Margaret CPA in OH

This time of year and going forward many topics are posted. I found your original post 15 topics down the page. Keep scrolling...it's still there!

Beautiful, indeed, and now taped to my desk for frequent reference.

I don't have all the documentation yet but, as I understand it,the contractor did the work but, because he didn't give the client 3 days to rescind, she didn't pay him. A 'friend' advised him to sue for payment. That infuriated the client so she sued the contractor for something like damages to her property (the work he did). That suit required him to hire an attorney and, I guess, he lost. My question is not related to the expenses he incurred to get payment. I am uncertain of his expenses to pay the attorney to represent him and the subsequent damages that he had to pay to the client. The first case seems straightforward as it was to collect money becasue he did the work although he did not wait the 3 days and she changed her mind. The second, not so much, as he is defending himself and had to pay when, it seems, he lost. I would think the defense expenses would be deductible but maybe not the 'damages' although that would not be a fine, I think. Yes, he is Sch C.

When I began my paperless journey, I had 13 years of files, too. That is now down to a single (well, multiple copies) dvd. The scanning was a significant undertaking and the shredding entailed an expense to a firm with documentation proving shredding but now I have a single file cabinet with a single folder for each client in case of paper documents being used during an engagement. Everything else is electronic. I now have, thanks to advice from folks on this board, electronic faxes, too, which I can then save in the client files on my computer. While this doesn't directly answer your question as to how long to retain documents, I was unwilling to simply discard - just in case - no matter what the reason. This was easier on me. I do know there are good reasons to NOT keep files beyond a certain time, but this was my choice. And it freed up an entire room in my home.

A client called this morning to explain the difficult prior year when I emailed about possible 1099 prep. Husband is small contractor and was sued by a client. I don't yet have all the details but it appears as though, through ignorance, he did not wait 3 days before beginning job. Client refused to pay and 'friend' advised contractor to sue in small claims court for payment. His client then sued for damages so contractor had to hire attorney and lost the case. He is out materials, subs, attorney fees and whatever damages. I will get documents later. Contractor also fell off ladder and was hospitalized several days. Family then qualified for Medicaid and went on welfare for a while. I cannot find readily where his legal expenses would be deductible. I'm pretty sure any damages assessed would not be, but what about the attorney fees? Thanks for any guidance. The only other client I had with legal issues was a landlord sued by equal housing group for discrimination, never mind the details. It was clear that fine was not deductible and they chose not to even fight it so no other legal fees.

This has to be about the most user friendly thing CCH has done in a while. Thanks for the heads up!

I, too, missed that memo! What about states like Ohio that begin with federal AGI? They have always been piggyback.

For cat lovers and those of us who have cats as paper weights on our home office desks (I had 3 until last summer, now just 2):

That just MUST be about the funniest thing I have read in ages! Thanks for sharing!

Ahhhh, this world is finally returning to normal. Or pretty close. KC is back and several others who have been rarely seen are popping up. But now it's official, I guess. Did Chaz get properly registered yet?

Thanks for the memory! Yes, I used it for a vacation with my husband. We otherwise would not have flown so it was a winner for me.

As soon as I noticed that my check was cashed, I called to ask the status. I was told that I had my original number. I asked about a document stating such and was told that, well, if I would like, one would be sent. I stated that I would like, so one was sent. I don't think I would have received without the request, though. Maybe try to call and ask.

Good to "see" you here again, KC. I hope all your family is well and that this year will be a healthy one for all. Rita, I am like you. I have 2 monitors and this board is ALWAYS open on the right side. I check frequently and feel, as do you, the therapeutic effect as I sit here alone save for 3 hours on Monday mornings when my helper is here. I think if this board goes away (wasn't it about the worst withdrawal ever the last time?), it's time for me to retire! Thanks to Eric for providing the space and to all who contribute in so many ways.

Did you do anything about the FICA and Medicare withheld? This client was taxed on $6153.81 of partner benefits in 2009 so the payroll taxes were withheld, too. Any recourse possible with that? It was $458.38.

Eli, as others have mentioned, welcome back but with my condolences for your loss.

They may be coming closer together in a sense because we don't seem to know what to expect until the last minute. Also, when my last return was filed on Oct. 15, it seemed merely weeks ago, like just 11!

Thanks, Joan. I will also attach, I think, the year end statements which indicate the partner benefits as taxable income along with the reference as to why they are not taxable. It will be several hundred dollars for the taxpayer.

An unmarried couple have provided support references showing that, if a domestic partner qualifies for benefits, those benefits are not taxable if the partner qualifies as a dependent. The employer is not willing to reissue 2008 and 2009 Forms W-2 although the HR department now acknowledges that those benefits are not, in fact, taxable. They are changing this for 2010. But how do I amend a return with an incorrect Form W-2? I was thinking to attach a copy of the last paystub with those benefits highlighted as they are clearly marked as taxable and also include copies of the documentation supporting the non-taxed status of such benefits for dependent partners. Other ideas? Thanks for any suggestions!

:bday: and many more!

While your sentiments are somewhat understandable, OldJack, the description of this particular forum is General Chat - Discuss taxes, software, anything you want. For many of us this substitutes for the company water cooler or breakroom where we share birthdays and life events as well as talk over knotty work problems, in our case, taxes and small business issues. I don't think it was intended to be exclusively a tax forum despite its appearance of such during the heart of tax season. There are many other such forums that overtly discourage any mention of anything else, if that is your pleasure. I, for myself, greatly enjoy and value the professional expertise and tone here as well as the social aspects and caring shown among many posters. I need this and would like to see it continue. I do also check with 'tax exclusive' forums but this is number one for my daily work life. Sorry that you don't find the same value in it as I do.

Hey, taxbilly, look a couple posts above and see "many more very knowledgeable folks contributing recently. And ALL are appreciated" That, Sir Guru, would be you I mean!

KC did make a brief appearance recently. Perhaps we can just hope that they both reappear when the tough questions begin rolling in and we all get a bit more serious and, dare I say? desperate! We can only hope although I note that there are many more very knowledgeable folks contributing recently. And ALL are appreciated.

:bday: and many more!

:bday: and many more!

:bday: and many more!