BulldogTom

I second what Terry said. Tom Lodi, CA

I was born in Fremont. But it is not the same place it was in 1965. Tom Lodi, CA

I have looked through some material and I cannot find anything that correlates the two items. They don't seem to refer to each other. The only issue would be if there was COD that was not excluded and pushed the MAGI over the threaholds. Anyone else have an idea? Don't know why this situation is not sitting well with me. For some reason it seems that this situation is not the intent of the laws, but maybe it is. Tom Lodi, CA

Client asked me this question about her son and I don't have a good answer. Son walked away from home (principle residence). In the same year went and bought another home (what banker let him do that - but that is not the question). Assuming all the rules for cancellation of debt on a qualified residence, and assuming all the rules are met for long term home buyers credit, can the taxpayer get tax relief on the COD and get the $6500 homebuyer credit? On the same return? Tom Lodi, CA

nctx - you need to learn what jainen is all about. He always has a point, but it is sometimes phrased in a way that makes people a little defensive. I would look at what he is trying to get to. You will find that jainen has an excellent tax mind and shares a great deal of wisdom on this board. But he is a little hard to take at times. Don't be offended, it is just jainen being jainen. Tom Lodi, CA

Along the same lines - when documenting a long time homebuyer credit, what do you send in. My M-I-L (86 years old) sold her home of 60 years last year. She has purchased a smaller home. She never had a mortgage and did not carry insurance on the home. When she moved out of the home, all her documents were put into storage, so she does not have the property tax bills. I was thinking of sending in copies of her last 5 tax returns, but that is not a listed document on the IRS website. Is going to the county for copies of the last 8 property tax bills her only option? Tom Lodi, CA

The code section for spiliting community income in in the 50's I think (maybe §55 - but I would have to look it up). The rules are that the spouses must exchange information before the due date of the return. In practice, this will generally never happen. I did one of these (divorced after marriage, not common law) and I split the income from the date the community ended in CA. I had my client give this to his attorney to give to his spouse. I listed the relevant code section in the letter with all the supporting documentation of the split. My client's attorney would not deliver to the spouse's attorney because it would have complicated the divorce. Divorce attorneys seem to not like to have to deal with tax laws. The IRS does not like splits either. They know what the code says, but it screws up their matching when the W2's, 1099's etc don't come out on the return as they think they should. I had an IRS agent tell me that if they get a split, it will increase the chance of an audit, but if each spouse claims their own, they will generally let it slide because they don't like to audit divorcing couples who are fighting. This was not an official communication from the agent, just a casual conversation at a tax seminar. Tom Lodi, CA

I really wanted my 1000th post to be brilliant or a snappy comeback to one of Jainen's posts. But this is it. I made it without Eric or KC kicking me off the board. This is a major accomplishment for me. I am next level Whhhaaaaahooooooooooo!!!!!!!!!!!!! Tom Lodi, CA

The meal at the San Ramon seminar was so bad I did not finish it (and I don't leave scraps on my plate when I eat). I could not even eat the desert it was so disgusting. On the other hand, the seminar was very good as always. Tom Lodi, CA

I did. San Ramon. I was not suprised to see it. But it is funky looking. Looks like it is approved for paper filing now as well. Tom Lodi, CA

I think there is a casualty loss. The condition of the property only matters as to FMV (as jainen pointed out). What has not been mentioned is the allocation between the land and home. The land is not damaged, and there is no loss there. The home has been destroyed by fire, which is one of the definitions of a casualty. There is more in the code about unforseeable and sudden in nature, but ASSUMING that those conditions are met, the lower of the FMV or adjusted basis of the home is the starting point for the calculation. If the home had a FMV of zero, then there is no loss, even though there is a casualty. ASSUMING the original purchase price of the home and land was 20K, and 10K was allocated to land, then the adjusted basis of the home is 10K (ASSUMING no other improvements, periods of depreciable use, etc). ASSUMING the FMV of the home just before the fire is 10K, and the FMV after the fire is 0, then the casualty loss is 10K. Then you take the haircut (is it still $100?), the 10% of agi haircut, and what is left is the deductible casualty loss. The 6K to clean up the LAND after the casualty would be added to the basis of the land, in my opinion. Tom Lodi,CA

Taxbilly, His sister is 20 years older than him. Sounds like the taxpayer was an "oops". ;o) Having children 20 years apart will make you "elderly" in a hurry. Tom Lodi, CA

Congratulations JB. Let us know if you need help on the rules for Education Credits. You will be seeing those on your return next year. Tom Lodi, CA

Yes, it says I am enrolled. However, it also says I am enrolled for Bank Products at SBBT. They think that may be the problem. They don't know but bank product support is swamped and customer (non) support is not able to do anything without them. Tom Lodi, CA

OK - in the wake of the SBBT debacle, I contacted CCH Customer(non)support and asked if I could move to Fee Collect. They said it was no problem, just sign up from the website. Nothing to do to unenroll from SBBT. So I did the enrollment in Fee Collect on line on Monday. Tuesday we get the enrollment e-mail. Try to add fee collect to a return. Red Errors. Call customer (non) support and they say it was taken care of in an update but they don't know why it did not work for us. Should be fixed any time. It is now Saturday. Three returns are being held up for fee collect. Can't use SBBT either. On the phone for hours. They lost our incident number. Gave us a new incident number. On the phone for hours. They promise to send an e-mail by the end of the day. No e-mails. On the phone for hours. On hold right now for customer (non) support. This is the 5th day with this problem. On hold for hours and hours hours no help they don't know why they don't know anything they can't tell me who does know They can't escalate to a manager they can't tell me when they will get to it They don't know I hate CCH....I hate bank products....I hate Customer (non) Support hold music. Tom Lodi, CA

I found that on the Sch. M. after I posted this. What I did not see in the instructions was anything about attaching form EIC. I don't think I need to, because by definition there cannot be children on an EZ, and the calculation is just the wages compared to the EIC table. At least that is what it looks like to me. Tom Lodi, CA

OK, working on a 1040 EZ. Single, no kids 30 years old. 1500 in income. 150 in FWH. Qualifies for EIC and MWP credit. Do I attach the EIC and Shc M? It looks like the 1040EZ is calcing it all without the forms (and that makes sense because it is supposed to be a quick form to fill out). So I am thinking they don't need the schedules. Sorry for the basic question. Tom Lodi, CA

Thanks to you all. I thought so, because I wasn't getting a red error when creating the E-file. But I wanted to make sure. My first EIC return of the year. Tom Lodi, CA

The form 8867 is still a draft. Does this cause any e-filing problems? Thanks in Advance Tom Lodi, CA

You could get a tax id number for the partnership. What I don't know is the rules for the state of Texas. Can they get everything set up retroactively? And will it cause issues with the Texas Franchise tax? Would they be better off as an LLC taxed as a partnership or S-corp? They need to set this up the right way. Applying for a tax id number and filing a partnership return can be done, but is it the best thing for them to do? I don't know, because I don't know enough about the state laws. And I don't know if they have time to do it? Tom Lodi, CA

I am not sure I understand what happened. Is there a partnership or not? If not, your client has another sch C to complete. If he made payments to his cousin for the services the partner provided, then it would be appropriate to issue a 1099 to the cousin for the "independent contractor" services the cousin provided. Are they fighting? How do they want the taxes to be completed? You need to make sure you know all the facts before you start putting the tax return together or start issuing 1099's. Send me an e-mail tonight if you want to discuss in more detail. Tom Lodi, CA

Are you sure? I think if you put the wrong name, in about July you get a letter from the IRS saying the name and TIN don't match. Tom Lodi, CA

When you have an LLC with a dba, what line do you put the DBA on? I have an LLC with a long name that rent is paid to. The LLC is not exempt from 1099 reporting and is dba another name that is very long. Its W9 says Haxxxx Inxxxxxxxxxxx Gxxxx LLC, dba Pxxxxxxx Bxxxxxxx Pxxx My problem is that all of that there is not enough space on to print on the line for name number 2. I can't put the first part in the Name line because it is not a person and I can't break it up in First Initial Last. Do I put the DBA on the first address line? Help. I am having a brain freeze. Tom Lodi, CA

The only way to keep from getting the CP 2000 is to report the entire amount of issued W2G's on line 21. I think I will continue to educate my clients and let them decide how good their records are and what their tolerance for an inquiry. HOwever, if it is me and I am so fortunate to have winnings from a casino in the future (that hasn't happened before, so I might be due), I am netting those bad boys out for the day. You bet I will have great records to prove it too. Tom Lodi, CA

I think the way this reads is not a change to the law, but what the definition of winnings is. Winnings will be determined at the time the chips are cashed in. Everything that makes up the net from the day is considered "winnings" or "losses". All "winnings" still go on Line 21 and all "losses" still go on sch A subject to Line 21 limitations. So the law has not changed, the definition of what is "winnings" seems to have changed. I think you are right. Airtight documentation is going to be needed. The first time the auditor gets a log that only has winnings on days that there is a W2G, I think the taxpayer will be in trouble. Tom Lodi, CA