Richcpaman

Ron: There are some parts of this job that are getting easier... Rich

Terry: The property can be carried on Sch E, it just has to be rented at FMV, or within 80% of FMV, which the IRS has allowed as a reasonable discount for a family member in a rental home. If the loss is limited to the property owner, then you can go with the Line 21, Sch A method. Rich

So.... The taxable portions of the estate may be Zero. Gotta have income from something. Interest, Dividends, maybe some capital gains on the sale of some investments. Notwithstnding the deductions to take against that income. But... We sent out $50k to each of the beneficiaries, and that is what we need to report on the K-1's. Cool. That Trustee must work for the IRS.

"it's a simple Return". Ok, what do we have? Bankruptcy Foreclosure New Schedule C for a Financial Advisor (after bankruptcy? Wow...) But I still have my same job and two kids... Sheesh. Rich

Does anyone here use PortalSafe? I see the other options, but why not PortalSafe? Rich

Rita: Please do not put two different issues together. Really three different ones. 1. Sloppy, corrupt preparers. There is only one thing you can do about them. That is to report them. You can also point out their failures or incompetence to other who will listen, and do the best job you can. 2. Paying the salaries of those who waste our money. If you believe that the system is designed to catch the sloppy corrupt ones, it *IS*, but it takes a long time, and doesn't catch the randomly awful preparer. In my perfect world, the IRS would get more dollars to fight and nab the real bad preparers and taxpayers who cheat outlandishly. However, they will let $21B and rising, in fraud out the door and not put $500M in to fight it... So, no perfect world for me. 3. Your rates. Your rates are your rates. I can advocate for you to raise your rates, make more money and have more time to keep us all laughing here. If you are happy, I leave you to your rates. My rates are different, and I am happy. I raise my rates every year. Maybe not your choice, but that ok. I have lots of friends as clients, and they pay me what I bill. If they make another choice to go in a different direction, I can still be their friend. Rich

You could report them to the IRS. Rich

If it is a Husband and Wife, Wife/Wife or Husband/Husband situation, filing a joint return, you just go with the disregarded Single member LLC. Then no extra tax return. If they change to MFS, or get divorced then you make the election to file 1065. If they elected 1065 when getting the EIN, then elect back to SMLLC. Keep it simple. Rich

If only the folks at ATX/CCH/Conglomerate would come down and spend some time with folks like us USING the software, and find out what they could fix to make it better. Dreaming.... Pass the scotch, JB

It doesn't matter. The only one who will ever see it is the IRS. And they use the address on the 1040. Rich

Abby: That Reddit site makes my head hurt.... How can you in any way shape or form moderate on that? I mean, we complain about stupid clients on this site, but... those posts and those questions? To avoid paying tax, and not willing to spend anything but a post on line to complete strangers and then believing those answers? I mean, there is an amusement factor, but, as I have to go home and bleach my brain... Rich

Tell her that she can but insurance for 2015 that only cost $2,500 *now*. But the penalty is $XXX Wait for the lightening to strike!

If I am firing a client, but it is because I am moving in a different direction, then I will give a referral. If they are a PITA, its not my job to give a referral. When the client states: "What am I going to do?" Not my problem. I am upfront when the client comes in for the FIRST time. The first 30 minutes, *I* make the decision if I want this person as a client. It is *NOT* their decision. That helps a lot..... Rich

Congrats to Janitor Bob, and all the other grandparents! Rich

mcb: I am using youcanbookme.com for that. It is on my website, and you can get there from my facebook page, and it is at the bottom of my email. It is free, and ties into my google calendar. I have the times that are available on there, and they can search for a time that makes sense for them, and I am out of the loop. Second year. Works great. Rich

Easy: Why did you remove the source? Why can't we fact check this? I actually agree with this guys interpretation. Rich

Tabby: No, he isn't you. But he bought your clients. And if he doesn't take care of them, then he threw that money away. Seriously, its NOT your problem. I bought two practices back in 2014. Went through 2015 tax season. 90%-95% retention. Not bad. Disappointed I did not get the rest. But I PAID for them, and I was going to make my money work for me... If he doesn't..... Oh well. Glad your battle with cancer is going well. My wife is doing well after two years. No cancer... Lymphodema, which is a PITA. but no cancer. Rich

I am, as of this evening, going to install the 2015 version of ATX. I have delayed till now, as we can't efile till today, and to allow ATX to work out the bugs... I still get the "Server Retry" error all the time in the 2014 product. I have a network, and 596 returns in the Return Manager. I Might upgrade my server Win 7, SP1, 2gb Ram, and old style HDD. But I do not let that computer go to sleep, nor any of my other computers. They gotta get after this... Rich

Jack: Thank you for fighting ATX on this issue for us. It is a stupid problem, and should be fixed. Rich

They are probably going to wail on him for the Use tax. He buys lots of stuff online. Thanks! Rich

All six years. Get the returns filed. Then find out where he is. If he owes enough to get to a Revenue Officer or agent, then you can negotiate with them in person. And then you ask. Rich

Dear Abby: Great Job! Rich

My Client, a restaurant, received a audit notice from the state of Virginia to audit 3 years of sales tax returns, as well as purchases to make sure they paid sales tax on the right purchases. Anyone been thru one? Any tips? Rich

Peggy: Who do you work for? The IRS or the Client? The 1991 ruling was for a different place and time. Currently, if you do NOT make your minimum payments on your credit card debt, the late fees and charges rack up REAL fast. With 18-36% interest rates, and after charging the late fees, they charge MORE interest on the higher balance. Your real concern should be if the credit card debt is properly in the corporations name. I would think the IRS would bounce the debt out easier for that, then deducting the late fees. The purpose of non-deductibility of penalties, is to make the punishment worse when you do something WRONG. Not the normal course of business, when there are all sorts of penalties. Do you think that United Parcel Service isn't deducting all its parking tickets? A friend of mine in the DC area says UPS can pay $50k to 100 grand in parking tickets. It is a cost of doing business. So are the large fees for non-payment. If you don't have a basis problem (see RFassett's post) and the purchases were not primarily personal in nature, then deducting the late fee's would not be a problem. The IRS has ordering rules on the payment of debt, and it is presumed that the first payments out are to pay for the personal items, and not Business ones. Rich

Zoom: Have you read the written agreement? You can change the your clients LLC to an S-Corp for 2016 if you want. Issue a 1099-B for $20k paid to Father. Or do an amortization table and use the IRS LT Rate, and allocate. Your client can amortize the intangible that they bought. Lots more to look into in this, but those are the basics. Rich