Tax Prep by Deb

If you like Abe Lincoln be sure and check out the Ford Theatre. I learned more history regarding his assassination than I ever did in school. It was actually one of my favorite spots. Also take time to enjoy the beauty! Coming from the Central Valley in California, I loved all the green, trees, and for the most part lack of fences around homes. It was a totally different world in DC and Virginia. (of course of lot has probably changed since I was there. It's probably been 10 years or better, but would definitely return if circumstances allowed!) Deb!

Is it possible that in the first year you used actual and depreciated? If so then you can not switch to mileage, you will be stuck with actual until vehicle is disposed of. Just a thought!

Thanks everyone! I'm going with your advice and my first instinct. We will address this issue when it becomes an issue.

I have a client whose husband died six years ago. In 2013 she received in his name and social security several loans that were cancelled amounting to $15,111. There was never a trust return filed because other than the house they owned together he had no other assets, so no need for anything but a final joint return for the year of death. Now six years later the 1099-C's show up. How do I handle this? Any help would be greatly appreciated! Thanks in advance!

After listening to all of your comments, I have decided to take a conservative approach. I do believe the girl is providing more than 1/2 of her support, but just barely. This one is a tough call for me because of how close it is, but I would hate to give her the refundable portion only to have IRS challenge it and perhaps she would lose. It really is too close to call. If her figures had come in a little higher I wouldn't have a problem. Thanks to all who responded.

Her education expenses are not terribly expensive as it is a community college, but because of her and her parent's income she does not qualify for financial aide and has not received any scholarships or grants. Total between tuition and books is about $1,400. Parents allow her to live at home and they have helped her with some of her tuition. But again when I ran the numbers it appears that the daughter is providing just over 1/2 of her support. It's close but leaning more towards the daughter.

Parents cannot claim her because she was not a full-time student during the year. She only carried 10 units per semester and full time is 12. Because she is not a full time student she is not a qualifying child for the parents, but would be a qualifying relative if she had not made $13,000. Also we did some quick calculations and it appears she made have provided just over 1/2 of her own support. Do these facts change anything?

I have a client who went to college and lived with her parents during 2013. She is 21, she is considered to be a half-time student but did not take enough credits to be considered full-time. She also earned about 13,000 from a part time job. Parents are not able to claim her because she was not at anytime during 2013 a full-time student, only a half-time student. Given this set of circumstances would she qualify for the refundable part of the American Opportunity Credit?

Same here. Ever so often I will go and uncheck everything, but day to day no, and I have not had a single reject due to this error.

I've had it several times with the 1099G.

Yeah me too! My 5:30 that never showed yesterday, just called saying he was on his way for his 5:30 appointment this evening. I guess I could have written his appointment down wrong, but I don't think so! Deb!

I had a slow enough day that I was able to take a couple hours off and make a quick trip out of town. It felt good!

I have a client, (has a very good log book) that works in construction. The guy he works for does have a shop but requires his workers to go straight to job site. Because it is construction, he doesn't have a permanent work site, but instead can be sent all over the place within the same year. HRB and his buddies told him he could deduct his mileage because he doesn't have a permanent work location and that each job they do is temporary in nature. The average RT distance from home to job location is between 145 to 200 miles per day, however the distance from his tax home and his residence is about 140 miles RT. Would you any of you take a mileage deduction? Or would you treat everything as commuting? The guy is very level headed and in our discussion even he admitted that the rules seemed vague to him. I will be honest, I hope someone tells me differently but I just don't see it. I think it is all commuting. I know it would be if he moved from one job location to another on the same day (the distance between the two) but this doesn't seem to be the case. Deb!

Unless the return changesnto reject, it keeps the same sid from the moment you first open the return, thus the problem with ca time stamp. It doesn't matter how many times you recreate the e-file, you have to change something, resave, get the reject message then recreate. That is what I started doing for returns that I started more than 2 days earlier.

Real common for California to reject. I just recreate after the reject and resend. A bit annoying but otherwise work ok.

I think this has to do with new directions given to the banks in now doing banking with legal marijuana businesses. The cash will be traced by I'd to curb drug trafficking and money laundering. That's what my bank claims.

You both confirmed my feeling. 7 year general purpose tool/equipment fits the best that I could see. Thanks!

Does anyone know what selection to make in ATX for a cargo trailer? As far as I can see it is a 5 year property, but none of the selections look even close. I would sure appreciate a second opinion. This is an enclosed trailer that a band uses to haul their equipment from gig to gig. Deb!

I had my blow out last week. Had a client in the office that I was helping with bookkeeping issue. This client had an appointment and we were trying to find a discrepancy. In walks (without an appointment) another client who was extremely upset and couldn't understand why she owed this year. Went on and on about this and then suddenly saw my other client sitting working on her computer and then got all upset because we were discussing her financial info in front of someone else. Kept repeating over and over how uncomfortable she felt. Finally she left, called back later that evening and started in again. In a very calm but firm voice I told her, yes I agree it was an unfortunate situations, however I told her you came in without an appointment, took my other clients valuable time, and you were the one that brought up the subject and kept speaking about it even after becoming aware that she was sitting there. She then says well, she was working on a computer (her own personal laptop) so I assumed she was working for you, I politely asked this client, have you ever known me to have someone working with me except my dad (who by the way passed away over 5 years ago)? After that it went silent, turns out she still likes me, almost apologized to me, and came back a couple of days later in a totally different frame of mind. I sure hope that is the last one I get like that this year! Rant Over!

I agree. There does need to be testing. California has done it ever since I began doing taxes. It does help some but I have seen some very bad tax preparers work just the same.

In almost everything else I do, but for some reason I really wanted this to be done and now all I have is a worthless certificate hanging on my wall. Oh well!

I wish there was a way I could get back the money I spent to earn a worthless certificate!

I'm sooooo hungry now! Thanks a lot Tom

Have you tried duplicating the return to see if it corrects itself? I have had a couple of cases on the schedule A were only part of the form was showing. I believe I closed out and reopened and everything was there again. I've had some small quirks, but nothing major so far.

I think 2014 tax preparation is going to be real fun! I can hardly wait!