Lion EA

Obviously, if she has some high interest rate debt, she should pay that down first. But, otherwise, putting $7,500 against the principal of a 30-year loan will make a nice difference in the true cost of her home.

It seems to me that the highest concentration of the wealthy are in D.C. Didn't they give themselves raises recently? And, we know they don't have to pay taxes, and when forced to don't have to pay penalties and interest or go to jail.

I make the clients give me the FMV. I do provide the Goodwill and Salvation Army web sites and Tax Book lists and sometimes some others if current. I do explain the meaning of FMV. I don't insist upon their writing or signature since more and more is done over the phone, but I try to ask the question via e-mail so I can print out a hard-copy of their answer. As far as purchase date and purchase price, I'll put Various and an amount 4-5 times the FMV once they give me the FMV. Yes, I try to get ALL the information from them, but if I get FMV from them, I'm happy enough.

Take the loan and pay down her principal. Show her how much she'll save. Then, raise her fee!

Probably estimate and charge hourly. Tell him you'll give him a template/sample to do the bookkeeping himself to save X hours or Y $. Or, if you have a good handle on your form charges, estimate using forms. Charge a lot more for other states than your home state. I agree with those that say estimate high. You'll find more when you get into it. And, if you don't, you apply a discount this year.

Happy!

Don't we have to keep our clients' identities confidential? Not just names, but identifying information? How can he talk to his per diem firm about a client from his personal firm?

If the aunt died after giving a gift, it's still a gift and follows those rules. If the reason your client has the stock is because he inherited it from his aunt who still owned the stock when she died, then it's an inheritance and follows those rules. And, why do you have to amend 2007. Did he sell the stock in 2007?

If he received the stocks as a gift from his aunt who was alive, his basis is her basis and his holding period includes hers. If he inherited stocks from his aunt upon her death, his basis is the FMV on her DOD or alternate valuation date and the stocks are long-term no matter how long held. Did he have income from the stocks during 2007? If not, why do you have to amend?

If they bought a house for purely tax reasons, they're just adding to the "housing crisis." If they bought a house for family reasons, because it fits within their budget and lifestyle, etc., then the fact that they get tax advantages from mortgage interest, property taxes, points, etc., should be icing on their cake.

I vaguely remember something about a W-2 from a new employer, EIN issued within the year, disqualifying a return for e-file.

Hey, let's stop picking on each other. This is the place we can go to vent with colleagues. We see things in our practices that we can't mention to other clients or friends or family who might be able to infer identities. Here we can talk about anonymous clients, vent, and return to our desks as politically correct preparers. So someone noticed that married couples were filing two HOH returns and returning to their nearby homeland when the feds came knocking. Just an observation. So what. Read his story or don't read it. I took it as a geographical observation rather than a dig at any nationality. I don't have any relatives from the country that was mentioned, so am not trying to tell you not to be offended. But, if you are, stop reading this thread and read another that enhances your tax knowledge or gives you a laugh or unites you with fellow posters. Don't stick around here if it's stressful.

I'd also contact the IRS's new Identity Theft unit and SS to ask about activity on his account. Get all three credit reports to see if someone has been opening up accounts, taking out loans, etc.

Happy!

It sounds like the tax for a prior year, catching up.

Happy!

Well, there's an exclusion from the 10% penalty for $10,000 to a home buyer. And, he has $8,500 in taxes paid. And, for 2008 purchases of homes there's a $7,500 "credit" that's actually an interest-free loan unless Congress changes it to a real credit. All those have qualifiers, but hopefully you've read the instructions already. What else are you looking for? He can deduct mortgage interest and points and property tax on Schedule A. If he actually has a loan from his 401(k) instead of a distribution from his IRA, he needs to deal with getting corrected paperwork, but it sounds like the documents are correct.

See if your trade organization has the statistics you're looking for.

Congratulations! The drinks are on you.

Basis = actual amount paid + W-2 amount of compensation taxed for shares + any transactions fees. So, usually a small loss = transactions fees.

Happy! And, push for HUGE gifts next year.

Happy!

ProSystem fx allows for the client to receive an email from the IRS, for the IRS to email the client but to your address so you can add a note when forwarding it, or for CCH to send a postcard to the client (CCH charges $0.50/postcard mailed). Nice touch. I like to receive the emails to forward to the client with my note.

We're going away -- I know, I'm swamped and can't afford the time off -- to college daughter's concert. At least it means a night in a B&B without the telephone ringing. And, she's a senior, so we have to attend. Hubby brought me roses earlier in the week when they were cheaper (I married him for his brains) and a card today. We go away Sunday into Monday and will take a bottle of wine and retreat into our room after her concert.

When I worked for Block, they told us to use the address at which the client received mail; if that was a PO Box, that was what we were to use on the tax return. However, for their bank products, the physical address of their primary residence was required on all loan applications by the bank (maybe by homeland security), even if that did not match their mailing address. I had clients that got their mail at Mom's or a PO Box but lived elsewhere.