BulldogTom

Anyone have those handy? My software is at home and I am at the office. Can't find it online at the ATX (non)Support site. If anyone can post them I would really appreciate it. I am sending the requirements for my new computers to my Techie. Tom Lodi, CA

I am going to have to upgrade all of my computers this year. After 6 years, they are too slow to run the software. But I want to keep all my programs from 2007 - 2010 on my system. I will be keeping one of the computers with the software from 2000 - 2010 at home as a backup. Which years of ATX run on Windows 7 Tom

It comes from the SS rules on income. After you reach a certain age (I think it is 70), you can earn as much money as you want without having your SS benefits reduced. Over time this explanation has morphed into the belief that you don't have to pay taxes on your SS after you reach that age. Tom Lodi, CA

I have an elderly client who is giving his property and cash to his daughters. I told him he has to file a gift tax return. There will be no tax as his exemption credit will not be used up, and what he is giving them is the bulk of any estate that would be left if he were to pass away. But he doesn't want to file the return. What are the consequences of not filing a gift tax return? Tom Lodi, CA

Thanks Bcolleen. I read the instructions about the request. What I am looking for is suggestions on what to put into the letter for those who have successfully gotten abatement. Any hints on how to write the letter? I asked the client to try and get a letter from the broker stating they did not advise him to take the RMD because the account was new to them. I don't have much hope of him getting that letter, but I thought that might be a good reason. Tom Lodi, CA

Client moved his IRA account to a new brokerage house during the year. The old broker did not tell him to take the RMD and neither did the new one. No RMD taken for 2010. Any way to get the additional tax abated? Thanks Tom Lodi, CA

I am confused. Was that a mis-statement on your part when you said each partner SENDS a K-1 to the partnership? That does not sound correct. Tom Lodi, CA

Client came in last year with a hefty 1099C. They renegotiated the loans on their home and 3 rentals. We went through the insolvency worksheet to exclude the income and reduced basis in all the rental properties on form 982 filed with the 2009 return. I thought I lost the clients after I put them through all of that. NOPE. They have made an appointment for 2010 taxes. So, I know how much I have reduced the basis in the three rentals. How do I change it in ATX? Do I just override the accumulated depreciation in the asset manager? Thanks in advance. Tom Lodi, CA

D- Direct D- Deposit N- Non T- Taxable B- Benefit Could be health insurance. Tom Lodi, CA

That sounds like a good plan. It may or may not work. I am guessing it will because the IRS will have nothing to default the taxpayer on until the return arrives. And if it arrives with the check to pay the taxes due, you might slip through. Tom Lodi, CA

Taxpayers home is in Stockton, ground zero for the mortgage meltdown. Familiar story, husband loses job, can't pay mortgage, can't sell because underwater, etc. So the client finds a buyer for the home on a short sale and the bank agrees. Client moves out in 11/09 and the sale goes through. Client recieves a 1099C in 2010 for the 187K of forgiven debt. All good so far. No issues. But the client also got a 1098 Mortgage interest statement for 2010 where all of the back interest was paid. Over 23K. Can this be deducted on Sch. A? Tom Lodi, CA

This confirms my new policy not to take on any OH tax returns ever again. I will send them all to you JB. Tom Lodi, CA

>>They were not going to get any new revenue from the large public corps, who have to deal with audited financials, etc.<< On that we can agree. Unless it was Enron. Tom Lodi, CA

I have to disagree with you on this one KC. I think the IRS would be busy auditing all the new "revenue" that is not being reported now. You and I see it all the time. Client with a small business comes in and you ask how much revenue they have. They hand you the 1099's and say that is it. We know better. But they only seem to think they have to report what is on the 1099's. And since small businesses are increasingly incorporating, they are not getting any 1099's. I think this would have produced a flood of new taxes for the government. That being said, I think the law overreached and was not well written. I am glad it was repealed. But I would support a 1099 program that inclueded payments to Corps. Start with S-corps for a few years, then to C-corps under 1 million in revenue. Yes, I understand that small businesses are under a tremendous burden of paperwork, but I also know that they cheat on revenue as much as sole proprietors. Just my opinion. Tom Lodi, CA

There I go reading the instructions for the form and not the return. And I thought I said "otherwise does not have a filing requirement". You should have known what I thought I meant Jainen. Tom Lodi, CA

TP claimed the $7500 credit in 2008. Does not have a filing requirement this year. Is there a way other than filing a tax return for the client to make the payment? I think I know the answer but I want to make sure. Thanks Tom Lodi, CA

There will be no 1116. There is not enough income to generate a tax in the U.S.

H is US citizen. W is citizen of Japan. Two children are have dual citizenship. They lived in Japan all of 2010. Been living there continuously for 6 years with occasional trips to US to visit family. Both worked in Japan. Filing status - he can only file as MFS unless his spouse elects to be treated as a resident alien, then he can file MFJ? She does not have a filing requirement unless she elects to be treated as a resident alien and files MFJ with him? Income - he can exclude up to 92,900 of income on form 2555 regardless of his filing status? If they elect resident alien for her, she can exlude the same amount on their MFJ return? CA should exclude all the income as they are domiciled in Japan for the entire year. Only need to include the rental income from their CA property on the MFJ return? Do I have this correct? Thanks. Tom Lodi, CA

50,000 new clients. Sweeeeeet. Tom Lodi, CA

Bahamas Cruise in July. It is our 20th anniversary and my son is graduating from high school. I am going to the Bahamas, I am going to the Bahamas, I am going to the Bahamas.... I keep saying that to myself as well. Tom Lodi, CA

Well silly me, I blew right past that part and went straight for the instructions. Thanks Jainen. Appreciate the help. Tom Lodi, CA

Does the Federal 1041 have to be attached to the CA 541? Are the rules the same as for 1040 returns (ie if you have a schedule other than A, B, M, you have to attach the federal return)? Couldn't find this info anywhere. Thanks Tom Lodi, CA

That has got to be redneck entertainment in its highest form. Tom Lodi, CA

No different than any other rental. Just make sure you get your basis information and the date placed in service correct for the depreciation. Make sure there was no office in the home in the past where depreciation was taken. Tom Lodi, CA

Does that mean you can't e-file the RITA Return? What about the SD100? Can it be e-filed? Sorry to keep bothering you. I think you must be getting rich off all these forms you have to prepare. Tom Lodi, CA