RitaB

3 hours ago, jklcpa said:

It's going to be interesting to see how well the W-4 choices applied to the new withholding tables relates to reality and the tax planning that we do.  

Shoot, my clients are all over the place whether the law changes or not.  It's terrifying.

"Hey, Rita, how do I fill out this W-2 thingy again?  I'm up to about eight and a half here on this worksheet blah, blah, blah..." 

Me:  Drive over here and I'll have a thingy ready for you.  Don't trouble yourself [for the love of God don't].

3 hours ago, TAXMAN said:

Looking at tax only:

2017 MFJ 70K AGI 5 EXEMPTIONS STANDARD DEDUCTION TAX =4625 (AGI WAGES ONLY)

2018 MFJ 70K AGI 5 EXEMPTIONS STANDARD DEDUCTION TAX=5139 (AGI WAGES ONLY)

Just trying to get a grip on this

Yes, looking at tax only, this is correct.  Tax is $514 more.

But if I understand correctly, if the three dependents are under 17, the credits will be $3,000 more.  ($6,000 instead of $3,000).   If the three dependents are over 17, the credits will be $1,500 more.  ($1,500 instead of zero.)  Don't think the Family Tax Credit is refundable, but I think your client is better off in 2018 either way. 

12 hours ago, grmy2h said:

@TAXMAN   I used Passkey Books and their online subscription. We have an IRS Exam Study Group here: https://www.facebook.com/groups/142932752497488/ or search "IRS Exam Study Group" on Facebook if interested.

I took part 2 first, then 1, then 3 but part 2 had questions from part 1 and part 3 had questions from 1 and 2. This was 2016.

This year group members have been reporting lots of questions on basis, farming and estates.

TAXMAN, I went thru the process in 2016 with my buddy Debbie.  I took the tests in order and feel like that's probably best.  I read TheTaxBook to prepare for Part I, and it was perfect.  I used the Passkey books for Parts 2 and 3.  Ordered them on Amazon.  Very reasonable.  Each study guide has sample tests and there is also a book with six "big" sample tests, two for each part.  I also joined the FaceBook group, thanks to Debbie.  

I started by reading all the stuff I could find online.  Here are links to places that really helped me.  Best wishes, you'll be glad you did it!

https://www.irs.gov/tax-professionals/enrolled-agents

https://www.prometric.com/en-us/clients/SEE/Pages/landing.aspx    

http://www.nsacct.org/blogs/nsa-admin/2016/06/14/24-tips-for-passing-the-enrolled-agent-exam-part-1

http://www.nsacct.org/blogs/nsa-admin/2016/06/20/24-tips-for-passing-ea-exam-part-2

19 hours ago, BulldogTom said:

Does that come directly from the redneck dictionary?

I have to share this with All Y'all...I have become addicted to the show "Moonshiners".   It is amazing to me that a show, set in America, produced by an American company, with Americans speaking english, requires english subtitles.  There are times on that show that I would not know what is going on if the subtitles were not there.

Rita, are those your clients?

Tom
Modesto, CA

18 hours ago, TAXMAN said:

hey you know if its illegal how come they ain't been caught yet?

Maybe they have a good tax gal, y'all.

15 hours ago, Abby Normal said:

U stands for urban, which probably has lower prices than the boonies. Paging /user/RitaB.

Sorry, can't help with this as I only shop in the boonies.  I will say this:  Yesterday at Walmart, my cheese about slid off my cracker waiting on people to pick a lane and /or stop discussing the pros and cons of a grocery item.  Please.  This is America, drive on the right.   Couples standing around arguing, stand around arguing on the right.  You can't have both lanes.  I was kinda mad, but it's Christmas.

17 hours ago, Abby Normal said:

They were afraid (and rightfully so) that repealing the mandate would throw the insurance markets into turmoil, so they are giving everyone a year to plan for it.

Thank you, that makes sense.  There are a surprising number of people who didn't really want to buy insurance but didn't know the SRP was relatively low compared to post 2010 health insurance premiums.  Yes, that seems reasonable now.  Hadn't thought of that.

1 hour ago, Edsel said:

Surprised to find out the capital loss attaches to the party creating it, and only half attaches to jointly owned property.  This means if we do our jobs the way the IRS wants us to, we have to continually track the source of these losses forever, or at least until one of the parties is deceased. 

I always print the worksheets (in ATX) for the lines on Sch D that show what's what and whose on Capital Loss carryovers and attach them to my copy and client copy. 

I don't print the crap worksheets like we've all seen that I can only assume are a way to justify fees by weight or something, but this information is important to have, just like depreciation schedules.  I know some think it gives you a chance to save a client from leaving if they call to ask for information because you didn't provide it.  Nah, they're gone.  I don't want to spend time sending these things later.  I have other things to do.  Like TV and food. 

14 hours ago, Christian said:

Are any of you noting an increase in errors made by the Service of late?  

Now that you mention it...  A DIYer came in recently for me to review her 2016 return because she has no idea what was wrong with it, and IRS sent her a refund she did not expect in May.  She did not receive any correspondence explaining what was adjusted.

She filled out the online PDF forms for 2016. 100,000 wages, 47,000 ordinary dividends, 60,000 Sch C loss, 95,000 long term capital gain from sale of fully depreciated commercial building and equipment, 38,000 Sch E loss (yes, there it was on line 17), SS benefits.  I'm probably forgetting something, but you get the ideas:  1) Don't DIY.  2) If you're going to DIY (please don't), at least spring for software.  3) Hello?? (Did you really DIY?)

She figured her liability was 23,000 or so.  She said IRS sent her a refund of 11,000ish.

With the passive loss disallowed and AMT, her liability was about 46,000.  If she hires me to amend this mess, and she should, it will be a Merry Christmas indeed, no need to tell me to charge accordingly.  I'm absolutely stunned at this one.  More at IRS than her. 

7 hours ago, easytax said:

That is one of the BIG points --- the congress have no real idea of HOW ANY OF THIS ACTUALLY WORKS --- it is all theoretical to them.  How it might really actually effect the taxpayers seems to be beyond them. Words mean things ---- is not a real concept apparently.//// more gibberish seems to be the way.   I know it is old BUT "in confusion there is profit & power".

 

Well, actually I was voicing my suspicion that some fellow tax pros are making it harder on those of us who try to prepare an accurate return.  I think that congress actually understands it better than some (many) tax preparers.  Let's face it, this is an exceptionally good group of preparers here. The panic on a couple of FB groups from tax people who apparently don't understand that a credit beats a deduction, for example, has me just dumbfounded.  I can imagine a good many of them just going with "unaffordable" on Form 8965.  It's a bit discouraging.

20 hours ago, cbslee said:

So we will be wrestling with the SRP for 2 more tax seasons.

I have to admit I was wondering if I was alone on this Struggle Bus.  I can't have all the clients without insurance who also don't have an exemption.  I wonder sometimes if people are blindly entering exemptions on that darned Form 8965.  That's not how this works.  That's not how any of this works.

20 hours ago, schirallicpa said:

I have client that filed tax return in October, and is just now getting 1099 info to me for 2016.  Can we still efile those???

I took this to mean the client's 2016 income tax return was e-filed in October, and now the client needs to issue 2016 1099-Misc forms.  I think the question is can 2016 Forms 1099-Misc be e-filed right now, even though IRS is not taking individual tax returns electronically from Nov 18 - late Jan?  I honestly don't know if they can or not, so I don't know why I am contributing here, except I have a weird need to know if the question was understood and answered. 

43 minutes ago, Gail in Virginia said:

I am sure as heck not going to start giving planning advice on FaceBook. 

Apparently he didn't want to either!  LOL.  I really have no idea what he was thinking posting that.  He's not a rookie, actually a CPA in business longer than me, a dinosaur.   I could see posting it on a tax forum, but your personal FB page?  I was sitting there thinking, "Your post is blowing up in 3, 2, 1..." 

If a client called me today about whether or not to pay property tax in 2017, and it was one of my clients that can actually itemize,  I'd tell them I'd probably pay it now if there is uncertainty about the benefit in deducting it next year.  And there are always uncertainties about next year.   A bird in the hand is worth two in the bush.  Plus I have been around long enough to know that they are calling me because they want me to tell them to pay it now. 

I realize I'm lucky as our property taxes are low,  and I only deal with AMT once in a blue moon. 

As far as taking it upon myself to call THEM and give advice?  No.  Not even if the law is changed tomorrow.  I can't think about everything for 350 families.  It is what it is. 

I got amused yesterday at a local pro who posted on FaceBook that it looked like he and his wife would get a tax cut, but some people with kids would not.  He does a lot of unnecessary talking.  I don't know what he hoped to accomplish there, but nobody congratulated him, and immediately people started asking, "What about me?"  After two or three replies of, "It's too early to say for sure," he removed the post.  Um...

35 minutes ago, Catherine said:

I used to use Sage Accounting and would still prefer it except none of my clients are capable of handling it, more's the pity. 

Most of my clients can't even handle a spreadsheet.  Got one tax client who enters everything on a word processor, columns as crooked as a dog's hind legs, no totals.  I'm jealous of you people who only have to catch em calling assets liabilities and such.   My one techy guy just has to figure out if sales tax is included in his sales figure.   /s

28 minutes ago, Catherine said:

I used to use Sage Accounting and would still prefer it except none of my clients are capable of handling it, more's the pity.  And not only do I not have an iPhone, I still have a *stupid* phone!  Voice and text only; no internet, can't even send or receive pictures.  Maybe that means I pre-date the dinosaurs.  Puts me in with the slime molds, perhaps? 

You complete me.

I use Sage Accounting.  I held off on saying that because I think it makes me a dinosaur.  Also print W-2/W-3, 1099/1096 forms and mail.  I prepare about 150 W-2s and 50 1099s.  It's not a chore to me.

And I want to thank my esteemed colleagues for giving me the courage to be transparent, and yes, I still have an iphone 5s.  

34 minutes ago, Abby Normal said:

Maybe their Google is broken. Or they don't speak Tennessean. And what the eff is a Hall Income Tax?

The Hall Income Tax is a tax on dividends and interest, as well as capital gains distributions.  We don't tax earnings from work, per se.  It was 6% forever, then 5% for 2016, and is 4% for 2017.  It's being phased out.  Hope something twice as bad doesn't take its place.  Our sales tax in my town is 9.75%.

On ‎11‎/‎7‎/‎2017 at 7:30 PM, BulldogTom said:

Surprise, I got last year's state tax guide...

Surprise, the TN income tax rate is wrong, wrong, wrong in this book.  For any year.  It has never been 6.5%.   Bonfire pile,  look out.

16 minutes ago, Abby Normal said:

The problem with rules is that as soon as your write one down, you end up needing 10 more to clarify or tweak. Then, more questions arise or tweaks are suggested and before long you have a book of rules.

Thank you.  I could not figure out why tweek is always underlined when I type it.  Now I know.  Agree with your comment too, btw.

It's a slow day, so I'll ask:  Am I the only one who would rather do a tax return than call IRS?  Call anybody, actually.  I'd rather compose a letter to IRS than call them, too.  (This comment is not meant to disparage the advice to call PPS.  It sounds like a good idea.)

In the interest of full disclosure, I would also rather risk cutting off all circulation in my arms by carrying in all the groceries at once rather than making another trip to the car.

6 minutes ago, Abby Normal said:

Details, girlfriend!

Stop it!    Y'all are killing me.  Killing.  Me.

15 hours ago, BulldogTom said:

 He lied, I got shitty books from CCH instead of the Master Tax Guide. 

3 hours ago, Elrod said:

Pleas don't hit me in the head.....But this is my take....

After reading the three posts .... the humor hit me sideways, Please don't be mad .... it is funny..

Tom had me rolling in the floor not gonna lie.

10 minutes ago, Abby Normal said:

 Jokes on them because I just use the old books when I can't find my answer on the google.

Or the you tubes. 

I was told you get the real books later.  Well, TheTaxBook, anyway.  I don't care about the other one.  Yes, I admit it.

The arithmetic was totally incorrect on my invoice.  Representative overrode numbers to make the bottom line jive.  That did not impress me.  I hope overrode is a word, but we're all friends here so you know...

ILLMAS, I laughed out loud at your comment. 

1 hour ago, Roberts said:

This thread is specifically about rental property and the basis of land for depreciation. How did it become about a tractor?

My rental property method is fully justified by what Max wrote.

It's always about a tractor for me.  How is we've been friends all this time (4 Ever), and you don't know this?

Max said it's best to use the property tax assessments to get the proper ratio.  Your mileage may vary with your assessor and Medlin's.