RitaB

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. 

1 hour ago, Roberts said:

Yep. I don't think there is a blanket answer that is more right or more wrong so I prefer to fit it to the client's situation and make them happy.

Max said it very clearly, there just isn't a one true answer that is unquestionably correct and all other figures are wrong.

Still, there are better ways than others.  I don't believe making the client happy can be the rationale in assigning values for real estate (or anything).  It's one thing to play around with Section 179 or bonus depreciation with equipment.  That's allowed.  But you can't divvy up a tractor and loader sold together and assign values to each one at will.  There is an actual price in there for each one, and if you don't know it,  you've got to try to be as accurate as you can.  You've got to use some logical method to assign value to the land with rental property.  And again, respectfully, I'd never use your method.  Friends 4 Ever nonetheless. 

1 hour ago, RitaB said:

Respectfully, this seems as unreasonable to me as your assessor’s errors do to you. 

I just realized this was probably the point you were making. Sorry.

Daylight Wasting Time - 2.   Rita - O

2 hours ago, Roberts said:

... I ask the client if they would rather take more depreciation or less and how long they plan on owning the rental property. I decide between 10% and 70% of the value. Then I ask "does it seem reasonable the land itself might be worth $X?", they say yes and we roll with it.

Respectfully, this seems as unreasonable to me as your assessor’s errors do to you. What the taxpayer wants to do and how long he’s going to own a property mean zero. I get what you’re saying, and IRS is oblivious, but ok I am shutting up now. Respectfully.     

Friends 4 Ever. 

I also look up the property tax assessment. If the land is say 15% of the tax assessor’s total, I assign 15% of the number you’re working with to land. 

I keep waiting on the Feds to show up at the car and moonshine places with TV shows and stacks of Benjamins