For the first half of 2007, I was working as a full time W2 employee
at a company, and was laid off towards the middle of the year. By that
time, I had already contributed close to my limit of $15000 employee
contribution towards my employer's 401k plan.

After my lay-off, I started working as a 1099 contractor working for
several clients. My question is: Can I contribute a part of my 1099
income as profit sharing to a solo 401k (which I had already setup in
late 2007), and how much can I contribute. I have heard that usually
one can contribute 25%% of gross income minus cost of goods sold (which
in case computer consulting would be nil) upto a maximum of $43000.
Because I have already maxed out my $15000 employee contribution, am I
still eligible to contribute a maximum of (43000-15000 = 28000) as
profit sharing of my 1099 income towards my solo 401k?

Now that the IRS is requiring authorization from the client before a
preparer releases the return to a third party (mortgage companies,
auto finance companies, banks, etc), does anyone have a good
authorization form they use?

I can see we will have difficulty deciding on what to put in the
authorization form, so I'd like some input from the other pros on
here.

BTW, it's good to be back on here. Heck, it's good to be anywhere
other than my rental property getting it ready to sell.

I have my own business and also like playing tennis. There is an
upcoming tournament for which I would like to donate some money for
as a sponsor.

If I donate the money from my business, is it tax-deductible?
Since the expense is not related to my business, I thought it may not
be deductible..

--
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This year my son has moved abroad and works in China. His mails are
sent to our house in California. He has an investment account with
our address. He has a bank account but not in California.

Question is, does he have to file a California tax return? Any tax
would be minimal. So it's mostly a formality of whether he files one
or not.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

CCH TAX NEWS for January 8, 2008

FEDERAL NEWS

VA Reminds Veterans of Tax Refunds for Vocational Rehabilitation
Benefits
http://tax.cchgroup.com/news/headlines/2008/nws1808.htm#1

TIGTA Finds No Problems with IRS Fees Paid to Private Collection
Agencies
http://tax.cchgroup.com/news/headlines/2008/nws1808.htm#2

STATE NEWS

Illinois --Property Tax: U.S. Supreme Court to Consider RICO Reliance
in Review of Auction Bidding Case
http://tax.cchgroup.com/news/headlines/2008/nws1808.htm#3

North Carolina --Corporate Income Tax: REIT Subsidiary Included in
Combined Report/Consolidated Return
http://tax.cchgroup.com/news/headlines/2008/nws1808.htm#4

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http://tax.cchgroup.com/news/default.asp?PageID=4