Margaret CPA in OH

Thanks so much, Tom, for your insights. As it happens, I am POA for this client now in a memory care unit. I've been trying to get her assets out of possible probate. This is the last thing and I thought it was done. In January I succeeded in transferring "ALL of grantor's one-seventy second interest in the oil, gas, and other hydrocarbons...as described as follows...BEING a part of the same oil and gas interest that was granted and conveyed in Deed Book...(to her father and other family members, only names of persons, no entities) in 1946..." and only describes very specific tracts of land. For 2016 (just when she was beginning to lose it) and 2017, her Forms 1099 stated only royalties, nothing about rents. The dollar value of the purchase of the above is the amount in Box 1 Rent. The date of the sale is the date I signed it, January 25, 2018. The date she inherited this was her father's date of death, intestate, in 1997. There is an affidavit of heirship dating back to 1940, her grandfather is named there. I called the county courthouse but there is no record of value for basis purposes. I am happy to use 0 as the basis as her tax won't change. My biggest problem is how to show this jumping from Sch. E, Rents, to 4797/Sch. D, as a capital asset. Guess I can just plug in the numbers and explain when/if the query arrives. Sigh, and it is only beginning...

It used to be much easier if you merely wanted it to look like a signature. You could choose a font in the master form and it would show up. I really liked that option. It was prettier than my actual signature! I just use the printed one now as it is permitted by IRS and agencies. And I think the process by Hahn104 is above my pay grade

Judy, thanks for the explanation of views. I honestly did not think that folks were purposely not answering or ignoring the question. It was probably more like seeing what new strange situation arose, was it like anything in their experience, just maybe they might know the answer or provide a suggestion - which is what finally happened! And I am so grateful for that and for all on this board, even guests.

Well, scottmcfly. that was my thought as well but the 1099 shows the proceeds at Rent and I have no clear understanding of how to get that figure onto 4797 when the IRS computers are likely looking for a match to Box 1 Rent on what? Sch. E? Of coiurse I have no basis but the amount isn't so great that 0 wouldn't work. I did put in a call to a representative of the issuer of the royalty checks because I also don't understand why she kept receiving checks following the 'sale' but thought maybe they were distributions for prior income - or something. If I ever have another client with this stuff, I think I will suggest they keep moving on! I'm getting too old and confused to learn much new stuff.

Thanks so much! I honestly didn't try the search engines thinking a: this would be a bit esoteric and b: surely someone of this esteemed collection of brains would know the answer. You've given me a start anyway!

Yippee! It worked! Thanks Abby. Now I just get to re-enter bunches of data but better than having to re-enter bunches of assets!

Bump - with 38 views I don't seem to be the only one with questions. Surely some of you good folks have had experience with oil and gas interests. Please offer hints, anyway, if not actual chapter and verse. Anything would be much appreciated.

Do you have Max or 1040?

Under Tools be sure you have entered the data for preparer and checked the box Print Signature. Under Options/Preferences/Preparer Manager, select the preparer to Enter this preparer's information on all new returns or ERO's information.

My fixed assets and depreciation are not rolling over for Sch. C. I downgraded from Max to 1040 plus ppr for 3 trusts and am really annoyed so far. I fear this may be another 'gotcha' as I was given misleading (to say the least) information about the payroll ppr aspect. I waited to complain until 4562 was available thinking that was related. Call in now to sales rep. I fear another $1000 to pay the ransom.

A client has sold gas and oil/ mineral rights. The 1099 MISC shows the proceeds in Box 1, Rents. I called to see about this but was told that was where such things were listed. This is completely new to me. I've always listed the royalties on Sch. E but somehow showing rents with no real estate info seems odd. It seems it should be Sch. D. There is no recoverable record of basis. Related, is the attorney fee then deductible from this? Does the attorney require a Form 1099 MISC as it was over $600? This wasn't the client's trade or business, mind you. Seems great-great (maybe even more greats back to the 1800's) grandpappy in PA invested in this and she somehow inherited 1.38888889% share. It's the last possible probatable item and she wants to be rid of it. Making me a little crazy here and so early in the season!

Thanks for this. I've just spent (wasted) time on the chat. Arthur J originally said that 1099-INT was not covered in the Payroll package. I asked why was it then even available! So my error is thinking the INT was due January 31, too, but it isn't until February 28? Is that for e-filing or getting the form into the recipient's hands? It just hasn't been a problem until now.

Message says forms not approved. I have e-filed 1099-MISC forms. What could possibly be the difference? I couldn't find anything on the forms update list about efiling.

Yes, I couldn't find the usual ack notice. I think we have to include the client letter now and choose efiled. At least that is what I have done.

Welcome back, indeed, KC! You've been greatly missed. We all hope you are well and continue to contribute - or just lurk - your sound reasoning and considerable knowledge. You will have to attend our next soiree!

I've been using this form for several years and include it with the electronic return (or printed for those few) so folks can more readily see how changes in their income and deductions from last year resulted in the current year's higher or lower taxes. I wish there was a comparable form for the state but those fluctuations aren't as obvious any way. It tends to forestall some questions from clients.

Is it possible to print labels for the 1099 recipients from the payroll package? I've not purchased the envelopes this year for my church but have prepared the 1099's as usual. It would be nice to give them printed labels for the church envelopes. I spent a bit of time in the KB but could find only how to print a label for the issuing company, not individual recipients. It may not be possible, either, as too much to ask.

Online list shows release on Jan. 25. You could also just compare with last year's return the hard way. It will be interesting to see the new comparison form and how it shows the placements of income and deductions between somewhat different return formats.

I use the engagement letter every year for every engagement for a couple of reasons. All those mentioned by Rich. I am a member of the AICPA and insured by their affiliate. There is a significant premium discount for using them. Several years ago I called for advice about a potential claim (didn't happen, though). When I forwarded the signed engagement letter, I was assured then that all was covered. It was a great relief. If any potential client looks askance at the requirement to sign said letter, we part ways. We need to know the expectations of each other and who, exactly, is responsible for what. I am still amazed at the number of folks who seem to have lost or misplaced prior year tax returns. I actually wonder if they have a clue as to the location of the supporting documents. More than once I have been asked about a W-2 or other document for a prior year. Yes, I do, in fact, have a copy. Where is theirs (she asked rhetorically)?

Ah, payroll compliance, new 'improved version. Um hum. I am trying a corrected W-2 since it has the same EIN as the 1099's so no extra charge ($10 per EIN) but the data from the W-2C does not flow to the W-3C and, of course, those fields are not accessible. After 2 hrs, 54 minutes on hold I did reach a really nice tech person who couldn't figure it out (it shouldn't do that - duh!) and ran it up to the next level. I stressed the importance of expedience so we will see. If it isn't fixed, BSO direct it is. I guess the 'if it ain't broke, don't fix it' adage didn't apply here. The new program looks prettier, matches better but doesn't work as well. Whatever happened to beta testing before prime time? /s

Yes, I just remembered today that I also have to do 941X along with the local amended reconciliation and, of course, the state. I think the church still has an EFTPS account. Years ago when I was treasurer I did everything including payroll so set up all these things. Virtually every treasurer since then has managed to mess up something along the way. In theory all was 'solved' when it was decided to use a payroll service. However, a part time employee was paid from a different account for extra work that did not make it into the payroll reporting and, of course, no taxes withheld. The current treasurer is well meaning and grateful for assistance but he didn't catch this payment from October. I think he will be looking at every check in the future - or I will scowl at him every Sunday. Thanks again for your help and reminders. This is my task tomorrow as I got copies of all the original filings from Paycor this afternoon. Ugh, I really didn't want to do this. At least I'm not busy yet with returns.

Thanks, Catherine. I already reset my password as noted above. I was actually surprised it 'took' since the last one was from January 2016! I guess since I didn't inactivate the account, that was the only thing needed! There will be SS and MC tax due so how is that paid? The church forgot to run about $475 'extra' pay through the regular payroll so no taxes were withheld and remitted.

Thanks, just wasn't sure as it has been a while. I used to prepare through the ATX Payroll and it went through the AccuWage process. Do you know if a W2c has to be handled the same way or might I just access BSO and enter all data directly? Does the W3c have to mailed along with the check?

I have a BSO account but not used for a couple of years as no employees now. I need to file a W2c for my church. Is it possible to do that through my account? I think so but not sure. I was able to log into it after updating my old password but couldn't find an answer to this on any of the "help" options.

Since tax year 1997 I have been using MAX or equivalent having both personal and business returns. This included the Payroll program. When I renewed for 2018, I realized with client attrition and downsizing that I needed only 3 1041's and 1 1065 so consulted my account rep. I was told the pay per return cost was $54 each so decided that was the less expensive way to go. $699 + $216 vs $1649. Today in installing a second copy on my laptop (3 hours on hold for support but worth it - got a lot of other stuff done), I discovered that I also had Payroll so downloaded and installed and activated. After I rolled over a client, up pops the pay per return box showing I have no money. So I had to figure out how to do that and how much I needed. When researching, it appears as though there is a $249 license fee PLUS $300 non-refundable deposit from which payments are deducted. So it appears as though I have to pay $549 upfront for $376 of business returns, couple of extra states beyond 3 and some 1099's. Or am I not reading this correctly? I tried to call sales but no answer. I really don't want to spend now $1248 but neither do I want to spend $1649. Am I misunderstanding this? Do I sort of already have the license since I have the 1040 and just need to pay for the extras? Retirement looks better every. single. day!