RitaB

Well, Bob brought in the settlement statement prepared when Bob obtained ownership of the lot on 9/08/2020. Don't you know, the settlement statement looked nothing like the story. Sales price 7,000 and Realtor commission was 2,000. Other settlement fees were $500. Bob did put a note in her stuff saying, "Received lot from Ann 9/08/2020." That's the gist of this whole thing. I'm going with Bob's basis is Ann's basis. $5,000. That was my first thought, but Bob kept talking, and I kept thinking. How Ann reported this is not my concern. She may have reported 17,000 on Sch A donations for all I know. Thank you, all, for your input. Stay strong! It's about time for the three clients you hoped went elsewhere to show up with half their stuff. Hugs!

Yeah, I don't know what planet these people are living on, correct.

There were strings. It was understood that Bob was "buying" the lot, so realtor could get HER commission. Bob is also an angel, and she would never abscond with the dough. She would mess up my highlights, but never abscond with the dough.

Well, I never got to Zero, and I thought I had looked at it all the ways.

Yes, I originally thought Bob's basis was $10,000 as well, but then I started thinking the second gift should be subtracted. 10,000 - 7,000 = 3,000.

Ann paid $5,000 for a lot. Ann engaged Realtor and listed lot for sale for $10,000. Bob expressed interest in the lot. Since Bob is a dear friend of Ann's, Ann wanted to give Bob the lot. But Ann is, yes, in fact, an angel, and she also wanted the Realtor to make $3,000. So Ann gave Bob $10,000. (Ten thousand dollars.) Bob purchased the lot with the $10,000; and Realtor got $3,000 commission. Ann received $7,000. Ann then gave Bob the $7,000. (Seven thousand dollars.) So, of course, now Bob sells this lot, and if you thought that explanation was tedious, you should have heard Bob tell this (not her real name, and she's a hairdresser). Is Bob's basis $3,000? Because I think Bob's basis is $3,000.

Livin' on a prayer.

None of my seven clients that I know received PPP funds experienced a hardship. All had increased sales 2020, increased again in 2021. They are not wealthy, and that means nothing to me; I am still aggravated when I think about it. One questioned me raising his monthly bookkeeping fee $25 recently, and a lot of words barely managed to stay in that thought bubble over my head.

I can relate to this so much! The pictures of documents are the absolute worst. It's awesome to keep people out of here for stupid things (hey, when can I bring my stuff in? ), but I am happy as a clam that most of my clients hand me a stack. Even unopened mail. Just wrapped up one who moved to another state, mailed her docs to me, along with some things I didn't need (I can live with that), emailed me probably 14 times, and was very slow about responding to my questions. This all started on Saturday, September 10. I hope she fires me. Very nice lady, and I hope to never hear from her again.

I can't help but think all the EIPs and ACTC caused much of the phone misery. And Congress deciding to exempt $10,200 of unemployment from tax DURING tax season, whoo boy. Not saying they will have more time without those happening, but they will have more time without those happening. Everything will be smooth sailing now. /s

Well, I heard that, too, and started looking to confirm your suspicions that presenter is wrong. Um. No, looks like the reporting is only on the 1099-K by the payment processor: Instructions for Forms 1099-MISC and 1099-NEC (Rev. January 2022) (irs.gov)

Add "Elections" form. Then the fourth tab over (tabs are at the bottom on mine) is "PPP Loan."

My own 2020 refund was held up until I called 20 times over a three-day period in May 2022. On the 20th call, I was given the opportunity for a call back from PPS, and it actually happened. The representative resolved the issue, which may have had something to do with me making a payment with the 2020 extension request, then applying part of the 2020 refund to 2021 estimated taxes. I don't know, but she did make that observation while I was on the line. I do that all the time. Another tax pro on Facebook talked about the same scenario with his 2020 return, which is why I finally stopped waiting and started calling. It was a frustrating process, and I'm just happy it was my return and not a client's. We can never charge enough for things like this.

Turnaround time by end of February is two weeks. Becomes three weeks from March 25 on. I'm the entire staff. I worked about 72 hours most weeks, about 84 hours the last two weeks before April 15. I'm just not capable of crushing it like you did! My one suggestion: When I sat there in the carnage on April whatever it was, I told myself, "Next time, start the season with laser focus and efficiency so you're not sitting in the carnage at the end." Ok, two suggestions. I tried the drop off without looking at what they brought, and that turned out to be less efficient for me. I am better off spending a few minutes looking thru the documents with the client there, seeing what's missing, telling them, "Your mortgage payoff is not their gain, your net check is not your gain, and here's what I need," right at drop off. I do try to explain very thoroughly so something clicks, and they learn something. I memorialize what I told them, place the note on top of their documents so I don't start on it before I have everything. I thought it'd be great and efficient to scurry them outta here at drop off. Not my clients.

Well, I don't who raised these people, but one way to guarantee I don't respond is to direct me to kindly familiarize myself with anything. Familiarize yourself with this: Not today, Satan.

I like the way you said that. Filing is goodwill. None of us are getting rich off this tax return. Nobody is taking advantage. Clients assume they should file. They are required to in this case, but even when not required, my clients want to file. Ok, ok, there's always that one who doesn't. You know the one - she was mad at you because she missed EIP2: "You told me I didn't have to file..."

One of my favorite clients brought in a German Pink tomato for me one year, cradling it like a baby. I thought I might have to wrench it out of his hands.

I would absolutely prepare and charge for this tax return.

Same here.

You can send the 5329 by itself.

No, the RMD would have to come from the IRA.

Another useful thing: A taxpayer can go to irs.gov and request a transcript be mailed to him. Very easy process, and I don't mind doing it for them while they read and approve entries, because let's be honest, they have trouble with everything, or we wouldn't need a transcript, and I need the correct document and year(s). They get the transcript by USPS in a few days. This is a good solution for me. Won't work well if they've moved, as one of the entries is mailing address on last filed return. irs.gov Get Your Tax Record Alternative to Requesting a Transcript Online

She made me the affectionate soul I am!

Yes, they can claim a child that did not provide more than 1/2 its own support. There's a support worksheet in Pub 501, p. 16, that I would ask them to complete for each child. Other preparers would just go forward without any due diligence beyond finding out if the kids are theirs (which is easy on this one).