Terry D EA

let me add something here. When in peek mode, click on the form on the left of the screen you want to view and that form will be displayed. This is quicker than going to review each time. I have done this in expert mode

Ryan, Just to keep you in the loop, one of the updates that was completed earlier today has corrected some issues with the inability to roll clients forward from the previous year. Also, I have been getting an error window quite frequently and that has appeared to stop as well. Thanks so much for looking into this. I have a print screen image of the error window. Can I e-mail that to you for your perusal?

I don't remember seeing a social security number as one of the requirements to take this credit.

I agree with Bcolleen, put it on line 21. I understand the previous post about the IRS matching and looking for box 7 income that should trigger SE tax. However, amounts in box 7 can be added as income not subject to self employment tax. Of course, if it is disguised as wages then that is another story.

Just off the top of my head, alimony paid is deductible regardless of where the funds were obtained to pay it. My question is how is this coded on the 1099R? Does this fall under one of the exception categories that eliminate the 10% penalty and additional tax? Without further research, I would say yes but it will be interesting to see what others say

This was exactly my position on this and I do appreciate you backing me up here. Now getting the client to estimate the outbuilding might be a little difficult. However, would it be unethical for me to estimate the possible cost based on my knowledge of what a 16 x 30 building would cost?

Thanks for the suggestions. I have not moved the clients that disappeared and yes I have multiple backups. Here is the amazing thing, the client names show under the client management tab. I know it seems wierd and I promise I am not crazy, but by the time this is solved I might be, the clients have disappeared from the client profile as well as every backup that I have including back blaze that we checked and figured that was a sure fired way to retreive them. However, nothing !!! and now it is call the one client to see if she would be so kind to let me see her return so I can recreate it. If there is anything comforting about this is these returns do contain the Sch A which I did not transmit yet so the client is not expecting their refund for a while. No one in support can figure this out and they have seriously tried.

I have called TRX support twice on this issue with no luck. I have had two returns completely deleted from the client profile without warning. First time, the support agent couldn't help and said the return was gone. Fortunately, I still had the client information to re-create the return from scratch. Tonight same thing only different client!!!! I need to know what is going on, why, and how to fix this and keep it fixed. I am booked solid tomorrow and don't really want to continue to use the program. Can someone from RedGear call me or give me a number to contact them for help.

Let add my own twist to this one. If you are doing the books for the gym, it does matter whether the client is cash basis or accrual. If he is accrual basis payer, the income received in 2010 for services in 2011 are funds unearned and are adjusted at the end of the year so as to not overstate income. It is income received during the period but not yet earned. If he is a cash basis tax payer then amounts are reported in the year it was received. So, yes report it this year as your post states he is cash basis

Have a client who owns a second home with a 16 x 30 out building. The out building has been modified as an apartment and is now for rent. Here are my questions: 1. The outbuilding cost was included in the total cost of the home, lot and outbuilding. My client has no idea what the building would have cost. What is the easiest way to determine the cost basis? 2. Renovations or upgrades cost 8k. The builiding is now rented as of Feb 1, 2011, all expenses incurred were in 2010. Are they expensed, or should they fall under depreciation and be depreciated appropriately? 3. What affect does all of this have on the re-sale of the original home as they do have it listed. Thanks

Correct me if I am wrong but I thought the software companies were able to accept the returns and not transmit them until the 14th. I have prepared returns with the Sch A but have not tried to transmit them. I am using TRX so I don't know if I will be able to create the e-file or not. But, I plan on trying and I certainly would not turn a client away and tell them to come back later. I would and have explained the situation to my clients that NOBODY can file this type of return. However, I can complete their return and will be happy to transmit it as soon as I can and they don't have to come back. They sign and date the 8879 alont with any other forms and are happy. If your clients are loyal, they will be in your office and not someone elses.

Thanks Don, I will look into that. I did pull the tax rate schedule from NC DOR which gives the percentage method. It does say to use the tax tables for income under 68,000. So, there may not be anything to worry about here. Thanks for bringing this to my attention. Ryan from Red Gear, if you are looking into this, the program appears to be correct based on the NC instructions. Thanks for your desire to help

This is TRX I am talking about. An attempt to override the entry was indeed made. However, TRX does not have a provision to do so. The override feature in ATX is a plus. If it can be overridden in TRX, then maybe I haven't gotten to the right people yet.

Here is a post I put on the TRX discussion. I decided to put it here as well just in case some TRX users are monitoring this poriton of the ATX Community. Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter. TRX support said they would leave a note for the developers, but at this point nothing can be done. I am personally going to calculate every return until I know it is fixed. One support guy suggested the only way to change it was to complete the return by hand without the software. GREAT!!!! Why the hell did I buy the software??????? TRX- FIX THIS PROBLEM ---- Programmers should be able to correct the formula

Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter. TRX support said they would leave a note for the developers, but at this point nothing can be done. I am personally going to calculate every return until I know it is fixed. One support guy suggested the only way to change it was to complete the return by hand without the software. GREAT!!!! Why the hell did I buy the software??????? TRX- FIX THIS PROBLEM ---- Programmers should be able to correct the formula

I was looking for the same information as others. If the son paid for more than 50% of the support for the qualifyiing children, then the qualifying children couldn't have paid more than half of their own support. Next question was the parents do they have the higher AGI? By the original post, one would assume not. However, assuming is not part of the questioning process. The next snafu is can he claim head of household. While all other tests appear to be met, did he indeed pay for half of the upkeep of the home? JB has a good question about fair rental value being considered when calculating support. If he paid that amount in some manner whether that was towards the mortgage or rental of the home. Pacun's explanation is the best. These things are complicated with each and every case having its own set of quirks.

Me Too!

Gene, I too had some level of difficulty learning the program. However, once you do, I think you will be okay with it. Be sure to use the peek feature alot to see the data is going to the right place. I don't like the statements as I think they look unprofessional and don't use them. I have spreadsheet templates made that I use. Just like ATX, the more you use it they easier it becomes. Another feature ATX had that TRX does not is the ability to unlock the form and enter data in a cell especially if you wanted to put an "see statement" on the form. The only part that I am still uncomfortable with is the fixed asset manager. To the best of my knowledge, the ability to process W-2 and 1099 forms wasn't part of the 299 package. I would like to get the free accounting program offered though just to give it a try.

Well wouldn't that be the thing. We all are trying to play it safe and get hit anyway. Kinda called shooting oneself in the foot. :rolleyes:

The number one question I would have for the son trying to claim EIC and CTC for his brother and sister would be if he meets the support test. How much was mom and dad's "little income"? By your post, it would seem the son had the higher income.

I have been using Back Blaze. Totally effortless, only 55.00 per year. Backups everytime I am using the machine like Carbonite, it backups when I fail to. Also, Back Blaze makes a ghost image of your computer that you can retreive from them if you have to do a complete re-install of the operating system.

I checked this morning and the RIA research is available and looks pretty good.

Ah, I did the same thing following my old ATX habits. However, during my time of playing with the software, I discovered that printing the distribution sets is the only way to go. You can make a default set or one specific for the return you are working in. I like the default so I don't have to think. I'll play with this a bit more and add additional information or steps here.

Anyone remember the last time the IRS servers went into melt down mode the second day of filing due to the huge amount of transmissions? I think it 2003 which is the same year there was additional confusion with a child tax credit received during the year that followed the taxpayer and not the child. Took IRS until the end of January to get it fixed. With that said, I agree and I will not be transmitting those returns until the dust settles.

Thanks for the re-affirmation. I can't tell this client anything but I have been successful with the sales manager and bookkeeper and we will be changing the way they account for inventory. A finger was pointed at me when I asked for clarification of the inventory figures for 2008 because the book inventory minus the adjustments didn't match the information on the tax return. This is the perfect example of why an engagment with specific services is more than necessary. A quick finger pointing to the paragraph in the engagement that states that the returns were prepared from the data THEY provided and that an independent verification or audit was not performed solved the problem. The client got quiet when I said they would need to amend the 08 tax return which would no doubt result in the sole S-Corp shareholder to have to pay some money back. Imagine that!