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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2666
Experience:  IRS licensed Enrolled Agent and tax instructor
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My 2008 personal 1040 tax return was filed February 4, 2010.

Customer Question

My 2008 personal
1040 tax return was filed February 4, 2010. I earned $5692.00 total that year in income. I forgot to claim a loss in 2007 of $150,000. I lost $150,000 preconstruction deposit on a home that I put a deposit on with the intention to buy. I could not close on the mortgage. Can I ammend my 2008 tax return to show this $150,000. I owe the IRS $94,000 from 2004/2005 taxes.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
Statute of limitation for claiming a refund is 3 years after due date of the return for that or 2 year after tax liability is paid. Statute of limitation for 2008 return expired on April 15, 2012.
It doesn't mean you cannot amend the return but you will not get a refund or credit towards prior/future years.
I am sorry if that's not the answer you were hoping for.
Let me know if you have any questions.
Expert:  emc011075 replied 1 year ago.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Customer: replied 1 year ago.
I am not concerned about receiving a refund. I am most concerned that the IRS is garnishing my pay Aug 15 due to the $94,000 I owe in back taxes. IRS says I owe this amount because of 3 homes I bought and held for under 1 year. There were 2 hurricanes that hit in 2004 and both hurricanes were considered a presidential disaster.

1. Home 1 was bought as an investment for $380,000 on 10/2004 and sold for $460,000 on 5/2005.

2. Home 2 was new construction and bought as an investment. I bought it for $345,000 on 10/2004 and sold it for $410,000 on 3/2005.

3. Home 3 was bought as a primary home that I lived in. The home was purchased for $824,900 and sold for $1,070,00.

The IRS sent me a tax bill for the gains on each home. I did not claim in 2004/2005 any of these homes on my federal income taxes. The IRS filed a federal lien in 2007. However, here are my questions. My wages have been garnished.

4. If I file chapter 7 as a non consumer I only have promissory notes that were not filed with the court that show I borrowed business loans. I called the Bank to get the cancelled checks of the loans but the bank doesn't keep the records After 7 years because by law they don't have to keep them. Will the courts accept a promissory note?

5. Is it too late to file an ammendment to show the money we put into repair the 3 homes that needed repairs not covered by insurance in 2004/2005. Both hurricanes were considered a presidential disaster. Or did we need to claim these repairs that year?

6. I forgot to claim a loss in 2007 of a $150,000 preconstruction deposit on a home that I put a deposit on with the intention to buy. I could not close on the mortgage. Can I ammend my 2008 tax return to show this $150,000. I owe the IRS $94,000 from 2004/2005 taxes.

7. What does this mean " the remainder must exceed 10% of adjusted gross income."

8. If I file chapter 7 as a non consumer can I amend the 2004/2005 taxes that have the federal lien and still be able to file chapter 7.

9. I have 0 assets.
Expert:  emc011075 replied 1 year ago.
Ok. Regarding 1-3, you need to file the missing tax return. If you don't IRS will assume the entire proceeds from sale as income. IRS has no way of knowing how much you paid for those properties and what happened to them.
4. This is not a tax question, bankruptcy lawyer will most likely be able to answer it for you.
5. There's no time limit or deadline to amend a return. Yes, you can amend your 2004/2005 tax return to correct it.
6. If the loss was for 2007, it has to be claimed on 2007 tax return, you cannot claim it on your 2008. However correcting your 2007 return will not help with your 2004/2005 balance due.
7. What are you referring to "the remainder must exceed 10% of adjusted gross income"?
8. Again, this is not a tax question. You need to address it with a bankruptcy lawyer.
Customer: replied 1 year ago.
1. The Hurricanes that damaged the 3 homes were ruled as a "presidential disaster." Are the home repairs caused by the hurricanes in 2004/2005 Deductible and what % deductible? Is it too late to file an ammendment to show the money we put into repair the 3 homes because of the hurricanes in 2004/2005? I was reading that the claims haD to be submitted the in 2004/2006? But because they garnished my wages due to a capital gain can I show this and will they deduct this?
if the repairs were $50,000 how much will this decrease my tax liability by?


2. We put in new windows in these 3 homes to make the house hurricane safer and they were not covered by insurance in 2004/2005. Both hurricanes were considered a presidential disaster. if the windows were $10,000 how much will this decrease my tax liability by?

3. I forgot to claim a loss in 2007 of a $150,000 preconstruction deposit on a home that I put a deposit on with the intention to buy. I could not close on the mortgage. Can I ammend my 2008 tax return to show this $150,000. I owe the IRS $94,000 from 2004/2005 taxes. How much will this decrease my tax liability by?


4. What does this mean? After you calculate your disaster loss, there are two more steps to determine how much is deductible. First, you must subtract $100. Second, you must subtract 10% of your adjusted gross income. For example, if your disaster loss is $10,000 and your adjusted gross income is $50,000, you may deduct $4,900 of the loss, calculated as follows:

$10,000 disaster loss
-100
-5,000 (10% of adjusted gross income)
$4,900 (disaster loss deduction)

These calculations are made on IRS Form 4684, which must be attached to your federal income tax return. You must also indicate on the Form (or on a separate sheet) the date of the disaster and the city, town, county, and state in which the damaged or destroyed property was located.



7. What does this mean " the remainder must exceed 10% of adjusted gross income."
Expert:  emc011075 replied 1 year ago.
1 + 2 - I cannot calculate by how much your tax liability will decrease without seeing your tax return. The loss can reduce your tax bracket, limit eligibility for credits or you may only be able to claim partial loss because of your income limitation.

3. As I said in my previous respond, you cannot claim 2007 loss on your 2008 tax return. Amending your 2007 or 2008 return WILL NOT reduce your 2004/2005 tax bill because of the 3 year statute of limitation.

4. Form 4684 is for claiming causally and theft losses. And your calculation is correct. First you have to deduct $100 from your loss, than you have to deduct 10% of your AGI and what is left is your causally loss deduction.

7. "the remainder must exceed 10% of adjusted gross income". Where did you read it? I need to know to what the statement is referring to. Where are you getting it from?