Margaret CPA in OH

I love that part about not needing any of the info requested now. I just sent out the clearly marked in RED draft returns of the client with the 29 year old 'dependent' NOT along with the amended 2010 returns. I referenced the engagement letter they signed in January. I just stated the 2011 returns would be efiled on receipt of the signed 8879 and reiterated the importance of filing the amended return. I'm thinking I won't likely be receiving that signed 8879. At least I completed my part of the engagement.

Thanks, DougO, for appreciating the 'taxing' problems we have here. I have 2 contractors, both living in unincorporated areas. So when they have income in taxing municipalities, there are allocations to be made with 4 factors to determine the amount taxable in each. If a loss, we have to track carryovers for 3, 4 or 5 years depending on muni. And, technically, wages are also to be allocated and withholdings remitted unless the work falls within the 12 Day Rule. Oh, we do know how to have taxing fun here but with my recent KY client experience, I just think it can be worse!

It's a case of trust but verify which we all should do anyway. There are some things one must double check on the form such as the real estate taxes and mortgage interest but I also print a pdf of the pertinent pages to confirm with the split returns to be certain all items are accounted for. I don't do hundreds but have done scores by verifying. Not sure I'm down to 15 minutes yet but I'm old.

If ATX does that, I haven't figured out how. I know that Prosystem does because I used to use it in a firm years ago. But it also costs much more. If anyone knows how to split ATX, please share! Already, though, having the analysis and coding every entry appropriately and duplicating then removing is way ahead of not that many years ago for lower cost software.

ATX does compare Ohio tax liability and lists both advantage for federal only and for combined federal and Ohio. I have 3-4 clients that I check annually. Like Ken, I prepare a joint return, check the MFJ vs MFS and duplicate twice deleting the other's information. I typically do it only when the savings are $250-$300 more as I do charge for the extra time it takes.

Congrats!

Congrats!

Good one, jainen! I shall suggest that for sure!

Thanks, DANRVAN. I have sprinkled my discussions with the client liberally with the "I am not an attorney...". I have also offered my opinion based on my interpretation of the same things you are likely consulting. However, as jainen pointed out, XYZ LLC is certainly going to give her a 1099MISC. I believe that there is little to no risk to my client as she would have paid all taxes due and more by filing SE. I also told her that there is an audit risk for XYZ but penalties, etc. would be on that LLC's shoulders. Let me know if you think differently. I am not aware of any risk on the part of my client any time soon and have provided lots of references to help her understand as best she can the situation. I have strongly suggested that she have a written contract with XYZ clarifying all that she can. I suspect that the audit risk of XYZ LLC is fairly small (limited IRS resources) but am also unclear if an LLC can be reclassified as an employee except that smllc is disregarded for tax purposes but maybe not for labor laws. Thanks again for insights.

Yeah, that's a sure bet, the 1099. And I cautioned NC of the very situation you raised. So I have suggested a couple of contract verbiage sources for her to consider and several references regarding the differences. Neither of us will change XYZ as it has established this business model and appears to be firm on it. Guess I just want to be sure my client has eyes open and does all to protect herself. She will apply for Worker's Comp, EIN, etc. I'll just report what is given to me as I, frankly, don't have true inside info on XYZ. Thanks for the discussion. My brain hurts a little bit less...

One SE should suffice. Have you double checked that the box at the top of Sch C is marked for spouse (assuming she is spouse on this return) and Box 7 has the correct form to flow to (Sch C)? Next try maybe deleting clergy income, see what SE pops up (should be music), add in clergy data and, if needed, type in the clergy wages as you have done before. Maybe sequence matters even if it shouldn't. Good luck!

Thanks, Jainen. XYZ LLC will use other trainers available when New Client LLC is not. I advised NC to ask if contract could stipulate that NC could substitute trainers but I think XYZ can decide whether to use another trainer independently or use NC substitute. New Client is not in the position to hire other trainers to supply demand but XYZ has several trainers that work in the facility. I am trying to make some parallels to renting a booth a salon but am tripping over the fact the NC does not provide the clients for training. XYZ claims that the training clients are clients of XYZ LLC not the single member and XYZ engages NC LLC, among other trainers. I don't know the arrangements XYZ has with the other trainers. I'm just concerned about NC LLC but also don't want NC to walk away from what could be a great deal or do it in a way that jeopardizes her situation. XYZ sees NC as 'taking over' primary responsibility for this group of trainees in short order and the compensation looks to be in the $50,000 neighborhood. My brain still hurts...

Confirm type of retirement plan law firm has. Could it be defined benefit or non-qualified? When I had some clergy clients a few years ago either before clergy worksheets existed or didn't work, I listed on the SE tab Business income, Salary as clergy $xx,xxx to calculate SE tax. It worked and the W-2 entry flowed fine for income tax purposes.

My head hurts with this so any input would be most welcomed. New client is licensed personal trainer. Local business, XYZ LLC, well known for personal training particularly helping a group of folks with a muscular illness, wants new client to 'take over' training this group of clients. XYZ LLC is smllc, new client is smllc. If new client takes time off, group of folks will be trained by single member of business or another trainer. New client will use XYZ facilities and equipment at times determined by XYZ LLC. Most of the exercises in the beginning, at least, will be determined by XYZ LLC. I thought group folks should pay new client directly. New client asked XYZ LLC owner about arrangements. Owner says clients are clients of XYZ LLC and pay that LLC. So what exactly is the proper arrangement between New Client LLC and XYZ LLC? There seem to be gray areas. New Client has profit motive but location, time and equipment are not under her control. New Client also has other clients. What is the best arrangement, contractually, between New Client LLC and XYZ LLC? My brain hurts...

First check to see if there is a minimum filing requirement. Often the amount allocated to another state is pretty low. Also the MI partnership may pay tax with a MI filing. See what the state requires from the P'ship and/or if there is somewhere shown taxes paid.

In ATX if you indicate the person associated with the security sale and check the relative tax burden of MFJ vs MFS, it can make a difference. I have clients that independently have brokerage accounts with different activity. One couple often, but not always, benefits from filing separately and it's so much easier to check if coded during input. YMMV

Oh, I can figure out how to charge more with little effort. The real trick is getting clients to agree to the charges and actually paying them. I have lost a client or few when raising my rates or charging for extra services but am grateful for those who do value me and stick around - and pay.

Good one!!!

Suweeet!

Have you checked the 1116 calculations to see if it is allowed or carried over? Did you confirm the amounts and dates on the data entry screen?

Thanks, KC! I really miss "Shoe." Our paper no longer carries it so this was a nice treat!

bcolleen, I think that must have been the case. The KB said that Ohio, among a few other states, didn't have a list of specific codes. So I just resubmitted it and it hasn't been rejected again but not yet accepted, either. Here's hoping! Thanks for the guidance on deleting. I didn't realize rolling over edit would make it operable but, then, I didn't put it together that edit also included deletion. So glad I am not too old to keep learning!

Okay, this box of rocks can't find Edit or how to get there. It is likely about to hit me in the nose but I can't see it. Where is edit or Carmen San Diego or anything else I can't find?

Best of luck, Catherine. I have to admit abysmal failure on my first and only try and decided this would be a summer project. It was taking more time than to enter them - at least for me. The idea is great but not quite ready for my marginal skills with that feature. And I think the picture applies to both options. Just stop before it really hurts!

How does one delete a post?