Terry D EA

If you make the switch you won't be sorry. I left ATX back when CCH consumed them and have messed around with what I will call "Mickey Mouse3" programs trying to save money. What a mistake and a lesson well learned. You will some learning curve with Drake but it will not be bad. Also there are a lot of folks here that will help and the folks on the Drake discussion board are very helpful as well.

I know this was posted a few years ago but couldn't resist posting it again. Enjoy!! https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiHyZbOkKrSAhWIx4MKHYvTA04QyCkIHzAA&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DFFVtkpsWCn4&usg=AFQjCNFoAQOi5hYclpyFTj8h_V9GuJkqHQ&sig2=EFhe2Wc8bmibgu0J43otQQ

Thanks again Judy, I will review this with my client so she knows.

Thanks Judy and the others. I questioned the client and she was very adamant about the right to do so. I told her the additional amount would have to go to line 7 of the 1040. So, maybe not the best move I have made lately, but I transmitted the return and it has been accepted so now the waiting game on the letter. I think I will also contact the client and insist that she amend the return at the end of the season.

That was my thought but the message does not say which W-2. Again, she was advised by her HR department she is allowed the additional amount due to being able to catch up on the contributions again because of her age. Allowable catchup amounts are not indicated but the message does state it depends on the retirement plan that is in place.

Judy it is on the notes page now and not in the message. I don't think this is an error but a notification. What I don't understand is why am I getting that message and you are not.

The spouse's W-2 shows code E with 26,000 amount entered. She is also over 50

Judy it is code D and the amount entered is $24,000.00. I had transmitted this return after the client verified they were allowed to defer this amount. Due to my lack of experience with this, I advised them the IRS may question this. Based on what others have said here that may not be the case. I just don't like those red messages.

Just looked again, both taxpayer and spouse are 57 years old.

Yes. if I didn't, I would get red flags all over the place.

Explain the meaning of Drake being "too mickey mouse" for your clients. I switched to Drake and am not a bit sorry. Minimal learning curve and as Mike D said, excellent quick support.

That is exactly what I am talking about and Drake thru up a red message stating the elective deferral exceeded the 18K maximum amount.

This is a new area for me. After 20 years in this business I have never had a client who presented a W-2 that exceeded the minimum elective deferral amount. I questioned the client and they stated their HR department stated because of their age, (over 50) they were in catch contribution mode and were permitted to exceed the minimum of 18k. How do I prove this?? Is this something that will trigger a CP2000? Help please.

Just looked at NC and MA for gift tax. Neither State has a gift tax. MA, however, does have a one time 1,000,000 exclusion and then the estate tax kicks in. So, for my client, no State gift tax. Thanks to all who replied. It sure is a great thing to have you folks here.

Thanks I'm looking into that as well.

Yep gotta go with Ringers. I do the same thing and have been for many years and have never been question. Nevertheless, doesn't mean it can't happen.

Thanks guys, the bank in mention is Canton something. I'll be sure to check the form entries real close. Catherine I may ask you some other questions if needed. Thanks again.

That's what I thought. Thank you

New client left MA July of 2016 and moved to NC. Two part year returns are due. Client has stated that Teachers' retirement is not taxable to MA. I need some clarification on this as well as to make the proper entries in Drake. Also, client stated that $200.00 of interest income earned from a bank in MA is exempt from MA taxes. Clarification and references please.

New client referred to me presented me with a "Gift Letter" indicating a gift given to his daughter and son-in law in the amount of 100K. This transaction took place on 12/28/2015. The client did not file a gift tax return. I should recommend he file a gift tax return for 2015. Will the IRS penalize for this late filing? If I understand correctly, the tax liability on this transaction would be due at the date of the client's death if the total of all gifts given exceeds the 5.45 million exclusion. Am I correct here?

I agree, if you can prove insolvency then you client is insolvent and option 2 would apply.

I agree with the others but am not sure about holding a copy of a credit or debit card. I would be careful of the legality here. Maybe I am off base here but I remember signing documents with a CC processing company that stated very clearly about not holding credit card information. I like the post dated check idea as well as letting them pay when they get their refund. Crank if all else fails, just cut your losses and move on. Been in your shoes a few times and it always happens that for every client I lose, I get two or three in their place. Don't know why this is but it is.

Here is what I found in Pub 502. It does say if you make capital expenses of "a home" and does not say anything about primary residence only. If I find anything else I'll post it. Capital Expenses You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. The difference is a medical expense. If the value of your property isn't increased by the improvement, the entire cost is included as a medical expense.

Your post is a bit confusing. Well. at least to me anyway. Here is a link explaining the 754 election. I would guess that an estate can have an interest in a partnership but the estate must distribute that interest. See the two articles below and see if they help at all. This is very complex. Need more information to try to help with your question. https://www.taxact.com/support/22445/2016/section-754-election-1065-only https://www.aicpastore.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/Trusts.jsp

I am not using ATX any more so I cannot help you there. However, the law has not changed regarding depreciation. In Drake, I can select any method of depreciation that I want. There may be something or a setting in the ATX program that needs to be changed. Have you tried to contact ATX support??