RitaB

1 hour ago, Terry D said:

A previous client told me they found someone considerably cheaper than me to prepare their 2017 tax return. Okay no problem with me as this client has issues anyway. Now, here they come. They are under the guidelines of an OIC and must have all returns filed timely.   According to the client, the new person did not follow thru. An extension was filed but as far as I can tell, the return was never finished nor filed.

Well, the cow is already out of the barn, right?  2017 was not timely filed.  That would bother me some.  More issues.  Depending on how much I enjoy the client, I'd either: 

1)  Decline their kind offer to return  (eye roll)  as there are plenty of tax pros sitting around wanting something to do, and I charge too much.  /s 

or

2)  Accept their kind offer to return because I like money as much as the next girl, and really, I'm goofing off quite a bit right now.

Seriously, this decision would be strictly based upon how this client treats me and respects my time.  That's where I am.  If he is contrite and apologetic, I'm forgiving and helpful.  If he is unpleasant, uncooperative, wants free handholding, blames me for anything, and I do mean anything, etc., I'm really too busy goofing off for that.  As John says I'd just as soon have the time off. 

14 minutes ago, Gail in Virginia said:

I agree with Rita mostly.  There are people on here whose posts I sometimes ignore (or gloss over really quickly). 

I admit I do some skimming and eye rolling.  Bless their hearts.  LOL.

I'm guilty of contributing things that, well, don't really contribute much.  But, I do think this board is friendlier than most, and it's my favorite because of that.  There's not a soul on here I'd ignore.  No kidding. 

17 hours ago, LaVergne said:

...should we use the same allocation % for the selling price as we do for original allocation?  (In absence of other information)

Hi, LaVergne, welcome to the Board!  Absent more reliable information,  I would use the property assessor's ratio at sale time to assign a percentage to land at sale time.  It could, and maybe even likely will, be different than the ratio was at the time of purchase.  We hope that people we pay to assess property values can be relied upon for the proper ratio of land to total, even if they miss what the parcel is worth to a willing buyer.  

I totally understand that using the county assessor's ratio may not be ideal, but let's be honest here, my clients are not going to come up with a more accurate allocation.  Nor will they hire an expert to do it.  They will either throw a dart at it, try to figure out how to manipulate the ratio to their advantage, or worse, try to get me to manipulate it.  No thanks, I'll go with the paid county official's opinion at the time of the transaction. 

My kids and I were talking about this Sunday afternoon.  Erin is going to make sure our church debt is paid.  That was sweet then it went downhill from there because I warned her she has to spread the tithe around to lots of organizations and hide out the rest of her life because - you know - it would be awful with all the moochers coming out of the woodwork.  We'd all have to move and change our identities.

I don't know why you think I'd freak out Donna... 

43 minutes ago, JohnH said:

Some clients think there's time left.  After all, they still have the weekend to get things together since the deadline isn't until Monday...

These are the ones we love.  We're thinking "two more days," and they're thinking "five more days, six if she works till midnight Monday."  Uh, no.

6 minutes ago, JohnH said:

So when using the tax assessment, and assuming it's a recent assessment, do most of you just use the land value on the assessment?  Or do you calculate the ratio of land to buildings on the assessment and then apply that ratio to the purchase price to arrive at the figures you actually use? 

I use the ratio of land to buildings to assign costs.  If the assessor thinks 20% is land, I multiply the purchase price times 20% to get the cost of the land. 

On ‎9‎/‎19‎/‎2018 at 6:50 AM, Edsel said:

Belongs in the ACA Category instead of General Discussion, but am posting here because the ACA section has very little activity.

Question:  Is there no maximum penalty? 

I have a high-income taxpayer with coverage from a healthcare provider who is not eligible under the Obamacare requirements.  This insurance has coverage superior to anything available on the marketplace and cheaper by appx $1000 per month.

The calculation is 2.5% of some huge number related to household income.  Is there no absolute ceiling? 

From:  https://www.healthcare.gov/fees/fee-for-not-being-covered/ 

The 2017 fee for not having health insurance

The penalty rises yearly with inflation. For the 2017 plan year, the fee is calculated 2 different ways — as a percentage of your yearly household income, and per person. You’ll pay whichever is higher.

Percentage of income

• 2.5% of yearly household income
• Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace

Per person per year

• $695 per adult
• $347.50 per child under 18
• Maximum: $2,085 per household

7 hours ago, Richcpaman said:

Should go to Form 4835 then....

 

I believe if the rent charged is a flat rate regardless of sales by the tenant, Sch E is correct.  Use Form 4835 if the landowner's rent depends on production by the tenant. 

See p. 2:  https://www.irs.gov/pub/irs-pdf/f4835.pdf

1 hour ago, jklcpa said:

It sounds like the TP's intention was for the property to be held as investment, and property doesn't always have to be rented to be considered investment property; it could be because of its potential to appreciate in value.  Mortgage interest could be investment interest expense reported on the 4952, other carrying charges may be capitalized (requires an election), and obvious items that are required to be capitalized on any property would, obviously, also be added to basis.

52 minutes ago, Abby Normal said:

If you put the mortgage interest on 4952 it might be there for a very long time. You can elect to capitalize any of the three classes - interest, taxes or "other carrying charges" on a year by year basis.  It is important that you keep track of what you have elected to capitalize, because the whole point of the exercise is to have the capitalized expenses in your basis, when you sell the property.

https://www.forbes.com/sites/peterjreilly/2013/05/13/electing-to-capitalize-expenses-can-pay-off-on-sale/#55de7e670f01

$^%& I knew this one because I just made the election to capitalize an expense on a return a month ago, and you guys beat me to it.  And here's a quarter for the swear jar. 

36 minutes ago, taxxcpa said:

Go to "Where's my refund"  If a return has been filed it will tell you even if he owed

I think you'd need the refund amount, wouldn't you? 

2 hours ago, schirallicpa said:

I have a new dead client.  (At least they can't complain about my bill, right?) 

 crying 

Awwww, you all are the best!  I enjoyed the day so much, and we were honored to host.  Edsel and Posse, thank you for bragging on the kids!    They and Donna (Posse) did as much as I did to make it happen.

Here's two pictures from May:  First one:  David, Me, Karsyn & Allie, Daniel, and Erin.  Daniel won the marriage lottery when he got Allie.  Best daughter-in-law ever. 

Second picture is Karsyn modeling what you SHOULD wear to Walmart.

1 hour ago, Gail in Virginia said:

I am trying to get there.  My husband and I will be staying in Gatlinburg, and that is farther from Rita than I thought it would be.  And I have stayed farther behind than I thought I would - too many graduations and other events to attend.  But if the good Lord is willing and the creek don't rise, we will be there.  Please PM me directions.  And refresh my memory.  I seem to recall we needed to bring a chair; were we supposed to bring food?  I know some were offering to bring specialties of their location, but I hate to cross state lines with moonshine so not sure what to bring.

 

Gail, no need to bring anything.  I'm borrowing tables and chairs from church.  

14 minutes ago, BulldogTom said:

@RitaB OK, I was just booking my hotel room, and something popped up on Hotels.com that you just have to tell me about.....What is Pandora's Forrest and Resort?   It popped up as "Adults Only".   I thought y'all were in the bible belt.  And no, I am not staying there.

I am flying into Memphis Wed and going to Tunica MS for the TNSEA seminar on Thur and Friday.   Friday night heading over your way.   I can help out with anything you may need in the morning.    Just let me know.   

Tom
Modesto, CA

Bahahahaha, hey, now!  LOL.  Yeah, I have no clue about Pandora.  She's probably not a tax pro. 

Lunch is pulled pork, Cincinnati chili,  side dishes and 100 deserts.  (Give or take.)

I do have a couple folks asking about church.  Would love to have you at mine on Sunday.  Services are at 9:00 and 10:45.  We have Bible School the week before, so I'll check with Sam to see if the kids are doing the service or if he's preaching.  Link below. 

http://www.cumberlandfellowship.com/new-folder/

7 minutes ago, Catherine said:

I will be there!  Flying in to Nashville a couple of days early to go to another meeting in Cleveland TN, driving from there on Saturday.  I can pick up *anything* you might need on that drive if you tell me what.  I'm not going to pack plastic tableware in my one bag, so I'll buy as needed.  What can I bring?  Chips and dips?  Paper plates?  Case of soda?  

 

Thanks, Catherine, no need to bring anything at all.  Can't wait!

17 minutes ago, Margaret CPA in OH said:

I will be there with Cincinnati chili (but not the chopped onions, sorry) with or without beans but lots of cheese.  My husband may choose the golf course being the sort of shy type.  We will arrive Friday evening so let me know if you need some help before 2.  (I will have to heat up the chili and spaghetti.)  We can bring some beer, ice, whatever.  I have about 100 plastic forks to bring, too, if you like.  Plates? cups?  Let us know what is needed.

As I am mostly vegetarian now I will also bring some veggie burgers.  The chili is not vegetarian, I usually get the sauce with rice and beans but they don't have that in cans yet.

We will have to leave by 6 to make it back to Cincinnati before the sidewalks get rolled up.

Thanks, Margaret, I'll chop some onions! 

I will have soft drinks, tea, hard lemonade.  Tubs of ice.  Feel free to bring whatever other beverages you like and we'll have room for it.

Just wanted to run a commercial and encourage anyone who is on the fence about coming to please join us.  We're meeting at my house in middle TN on June 23 at 2:00.  We'll eat soon after that so don't eat lunch first.  Bring family - my kids will be there and we'll play corn hole, visit, and have a great time.  May be able to fish and pedal boat if the hay is off the field.  Stay as long as you like - we can have hot dogs and s'mores for supper.  Send me a message and let me know you're coming and how many you're bringing.  I will send you directions.  Can't wait to see you!

7 hours ago, BLACK BART said:

Your due date (same day as delivery) is a little better than ours which is about a month before the notice is sent out.

Crying. 

On ‎5‎/‎19‎/‎2018 at 9:47 PM, BLACK BART said:

John, you're just like me.  A chronic grump. 

Yeah, yeah, you two are the salt of the earth.  We ain't buying that. 

Some days I just open my mouth to change feet. 

16 hours ago, Abby Normal said:

These guys don't keep their horses long and want to fully deduct when acquired. They also run them in 'claim' races, where the horse can be claimed for whatever price you put on them, if they do well (win?).

This is the client you have to remind to tell you when they sell or trade an asset.  And why they have no basis in the asset.  But I get what you're saying I think.

I woke wondering why I think you can't take Section 179 after the due date and discovered that I was thinking about the olden days.  Or perhaps pulled that out of my left ear.  Which is exactly why I cannot do tax returns with the client present.  I would have a heart attack the next day.

Oh, and I would WALK 18 miles to make $5,000.  Or give it to a good dentist.  All day, every day, uphill, barefoot, in the snow, both ways.

1 hour ago, Abby Normal said:

1. Street name spelled wrong.
2. Business description totally wrong (horse racing business listed as Offices of Lawyers.)
3. Horse assets misspelled as Hourse twice and once as Houre.
4. 7 year life and no 179 on horses. Was told 179 not allowed. Return prepared several weeks after extenders billed signed allowing 3 year life on racehorses.
5. Amending from a 4,288 balance due to a 1,257 refund, plus similar on state.
6. Father and grandfather are in same business. Asked taxpayer why he didn't use their tax pro and was told it's too far away (18 miles).

That cocktail is going to taste so good tonight!

 

Well, I hate all the misspellings and wrong description, but I'm very conservative with depreciation.  Is #4 is the only math change?  I get that it should be three years instead of seven, but I have a hard time taking Section 179 or Bonus Depreciation.  (Actually I never take Bonus Depreciation).

I guess a bird in the hand is worth two in the bush, but what if the deduction would be more beneficial in the future?  OTOH, there's also a lot to be said for a great first impression, and nobody knows the future,  so cheers. 

I got four new clients this past season from a preparer with three initials (and they weren't HRB), and she used Bonus Depreciation on all assets, every year,  even one where the people already had a loss on Sch C.  In my opinion, she really did a disservice to the one with a loss.  No savings at all on SE tax.  Yes, I know she just let the software choose the default. 

11 minutes ago, Abby Normal said:

Well, I was half right. Column A should just be the husband but wife doesn't need to file 1040X. Hopefully the IRS employee will zero out the wife's prior return.

Yes.  That's where I was trying to go and wound up deleting four comments because I couldn't get there.  I can never think of everything at the right time.  I also don't doubt for one minute that combining amounts in Col A has worked out ok for @DANRVAN. 

10 minutes ago, Dana said:

I am guessing you are not aware of the original intent of the photo you posted?  I have seen it in other internet forums . . . it is keeping the fried chicken away from a person of a certain ethnic group.  Just a friendly heads up - "everyone makes mistakes".

Nope, I had no idea.  So sorry.  I will remove the post.