ILLMAS

I have a new TP that create a partnership (1065) with his brother, they are buying houses, rehabing them and selling them, however the houses are not selling, so they are renting them. Since there business is to buy, fix and sell, can the properties be setup as inventory? And how would the rental income be classified if they are considered inventory? No hurries on the response, this baby is going on extentsion.

Anyone??

The same thing has happened in IL, 20yrs cases were opened again because of a new computer system they put in place in Jan. 09, read the following article and see if something can be done. Sorry I didn't have time to go through the whole article. MAS http://www.thetelegraph.com/news/tax_24374...stem_state.html

Client recieved a 1009-A for his home he gave up in foreclosure, since this was his personal home for more the 6yrs and the FMV is under 250K, do I need to include it on his tax return? If so, what form to use 4797, even though it's not an investment property? Thanks,

Sorry, it's a 1120S and not a partnership.

I have a partnership return that is composed of 4 brothers, they didn't take a salary but decided just to take money as owner's draw. The only problem is the retained earnings is negative and tax year is a lose. I recommended for them to take it as a loan and repay it, get back on the payroll and to withdrawal something in relation to their salary when profitable. The fact that they are not taking a paycheck and taking money from the business, would it be ideal to reclassify it was other compensation to officer and issue them a 1099? Thanks,

Amen to that, I haven't been spending anytime with my 5 month daughter and I feel so guilty. Marco

Just wondering when do you quit doing tax returns?? I find myself receiving tons of calls just days before the deadline, but I think this year I might disconnect my phone April 13 - 15, I'd rather lose these clients than work my butt off, then have them pay me months later. What are other tactics do you use, share your story.

I thought had bought a good HP all-in-one printer, but I hate the damm scanner, it creates a new file for everypage, maybe I am missing something, but I went back to making copies. I will definetly give up on making copies of my client info next year. I will let them keep track of it, and you are right my cabinet is ready to explode.

I am just curious, do you make copies of all of your client info for your copy? I am getting fustrated with so much copying that it takes me longer to assemble a tax return then doing the actual tax return. I am just wondering what other tax prof. do? p.s. I don't make copies of all the receipts of anything, I just write the total on one receipt and copy it. I timed myself for one just one tax return for today, simple return 1040, Sch A and state return: 10 minutes entering data 5 minutes reviewed and double checked numbers 20 minutes making copies of the info, making a copy for my file and assembling the tax return.

This a good place, I wouldn't want to see it go. I use to post at the TaxAlmanac but there are a couple of schmucks just waiting to see who misspells words and plus sometimes people are not helpful.

TP has recieved two 1099-A for the same property, one is for the mortgage and the other from the line of credit. Amounts for the Balance of principal out (Box 3) and FMV (Box 4) are different?? The difference on box 3 is $5,208.08 and box 4 is $45,059.74 Do I need to enter both 1099-A and use the lower FMV and principal out? Thanks,

If a politician gets married and receives gifts from his employees, is this considered (presents & cash) additional income? If so, how would it be reported?

Duhh!! I should of thought about that, thanks that worked. It was too many assests to delete and re-enter, plus client is thinking of selling business, I don't like the double work.

I have TP that a business, but it had no activity in 2008, there is no income and expenses and no depreciation ZERO, he does have a couple of fixed assets, I cannot efile his return because it's telling line 1 of Sch C has to be greater then 0, I wanted to delete the Sch C but I will lose all the fixed assets. Is there a way around this? Thanks,

A client of mine was building a home to sell, the house was finished and put on the market in 2007, in mid 2008 they decided to move in to stage the house and see if they can sell now that it has furniture. They moved out their primary residence and decided to rehab it. Well since the new home was not going any where they decided to rent thier primary house in late 2008, someone gave a security deposit to start renting in December 2008, however they decided not to rent because the lease was going to be on a month to month basis (client was going to return to home if new construction sold). Now here is where the headache starts: 1. Client took out a construction loan of $795,000, $150,000 of equity from his primary residence and another $150,000 from a rental property, however the contractor swindled $300,000. I asked the client for a copy of the title and he said there isn't one, the $795,000 is now a mortgage loan. My poor client doesen't know what was the true cost of the property because there was a lot of fraud with the contractor, contractor made checks to his family and forged my client signature, the bank investigated but could not do anything because the contractor left the country. This was going to be an investment property, but because of the real estate fall, property might go into foreclosure along with his other two properties. My question is, since in 2008 it was a considered a personal residence, there is no need to capitalize it?, I would just itemize for the mortgage interest and property taxes, the same for his primary residence? In short client had to personal residence in 2008. 2. If things are not bad enough already, client has two other condos, both were unoccupied in 2008, not because he didn't want to rent, but because the area they are in, there are another 500 condo to choose from (new and for rent), he contiuned to pay the mortgage, property taxes and assestment fees, but no rent was coming in, in 2009 he was able to rent one only, would it be wise to report both of them with zero rent, he has proof he tried to rent them, he hired a R/E agent and put ads in the paper. Unfortunetly, he is not a R/E professional, so he would be limited to the 25K, he paid more that in just one condo. 3. Client has a dauther that got married in 2007, however she left the country to study medicine, I filed her 2007 return as married, now in 2008 she is a dependent of her parents because they are the ones paying for her education, and her husband is going to file for divorce in 2009, the daughter meets the test of dependency, my only concern is that she is not officialy divorce yet, and her husband probably filed single for 2008, then she would qualify was a dependent. Parents paid a lot in education, she is older the 24yrs, would the parents be able to claim the education credit? I am also venting, this probably the worst case I have seen related to taxes. Thanks,

Does anyone remember the motivational speaker Matt Foley "I live in a van down by the river" played by Chris Farley? My client is the real Matt Foley and was good friends with Chris Farley. Fr. Foley will be leaving to Iraq to serve as a chaplain in a couple of days, he has finished his military training and is ready to go. I have included a link to a video of him, please keep in him your prayers: http://www.youtube.com/watch?v=vDICmcxrIEM Marco

Double checked and he is not required and thank you.

I have a TP that is a priest, the church were he resides issued him a 1099 for his service, he also has some expenses related to his ministry (books, training, seminars), he also has some donations, can he deduct those donations on Sch C instead of Sch A, he is not itemizing. Also, what would be the business code for him? Thanks,

Isn't there a difference between a foreclosure and a short-sale? I thought that once you foreclosure, the bank takes over the property vs a short-sale, bank allows for you to sell for less, forgiving debt between the amount due and sales price. Then you get a 1099-C, here is where you pay taxes on the amount forgiven unless you are qualify for the Mortgage Relief Act. But it would be a good idea to know what going on, a couple of clients are in that situation of foreclosing.

I will check my quickfinder when I get back to my office. Thanks

Ok thanks, for some reason I thought if you are trying to acquire more business and have to travel out of state, apart from car rental and lodging you were able to deduct 100% meals.

What are the cases when meals can be 100% deducted?

In these two case I had, both TP transfered the stock to another broker in 2008, however they received a 1099-B Broker Proceeds, Barter and Exchange Transaction and if you look at the date of the transfer appears under box 1a "Date of Sale", logically one thinks they were sold, number one because it doesn't tell you it was a transfer or exchanged nowhere on the form. I guess these two particulary brokers don't give enough information to let the tax preparer know they were exchanged and like I mentioned earlier the client is even worst, doesn't know nothing about their account. I promise next time I get another client that transfered or exchanged stocks and it is not clear on the 1099-B, I will put zero cost and calculate a gain :-) at no charge for Sch D.

I have had two TP that transfer their stocks to another broker and they get a Proceeds from broker, worst of all the client doesn't even know what they did, they want for you to find out. From the 1099-B it looks so much like if the stocks were sold, and there is no reference that it was exchanged. Getting tired of this!!! Just had to get this off my chest.