joanmcq

The guy my client uses is a genius. All stock trades. He follows certain segments of the market very closely, and although there were a few things he sold at a loss, there weren't many. I'm thinking of seeing if he'll take me on as a client with a small initial amount.

Nope, the wife (my client) forwarded his email, plus the attachments which were the brief he filed in court and a summary of divorce laws in MA. The email was basically a threat, that If she filed separate he would sue for half the refund, plus some other nasty stuff, including how could she claim the daughter as a dependent when he paid X dollars in child support and 68% of her college tuition. Because dad lives in CA now, and she spends absolutely no time with dad? He was also bitching in the brief about her AirBnB income....income that was levied by the IRS for back taxes he was supposed to pay on one of the joint returns filed after he left. He's supposed to send me his stuff today.

Dear maybe client: you are a total douche and I understand why your wife isn't pissed you asked for a divorce. Bullying her into filing joint just because you owe a lot of tax because you emptied your 401(k) to pay child support isn't currying any favor with me. And that brief you prepared yourself to file with the court? Not gonna win you any points with the judge, even if they did use the wrong factor to compute your child support.

I agree. BnB, not a rental.

Bob, I have a client with a VERY actively managed account, almost all short term trades. 1099-B ran 5 pages. He earned her $63,000 in short term capital gains on about $475,000 of assets. You don't have to be giving investment advice to tell her she has a crap advisor, is overpaying fees.

Yes, I've no idea of the parents or the grandkid's financial situation. I finished working up the client and she's in the 0% capital gain/qualified dividend rate, so she won't actually be paying any tax on them. It's that time of the year when all the weird situations are come in.....

Client is custodian of her grandkid's UTMA accounts (she gifted stock to them), but the 1099s are under her SSN, not the grandkid's. Can anyone think of a reason for this? I think 'she wants to pay the tax not the kids' but the kids won't be taxed; the amount of dividends are minimal. My thought is to nominee the divs. Anyone have any thoughts? I haven't seen too many of these accounts in a long while, but if I recall correctly, they are a completed transfer?

Thank you Kea!

Client worked in NY from Nov. 2004 to April 2007. During that time he was granted NQSOs and paid into deferred comp. Moved to CA and continued working for the same company. Fast forward to 2014, and he leaves company and as part of his severance package is will be paid out the deferred comp over the next 10 years. He also did same-day exercise & sell of the options. Due to NY's weird reporting rules, of course all of his box 1 wages for 2014 are reported to NY. So I'm trying to allocate the deferred comp/options. First off, the IT 203-F tells me I should use the IT 203-B for the option allocation since they are readily valued on the date of grant. But the B seems to only pertain to current year allocations. Does this mean the NQSOs are not taxed to NY? Seems odd since NY is pretty aggressive in taxing any NY source income. Then for the deferred comp, the IT 203-F refers to the three years before termination. He hasn't worked in NY since 2007. Or does termination date refer to the year he left NY? I then have no reference for what was NY source vs. total income. Of course most of these years, his income was 100% NY. If termination means the former, none of his income was NY source. If the former it looks like any will overtax his income. And if I knew the actual amount of the deferred comp that was earned in NY, I wouldn't be having this issue. Or is line 1c simply the total amount of deferred comp? Of course he is looking for his old tax returns but may have destroyed them. And he can't get W2s from the company that far back. I think I'll go back to some of the W2 & a Sch. A returns in the bin.

The drains are almost immediate now. Except for last night.

I had no qualms about taking COBRA payments as SEHI when I was on it. The Medicare ruling on SEHI pretty much quashed the name of the business qualification IMHO.

The household would have had to qualify for Medicaid for the exception to apply. Parents owe the penalty. The kid would have qualified for a catastrophic plan because he is under age 30.

Yes, I just sent mine.

Is she in Guam because of his station?

Do you play audit roulette in your practice as when to follow tax law? I don't.

The max credit was $7500. He's already paid 2500 if you count this year.

I'm only doing one of them. Friend of mine, and when I was explaining the return to him, I watched his eyes glaze over, and he said 'ask me anything about electricity' (he's an electrician) and spouted some electrical gobbledygook that made as much sense to me as the tax return did to him. It's actually a straightforward return except for that damned credit. And so easygoing he just told me 'take it all on my return, who knows'. I'm going to advise him to just agree to sell the damned house; when we were talking, he said he already found a place he'd like to buy that is much closer to work. Has a hellish commute from the house he has now.

Can't file single, Jack. You look up the regs. Only pertains if there are kids allowing for HOH.

Got a reject of a simple return today. Why you may ask? Client buys a house with then girlfriend in 2008 & took the first time homebuyers credit. Remember that one? Yeah, that one. The one ya gotta pay back. How'd they split it, or did they split it? Not sure at this point. Maybe they both took the whole damn thing; that's the year you didn't have to send in supporting docs. Taxpayers marry, and now they are really badly separated. For two years, fighting over that same damn house. Taxpayer couldn't even bring me last years return; apparently Liberty gave him all the boilerplate docs but no return. I do have most of 2012, when they last filed joint, ex always did the taxes. Guess it's time for a POA and call to the IRS. Blech.

I'm glad to see she left 'the bastard' though.

I'm more caught up than ever before, but have only had one client say she was going to try to self prepare this year (thought of saying, are you up on the new repair regs then?) and have plenty of new ones. I attribute it to my assistant being well seasoned. She's taking her income tax class at community college this semester and is acing it, plus she's now getting an idea of why things go where they do on returns. Never been this relaxed in March. Kinda scares me too though.... Oh yeah, I'm at a week turnaround. Really. At least to the point where I'm looking at the return and asking more questions if I have any. Less than a week if I work hard.

If there are any.

Contrary to Ron's post, the cam girls I know make bank. The red room sounds like a dedicated home office, she'll have merchant fees (all credit card biz; in more is easily traced), utilities, costumes, props as others have said. Also website, and possibly commissions paid if she is funneled business from another site.

My post doc client's fellowship is taxable; he got a 1098-T with the amount makes as scholarship. The amount above tuition was taxable. I had another that just had paystubs from an internship that I had to work from.

I'd be glad he had his guns confiscated! I work from home; don't want crazies.