Lee B

Robert Zimmerman is 80 years old today. "The answer my friend is blowing in the wind"

I used Gleim back in 1977 , helped me pass the final 2 parts of the CPA Exam

The third party efiler that I use for all of my 1099s verifies the EINs and SSNs of all of the the payors and payees with the IRS before actually efiling the 1099s. Then they send me an email if any of the EINs or SSNs are unverified.

First you have to understand that ATX is a real resource hog. Before you buy a new expensive server, I would evaluate everything that you have running on your server to see what can be optimized to reduce the slow down. Second, you may be running one of the security suites that are also big resource hogs. Third, can you offload some of the less accessed files from your main hard drive.

Actually several years ago I declined to take on young lady, a daughter of some long time clients, who was sharing custody with her ex spouse. I just don't have the necessary experience and expertise to deal with these issues. It's consumes way more time than I can bill. In recent years as a one person office, I have decided to stay within my limitations. In addition I don't do Estate and Trust Returns or any nonprofit work.

Actually I have made it a firm policy not to work with any MFJ clients who separate or divorce. The potential risk of a tax related decision affecting one or the other spouse disproportionately is too high. Back in March I returned all of the original documents to some long term clients ( more than 20 years ) who had separated but did not tell me. I didn't realize what had happened until I noticed that some of the original tax documents for one spouse had a new address.

Here's more information than you probably wanted to know: "There have been important changes to the Child Tax Credit that will help many families receive advance payments starting this summer. The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for tax year 2021 only. The expanded credit means: The credit amounts will increase for many taxpayers. The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don't have earned income or don't owe any income taxes. The credit will include children who turn age 17 in 2021. (Important difference from the old CTC.) Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return. For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year. The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers. (I wonder whether the reduced amounts are still available with the higher phase outs) Advance payments of the 2021 Child Tax Credit will be made regularly from July through December to eligible taxpayers who have a main home in the United States for more than half the year. The total of the advance payments will be up to 50 percent of the Child Tax Credit. Advance payments will be estimated from information included in eligible taxpayers' 2020 tax returns (or their 2019 returns if the 2020 returns are not filed and processed yet). The IRS urges people with children to file their 2020 tax returns as soon as possible to make sure they're eligible for the appropriate amount of the CTC as well as any other tax credits they're eligible for, including the Earned Income Tax Credit (EITC). Filing electronically with direct deposit also can speed refunds and future advance CTC payments. Eligible taxpayers do not need to take any action now other than to file their 2020 tax return if they have not done so. Eligible taxpayers who do not want to receive advance payment of the 2021 Child Tax Credit will have the opportunity to decline receiving advance payments. Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children. More details on how to take these steps will be announced soon. The IRS will provide more information about advance payments soon."

I really haven't paid much attention to this issue since I have very few clients with young children. I assume there will be some impact on 2021 tax returns. If I receive any questions about it in the next several months, I will be very tempted to just say, "I don't know."

Just what the IRS needs, more stuff to do without the resources to do it!

Having lived in Oregon for 50 years, I have visited Nevada a number of times. Most of the state I wouldn't want to live in, however the east side of Sierra's are very nice especially around Lake Tahoe and the Truckee area..

The lowest taxed state including all taxes is "West Virginia"

Don't know which version of ATX you're using but Drake's early renewal price is quite a bit cheaper than ATX Max.

Terry D used to use OLT so you might want to communicate with him. The only other programs I would consider would be Drake and Tax Act.

First, what do the sales documents say, was a value placed on the client list on any other assets? If not, then your TP sold a 75% interest for 10 k.

Even it you don't have a portal or one of the esigning apps, send it as a pdf that is encrypted or password protected. She prints, signs, scans and emails it back.

If you have a Krispy Kreme near you, they have Free Coffee and a Donut tomorrow and on May 24th.

Did he use a Qualified Exchange Intermediary? Even if he did, I think Judy's post nails your problems. I assume that you have never dealt with a 1031 exchange before, because the way you describe things is so imprecise, it's hard to understand what may or may not have happened, which makes it very difficult to help. Good Luck!

Another exciting revenue enhancement opportunity

I originally assumed that your description of what happened was just imprecise. However your posts imply that he sold the original property, personally received the proceeds,and then put $300,000 into escrow. If that is what happened then he received very bad advice. In which case his receipt of the proceeds poisoned the 1031 exchange. The timeline and procedures for properly executing a 1031 exchange are very precise.

Your basis in the new property is reduced by the capital gain deferred from the sale of the first property. Just follow the Form 8824 Instructions.

Maybe this banker prepares tax returns too

If he doesn't want income then his investment should be an interest paying loan. If they wanted to do exotic allocations of revenue and deductions then they should be a Partnership.

If your IRA is self directed there aren't a lot limitations as how your money can be invested. However I am confused, is your client trying to buy an Annuity or trying to buy a Whole Life Policy with a LTC benefit? Unless you are a Licensed Investment Advisor, I would tread very carefully.