Margaret CPA in OH

Hi Judy, and welcome back for however long. There are a number of us that hearken back to those days and, like you, soooo close to retirement. Some already have. I've got about 2 years on my license but actually still enjoy - for now - the season with about 50 clients. They, of course, tell me I am not allowed to retire. My Google search showed Nov. 30, 8:59pm.

On a 1099NEC I transposed numbers of an SSN IRS sent a notice that the number did not match IRS records. The notice portion of What's next states "You don't need to do anything if: You made a clerical error in reporting and the payee name or TIN on this list is not what is in your records, or ... Some time ago I also had such an error and filed another form, 1099MISC when that was the only option, marked Corrected. Now, however, I cannot just make the change on this one form and efile as the message is that I cannot efile when in accepted status. ATX folks went round and round, had me create an independent file for this recipient only marked Corrected but the message is that I cannot efile when the original is not in accepted status. It seems maybe I should not do anything? However, when I search for corrections, it seems I must file a corrected form. But I have no paper forms. Suggestions?

The client I currently have with this situation incurs significantly higher expenses for qualified LTC services. Not all is reimbursed. The excess expenses that were not reimbursed were carried to Schedule A and listed as unreimbursed ltc expenses. the past two years have put this client well over the standard deduction.

I finally got around to reading the information on the link provided above including the FAQ's. I do not see this definite answer about sole proprietors. I must be reading past basic information. I sincerely hope this is true but would love to read it myself so maybe someone with a sharper brain and eyes (almost everyone!) could point me there. I am also confused about SM LLC's. I have a client who files a Schedule C and is SM LLC. Her newest enterprise is a wine store which just opened and I think will be very successful All I can find is the flow chart that shows it 'May be a domestic reporting company' but I go in circles with the definition of a domestic reporting company and 'may be.' I've done the Google and read several references without seeing definitive answers to my questions so any guidance here would be most appreciated!

Wow. I hope I don't have to do this. So far I've had only one client in all these years take an early withdrawal and it was for first time home buyer.

I think I will include in my cover letter, in addition to the information about foreign bank account reporting through FinCEN and that I do NOT prepare this, information about BOI with links and that I do NOT prepare this either. Just a heads up thing. I don't think any of my clients have this requirement.

The authenticator I use provides a 6 digit code to your mileage must vary.

I hear you! I HATE having to have my phone at my fingertips all the time. I try to remember that I'm adding steps. Yes, my authenticator is a phone app but I don't have to use it often so am prepared to have the phone available. My choice was to use my fingerprint which is how I protect my phone. It can get annoying but I now automatically pick it up with my left hand and my fingertip goes right to the spot. I still have a landline for my business and will keep it until I retire. I leave my cell on vibrate and the sound off about 90% of the time. It annoys some folks trying to reach me because they have to leave a message. And I don't answer unidentified calls on either phone. Since I don't have every contact ever in my cell, lots of calls are unidentified and not all callers leave a message. Also my cell isolates identified spam calls very effectively.

I also have an authenticator on my phone which I was required by the bank to have for my position as church treasurer. I turns out that OH|ID was added to the list. I don't recall that it was an option to select when I set that up (I tend to forget too much these days) so it must be possible to keep adding those that offer or require this. Yes? I, too, wonder about losing or even changing my phone. It's a Pixel 4a so kind of old but I love the smaller size. There are very few available now that I can comfortably hold in my hand but I know I need a newer phone soon!

I, too, used to password protect pdf copies of returns before using Verifyle. Now Verifyle requires the client to access with email and password but has 2fa as an option which I will look into soon. Sigh....

I was just now reading about this through Tax Talk News and am scratching my head on how to manage. So as a sole practitioner I have to use 2FA to access a pdf file on my computer? I have to text to myself or call myself or email myself every time I want to look at a client file? My computer is password protected as is the ATX software but I don't have each client pw protected as I am the only user. If so, how do I confirm to myself that I am me, the authorized user? I realize that I will have to do something more now with Verifyle but my clients are not going to like it. At least I know it is an option so will have to read up on how to implement for myself and for each client. Retirement is REALLY looking better all the time! I'm getting too tired of soooo many hoops....

Marilyn, you sound like my husband! He had been coughing and wheezing and feeling awful for weeks. I finally convinced him to go to Urgent Care and pneumonia! He wasn't hospitalized and got worse so back to the ER 5 days later and a change in meds. He is much better now but really weak still. Denial is strong with folks who are so accustomed to pushing through. I'm so glad you both are on the mend!

From Jody Blazek Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition: The type of indebted property subject to the debt-financed rules is best defined by listing those that are not included in the term. Exempt-Use Property. When substantially al of the actual use of the real, tangible, or intangible property is substantially related to the performance of the organization's charitable, educational, or other exempt functions, the property is not subject to the debt-financed rules. IRC Sec513(b)(1)(A)(i)The exempt purpose usage must occur at least 85 percent or more of the time. Such use must be actually devoted to exempt activity purposes and used directly in the organization's exempt or related activities to be exempt. I could go on but it's a book. From my church's experience, we rent only to non-profits, 501(c)(3) organizations. And with that, keep in mind that you may be subject to real estate tax. We discovered that not all states or municipalities waive real estate tax on churches or non-profits. Now we are subject to re tax on all the space for which we collect rent. Your state may differ. Your organization may want to restrict rental to exempt organizations. We thought that our doing so would be all that was needed. As a church, all the Space Sharers (as we call them), do support all of our mission and ministry in their respective missions so we do not have to file a 990T for UBIT and we never rent to for-profit organizations. Let us know the outcome.

I also use Firefox but additionally have AdBlock Plus. You can block just about any thing with it and selectively unblock particular sites always or once. And I never stay signed in to Google anything.

"I have QB Desktop Pro 2003." Sometimes (great) minds think alike. My QB Desktop Pro is 2019 and going strong. I also do not use payroll and no longer update. It still works just fine!

This is certainly on the minds of many of us 'of a certain age.' I renewed my license though 2025 and have alerted my clients this year. I still enjoy the 10-12 weeks of work and it pays for my exotic dive trips. But I will be 80 in 2026 so not sure how many dive trips are still in my future. My eyes also have been worsening although likely helped with a new prescription, brighter lights, and bigger fonts. But, like many others here, so many of my clients (now all and only 1040 plus some Sch. E and small C's) have been with me for 20+ years. I did spin off my business clients about 10 years ago when my other CPA retired as I did not want to deal with payroll and monthly reports year round. It was a great decision. As my practice of only about 50 is so small, I don't think there is much value in trying to 'sell' it. I would also worry that they might not be treated as kindly and may blame me. I prefer they find their own. When we had a local chapter of the state society, I was quite active and knew personally many of the small practitioners. Not now since the state closed down the local chapter. I am inclined to think that when I dread preparing one more return, I will know. Unfortunately my long time clients keep providing referrals (I've never advertised) and I just met with another new person last week. It's hard to say no as others may decide to not return for whatever reason. The decision will be easier once my very elderly clients (90's now and poor health) pass away. Meanwhile, let's continue to enjoy and appreciated this great group around our virtual water cooler. I really do miss comments from some who have stepped back completely and am always happy to see something from some who just drop in from time to time to check on the rest of us! Enjoy summer!

This may well not help that much but I am a bit surprised about the amount of HO depreciation. Does that also include allocation of expenses? Would it be worth checking for the Simplified Method of $5 per square foot. There would be no depreciation, etc. but also no recapture and may not be as large an impact on the overcontribution.

You are amazing! I still have not heard back from the client but will be sure to ascertain that the understanding followed this expectation - as I think it did. I just want to be sure. Thanks to all who chimed in! Always more to learn.

After a bit more research, I found this on Cornell Law website: life estate A life estate is an interest in property that lasts only for the life of a specific person, usually the possessor of the estate. The owner of a life estate cannot leave the property to anyone in their will as their interest in the property will terminate at their death. The holder has full rights to possess and use the property, and may also transfer their interest during their lifetime. If the measuring life for the life estate is someone other than the possessor, the estate is considered a life estate pur autre vie. A life estate is created by a deed that gives the property to the person "for life" and identifies what should happen to it after that person dies. For example, a deed stating that land would go "to John Doe for life, then to Jane Doe" gives John a valid life estate, and Jane a remainder. John could use the land during his lifetime, and even sell his interest to a third party, but that third party would have to surrender the property to Jane upon John's death. So I'm wondering now and again about the deed. I'm reading this as though the mother (the possessor orignally) transferred the interest during her lifetime (gifted to daughter). But then it seems that the deed must state that the property is given to the person (mother) "for life." The client has not yet responded. I hope they used an estate or real estate attorney.

kathyc2 is correct. I have a current client that is about to run out of LTC insurance and had another a few years ago that nearly did. What can happen and is currently so with my client is that the expenses can be much greater than the coverage. In my current case, the unreimbursed expenses amounted to $87,777 after reimbursing $85,200. The per diem was $153,300 ($420 times number of days) and actual expenses were $143,323.

Thanks again. I'm now wondering if this was something thought to be a solution outside of actual legal guidance. It seems to me that the gift tax returning, gifting the condo to the daughter, was a way to 'transfer' ownership without specifying a life estate, that it was de facto. I've asked the questions. The closing document shows daughter's name only as seller. I wonder what the deed shows.

Thank you, Marilyn! As I wrote, this is my first, so unsure of how to handle. Client will be so happy! I have no idea why there was a gift tax return, not my client at the time or maybe I would have known all this already. I will double check on documentation showing life estate rather than just letting mother live there. Client told me 'life estate,' but I want to see it. I will still do research but have great guidance now.

Thanks, AbbyNormal! I did not expect that. Even though the client/daughter owns it now? Research ahead!

IRS cares not a whit. My question relates to the client selling this condo that was gifted to her by now dead mother. I'm asking about the basis in order to determine gain on sale. That's all. If the gift tax return should have had FMV, it would make a difference. If original basis to mother is correct, I've got it. Just asking for reassurance.

Client was gifted mother's condo in 2017 with a life estate provision. Mother died in the fall, condo was sold in March. I have the mother's 2008 original purchase price/basis and mother did file a gift tax return at the time of gift with that value (not market value). This is the first I've had. Was it correct to have the original basis of the condo on the gift? I think that's my only question. I'm not sure whether client or mother paid taxes, etc. in the interim but they would not have been deductible anyway. So it was a second home for client and no rent was charged. Basic sale with LT cap gains?