Margaret CPA in OH

I haven't had a CA return for more than 10 years and now have a part year for new client who relocated to OH in May. She had one month of wages in CA, got laid off with a severance package, moved to OH May 1 and began new OH job in August. I'm a bit confused (no. a lot) with how to manage the FTB-3853. Her 1095-C shows January coverage only. She chose not to enroll in ACA but began coverage again with her OH job. I don't quite understand exemptions with a good severance package then moving out of state. Any assistance would be most welcome!

Sorry, paywall. But I don't understand "old people" doing tax returns.../s

Thanks so much, folks! I have more questions to ask, certainly.

Client's 24 year old disabled (Down's syndrome) son, dependent, got married in 2024. They are living with client in a small apartment client created in basement. Is son still client's dependent? Client pays for everything. What about daughter-in-law? And I'm already tired of energy tax credits and unanswered questions. Sigh....

"Extension due date..."

Thanks for feedback. It seems the trust fiduciary and attorney are already on it. No worries for me for 2024 as the client passed early 2025. It was a grantor trust that must have had directions for survivor when one died. I'll have all the information needed well in time for 2025 filing but business as usual for 2024. And I've been promised a copy of the original trust and new creation. The bank officer said the grantor was the deceased with both spouses as trustees so trust is now irrevocable with EIN. I suspect that surviving spouse will receive income but will know more when we meet.

Max W, I, too, have a magnifying glass and use it frequently. I think a number of us are getting up there. I hope you are the oldest and I'm still a youngster. I will be 79 in a month and pondering whether to renew my license at year end. I mostly still enjoy these few weeks that I work and the 40 hours of CPE. Plus I keep getting new clients from referrals. Guess I'm just a girl who can't say 'No.' Besides, this is how I pay for my dive trips! With the one to Indonesia in November I finally reached Delta Gold Medallion level and got some pretty nifty baggage tags.

Long time clients have had a substantial revocable trust in their SSN's. One has now passed away (2025). Does the trust now become irrevocable with that death and require and EIN? Is it split into a remaining revocable and half irrevocable with EIN? It's been a while since I was actively involved with trusts and am not sure of correct search terms. Need I look at the trust document (usually the best source of info, I know )?

On my own return I have an IRA gross distribution of XXX and taxable amount of X in box 2a with a QCD of XX listed and the box checked below. No matter whether I input the taxable amount or assume it will be calculated, the taxable amount does not appear on page 1. I really hope I don't have to call support as I spent about 6 hours Friday-Tuesday getting a solution to my TY2023 program not opening. HAH! Nevermind. A last attempt proved to be the solution. Leave out the amount (which I know to be taxable, X, in box 2a, check 2b Check if taxable amount not determined. I guess we are not trustworthy enough to actually determine the taxable amount so must allow the program to do the calculation. Oh well, as long as it works now and I don't have to call support. Have a nice day!

After entering all the necessary data for the payor (Main Information Worksheet) and payee (1099XXX Input), click on Check Return tab on top.. If all is good, click on E-File tab on top. If there are no errors to clear, close return. Go to E-File Manager, select return to e-file and Transmit. Within the program is a very detailed Help file specific to the work.

Long time FF user here, too. I don't believe I've ever seen a newsfeed. That would annoy me a lot!

DANRVAN, thanks for this message. I will discuss with client about next steps recommended. I still think 990-N is good for 2024 as nothing has happened with the 'arrangement' to date other than the transfer of the $5000. I agree about the public support concern but it is still valid for 2024. Client will not be mine after this year - whew!

Curses! You think for a single part-year return for an ex-resident? If so, I may prepare it and show her how to submit on her own - maybe. I think the apportioned income would yield less CA tax than it would cost CA to manage it.

It does seem that I attract some weird clients! The client is a 501(c)(3) SMLLC as stated. Client has a book and desires it to be made into a movie or something. Client stated that $5000 was paid to other person to facilitate this. The beginning of the "Option and Purchase Agreement" states "This agreement, effective as of DATE is made by and between XYZ Entertainment LLC (an individual is named here) and client.... concerning the rights to a script.... then goes on to specify terms and conditions. I think you may be correct to call this a partnership. Without naming the arrangement as a partnership, it explains why client referred to this $5000 as an investment. My client is a 501(c)(3) with an IRS determination letter. I am not comfortable detailing the stated purpose in the current climate. Suffice to say that the application was approved. I will suggest to client that client seek other counsel about this arrangement and soon. Despite this development, I am still okay with filing a 990N as the entity meets the criteria. After that, client is gone. How can I learn to say no? A current client today said daughter recently relocated from CA and needs a preparer for at least 2024 with the two states. It's been several years since I've done a CA return. I said we could meet and chat. If there is anything other than wages and maybe interest, I need to say no! LeeB, thanks for continuing to read and respond to may ongoing tales of, well, not exactly woe but, interesting challenges in my professional life, let's say.

Sigh, here's another one. A tiny new 501(c)(3) SMLLC wants to publish a book and movie. $5000 has been paid to another person to assist in writing the screenplay and marketing to producers. There is a lot of legalese but it seems to state that the other person will shop the idea around and, when a producer acquires the exclusive media rights, the writers will split the income. Client thinks of this as an investment, I think of it as, well, not exactly sure. Is it a payment from the LLC that needs a 1099 of some sort? The income is well below, very well below, $25,000 so 990N is easy. Client is no notice to find someone else after this year but what to do, if anything, about a possible 1099?

I have a Fujitsu ScanSnap IX1500, my second. It's fast, scans double-sided and takes up very little space. I thought it was also a good price.

Yep, I didn't pay attention to the time, just trying to get it out before my gym class. Sent again and received another message - Thank you for using e-File. I hope that doesn't appear with every return.

So about 30 minutes ago, 8am here, I submitted the most basic of returns. W-2 income only. It was rejected as Form 1040 was not being accepted. Was I wrong in thinking efiling was open today?

My old phone died and I had to rush to get a new one. I have the authenticator on the phone for a few reasons. I called support for help to renew (or whatever the term would be) access for the program and payroll. Although I was on hold for probably 30 minutes, the tech was very helpful and knowledgeable. I have the authenticator on my desktop now and am quite happy to not have to scramble to find my phone every time to access the software. I didn't expect to prefer this option.

We did, indeed, sent that BBQ picnic and received a huge thanks and photo. Those folks were the epitome of customer service and tech support. "The good 'ol days..."

Thanks again. I will review - again - and plug in what may be different numbers taken from the exchange company documents and the 8824. Client did receive the $386,000 from the selling price of $679,000. And paid a lot of taxes to IRS, OR, the municipality and others, I think. I'll see what I come up with from the original documents.

Thanks so much, DANRVAN and Judy, for these additional comments. I still have the client's folder with all the exchange documentation in it and a pdf of the 2022 return. I will review with the 8824 Judy most kindly provided and see what next. Client changed preparers because prior person was hard to reach and didn't answer questions (I also think client really didn't know what to ask). I think client wants to better understand and manage his properties now that he is retired from Delta. That's why there are so many different states for the rentals as he was stationed in different places. First, though, I have to better understand the 1031 situation in 2022 flowing to 2023 so I feel more confident in 2024. Thanks to this amazing board and generous folks chiming in, I think it is possible.

Thanks so much for all this valuable input. I will review the documents again with better understanding. The recognized gain was $386,321 and unrecaptured Sec. 1250 was $96,025. On Form 8824 Part III line 18, adjusted basis of property given up, $6352 (I see this on the asset report for mostly appliances not fully depreciated). Line 16 is FMV of property and it's blank. The sale price was $679,900. Cash received $392,698,lots of commission expense and other selling expenses and $217,000 to and Exchange group who 'purchased' the replacement property. The closing statement for the replacement property shows a purchase price of $212,000. I haven't found where the $5000 difference between the $217,000 the exchange group received and the $212,000 of the cost of the replacement property might be, probably some fee. So I am comfortable that the replacement property has 0 basis. But what of the land? It seems client paid gain on the sale of the original land but doesn't the replacement property have land valued at ? Sold property was a 2 family rental purchased in 1993 so fully depreciated. Replacement may be a condo as it has HOA fees. I have to ask so maybe no land. Does this $217,000 equal the deferred gain? There seem to be some missing numbers here. Does the client have an expense of $5000 between what the exchange received and what it spent for the replacement property? On that closing document I see title and closing charges to client of $500. Shouldn't that have been amortized? If so, over what time period as there is no mortgage? Or does it go to basis and depreciated? But there is no basis. Why, oh why, did I take this client?

New client had a 1031 exchange in 2022. Rental property in OR was fully depreciated and sold for nearly $700K. Client went through proper intermediaries but paid tax on about half the gain and selected a replacement property for about half. I was puzzled when I saw no assets listed or depreciation on one property until client explained about the 1031. So there is no asset listed for either the replacement rental, even as fully depreciated, or the land. What happens if client sells this replacement as some point? I've never seen one of these but don't feel comfortable having nothing listed. The prior preparer put in land for $1 I guess so it would make sense to the real estate tax paid. The only results of my research so far mention the tax deferral even to death not replacing with a non-depreciable property. Ideas? (Yes, I get them. This is the guy with 7 rentals in 5 states who bought and sold an AirBnB within a year but over two tax years.)

The QB summary of Sec. 121 mentions ownership and use tests. "The individual must have owned and used the home as a principal residence for at least two out of the five years prior to the sale..." I think May 9, 2023, to January 9, 2025 misses the two years out of he five years prior to the sale. It seems part of the five years prior to the second sale, TP was still in the first residence, a different principal residence. "The exclusion applies to only one sale every two years.." November 14, 2022, to January 9, 2025, is more than two years. BUT both tests don't appear to have been met, just the second one.