Terry D EA

17 years in this business and yes they lie. It is strange how you can always tell. And then they get ticked off at you for asking questions or not doing what they want.

JB I have done the same thing in the past. I am not using ATX this year but the software that I am using gives me an option to include the client' signature on the 8867 form. However, I don't think this gets us out of the woods totally if we have any belief that the tax return may not be accurate. I agree that if it smells bad then send them packing. No fee is worth it. Pacun, if you re-read my post you will see that I state that the court ordered custody would NOT be the only document that I would rely on. It would be useful to determine who has custody when and if there is a question. I wouldn't totally ignore it nor would I deem it the only document needed.

>>>Why do you bother with custody papers if they are meaningless for EIC?<<< I would think that an order from the court that indicates who has the custody and for what duration and type would definitely be sufficient evidence when it comes to due diligence and wouldn't be classified as useless. I will agree that this would not be the only document I would accept if I felt there were other questions that needed to be answered. >>>What I do is ask the questions and write down the answers for my records.<<< Do you really think asking the questions is enough? I suggest you review the 8867. My software has boxes that need to be checked that ask specificallty what documents I relied on. Now with that said, if I have knowledge the client is presenting honest information based on the facts that he/she is a repeat client and their situation is the same over a period of time, then I check that I did not rely on any documents and list my reasons why.

Correct me if I am wrong but Alimony payments received are not earned income for purposes of determining EIC. If alimony is the only source of income then they are not entitled to the EIC. I agree with you on wanting to see the documentation. I certainly would think that the party paying the alimony would want to deduct the payments and it does seem odd that they would have agreed not to. I am not sure but I think tax law overrides court decisions.

The church statement needs to have the disclaimer language as Margaret has pointed out.

I don't do any C-Corps with any regularity but just wondering if the same ordering rules that apply to an S-Corp shareholder apply to a C-Corp shareholder. I would think the 1099INT should be generated.

The supplies contributed can definitely be added to the partner's basis and then expensed as they are used. Because you state this is a cash basis tax payer, then the remaining supplies would be expensed. Expense accounts must be zero at the end of the year. There is a basis worksheet that may help you determine what actually adds to both the outside and inside basis in the link below. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&ved=0CCYQFjAA&url=http%3A%2F%2Fwww.aicpa.org%2Finterestareas%2Ftax%2Fresources%2Fpartnerships%2Ftoolsandaids%2Fdownloadabledocuments%2Fbasis-checklist-2013-partner-basis-schedule-and-basis-adjustment-checklist-final.doc&ei=5AYVU4j3I8P00wHn54GACQ&usg=AFQjCNEh2bI5z1_Kl5P_mMI9bFOigPi8AA&bvm=bv.62286460,d.dmQ

>>>>If you were posting a set of books for the supplies paid for personally and used in the business as a capital contribution, what would be your offsetting debit then? I would debit an expense account and deduct those expenses. Am I wrong on this? <<<< >>>>If Terry is correct, then what is the benefit of showing this as a contribution of capital? Wouldn't the partners be better off showing this as an unreimb'd partnership expense on their personal returns?<<<< I would debit the "Supplies Account" and credit the "Capital Account". Agree that once the supplies are used, Debit "Supplies Expense" and credit the "Supplies" asset account. I took the statement as trying to do both transactions at the same time as using the debit supplies expense as an offset to the capital contribution. I do think there are some very important missing pieces of information. So, with this said, Judy you were not wrong when we look at it as we both were. It was the initial statement that threw me off. My two entries are assuming this business is an accrual and not a cash business.

It probably greatly depends on what you call it. What is the difference between lets say, 1000 charge and 1050.00 charge? If the transaction costs that much to the card holder then so be it. I agree to put on your invoice an additional charge for credit card processing would be illegal but to have a verbal agreement to an additional charge is another. Maybe I am completely missing it here.

Well thanks to all for your kind words of encouragement. I have worked steadily on this return for these folks and have just finished it. I did assess an additional fee for expedited service. I will mail the return once I receive payment or the client can come get it with check in hand. I did advise him that if he wanted to pay with a credit card there would be an addtional charge of $30.00 to cover the cost of this transaction. So, we will see how it goes. Thanks again and Judy I am totally lost as to where to go to get the emoticons working in fire fox. The box "Enable Emoticons" is checked but I dont' see them. Maybe I need to update fire fox.

If he is renting a studio then he is operating a business. Deduction of the expenses will reduce the SE tax due. Schedule C on this one all the way

If they purchased supplies and never got reimbursed yes it can add to capital. However, you cannot expense it on the 1065 as it didn't cost the partnership anything. The supplies were simply a donation by the partners. As has been suggested, look at the partner basis worksheet that will give you information as to what adds and subtracts from both tax basis (outside basis) and capital (Inside basis). No intentions of being offensive but this sounds like you really need some help here. Partnership returns are not easy.

Bart stated that the daughter is a full time student. Therefore, dependency and EIC can be claimed by the mother as David pointed out, there is no support test for EIC because the daughter is a full time student.

Thanks Jack but for some reason the emoicons (killed this I know) don't work with FireFox. Can't seem to find them as the option doesn't show up. It does in IE and yes I have then enabled.

Well I must be undercharging as well. Just complete a 1065 with 8 rental properties and charged $650.00. One partner has several other rentals and his individual carries an additional $500.00 charge. For my geographical area I am still quite reasonable. Work out of the home as well but expenses never go down and I usually only raise fees once every three or four years.

Yes, but the first trip from his tax home to the first job site is a commute as well as the last trip back home. All other travel in between is deductible. Now if you are saying he goes to job A and home today and then Job B and home tomorrow, then no it is a commute.

John I have seen those same signs popping up all over the place here. Some I have pulled down because they are putting them at the driveway entry to where I work during the day. Certainly is misleading.

No basis no losses. As Judy said it will carry over. Let me add one more twist to this. Do these partner's have a capital account? You really need to track their outside and inside basis. If the partners have a prior year return and preferrably 2012 that may help you a lot. If done right, it should show basis if any. Interesting thought on the 179 possibly triggering the loss. If that is the case, and based on other factors, I would reconsider taking the full amount.

I agree with Joan here as the 3115 is the best way to go to correct the depreciation.

Thanks KC. I am using OneDesk (Oltpro) this year. So far so good. Some quirks or missing functions with business returns and suggestions I have made they plan on doing. I can attach a copy of the worksheet with the return. I am not sure if it will e-file though. I'll check into it.

That's what I would do. No income, no expense no need for the C.

I think that if he is charging for a service then it is definitely a business.

Well you all have confirmed my thoughts on the expedited fee. I will indeed make it high enough that hopefully they think the next time. As far as the WC auditor, it really isn't my responsibility to get him what we wants and I don't have time as well. This client thinks he is reporting a loss again this year because his bookkeeper ( I use that term loosely) deducted a 68000.00 loan as an expense and didn't include the balance as a liability. He/she needs to go back to school or give it up totally. BTW- payroll was wrong as well. I backed into it and got the same numbers as the reports from ADP. Where's the head banging guy when you need it.

An S-Corp client who cannot, for some reason, get their information to me in a timely manner. 2012 return extended and they blew beyond the extension due date and just e-mailed me a spreadsheet for the 2012 TY. It came with the statement that we don't intend to rush you or nothing but NC Workman's Comp has some new law and they need a copy of the return in a week. Are you kidding me!!! Almost a complete year late and you really want it in a week? I don't know how they have escaped the failure to file penalties each year but this is the fourth year they have done this. Each year I warn them. Just once I wish they would get penalized and I bet they get it to me on time. BTW- e-mail also said they would have 2013 to me by march 15th. I am holding my breath. Okay rant over. I wonder if it is proper to charge them an additional fee for expediting the return. Hmmm

I bet she got the $50.00 check too. unfortunately it is not only 27 year olds who fall for these things. Greed and impatience has no age barriers nor does common sense.