BulldogTom

<<Wouldn't you use loan balance of 388K as sales price and his adjusted basis>> No. It is a recourse loan. The rules are clear that the sales price is the lower of the amount of the loan less the amount still owed by the borrower after the repossession or FMV at time of repossession. <<Don't forget the depreciation reducing his basis.>> Have taken that into consideration. It is still nearly a 200K loss. And since it is a complete disposition of the activity, it freed up the suspended passive losses we were carrying. Anyone else have a comment? I still don't think that I should be able to get an NOL off of a timing issue. Had the lender sent the 1099C, I would have 200K of cancelled debt to go with the 200K loss on the disposition. I don't mind taking advantage of the tax law if I can for my client. If I can go back and grab some bigger refunds with the NOL, I will. I don't know if I am missing something here. Thanks Tom Lodi, CA

I am double checking because I don't think this is the result I should be getting. Client worked in Las Vegas. Bought a home in 2006 (yes back when Vegas was a HOT housing market). In 2007 company relocated them back to CA. They rented out the home in Vegas until late in 2008. The tennants moved out and they could not find another renter. The mortgage was too much with no income and in June of 2009 they walked away from the home. Lender has issued 1099A but no 1099C. Purchase price 400k, loan balance 388K (no refi's) and FMV is 188K. Loan is recourse. When I dispose of the rental property for FMV of 188K, I am generating a huge loss. This is creating an NOL for my client. Is this supposed to happen? Can I carry that back and grab some refunds for the prior years? But the client tells me they are also insolvent because they are so upside down on the home in CA. I don't feel right about this for some reason. I know it is a timing issue, but can I really get an NOL out of this. Tom Lodi, CA

KC, My heart is aching for you right now. I was just trying to be funny, but I did not realize the pressure you are under. Let me know if there is anything I can do for you. Tom Lodi, CA

That could have come out of Jainen's computer. Must be getting to crunch time at KC's office. I think you need a chocolate break KC? Tom Lodi, CA

Prepared a return over the weekend. Client has 2 K-1's from partnerships that he is active in. The K-1's both had ordinary income and rental income. When I ran the check return, ATX came up with a red error that I needed to break the K-1's into two parts for the different kinds of income. I did it, but the Sch E looked funny with four entries when the client only had 2 k-1's. Is this normal? The amounts ended up correct. Why is ATX requiring this entry? Thanks Tom Lodi, CA

Normally, I would assume the patch. But with this congress (and I am pointing at both parties) being so fractional, I am not sure what will come out. I am afraid someone will attach some rider to the patch bill and it will get stalled over political bickering. This being a mid-term election year, I don't think anything tax wise will get done before the elections and then it might be impossible to get anything done at all. Tom Lodi, CA

Thanks Mike. I don't need the 1045 because I am using up a carryforward. Thanks for the help. Tom Lodi, CA

Joel, Are you being funny or have you successfully efiled a return with an NOL from ATX software? Tom Lodi, Ca

When I check my return, it says that the NOL is not approved for filing? Is anyone else seeing this? Is it true or should I call support? Yes, I update every morning. Tom Lodi, CA

Hey wait a minute, does this only apply if you have a difference between your Reg NOL and your AMT NOL? If they are the same, then no entry on line 3? Tom Lodi, CA

HELP - PLEASE. This is my first time with this form with a NOL. I am reading the instructions for line 3 for the umteenth time and I am still not getting it. I have all the forms in front of me to get the figures that I need, but I am losing it when I try to follow the instructions. Can anyone out there translate the instructions for me? Here is part of the instruction "Your MCTNOL is the excess of the deductions (excluding the MCTNOL) over the income used to figure alternative minimum taxable income (AMTI) taking into account only exclusion items." Jainen - now would be a good time for you to berate me about not understanding such a basic concept while giving me the answer - pretty please. Tom Lodi, CA

So long as the estate does not generate income (as in rents from the house while waiting for it to sell), there is no filing requirement. Why doesn't the fried disburse the fractional interests in the house to the beneficiaries and let them sell it? Tom Lodi, CA

Although not required, I normally show the sale and let if flow to the D as a non-deductible personal loss just to make sure the IRS sees it on the return. These things are normally big dollar amounts (at least in CA they used to be). I don't like letters from the IRS when they can be avoided. And if you do get a letter, you just show the IRS the D and it goes away. Tom Lodi, CA

CA has accepted my 100S. Hopefully the IRS will not be far behind. I think I will have to sneak down to the office tomorrow after church and see if it is accepted. Tom Lodi, CA

Well - I just sent it. I will get an extension ready if I don't have an ack by Monday Morning. Tom Lodi, CA

You guys are scaring me. I am getting ready to send my very first entity e-file. I have always paper filed in the past. This is a new client and I don't want it screwed up. Should I be concerned? Tom Lodi, CA

I think you are correct. Kinda sucks, but that is how I am reading it too. However, if they get an annulment, she could get the credit, and then they can get married again. Tom Lodi, CA

Yep, you picked up on that one pretty good. Actually, for a fat man, I am in pretty good shape. I run 3/4 mile every morning with my boys and can still pop off 25 pushups. Tom Lodi, CA

I live in Lodi Maribeth. It is one of the great wine producing areas in CA. Miles and miles of vineyards. The Mondavi winery is 2 miles from my home. I am also dying to visit Jud's. I saw it on the travel channel. My wife says that burger will kill me. But any 2lb burger with a pound of bacon, 8 slices of cheese, and a pound of sauted mushrooms has to be something to try once in your lifetime. Tom Lodi, CA

Thanks Jeff. We are looking at Hotels on the internet. There is one a half mile from BSU campus called the Shilo. Is it a good place? Because it is cheap. Also, any chance there is some CPE that I can pick up while I am there (June 12 - 15)? I really need to figure out where to get my CPE this year and my schedule is causing a bunch of conflicts with my normal venues for CPE. Tom Lodi, CA

So my son (6'3" 270lbs) wants to play college football. He is the starting center on his HS team. He will be a senior next year. He wants to go to Boise State. It is killing me, but it is his dream and not mine so I try to support him. He asked me if I would root for his team every year if he were playing for Boise against Fresno St.. I told him I would root for him to have a good game. That is about the best I can do. We are going to take him to a football camp at Boise State this summer. Since the camp is 5 days, we decided to make it our summer vacation as well and all of us are going. What should I see while I am there? Any really "can't miss" things to do in Boise? Maybe the worlds largest spud? You guys were all great two years ago when I asked about boston. We had the time of our lives. So can you help me out? Tom Lodi, CA

I went to one of Drake's sales seminars last year. The product seems solid, but the data entry is just not what we ATXers are used to. It seemed intuitive enough to work with. It was more like the ProSeries that I used for 5 years before switching to ATX. I could make it work if I had to, but I still prefer ATX entry to Drake. Had a sales call from another tax provider who just dropped into my office. They saw my name and location on this board and figured out which tax practice was mine. When I showed them what ATX does for me, they did not have the software to compete. They were basically selling a 1040 only package. It made me realize how much we actually get with MAX (even if CCH corporate sucks). Tom Lodi, CA

There are some new hire credits for targeted groups (veterans, delinquent youth) out there this year. That may be what they are talking about. Tom Lodi, CA

Bert, I am not familiar with PA returns. And I am not going to defend the software if it has a major flaw like that. However, I have found in the past that if you call ATX (right now the lines should not be very busy) and explain that it is not handling a state return correctly, they will look at it, and generally very quickly. Before you chuck the software, you should at least give them a call. Most of the time, if it is a valid state requirement as in your case, they will fix or find a workaround for you. At least they used to before they became CCH. I have not had an opportunity to test this since the sale to CCH. Tom Lodi, CA

Yep. Thats my story and I am stickin' to it. Fact, the vehicle is no longer in the possession of the seller. Fact, the vehicle is now in the possession of the buyer. Fact, the debt on the vehicle has been assumed by the buyer. Fact, the buyer now has responsibility for the registration, insurance, and maintenance on the vehicle. Fact, the seller no longer has the use or enjoyment of the vehicle. Still looks like a completed transaction between a willing seller and a willing buyer who are not related to me. Unless there are other facts that we are not aware of, the disposition of business property has taken place and the adjusted basis and selling price can be established. Tom Lodi, CA