NECPA in NEBRASKA

Thanks! I'm assuming that the estate would have to pay out at the higher tax rate and it was withheld in the deceased's SS#. The whole thing is totally messed up. They are depending on me to file any tax returns due. I was under the impressions until yesterday that all of the taxes had been filed in 2017.

It's $17,000 so if it's the estate. yes. They cleared out the IRA and then distributed it. I don't know if there were no beneficiaries set up on it or why the credit union issued a 1099 to a person that had been deceased over a year. There was federal and state withholding. I don't know how they have managed to get this so screwed up. The siblings are getting different information and one of them lives in another state, so the credit union has been holding that state's withholding for the last three years even though it was just a mailing address for the daughter. The mother never lived there at all and I could not get the daughter to talk to the credit union. This is the kind of crap that I don't need in April.

Taxpayer died early in 2017 and received a 1099R complete with withholding for the wrong state and the IRS in her SS#. Her kids say that it went to the estate and that not one person received it. I thought that the estate was closed in 2017, so I don't even know what to do with this mess. It looks like they just closed out the IRA and didn't bother telling the bank that she was deceased. Does anyone have any ideas for how I can fix this? Can I even file a 1040 for 2018 with a long gone taxpayer? I don't even know how to extend it. I did not need this on April 1 and I know that it's not a joke. Thanks!

Taxpayer sold apartments on installment in 2016. In 2018, he paid out expenses for something that was red tagged and had to be fixed. I think that it is an investment expense and not deductible at this time, since they are not longer deductible on Sch A and he does not itemize anyway. If anyone disagrees with me, please let me know. He's sure that he can deduct it somewhere. Thanks!

I am pretty much the same as last year. I do know of one that tried Turbo Tax, but his parents said that he would be back. I am not worried too much at this point, because a lot of my regulars are just that much more difficult.

I just want some reassurance that I am handling this correctly. New (used) business vehicle was purchased 8/10/18 and totalled on 12/21/18. The insurance check was not received until 1/7/19. They are a cash basis. I know that I should report it on the 4684 for 2018 with no insurance reimbursement. Do I just report the insurance check as income in 2019? That seems like the right way to do it to me, but I am really tired and unsure of myself. Thanks, Bonnie

We do use ours in our gardens as mulch and compost. I don't know if that's good enough. There is a lot of smelly stuff from my husband's compost pit with it.

Thanks! That's why I'm looking at something new. They are trying to upsell me on a more expensive version that I still don't think will handle it.

I was looking for a new shredder that cuts to their requirements and I've only found ones that are over $1K. The shredder that I am using cuts what I think are insanely small pieces, but not close enough, I guess. Has anyone else found anything more reasonable. I guess I should wait until after 4/15, since I am looking at new backups, because my Carbonite expires on 4/19. Thanks!

Yes, I just went through that with one. I had her pay tax on her 1099Q so that she stayed under the kiddie tax.

John, I do have an extension deadline set up in my letter. Currently it is set at 3/8. People are feverishly dropping their information off this week to avoid an extension. I really do put most of the late ones on extension, unless I get a little time to pull an easy forward. I set that date, because I try to work on the more complex ones then so I don't have as many interuptions with appointments. The sleepless nights are probably a combination of working on my own and having two elderly parents and a disabled husband that slow me down somewhat. I have changed my attitude a lot this year and am definitely keeping my stress level lower. After having very little personal life for 4-5 months a year since I was 19, I've slowed down and actually went out of town for a weekend after my son got engaged.

Maybe I should change my letter to that cutoff. Since there is only one of me, it would save me some sleepless nights. I have people that just don't find the time to get me everything. Does that mean that you don't file any returns after the 15th or is that a just in case warning?

I set mine up early on and put it into my letter as March 8. I am sick of killing myself for people that just are not in a hurry about my time. The later they are, the more they call and bug me.

Thank you! I did call and ask him questions trying to see if he had more involvement. The owner is heading toward retirement and said that the buildings on the land are ancient and he is just letting them fall whenever. He generates about 3-5 times more revenue from the Sch F, depending on the year. The loss this year is abnormal.

I have been reading so many opinions on this, that I really feel stupid. My client is a farmer who files Sch F for his farming and Sch E for the farm land that he rents to his nephew. He only pays RE taxes on the land and has nothing else to do with it. I am not planning on taking QBI for the Sch E, because he has no involvement besides writing a check and collecting the money. Am I being too conservative? His farm is absolutely a business, but he does have a loss this year so the QBI will carry forward. Thanks to all of you that share here and everywhere else. I am still researching on my own, but I don't think that common sense is always involved in these decisions. Bonnie

You are correct, he does not qualify for Earned Income Credit, because the child did not live with him.

Margaret, the 21 year old qualifies for the $500 credit. That is for older than 16 children and other dependents.

Tom, my practice is not very big, compared to a lot of other small practices. It's just big enough that when my husband became very ill and could not work, I was able to move it home and save a ton of expenses. I have great clients that are pretty much like family, so that makes it more enjoyable for me. I've been doing this since I was 19 when I loved every minute of my job. I still like tax work, but I really stress out about the liability of having my own practice, paying for health insurance, and would love to have more freedom the first five to six months of the year. I hope that you can grow your practice enough so that you can quit your day job.

I don't doubt that Turbo tax is a threat for younger preparers than myself. I am praying that I can hang on and make a living until I hit 70 in 9 years. I have not accepted new clients except for referrals in almost 10 years. Normally when one passes away, I end up with kids or grandkids. I have a couple of clients with a lot of kids that are now married and into their own small businesses so I keep getting more business returns. After having my 55 year old cousin pass away today, I am really hoping that I can make it to 70 and get to enjoy some years in retirement or even working part time at something that I enjoy.

No kidding! I had a Windows 7 update mess up all of the versions of my QuickBooks. It cost me hours of everyone blaming each other and I finally had to update eveyone to QB 2019. I am sitting on an update right now, because I saw some on the other ATX board say that ATX was blaming an update for problems and I'm scared to update, because mine is working fine.

I don't believe that the comparison form has been released yet. At least not by yesterday when I rolled over a return.

I paid for one from one of my CPE vendors, but it's 6 pages long and I'm not about to mail it. I have very few clients that even look at my website, so even though it has timely information, they can't be bothered to check. I am trying to finish changes to my already written one with information about the safe harbor released Friday.

I actually did work for a gentleman that did that very thing. I was very young and just totally amazed. I also had to jump into the trash bags and stomp down the trash so that he could get more in. Fortunately, I could wear tennis shoes to jump in the trash.

I print duplex and love it. My old HP Laserjet 4200 handles it well.

I am so sick of the smell of pickle brine and all of the other fermented stuff that my hubby makes. I wish that my clients would quit encouraging him to make them and sauerkraut.