Margaret CPA in OH

I'm still trying to trace a difference of about $180 from a schedule from a worksheet from a who knows what to page 2 that left me and the client baffled. Fortunately it wasn't enough to make penny's difference in tax but made me look, well, less than the stellar professional the client thought I was

Thanks, Lion. That's where I sent him to make this one. Perhaps he will see that option but I will let him know. Communication - I specifically state to 'confirm bank accounts and payment options' in my cover email for the pdf returns. Alas, like my engagement letter and cover letter for same, it seems the eyes glaze over or get misty and ignoring text prevails.

Using those 2 numbers alone for 2018, I get total income of 57058 with taxable SS of 17768. Am I misunderstanding your question?

Client told me during return prep that he wanted to make estimated payments online. He meant direct debit but did not confirm that payment page in the pdf copy which clearly indicates payments to be made online or paper check and the bank information below for direct debit is blank. So he will now pay first quarter through IRS online direct payment and we will probably do annuallized income on 2210 for 2019. However, he wants to know if he can now set up direct debit for the remaining payments. I can only imagine through his bank and schedule them but don't know if there can be correct 'memo' info included. Any other ideas? Is it possible to created a 'return' for just estimated payments?

Agree about the comparison form... it helped explain much to clients not quite grasping what went wrong in many cases or right in a few. I also like the tax summary which shows the marginal and blended tax rate. Several folks got moved to a different bucket in 2018 so that helped, too, but this board helped the most! Thanks again and again to Eric for this platform.

Do you mean Heath Richardson? Yeah, I need a new rep, too. Although I have to say he managed to get 3 1041's credited back so my upgrade to MAX resulted in just $88 extra instead of $250. I stil like $995 for MAX, though

Mine just came back - whew!

grandmabee, find out who your friend's rep is and share! That's a pretty big discount, I think.

I'm not sure screaming and cursing will work. I might try begging and pleading, though. My offer for just 1040 went up 8.5% and that all -important processing fee went from $59 to $69. They would save a bundle if only they wouldn't ship out those outdated MTG's and other tax books. I guess the downloaded electrons cost something. And I wonder whether that bargain price of only $250 more for MAX will be floated next March. Frankly, it's just easier for me as I phase out my practice to stick around as this program is a known beast to me since 1998. To save $75 now, though, to renew early is most likely what I will do. I just wonder about the justification for such a raise. Yep, my SS and IRA draws aren't up to 8.5% increases or 16.9% for 'processing.'

Thanks, Lion. I will breathe now - in, out, in, out...

Yes, I would amend for free if it was possible but it is not possible to amend a joint return to separate after the due date which was April 15 2018. It's possible to go the other way and I think it unfair to not allow both options but it isn't. Thanks for the 'nice person' which I mostly am and I feel terrible about this but not enough to pay them $2000 when the return was actually correct - for that filing status, just not the most tax favorable for them. Ugh!

Thanks, Lion, but I'm not sure of your meaning. You think I should pay them the difference between the $2K less the additional cost of separate preps? If so, what about potential interest for a year? Should I 'fess up and open up to being sued? Is suing even fair as I did prepare the joint return accurately? I have to reread my engagement letter but I don't think I am required to always minimize the tax liability - or are we? In ATX one has to add the comparison form which I do for 2 earners. Just didn't think about it for these folks. Woe is me!

Couple, new clients in 2016, one retired, one much younger still working. Retiree had and has high divs and cap gains. Younger one still works with fairly high income. I did not do MFJ vs MFS analysis then as my brain is more wired to check when 2 employed persons earn close to the same. So filed joint for 2017, no one mentioned anything. For 2018, they asked about separate filing - still trying to figure out who owes what. So separate is $2k+ to their good combined with state. 2016 still good for joint but 2017 would have been almost $2k to their benefit to file separate. Alas, can't go back. I feel terrible but also am not convinced I should reimburse them for the extra tax paid. Suggestions as to approach or remedy of some sort? 2017 was true, correct and complete, just not the most favorable tax wise.

If you do file, you could use OH IT-2023 for allocation of earnings in and out of OH. But my guess is that it may cost the client more for you to prepare this than the refund of tax withheld. As JimTaxes notes, it is below the filing requirement.

I do believe that has happened more than once. My quandary is that I purchased 1040 only for 2018 after having MAX since 1998. I calculated that the pay per return for the last trust returns and additional states would be less than the full price. So last month an email arrived with a bargain - purchase MAX for just $250 more! I called my rep who got the costs for the trust returns credited back so the net additional cost was $88. It just kind of yanked my chain as I still had to pay extra for 2 states over the 3 included plus some extra for the 1099's. So undecided about early renewal.

Yes!

DANRVAN, I agree. There was always the intent to rent the first floor apartment. And I have resolved all figures and am happy with the results. What is distressing now (always something!), in Fixed Assets, one can choose only one state for situs and these folks have a rental in KY and now in OH. KB was no help and I just posted a query to communities. There was something about adjusting on one of the state returns but I've no clue how to do that. Arrgh!

Oops! $17K, not $17. Original post, way at the top, shows $17840. Guess I got lazy, distracted or both.

No worries, jasdim. Most of us, me especially, have made similar mistakes. Our brains fart and, well, sh*& happens! But we are so lucky to have this great group to set us straight - with love, yet! And we can't be all knowing all the time - well, there are a couple on here that come mighty close, though.

Thanks, Joan! So for the moment I will assume that $17 is included in the 2018 W-2 wages and keep track as basis for such time as she sells the restricted stock?

Thanks, DANRVAN. There was always the intent to rent the first floor apartment and client has identified specific costs for walls, flooring, radiators, painting, etc. which I can isolate as improvements at 27.5 yrs but believe I still have to depreciate the allocated rest of the building for the common costs of new roof, gutters, plumbing, etc. The appraisal does have a note that says something to the effect of about $30K in recent improvements which would have been the first floor apartment costs. So I will look at the balance of the incurred costs to Jan. 2018. I will look at the section you referenced, too. They are coming in soon to review all this. And in 2019 are adding on a porch which is also accessible by private door from the apartment. I think that should be an allocated improvement for 2019. Thanks again to all for input.

I had a sale recently of rental property with the mix of 1250 and 1245, about 15 items. I made a spreadsheet with an allocation of expenses. Listed selling price and total expenses. Col 1 item; col 2 (SP*%Basis) col 3 Cost; Col 4 (%basis) Col 5 (S/Exp*%Basis); Col 6 Gain/Loss; Col 7 Recap dpn amount; Col 8 Adj G/L. With the formulas input, it was easy and the bottom lines (total selling price, total expenses, total recaptured dpn came out perfectly. PM me if you want the spreadsheet. I actually developed this several years ago for another sale to allow the input for selling price and expenses for each item as the bulk sale thing wasn't working for me. All the items went to the correct place on 4797.

Thanks, Rich, for this possibility. Would this amount have been included in the 1099DIV from Fidelity which handled the stock sale? That showed $1300 in divs, not $17K. Client has contacted HR but no response yet. I have also asked to see her final pay stub which may reveal more info.

Just, Wow! My issues pale in comparison.

Thanks, Catherine. I may or may not do that as the owners live on the second floor and there are 2 of them to the one tenant. The man of the house works constantly on the yard and improvements so I would guess generates more laundry. The tenant spends 3-4 months in Europe and around the world giving talks and attending conferences. I think it isn't worth it myself. They are all friends from Germany so smaller things like this I think are not crucial. If/when they sell to another owner who may rent out both spaces, they may have different decisions.