Lion EA

From the NATP e-Newsletter: You Make the Call Each week the Tax Knowledge Center will pose a question to you. Please note that the question and answer provided does not take into account all options or circumstances possible. The feature is intended to create some interest and insights into the topic provided. The answer will appear here. This week's question is brought to you by Sherri Huff, EA, from NATP's Tax Knowledge Center. December 10, 2009 Question: If a client meets the criteria to be a long-time resident under §36©(6) wherein the client (and spouse if married) owned the same residence and used it as his or her principal residence for any 5-consecutive years during an 8-year period ending on the date of purchase of the later residence, does it matter when the home being replaced as a principal residence is sold? Answer: No. The home could have been sold before or after the purchase of the new principal residence. As a matter of fact, the replacement home need not be sold at all; the taxpayer can keep it as a second home or convert it to rental property, etc. If it is sold before the purchase of the new home, you must keep in mind the rule requiring taxpayers to have lived in the former home for at least 5-consecutive years during the 8-year period ending on the date of purchase of the later residence.

Yes

Exactly. You're amending his MFS to MFJ adding her information that she will have to provide you. She needs her original documents and info, not the SFR.

And, imagine how much he's paying his lawyer! I really hate it when then call me with a legal question and admit it's because they'd have to pay their lawyer if they called him.

Good to see your smiling face again. How's life treating you?

Q: I’m already a homeowner. If I buy a replacement home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit? A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)

Does anything show up in e-Services? Do you have an IRS office close enough for client to go and ask for info? The line-by-line computer printout should be free. If you want the full copy with W-2's, etc., you have to pay. Did client get a copy when IRS notified him they filed a SFR? Can client get copies of his original tax documents, from employer, bank, broker, etc.?

A very :bday:

They lived in House 1 for five consecutive years in the eight years prior to the purchase of House 3. Doesn't that qualify them?

Hope you had a very , OldJack. (Belated is what you get for not telling us.)

As we were clearing out household items for the church fair many years ago, my son spotted our Beatles albums. He was surprised that we knew the Beatles (hey, I watched them on Ed Sullivan in B&W, maybe on a neighbor's TV, long before son was born) and that TVs had not always been color. But, he was really amazed, since he was old enough to collect CDs of his favorite performers: "Mom, they're recorded on BOTH sides!" Remember the little inserts to be able to play our 45s on our record player?

A very and a huge thank you, also!

A very :bday:

A very :bday:

A very :bday:

My daughter cracks up every time I say ice box.

That happens for me when it contains a poll and maybe when it's been "stuck," can't remember for sure on that second issue.

A very :bday:

Hey, Eric. My favorite thing about the new Forum is that the GO button is higher up so I usually don't have to scroll down to click it. I love lots of other things about the Forum, too, but that's a handy improvement that I use on every post. You're a gem. Thank you for all you do for us.

A very :bday:

A very :bday:

NYC tax for the time she's resident. NYS tax for the time she's working in NYS. So, she may end up with part year returns the year she moves. In NY, the NRPY return covers both nonresident and part year. Someone who's done NJ more recently than I have will need to answer re NJ the year of her move, but I remember having to prepare BOTH a NR and PY NJ returns.

A very :bday:

A very :bday:

Happy Thanksgiving! :P