Margaret CPA in OH

IYKYK, otherwise, out of luck

It's been posted before to have a second login with either a phone authenticator or web. I'm adding my husband with his phone in case I lose mine or something worse happens. Has any prior employee had a different login from yours in the past? This is much the same with the extra 2fa step on their phone or online. I'm not great with finding the prior posts with step by step instructions but the ATX help had them, too.

Congratulations, Sara! I have to decide by year end whether to renew my license for another 3 years. Most of my clients will not be happy when that time comes and, like you, I am an academic and love learning so do not begrudge the continuing education and refreshers. And I think I would be a bit rudderless without this routine. I am beginning hammer dulcimer lessons soon and am a CASA volunteer with one case at present and am church treasurer so not totally without things to do. One thing that occurred to me is that I'm not sure how I would do my own tax return without my software! I've been using it since 1996 tax year in all its iterations.

I have discussed this with the client and she has decided it just isn't worth all the tracking and rationalization. She clarified to me that in the past she and partner stayed with partner's mother renting space in the basement to sleep or with friends and occasionally an AirBnB and not just with a friend every time, as I thought. They decided that wasn't working reliably or well as they are both over 60. She also stated that the primary reason she continues to come to OH so often is work to maintain those in person clients. She sees them on the first and third Friday and Saturday of the month. The 4 1/2 drive from TN does not work with commuting especially when seeing clients on both Friday and Saturday. When both come to OH, only one drives and it could be either so determining mileage isn't easy nor is meals away as they were a combination of dining with family or friends or cooking or eating out, etc. I just wonder what other folks in similar situations might do. I think it not at all unlikely that a sole proprietor in a variety of fields may have work locations in more than one state or at a distance too far to commute but still have ordinary and necessary business expenses. I trust there is no disagreement that the office space she rents in OH for the in person counseling is not in dispute even though she does not do her billing there and does most of her counseling via telehealth from TN but not in a rented office space. Thanks again to all for the thoughtful discussion. Always more to learn...

I guess we shall see in about 90 days!

I have easily accessed prior year programs. I don't think the technology was programmed into them. I was a bit concerned as I had not yet printed out the few organizer details for some clients - py rental info or Sch C data - which I like to include with the engagement letters. I think it helps them to see what they might need for current year.

I charge an hourly rate but include that time, more or less, when questions are during the season as they normally relate to the returns. During the year, it depends. For short calls or rather simple things, no charge. I would rather folks keep in touch and ask 'permission' rather than beg 'forgiveness' which can be costly.

I was understanding that a second login and authenticator thingy was possible and probably advisable. I was doing to set up my husband's phone as a back up in case that Mack truck gets me. Does your secretary have a smart phone to do this or can you set her/him up with the online version?

Who knew this would generate such lively discussion? Obviously there is no (I think) clear easy answer. I will ask whether she will continue her in person consults in OH if deducting an allocable amount of rent for a place to sleep as she obviously cannot commute is disallowed (by me, not necessarily by IRS as they don't know and chances of audit are about 0). Her answer will matter. Then she can be upset that her previous free accommodations were removed by her friend's relocation. Have a good evening. I will enjoy another snow day tomorrow with the 8-10 inches we received today. Our cul-de-sac is not cleared yet.

I don't have an answer to that but am in your corner yearning for the easier days! I had to get a new phone and am terrified to even begin the transfer. I have 4 authenticators and no clue as to whether they will work. I use the fingerprint method successfully now. I think I have to go to the phone store but we have 10-12 inches of snow now.

Lion, her tax home is TN but she has regularly, for a few years, also earned income and paid for office rent in OH when seeing clients in person. The majority of her counseling is done via telehealth from TN. Her billing, etc. is done in TN. From QF, "(w)hen the taxpayer regularly works in more than one location, the tax home is the main place of business where most of the time, income or degree of business activity occurs. This is when there are two or more business locations as she has, in OH and TN. Also in QF, 'No Main Place of Business' "Taxpayers who do not have a main place of business have a tax home that is the same as their main home if: 1) The taxpayer performs some work in the vicinity of his main residence, and the residence is used for lodging while doing business there. 2) The taxpayer incurs duplicate living expenses while on business travel. 3) The taxpayer: a) Has not abandoned the vicinity in which his historical place of lodging and main residence are located, b) Has family member currently residing at his main residence, or c) Frequently uses the main residence for lodging. Results: * If three factors are met, the tax home is the same as the taxpayer's main home; away-from-home travel expenses are deductible. * If only two factors are met, there is a possible tax home, to be determined by examination of the facts and circumstances. * If only one or no factors are met, the taxpayer is a transient and travel expenses are not deductible. In my opinion the facts and circumstances show that her tax home is TN and she meets all 3 factors of No Main Place of Business although she really does have a main place for telehealth and a main place for in person counseling. She, like many self-employed folks I think do not work exclusively in a home office. I know I actually go to several client locations and take a home office deduction. A cot in her OH office would not invalidate her home office deduction which she does not, in fact, take. My head hurts. I think she can deduct the allocable portion of the apartment rent in OH as she also deducts the rent paid for the office she uses for consulting. She is away from her tax home.

Lee B, I was inclined to allocate her share of the rent per diem only on the nights she was counseling clients either the day prior or the day after. It is fair to say that she does mix business and personal time but I suspect there are very few business travelers that are 100% business, i.e., enjoying some television or some such when overnight is necessary because commuting is unreasonable given the distance. PapaJoe, I suspect that if she had no clients in Ohio, she would still travel here but not likely twice monthly as that is her counseling schedule. She certainly would not have a private office space for counseling or paying for an OH license or for the income tax now not earned in OH. I believe that she still maintains activities in the church when in OH because she is here. There are other deacons that live outside the area and serve electronically and services are now online so I doubt she would be here often - unless her partner continues practicing and comes as often. All good questions I need to ask.

Again thanks, Judy. With your reply, however, does that mean she also does not qualify to deduct the rental for the OH office used exclusively for in person consults? That is also of indefinite duration but, to me, clearly valid even though the majority of her income is derived from telehealth in TN. Again, somewhat facetiously, should she just buy a cot and sleep in that office when in OH? What if she paid for a motel on those nights? Is she expected to commute because her only physical in person counseling office is in another state and used only twice monthly? She had to have a business license and registration in the OH municipality. I've been trying without success to think of other similar self-employed folks or those that work indefinitely but regularly outside their tax home. What do traveling nurses do, for example? It's hard for me to believe my client's situation is so very unique but perhaps it is. In which case, as in some others, I think so very unfair. I guess she is expected to give up her business in OH, maybe. Sigh... I hate to have to tell her.

Thanks, Judy. I think the client is not at all proposing or trying to claim the efficiency rental for OIH. She uses TN home for billing and virtually all of her telehealth consults. It seems she is asking for herself - not her partner who is not my client - if she can claim any portion for overnight stays when doing business in OH in person. She comes to OH twice monthly for the in person consults and for personal time, as well. I would have to ask whether her primary purpose is for business. Kinda doubt it but not sure as her consulting practice was well established before moving to TN. The telehealth portion took off during COVID but she maintained several clients to see in person wearing masks and continues to meet them. In any event, an alternative would be for her to stay in a motel as it is certainly too far to commute from TN overnight. She does rent office space in OH for the consults. Should she buy a cot and sleep there? /s The calculated amount may be very small and not really worth it, as you mention, but not sure. If it costs $1200, just a guess for calculations, per month and she pays half or $600, that would be $20 per night or $40 per month, not nothing for her small practice but more that when she stayed with a friend and less than a motel would cost. FWIW, she has never claimed mileage or meals but does pay income tax on the related earnings to the municipality where her OH office is located. Re costs: as a leased efficiency apartment, I would be surprised if there were additional charges for utilities, etc. I suspect and will confirm that she only uses her telephone directly or as a hotspot. I doubt there is renter's insurance either. It might even be furnished. Several unknowns so thanks for the prompts. I find it an interesting thought exercise and realize that not every situation fits neatly into the IRS prescribed boxes.

Client and partner have been traveling from TN to OH twice monthly since relocating to TN in about 2022. They are both psychologists with personal counseling practices. Most of their counseling is via telehealth but they have some OH clients that they see personally when in OH from original practice. I do not prepare the partner's returns so cannot speak to the handling of expenses there. As they were long time residents of the area and my client attends church and sings in the choir and is a deacon, her visits to OH are both for business and personal purposes. She has rented an office for in person counseling in OH but does only telehealth in TN where she also does her billing. She wrote that she and partner decided to rent an efficiency apartment last September for overnight stays on those visits in OH. I don't know if there are other stays when not meeting clients. My client does NOT use the apartment for 100% business and has done telehealth from that location only once since September. Partner does a lot from there, I think. My client has not had to pay for overnight stays since relocating to TN until September as they were staying with a close friend at no cost. Close friend moved in with sister so no more free stays. I'm thinking that my client might be able to expense her share of the rent for those nights she stays in OH when meeting clients in person. Her share is one half of the monthly lease payment. She has never taken any kind of travel expense, meals or lodging but I think it appropriate to deduct something for overnight stays when she does do business here as it is too far to commute to TN. Thoughts?

Thanks, Lee B, for the reply. That's pretty much my position, too. I may get flak but then I'll just retire Or retire from her. Yes, I do seem to get them, don't I? And I haven't touched on the new client with 7 rentals in 5 states with a 1031 exchange in 2022 that took me for a loop when I saw no depreciation in 2023. Now I know why. Then there is the Air BnB he bought in 2023 with $7000 in 'consumables' and sold in 2024. Why, oh why, did I say yes to this guy? Sigh, partner of recently deceased neighbor's son, so a sympathy gesture, I guess. At least the data entry in my 2023 program results in the same bottom line so that's good. And he is very well organized...unlike some others. And according to his 2022 and 2023 invoices, he is accustomed to paying a fair amount of money. So there's that!

A long time client, self-employed psychologist, relocated from this state to another but continued to come back to this state twice monthly to counsel clients. During COVID she also began telehealth sessions from new home state. Her partner was doing the same and renting an office in this state for use while present. My client paid half the rent to partner but chose not to claim expense as she did not want to 1099 partner. Two years ago she rented an office in this state for sessions, claimed the expense so 1099. I just got notified (when reminding clients that it is 1099 time) that she moved to another local community and, by the way, she and partner are leasing an efficiency apartment locally to stay when working in-state rather than staying with friends as before. (That friend moved and no longer has room.) They are both on the lease. Client pays the rent and partner gives her half. Client has done telehealth just once from the apartment but partner does it a lot from the apartment. This is hurting my brain. Client does not do billing/office work from apartment but also has never claimed home office in now resident state. Client has never tried to claim mileage from new state to this state as she always participated in church activities and many other social events with friends while providing counseling sessions in person for just a few hours. I don't think that has changed - no additional in person sessions in this state, just a nicer, better place to stay overnight. Ideas? My inclination is to deny claim of rent in this state as she is here for just a short time but paying for full time facility, well, half of it. Can I retire now? And BOI, do I want to!

And I am soooo unprepared! Can I retire today?

I already have 3 of these for my position as church treasurer and other relationships. I was glad that one of them recognized the ATX QR code and allowed me to add it so I didn't have to get yet another one. I am s bit terrified of losing this phone and am beginning to understand the need to have it on me or at hand all the time. I hate it. And I need an upgrade for security updates and am nervous about losing something important. Sigh...Happy New Year!

I have two clients that insist on coming to see me, usually bearing small gifts, but their returns are very simple. One client has a very complex return but still wants to visit when it's completed to review. She does upload documents to the portal. I get documents (scan to my laptop) at one client couple in assisted living and deliver the returns when completed. All others are on my time table. I have a poster wit my office hours - likely you all have seen it, too, but it's real for me: Open most days about 9 or 10. Occasionally as early as 7, but SOME DAYS as late as 12 or 1. We close about 5:30 or 6 and occasionally about 4 or 5, BUT sometimes as late as 11 or 12. Some days or afternoons, we aren't here at all and lately I've been here all the time EXCEPT when I'm someplace else. The latter timing was very appropriate when I was training for spring marathons over 12 years. It was so great to go out for my runs in the middle of the day for a break!

Geez, and I thought I was the bees knees with my single new curved 32 inch monitor. I just can't keep up with the youth of today!

I keep a pdf copy and the client always has a pdf copy in their Verifyle account. I gave up paper copies several years ago. On rare occasion, I may have a copy of a more complicated return with all the statements and worksheets but can't think of any at the moment. I also have an internal backup drive, an external hard drive (both used weekly or more) and a constant online Backblaze backup.

The client said about $700,000. She also said the tax was $78,000 although I'm not sure how she got that figure. I looked at 2023 1099R and back calculated the FWH to see the ratio. It looks more like about $650,000. I hope she gets the information from the bank as I asked. It will be tough for her going forward especially if she has to enter memory care with diminished assets.

Thanks to all for confirming that really nothing could be done. She is not in a position to take advantage of this loss in any way as it was neither business nor casualty. She has already refinanced her mortgage based on her sister's recommendation. I don't know the details but am fairly certain I would have advised against that. She thought she needed more cash currently. I think she now has a higher rate. Alas, dementia is not a reason to have other taxpayers cover her losses or taxes owed. The scammers are just awful humans, in my opinion. I'm wondering whether, with my aging clientele, I should reiterate a caveat to maybe contact me if someone approaches or calls them about sending money. This client said her gut feeling that something was wrong about this but hesitated to ask either her sister or me. The phrase "can't fix stupid" comes to mind but, sadly, so does the fact that adults with dementia are truly not of sound mind.

A client with a measure of dementia creeping in called me with her tale of woe. She has been too embarrassed to call me months ago when this began. Apparently she fell for a scam which resulted in her sending several hundreds of thousands from her IRA. She finally got suspicious when it was never enough and contacted an acquaintance in the FBI. Ironically she had taken a citizen's course about the FBI a few years ago so had a contact but her dementia interfered. The agent told her that this was a major scam going around and, of course, a federal offense. He took down lots of details as she kept many notes. A case is being built against these folks. She is hoping that there will be some mitigation but I think not. I told her to get information from the bank and, to avoid further embarrassment, to just state her CPA needs this for year end tax planning. She seems to think that $78,000 was the tax and I'm hoping that was withheld. No state tax, though. I think she is up that creek but told her I would look into this. She has enough to live on but it will be a reduced lifestyle going forward. If she owes (almost for sure), additional tax, I assured her that payment plans are possible. Is there anything I am missing that she or I should know? I've had clients with stolen identities but this is a first. These are despicable people taking advantage of elderly.