joanmcq

Well, guy number one might just have to raise his prices. $75 for a biz return? Doesn't want/can't afford CPE? Change the business model to make it 'for profit' perhaps. Seems like a hobby to me. Some of the comments on the article were pretty illuminating too. But I for one, do think that CPAs that do taxes should be required to do tax CPE, just like I'd be required to do accounting CPE if I did financial statements.

Dear client, I warned you when you came to me with your foreclosure through Bank of America that they were notorious for getting issues wrong. Since you cash-out refi'd, there should be a 1099-C in addition to the 1099-A they issued, which appears to have an incorrect FMV on it, especially since I looked online and it showed the property was sold for far less than the FMV they reported. No, I do not know of any way to force BofA to give you correct info or not drop your calls. Please do not rant on the phone to me regarding BofA. Outside of calling the state attorney general's office, I can't help you get the form, but I really do need to know if one was issued. Yes, I agree being told one was mailed to you on 2/28, and later being told one was not issued, and having other BofA employees confuse the form with a 1098 is frustrating. But don't rant to me. I already have an ulcer, and had to take an evening off due to a flare-up after your call.

Same here. The letter explains what the difference is; withholding difference, penalty on underpayment of estimates, math error.

I don't know about NY & CT, but in CA, if you don't amend within 6 months, you get penalties for not doing so. I don't amend until I get the response back for the CP2000. Oh, and I'll find out about the $640,000 on Thursday....

Was the property refinanced at any point? Have a HELOC? Either of these don't fall under the non-recourse rules.

I like the last one. Did good today, big refunds to my two pick-up clients, including one who thanked me profusely because she can now fix the A/C and window on her car. Got to explain how unemployment isn't taxable in CA (yes, there is something that CA doesn't tax!) And did get to give a stern lecture to a client who just retired and didn't have any withholding from her pension. Did get a rather scary call from a guy who lost his job and took out $640,000 from his 401(k). At least he knows he's in trouble (and is over 55 at least).

One thing I tend to think is that we CPAs tend to know more accounting, which is essential for doing complex business returns. I never wanted to do financial statements, but that training has been quite useful in translating my UK client's foreign financial statements into GAAP for the Form 5471. An accounting background is not a bad thing when doing biz tax returns. That said, all I wanted to do was tax, but had never heard of an EA designation when I was getting my degree. I do think my MSBA (taxation) degree does say something about the amount of tax I know, and the depth of that knowledge. If I had just done the EA, I wouldn't have had to do two years + in the salt mine of a CPA firm, but then again, I wouldn't have the depth of knowledge I have regarding all types of returns, plus the financials backing them.

Chose actual the first year?

Dammit, light trucks are a different asset class than frikking automobiles!!! So disposition of truck for $7500 prorated for biz use portion and separate purchase of car? I gotta just work on the easy stuff this time of night.

Ok, done the calcs. Now does anyone know a way to get the depreciable basis into ATX without overriding the asset entry form line 14? Or do I put in the depreciable basis and then just hope I remember the basis for gain/loss is different if/when the car is sold?

jainen, I've never had a client that exceeded the CA limit on Sec. 179. I am not doing big businesses. It's the decision as to use Sec. 179 on the biz computer or office furniture vs. MACRS. Accounting for minute differences for 5 years (especially with rentals where ATX doesn't do the passive loss computation automatically) is a pain in the butt, so if I can avoid bonus depreciation, I do. It's rarely worth the extra couple of bucks of current expense vs. what I charge to deal with it. For big SUVs (when they were so popular), explaining that they won't be able to use the standard mileage rate usually discourages the desire to expense the thing. I haven't done a corp in about 7 years. Heck, this is the first trade-in I've had in 12!

Blecch! I encourage people to private party sell their old cars. It makes life a heck of a lot easier. Election to treat as separate? I'm going to look into that. ATX does have a lovely elections form. Yes, and I also never use accelerated depreciation if I can avoid it. Section 179 or nothing. Tracking different depreciation, losses/gains for CA & Fed is rarely worth the amount of tax savings vs. what I charge.

Starting this, I just realized I never did a like kind exchange in ATX. My clients tend to drive biz cars until they die, or they just convert them to personal. So ATX has been tracking the biz usage since 2006, when it was put into service. Basis was 10k, but depreciable basis is $3472. Accumulated depreciation $2971. Truck was traded in for $7500 on a new Ford Focus that is also partial biz use. Cost of Ford is $26356 before trade in. So I added in the $6528 as a basis adjustment (difference between 10k & depreciable basis), so the total basis of the like kind property given up becomes $7029. Loan taken on new car for $19229. I'm getting $471 of deferred gain on the 8824, and basis of new car as $26,258. Is this correct? It doesn't seem like it; shouldn't there be more gain because of the depreciation taken? It's late.....see the 'I'm tired' thread. I think this lil guy describes me about now.

TP had a second home, so no principal residence exclusion. You'll have to look to see if any other exclusions apply. Can't exclude the gain under principal residence either.

If the loan mod was for reduction of principal, then yes, she has COD income. Part can likely be excluded by the princpal residence exclusion, and part under qualified real business property indebtedness. You'd also look at insolvency. Any of these (since she still owns the property) would result in a reduction in the basis of the property for the amount of cancelled debt.

I hope all of our members who are in KY, OH and IN are ok, and out of harm's way.

Isn't there a spot in your software to indicate a rollover? If the client got the check, and rolled within 60 days, there isn't any way for the trustee to know it was rolled over.

I shut the ringer on my phone off last night and didn't turn it on until noon today. Now I feel about as well rested as I ever do in March!

I'm trying to make my boyfriend understand that if I'm awake at night, like I am now, it means I can work. He is trying to get me to go to sleep earlier, so I'm not so fried all the time. I feel a bit better for my workload though, now that I've pulled out some big folders (longtime clients so they take up a lot of room in the inbox), and so it looks like I've got less to do. I wish he'd read some of you all's statements so he'd get the idea.

Congrats to both of you and anyone else who passed! Now get back to work :)

I got the scansnap 1500 this year, and I am pissed I didn't buy one sooner. Comes with Adobe Acrobat 9, as well as file cabinet software and some other stuff I haven't played around with yet. fast, quiet, tiny, and duplexes automatically.

I had one of these last year. Had to paper file. He's sworn off gambling...hasn't come in yet, but I have my fingers crossed.

Aren't we a sick bunch, "addicted to taxes". Yup. But it's a living!

I did get a couple of simple single people with normal itemized deductions. Yay. No more COD all week, although I've got a new client that is amending his 1120-S for COD, as well as some other stuff that shouldn't have been reported the way it was. Just got a copy to download, but I'm too tired to look at it now. Few more RDP/SSMC clients, but at least none with COD or anything out of the ordinary. Three years back returns for new client. Hey, at least I'm busy!!!!! :)

And if the basis was reported to the IRS, you can check a box that says, "basis is incorrect".