Richcpaman

MCB: Congrats on your good prognosis! My wife is a one year survivor, two years from diagnosis. Hope that everything stays well. Have those mammo's, ladies... Although the mammo in my wife's case was clean.... What did they diagnosis your husband with? Rich

Mike: If all the Scorp has is this LLC in it, it might be by operation of state law that the SCorp can disappear. Check with a smart attorney. Otherwise, maybe you can convert the SCorp if formed under LLC laws via the "check the box" rules to be an LLC. Rich

Maybe we just need to ask the most recent past Treasury Secretary for how to treat her income tax. Just "shake the box, Timmy!" Rich

I like Jim's answer. SCorp can own the disregarded entity LLC if 100% ownership of both the original property and replacement property. Rich

Did she buy your lunch? Rich

The kids could deduct the Mortgage interest and RE Taxes as "equitable Owners" per the Tax Court. For using the Sec121 exclusion... Has not been litigated or tested yet. But If I was to extend the tax court case to sec 121, I believe that you would prevail in tax court. Conservative would be to just report on Mom's return the gain and pay the tax. More aggressive would be to exclude due to sec 121. Rich

Here in Maryland, the Lottery ticket sales and proceeds are usually deposited into a separate account, and not part of the P&L except for the amount that get returned to the business. . Scratch off may be different, but I am sure that when the Lottery guy hands you $100 in tickets, he gets paid $90... $50k would have had to have been for already sold tickets. Rich

OMG. I have clients that owe thousands, even tens of thousands, and we can't get a phone call... Rich

This isn't about her *1* employee and missing 941/940 etc. Your client probably owes back taxes from before that. If your client is a new client, most likely this is what is going on. She comes back to her office, and finds a card on her door from the IRS, but does not have this card when she calls you? Hmmmn. Rich

Jack: Did your client, (the son) take the cash from the estate account during that first year after death? Rich

Judy: Also, depending on state, she can sign up for insurance under Obamacare, and/or Medicaid, if she can't work. That will help with the medical bills. I had a client in the same sitch, no insurance, but an illness and $400k later... Rich

Judy: Sorry to hear about your friend, I hope your efforts succeed at raising some support for her. Rich

JKL: You get to amend those MD Residents with DE income returns... The way MD set up the tax credit, if your client paid $1,000 to DE, you might have got $950 on the MD return as a credit. But, you should have gotten $1,000.... Because MD would only allow for the state side, not the local, thereby limiting the higher end of the credit. I am looking for more info, so that I can amend the right way... Rich

Joe: It hasn't been 25 years since they changed it. They have never allowed a tax credit for the local taxes. They changed it 12-15 years ago. It used to just be a calculation, if the state tax was $1000, and the "piggy-back" tax was 50% of the state, then you added $500 to the taxes for the locality, and your total tax was $1,500. Then they decoupled the "local piggy-back" tax from all the same deductions/exemptions. So the math changed. Actually the local tax went UP from this change, and the state taxable income could be lower than the local tax. Following the example above, the state would get $1,000, and maybe the local tax could be $505 or $520. However, this whole case is centered on the piggy-back tax and why the taxpayers could not get the tax credit on the local tax. So, if they paid another state $2,000 in income tax on the same income, why did they only get to claim the credit against the $1,000, and not the $1,520? The Wynnes blew that all apart. The Comptrollers office is still spinning. According to the MACPA, (MD Assoc of CPA's) the Comptrollers office advised them that the Comptrollers will process refunds for MD taxpayers who are affected by this ruling. Fat Chance. Technically, you get to amend your clients returns back to 2006, when the case was originally filed, or when the Howard County Circuit Court Sided with the taxpayers in 2008/09. So that $300 can become $1,200 to $1,800 pretty easy. I have not been able to find out how far back we can amend. I can see the Comptroller office's stating that the "three year" rule might apply. It doesn't. The filing of the court case should have tolled the statute. Lets do lunch. Rich

​That is why they are closing the Mail Sorting centers. Mail volume is going down. Just reality. Going to have three days a week mail delivery before long as well. Gotta close that postal deficit. Rich

I have a 990 due on Friday. I did the 990 about 8 years ago until the org went in another direction. They have a new Director now. They sent a Request for Proposal to prepare the 990 for their fiscal year ending in June 2014 on 10 Feb 2015. They got no response. The new director called me, desperate, so I quoted a new price. And I let her know that the 990 is due on May 15th, if it has been properly extended.... Tuesday, she asks if we can meet *next* week. No, I am on vacation. Yesterday? She says can we meet sooner, but.... She just suffered a detached retina and will not be available... Sometimes, you just never know what might happen. Rich

Good Luck and Good Riddance. Don't let the door hit you in the arse on the way out. I can only hope that your time on the future federal retirement dole is short. Demonizing the work I do and trying to *always* lump me together with the criminals that your office did so little to pursue.... Just go. Rich

Have the existing partners buy out the Stubborn partner beforehand, and then do your property sale and then 1031. Rich

I have many clients tell me how they are making money from them, because of the monthly/quarterly distributions. Then I show them that it isn't coming from INCOME, but from PRINCIPAL. Usually 50-60% from Principal. And I ask them who are they selling these assets to when they want to get out? That always makes for a great Client "face". And did we notice how many clients have these K-1's THIS year? Because the sharp guys on Wall Street were dumping them. Oil market/prices are going down, so sell these assets that were going up, that are starting to go DOWN, to *our* clients. Thanks big brokerage firms.... You just stuffed the investment dreams of your clients. Rich

The UBTI has to be greater than $1,000 for your clients IRA in order to file the return that would tax it. Kinda tough to get over that limit, unless your client bought ALOT of them. Rich

JJ: You get the "first time" error abatement just by asking. Its the second time. Or the third. And it is not about the automation, its about being aggressive. And they are CERTAINLY being more aggressive. Non-Profits with gross revenues of $10k getting penalties of $1,700 to $2k. Never used to happen. And then, rejected the abatement request. Its gonna get worse. I am updating my engagement letter to state that *I* am not responsible for your extensions and/or penalties. Rich

Yes, I have scanner/printer/copiers at each employee desk. Big ones as well. I *hate* small toner cartridges/inkers. But I am with Ron. It is "less paper" not "paperless" It depends on your particular practice, and how you like to work. Everything for my 1040's is scanned, but the corporate work has much more paper, and therefore, more in the file cabinet. I have found that when going "paperless" the real issue isn't a scanner, its the process of managing the data during and afterwards. There are commercial practice and data management software, or something you use of your own design. I just have a directory with each of my clients listed, and I create the PDF of the return out of ATX and attach the back up scans to that info in the clients directory. Rich

What are you asking for? IRS doesn't care about he amount of the clients mortgage unless it is greater then $1.1 million. Otherwise.. Do they owe a tax debt? Rich

Yep. drones. Please "Check the Box" Rich

Give the financial aid office a statement from 3,400 banks stating that he never deposited cash *here*. LOL