ILLMAS

The employer is not going to deduct the expense as a mortgage or real estate expense, instead he will reported as wages, therefore it's like if the employer paid the employee and employee paid the mortgage. Worst for example if the employer paid 10K towards the employee mortage, employer reports 10K as additional wages and no federal and state deduction, employee will be on the hook for taxes on 10K basically. Perfect if the employer paid 10k for the employees mortgage, however he reported 13K in additional wages, but 3K is being used to cover the taxes on the 10K.

If he/she was getting paid wages, and the wages were being used to pay the mortgage, it sounds the same to me, definetly a Yes from me.

How is your stress level?

I still remember when folks became millionaires from day to night by buying and selling real estate, hey I still remember banker, real estate agents, mortgage broker made their money too.

Make sure to select Clergy, under special type, you'll find this in the W-2 data entry form, right above Box 1.

It sound like an honest mistake, I would just amend it for her and have her pay the refund she was not entitled to and penalties and interest. The best outcome out of this, is you will now have a new client, someone that no longer does her own tax return :)

That's another can of worms, I would not even intend to fill out a foreign tax return. The best you can do is just prepare the foreign tax credit form.

try now MAS

LOL I plead the fifth

Thats the way I felt standing in line last week at the post office

Something you need to see: http://www.cnn.com/video/#/video/crime/2012/03/20/ac-kaye-refund-robbery.cnn

From the IRS: Question: Are the Canada Pension Plan and Canadian Old Age Security Benefits taxable? If they are, please tell me where they should be entered on Form 1040. Answer: Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program: If the recipient is a resident of the United States— are taxable only in the United States if the recipient is a resident of the United States, are treated as U.S. social security benefits for U.S. tax purposes, and are reported on Form 1040 (PDF), U.S. Individual Income Tax Return orForm 1040A (PDF) on the line on which U.S. social security benefits would be reported. [*]If the recipient is a U.S. citizen or green card holder who is a resident of Canada are taxable only in Canada. NOTE: Refer to Tax Topic 423 for information about determining the taxable amount of your benefits. Additional Information: Publication 519, U.S. Tax Guide for Aliens Publication 597, Information on the United States-Canada Income Tax Treaty Publication 915, Social Security and Equivalent Railroad Retirement Benefits Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits Category: Aliens and U.S. Citizens Living Abroad Subcategory: Canadian & U.S. Tax Issues

This Is for those who have clients that have asked if they should call them to reduce their tax liability. http://money.cnn.com/2012/03/19/news/companies/taxmasters-bankruptcy/index.htm?hpt=hp_t2

Thanks Manuel, I did a bit of research and it seems the TP can also file as MFS and use NRA (non-residential alien) as the spouse SS, since the spouse will be filing a return in their country.

For example if you married someone from another country (not from Canada or Mexico) and you return to U.S, your spouse stays behind and works. How do you file your US tax return S, MFJ or MFS? Spouse does not have a visa, no SS# and is not a resident of Canada or Mexico to apply for an ITIN. How do you report your foreign spouse income on your US return? I am guessing you would file single, until your spouse is issued a SS#, but I wanted to see what others think. Thanks MAS Ah, you should treat your spouse with love and respect :)

My associate just sent this information which I would like to share with you fellow tax preparers: http://www.accountingtoday.com/news/Tax-Preparers-Sue-IRS-Requirements-62000-1.html?ET=webcpa:e2300:#field2#a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_031312

I'm I the only one that gives up having a drink for lent?

Receiving payments in cash is not a problem, but using cash to pay for stuff is a bigger problem, there might be a lack of controls, where as a using a checking account. But having receipts for your cash purchases helps One might think that a business that only accepts cash might be under reporting sales, but a lot do that to avoid having to pay credit card processing fees, which is a fee that is not tack on to the customer.

Here is how to set it up in QB http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage/Core/Payments/task_payment_discount.html You first have to setup the discount http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage//Core/Items/task_items_disc.html Hope this helps

True, I just feel uneasy the way the account was handled, hardly any checks were written from the account and everything was paid with cash.

I have TP that recieved a letter from the IRS letting him know they accepted his "S" status however that he needs to draw a salary. 2011 went by and he never drawed a salary but withdrew money as if he was self-employed. Now my question is would it be safe to file a zero and final return for the 1120S and report all the income and expenses on Sch C, using the name of the corp and FEIN assigned to the 1120S? Thanks MAS

Parents moved back to Mexico.

I have a very usual tax situation this year, tax payers returned to their country and the kids decided to stay 17, 15 & 13 in ages. The 17 daughter worked most of the year and supported her brother/sister. Since the parents had no income and were not in the country for most of 2011, can the daughter claimed as HOH? Techincally she provided support for the parents too, so can they also be claimed as dependents this year? MAS

One way to sort this out is by checking off complete box, if you have e-filed 140 so far and you sort by complete, your remaining 10 should appear together. Hope this helps. MAS

Anyone?? TP has not lived in the house for last 5 years, but continued to own it up to the day of the short sale. Currently there is a gain, however I just want to make sure I have filled out form 982 correctly. "On Form 982 I have checked off 1d, box 2 145K and box 3 Yes. Is this the ony things that get filled out?" Ownership and Use Tests <a class="indexterm" name="d0e2111">[url=""%5D%5B/url%5D To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have: <p class="itemizedlist"> Owned the home for at least 2 years (the ownership test), and YES Lived in the home as your main home for at least 2 years (the use test). OUT OF THE LAST 5 YEARS OF OWNERSHIP, NO TP HAD A SECOND HOME