Richcpaman

Thanks, Joe and Ken!

Don't forget all the beer....

Have the Trustee offer the "life Estate" person something to move out so that they can dispose of the house. Your client is stuck. Usually, even with the life estate, that person still has to pay to live in the house. Which could include the mortgage and taxes. Or, as a minimum, rent. Rich

In ATX, I have 68 returns in so far, but I met with and collected 7 more last night, so I am at 75. Last year, with 4 more days to go, I only had 49. So, things have definitely picked up.... Of course, since I bought two other tax practices last year, that would be one of the reasons that there is more of them... However, I do have 18 done, and got a corp done last night. No appointments today. Goal is ten returns... And I am filing elections for most of the clients with fixed assets, and some 3115's. Rich

Naveen: Please stay strong in this most difficult time. Use the good memories of your wife to sustain you going forward. Rich

JB: Your client never spoke to a lawyer about changing the title. They might have, but probably didn't. And if they did, I do not know a reputable lawyer who would not have told them to go to the court house and file this deed to put the title into your clients name. Heck, the lawyer would get paid to prepare the documentation. Your client was not interested in paying the small amount that it would take to fix this mess. So your client was just covering their butt. They haven't done the most basic steps to figuring out what to do after the death of the mother. Call an attorney friend, and recommend that they get your clients straight. The mortgage can be transferred, and if not, then the lawyer can do the paperwork to file if there ever IS a sale, transfer or other issue that may make the title a problem. Sometimes we are doing tax returns, and sometimes, we are the only professionals with whom many of our clients interact with on any regular basis who have any clue about fixing stuff like this. Rich

MS: I agree with you. I believe the initial "professional" reaction was an OVER-reaction. And that is the one that every Sch C, E and F needs it own 3115, every year. As time passed, and more folks looked at it, I believe for the majority of our clients, the ones who have a Sch C or a couple of rentals, we have been sorta following many of the things found in the Rev-Proc, notwithstanding that we also just Section 179 most everything anyway... Most of us *here* are not performing audits, or doing them for public companies. That is a different world, and that is where the initial reaction came from. I am adding the two elections to each return. I will not do a 3115 unless there is something particular to that client that appears to demand it. Just my 2 cents. The IRS, in all its infinite wisdom, I believe, is running out of fingers to stick into the dike. And this Rev-Proc is just another one of the pieces of the dam breaking. Rich

Well, at least he offered to pay.... Get your check. Get an advance on 2013/14 and roll on! Rich

There were three possible elections. This is what ends up as the election: IRC 1-263(a)-1(f)(i-ii) is the De Minimis Safe Harbor to expense costs of Acquired Property. Ok, makes sense. This is the $200 one... IRC 1-263(a)-3(h) Safe Harbor Election for Small Taxpayers: This election to *NOT* apply the improvement rules to the following properties: So we have to list the properties... IRC 1-263(a)-3(n) Capitalize Repair and Maintenance Costs: This is the $500 election. But it says the taxpayer "elects to capitalize repair and maintenance costs". Meaning, if it is over $500, it needs to be on the Deprec Schedule. Well, that works for the feds as long as S179 is at $200k a year, but many states only allow under the old rules, (I.E: $25k...) So you get stuck on the state, and if you make the election, you are setting yourself up to fight the IRS when ever you don't capitalize a normal "repair". Am I Right in thinking this? Rich

Well, I have a number of clients that spend zero time on those tasks... They are broke, but working all the time, so there is that that. You gotta run the Biz. And that is accounting... Rich

Rita: That is great news! And it only got better, it sounds like. Did your client check the unclaimed funds accounts at the state and find that insurance policy? I recommend it to many of my clients to check, because of things like that. I have recovered over $30k for my clients. Rich

Duplex printing is annoying.... Page 1 of a form ends up on the back of page before, and cover letter ends up with page one of the 1040 on the back.... I guess there is a way to send the Cover letter to the printer, then the comparision worksheet, then the 1040, then the .... But if you have to do that many print commands, you are wasting more time than paper... Just my thought. I only print a client copy anyway. So it fills up their file cabinet. Rich

Cool Rich

Intuit wanted a price increase. So they "unbundled" the Sch C/D/E/F from the "normal" TT package. People complained. So What. Then they realized that they were not selling as much product. Uh-oh! That is not good. So, lets send out an apology letter. Lets offer folks a coupon for next year, and/or some sort of "discount". But we still got our price increase... They do not care unless sales drop. Rich

I welcome Ron back as well. But I run 2013 fine on a Server. Not 2012. I can only get that one to run in standalone, so I only have one computer with 2012 on it anymore. But 2013 is on 5 computers with three logins. 2014 is running fine on five computers with 5 users. Rich

Jack: He is right. Same with spouses and Dependents. They are all covered. No separate card. And if you get injured away from base (auto accident for example) the hospital sends the bill to the DoD. Rich

Gail: You could continue the "old" LLC while the A/R is collected and the $ split between the former partners that way and file returns each year, and then set up a new LLP/Sole-Prop/PC for the continuing attorney. If the continuing attorney is going to get all the $ from the A/R and not share them with the departing partner, then you may have an issue with "hot assets" but Since the continuing attorney is recognizing them as ordinary income, you don't have that big a problem. Rich

Tom: All I would say, is that your Wife has to slow down on the sorting of the info on those returns, you could bill more! I keep all my receipts in a box, but I use Qbooks to run the biz, and all my info is in there. I also run it for my personal account, and that makes it easy. To the original poster, $154 isn't cheap. And I would not do a return, simple or not, for that, but... It gets more expensive, if you add other schedules to the return, (I believe). And yes, it is designed for a lack of documentation, and to encourage you to check the box and increase the refund. If $1,000 in charity gets me a refund that is larger, than $2,000 or $3k is only going to look better. However, I believe that TT and TaxCut and most of the sold to taxpayers software actually results in a net gain to the IRS. Sure, folks overstate some of the deductions, credits, etc, but the real problem is that they do not get all the credits, deductions and other things that us pro's know about. Rich

Actually, this and the change in the definition of "full-time" under the ACA from 30 hours to 40 hours, does have a reasonable chance to pass. The R's can not and never will repeal the ACA. But they can pass a technical corrections piece. And these are some of them. JMVHO. Rich

KC, It isn't about Tax Court and getting there, because few, if any of us, will ever get there. We do not work for the IRS, we work for our clients. The case I cited above? The IRS asserted that the T&E was "excessive" and the Tax Court disagreed, finding nothing in the law that states the just because the amount of a particular T&E activity is high it is excessive. The taxpayers paid alot to entertain, because they earned a lot from the clients. Just like the OP in this case. He wants to pay for the T&E of a client that has brought him lots of business. The de-minimus rules exist, and if you go past that, its a documentation issue, and once you have that covered, then you are in compliance. Rich

Ron: Glad to have you back. ATX 2012 was a disaster, 2013 went well. So far, so good for 2014. Glad your heart is ticking properly, it always was, but now, it has some more support. Rich

Naveen: So sorry to hear of this development. 15 years ago, I was called away during tax season because my father had suffered a severe brain aneurism, and was on life support. We did not have the Living Will directive in his case, but had to make the choice to discontinue the machines. It was difficult, but I would rather remember my father out on the softball field then him in the hospital. It is really hard now, but you know your wife and her wishes, and it is what I hope my wife would do if facing the same circumstances with me in the future. When you do the right things, the future is always easier. If in your situation, I would be devastated. May there be a miracle, if possible. Peace to you and your wife. Rich

Tom: Look up tax court cases. The attorneys in New York that had tickets to the Yankees. The IRS audited and threw out $80k in T&E Expenses for 4-6 people attending the games, meals, hotels, limos and other travel and incidentals. The IRS lost in tax court. Can not remember the cite. It was in the last three years. If your clients do it right, and follow the rules, they can win. Rich

SOL = the steaming pile. SIL =Sister-in-Law (Or Outlaw, in our family) Rich

NECPA: I feel your frustration. Jack suggest raising fees. Always an excellent suggestion. As for the client at the supermarket? I just tell them "I decided a long time ago that I will run my business, but my business will not run me." And smile. And if I am at the school play or other social event? If *I* don't get away, then I am not a happy camper. Rich