me about consequences of a short sale, which I understand to be letting the bank take the house back and the bank sell the house for what they can get out of it. My question is if this happens how does this go down tax wise for them. Let's say the bank is able to sell it for the $360,000.00. How does the difference get reported? My clients told me they would not be able to come up with the difference to satisfy the loan, so does the bank work out a payment plan for the remainder? Do they have the debt forgiven therefore will this generate a 1099C. I've not had this come through my office, however I could see the hand writing on the wall. Now it appears that I have at least another client in the same fix. Any thoughts? Does any body know were I could go to research how to handle this? As always any thoughts are appreciated! Deb!

Thanks to all who responded! I believe I now have a fax machine that will do everything I needed it to do. I can't believe how complicated it was to get one that had the same capabilities as the one I'm replacing! For the most part it turns out that the instructions in the book are not always right. The manual said I had to connect it a certain way, (which I didn't want to do) but as it turns out it works just fine the way I had my old one set up. The only change I had to make was with my answering machine. I have one ring less time to answer it, but thats really a small thing, I hope! As for the second number on the same line? well I looked into that as well but my phone company said it wasn't available in my location, but they would be glad to hook me up a designated fax line for an additional fee! Makes me wonder if the phone company and the fax companies are in cohoots with one another! But again, A sincere thanks to all who took time out to help me with this! I look forward to having the opportunity to help you all one day! Deb!

I've been out looking for just a simple fax machine and it is so frustrating!!!! I have had the machine I am replacing for about three years and until a month or so ago I was extremely pleased. The problem is that to fax I now have to baby sit it and practically force feed every page being sent. So I decided it was time to replace it. I hope you guys have some good feed back as I am perplexed! The former unit worked wonderful with my answsering machine. This is a must because I do not have a dedicated fax line. Almost everyoe I have looked into says it will work with an answsering machine hooked up to it! The problem is my office is in my home, or should I say in a separate room attatched to the garage totally seperate from the rest of the house. I do not want to if at all possible to have to go out to the office everytime I want to check my messages on the answering machine. It would seem like to me that if three years ago technology could figure the differece between a phone call versus a fax that today's technology should likewise be able to do this. Does anyone have any suggestions? Preferenes? I really do not want the all in one units, way too much machine to have to learn, I really just want something that will send and receive faxes. Thanks for any imput. Deb!

I have had that issue in the past, but found if I just walked away and did something else then come back to it the installation would continue. I think at least for myself, I get impatient and expect my computer to immediately do what I say, but my computer sometimes has a mind of it's own. I would try it again and time it to see if it really is stuck on 0% or if maybe it thinking about it! Deb!

Thanks KC. I placed the call today and found out is a very simple procedure. Thanks Again! Deb!

Sorry KC, I've fixed the question about where I'm from. I'm in California. I tried researching the Secretary of State site for Corporations, but I couldn't find what I was looking for. I'm not sure what my client plans on doing with her shares, I would assume that she probably will sell them to the other person, but that really isn't what I'm trying to find out. I'm basically just trying to find out what steps to take to get her name off the corp. As always I greatly appreciate you taking time out of what I know is a busy schedule. That's why I love this board! Everyone is so helpful! Deb!

Hopefully someone can help me with this. I do bookkeeping for a corporation (a very small one) and one of the officers would like to resign from the corporation immediately, (I believe she is also a shareholder, as this business was changed from a partnership two years ago to a corporation and she now wants her name off anything to do with the corp). My question is basically what needs to be done? When the coporation was formed each of the positions were filled by her partner, herself, and several of her grown children. It is my understanding that all want to resign except her original partner. Can he hold all of the remainder of the positions, or will he need to find someone else to fill those vacancies? I guess my real question is two fold, how do you resign and is there something that needs to be filed with the State? Also is it possible for one person to own the corporation? Any feedback would be greatly appreciated. I have little to no knowledge of anything dealing with a corporation. However I am learning. Deb!

I believe your looking for lynnjacobs. I did a simple search using the search button and found a thread that was pretty active and thats when I came accross the fact that lynnjacobs is from the town you mentioned. Also if you go into the section at the top called members and find lynnjacobs profile there is a way you can send that person a message I believe. Hope this helps! Deb!

It also shows up on my account. I have been with ATX for many years and never seen this until this year. I renewed sometime late this summer and was given a pretty good offer, nothing though was mentioned about this transfer fee. I did not get an invoice, so I can't seen the individual charges, just got what was on the statement which matched the quote I was given. So if this is a new charge, (new to ATX this year) it must have been figured into my quote. But I am curious and would also like to know what it is for. Deb!

I received mine yesterday. It appears they are shipping them in batches, I assume pretty much the same way as they ship the original disk. Not everyone receives the disk at the same time. I'm sure yours is on it's way! Deb!

Just got my archived 2006 program in the mail today!

I'm still waiting, but it could be coming in the next day or two I hope! Deb!

Anybody know when they plan to ship out the archive for this years program? It seems like I already had it by this time last year, but time goes so fast I could be wrong. Deb!

I likewise had a problem changing info to new format and was helped by Nicole @ ATX. I experienced the problem yesterday and had a call back first thing this morning! So far so good! Deb! P.S. I really don't mind the password thing either. What I mind is having to give up my old user name and change it to a customer id number (I hate being referred to as just another number!)

Zeke, I believe the designation changes based on the number of posts you contribute to. It's based I think on your contribution to the community. Deb!

MAMalody, What happens when you attempt? I have tried several times and the system says that it doesn't recognize my account and to call customer support. Problem is the number for customer support is on the old site that I can't access. Do you think this is just a coincidence? Deb!

I learned the hard way. It was the first and only time that I did this, and fortunately everything was still filed timely and refunds should be forth coming, but I agree in the future one per envelope. Thanks for your imput Deb!

FINALLY!!!!!! I'm done. Boy what a year, especially for late filers. I had two that I didn't think was going to make it, but they did! I'm taking a couple of days off to recoup before getting ready for next season! Hope you all can do the same! Deb

I think I'm done. Just sent one off to client who decided to take a vacation without telling me, so I had to fax return to him and he's taking it from there, have one more coming in this morning to sign (a huge return that I am sooooooo glad to be done with) two more that I am waiting on info for but I'm reasonably sure they will not get it to me in time, so basically I think I'm done! Of course eveybody keeps reminding me that they will see me in a couple of months! No rest for the wicked!!!! But I thought I've been good all year! Deb!

KC, You are not the only one who thinks it's ridiculous. I personally feel the whole certified mail thing is a way for the post office to make more money. If they did their job the right way no one would need to send anything certified. As to IRS receiving and losing what has been sent, this too is common, especially it seams if you send more than one item in a single envelope. I had a client send in three years worth of ammended returns that actually wiped out a debt owed to IRS and somehow IRS only received one of the years in question, the smallest one of course! Just my two cents worth! Deb!

K.C. I actually have statements that were issued to my client, and when I compare starting value, ending value, and what he took out it appears correct. I would love to have him contact the issuer, unfortunately my client is now deceased and his son his handleing his affairs. When ask even simple questions, he has no clue. May be I'm just not seeing things right. Let me show you exactly what he ending statement for 12/31/06 states. It shows contract value on 12/31/2005 as 0.00 Total Payments as $250,000.00 Total withdrawls of $21,060.00 Surrender value on 12/31/06 as $230,735.99 Death benefit on 12/31/06 as $246,834.94 Contract Value on 12/31/06 as $246,834.94 I don't know where I originally thought this annuity was for $400,000.00 because the paperwork is definitely showing $250.000.00. He probably used the other money from the life insurance proceeds for other things and only invested $250,000.00 in this annutiy. Again thanks for your help, and I sure hope all is well with your husband. I've been on vacation for the past 10 days so I haven't been reading many posts. But you both have been in my thoughts! Deb!

So then, when you do the work on the tax return, how do you show the distribution as a return of capital? It is reported on the 1099 as a normal distribution. Box 1 is listed as the gross distribution of $21,060.00 and box 2a (taxable amount as $17,070.86. The difference os $3,989.14 is listed in box 5 as an Employee contributions/Designated Roth contributions or insurance premiums. The distribution code is 7. If I imput this infor into the software exactly as I would any other 1099 it is taxing him on the $17,070.86. Is there another form used to show that this is a return of his capital? Thanks, Deb!

I hope that maybe someone can help me out here, especially in understanding why someone would do this? I have a client whose daughter passed away and left him a sizeable life insurance policy, around $400,000.00. From everything I researched it doesn't appear to be taxable and was never reported as such for example a 1099 being issued to my client. My client then turns around and invested it into an annuity. He did take some money out and was issued a 1099 for the amount withdrawn. Am I correct that this withdrawl is now taxable? Am I missing something? If the withdrawl from this annuity is taxable, why would anyone invest money that was tax free into something that is going to be taxed? I have only had one other client who invested money in an annuity, so this is definitely not be area of expertise, but I would like to understand the workings of this better. Can anyone offer some info? Thanks in advance, Deb!