Yardley CPA

My practice is predominately made up of residents from New Jersey and Pennsylvania. I have several that work in New York. I recognize it is necessary to file a nonresident NY state tax return for these folks and take the credit paid to other jurisdictions on their home return. Can someone with experience please let me know if the IT-203-B should be completed in the following example: This is a new client who had had their 2015 returns prepared by a CPA who son is on the same soccer team. The believe he made an error when completing the New York return. Here are the specifics: MFJ, 2 dependent children age 13 & 7. - Husband is in Management, high income earner. Wife is Home Maker. - Live in Pennsylvania - He works for a New Jersey based company that does work in New York City 2 days a week. - W2 Shows following: Wages: 1,198,393 (Includes income from Excise Non-Statutory Stock Option of $706,136.08, indicated on line 12b as a V) N NY Wages 1,198,393 PA Wages 729,980 Pennsylvania Department of Revenue asked employer to verify PA Income. Employer sent the following information: In response to your request, attached pleas find a full set of 2015 W2.s for CLIENT. The W2 statement show the reconciliation and provide explanation of differences between federal wages and state wages (PA & NY). A As further explanation, the taxpayer has $491,758 allocated to New York for time worked in that state. This amount has been excluded from the Pennsylvania State Taxable Wages. T The New York Non - Resident Return, IT-203 reflects New York wages as 1,198.393, with taxable income of 1,180,350. There is no form IT-203-B completed. It is the Nonreisdent and Part-Year Resident Income Allocation and College Tuition Itemized Deduction Worksheet. Shouldn't this form be completed to show the allocation and indicate the number of days the employee worked in New York. It was only about 80 days and completing this form would significantly decrease their NY State Tax. Shouldn't this form always be completed when a non-resident only works occasionally in New York? Thank you.

Thanks very much for all your input. Much appreciated. Happy Thanksgiving!

Thank you all for chiming in. I live in Pennsylvania but the client lives in New Jersey. Two of the older rentals, over 20 but under 27.5, are in New Jersey as well. The newer rental is in Florida. New Jersey is an equitable distribution state. I believe Florida is an equitable distribution state as well. How would this change things? Any ideas? Thank you again.

Longtime client, husband and wife, MFJ. They have three rental properties (one of the properties began renting in 2014, the other two are at least 20 years old each). The wife passed away in April, 2016. For the 2016 return, do I split each of the rental properties into two assets, with the deceased wife's half receiving 50% step up basis, starting on the date of death? The husbands half would continue as is, with the cost basis and accumulated depreciation cut in half, correct? Can you provide any info on how to achieve this in ATX? Do I "sell" half of the property to stop the depreciation? And add a new asset for the wife's stepped up basis? Any insight would be greatly appreciated. Thank you. -

Over the years, I've increased my minimum for new clients to $150 ( and I'm sure this may be low for some ) for the most basic federal and one state. Some of my longer tenured clients may receive more favorable rates. Most of my clients don't bat an eye at the price. They recognize I am very reasonable and provide them with top rate service. Those who have left due to what they perceive to be a high price, have been replaced with two or three new clients. I look to establish a long term relationship with those I partner with. I provide prep and planning, mainly looking at what the future holds and how it may effect their returns in years to come. I do not prepare returns full-time, but after my full-time day job. That doesn't influence my pricing. I believe my experience and credentials provide ample justification for what I charge. If clients feel differently they can pursue other options.

Who gives a ship?!

I'm a one person shop who prepares returns after my day job and on weekends. I've been doing that for 24 years and believe I've gained a good amount of experience during that time. This board is invaluable though; a great, reassuring resource and I truly appreciate and respect everyone who contributes. As has been stated above, being a one man shop does not allow me to ask my partner or associate their opinion. This forum has become my office. I normally prepare personal income tax returns, federal and state. All schedules within those returns are fair game for me. Some I do repeatedly, others not so much. But I will investigate what needs to be done and if I can tackle it, I will. If it's beyond me, I will discuss with the client. I'm not afraid to let them know I have little experience in certain areas. We then determine what is the best course of action...either I prepare the return or they seek help from someone with more experience in that area. I tend to shy away from corporate, partnership and estate returns. I do have one or two corps and partnerships but I absolutely do not prepare estate returns. Not sure why I have an aversion toward those. In any event, hope everyone enjoys what remains of summer. Before you know it, clients will start dropping off their information!

Thanks very much for the replies. Hope you are all enjoying the waning days of summer!

Hello ATXers...I have a client who just turned 70 1/2 this year. She is a retired school teacher who has a 403b. She received notice from the plan administrator concerning her need to begin her RMD. She still works part-time in a non teaching capacity and no longer contributes to the 403b. She receives a W2. I believe she is required to begin the RMD and is unable to defer it. I wanted to make sure my understanding is correct and would appreciate any input. Thank you!

Good information. Thanks for sharing, Elrod.

My condolences, Catherine. Very sorry to hear of your loss and sending prayers to you and your family.

I am using the paid version of both Bitdefender and Malwarebytes.

Bitdefender and MalwareBytes here. I also run Iolo which helps to keep my system clean of clutter.

Advanced Tax Calculations? I assume they mean Taxes Paid to other Jurisdictions. Hopefully there aren't many other calculations they are keeping from their Max package. The taxes paid should be part of Max. In my opinion, you shouldn't have to pay more for that feature. I like how they spun that..."Due to high demand." Yea,...okay.

Thanks very much for the replies!

I have a client, New Jersey Schedule C, who is a landsccapper with about 20 employees. A couple of questions pertaining to his business: 1. He was involved in a lawsuit brought by a client. He agreed to a $20,000 out of court settlement. Wondering if that amount is something that is deductible for him? 2. Also (and maybe this is why he has lawsuits) he hired an ex-convict (did not know the individuals past). He heard there may be some tax advantages afforded to him for hiring someone who was previously incarcerated. I am not aware of any but wanted to see if anyone knew. Thank you.

This is news to me. Thanks very much for sharing it.

I tend to do most of my communication with my clients via email during the actual tax season. I send a secure copy of the completed return to them via PDF so they can review it. I also include any 8879 forms they would need to sign. The majority of clients scan signed copies of the 8879's back to me or they fax or mail me the copies. Once the returns are successfully Efiled, I can move on to the next client. I inform everyone that they may not receive their actual tax packet of information until after April 15th. If they need it earlier for FAFSA filings, or for any other reason, to let me know and I will get it to them much sooner. Now that the season is behind us, I am left with preparing about half my clients packet of information which includes: paper copies of their returns client letter tax summary tax planner 2 year comparison All backup information they provided me I place everything into a Tenenz Folder and place that in a Tyveck envelope. I also have customized mailing labels that I prepare for each client. I've had many compliments on the presentation and I find clients do appreciate it. My question...do any of you use the ATX generated mailing slips with the envelopes made to accept those slips? I've asked Tenenz to send me a smaple of their ATX envelope to see the type of quality and material they sell. Wondering if anyone uses these and what their experience has been?

Based on the information you provided, I would charge $150 to $175 and then extend a new client discount of - $25.

I am sorry for all you are going through, both on a personal level and in regard to selling your business. You did your best to find someone who could represent your clients in a competent manner. It may not have worked out like you hoped but that is now behind you. If anyone does receive correspondence from the IRS or their respective state, if they happen to get audited, they should go to their current preparer. It may be difficult to walk away from this but you are now retired and your former clients should respect that. Your response to their inquiries will dictate how the situation unfolds. I hope it goes smoothly for all involved.

I agree, FDNY...it is a nice feature. The program does not seem complete without it. I don't understand why it should cost more, when you have "MAX", for the program to complete credits paid to other jurisdictions? Why shouldn't it be included as part of the program? Amazes me that they have chosen to dangle a carrot and then pull it away. I assume some firms will pay the premium. I wont be one of them.

Jack...you have been saying it from the get -go. Catharine...thanks very much for posting that site. I just downloaded and enabled it.

The fact that this concerns and upsets you speaks to the type of person and professional you are. You sold your business in good faith to someone you thought was worthy of your clients. Unfortunately, it doesn't seem it turned out that way. There is nothing you can do about that now besides possibly apologizing to those former clients who contact you. You are no longer their preparer and you've stated you do not wish to prepare returns in the future. Others in this string have stated possibly referring those former clients who contact you to another preparer you know of. Chances are, even then, they may not receive the same service you provided to your clients when you prepared their returns and some may still be disgruntled. At this point, file form 14157 if you choose to. Make the IRS aware of what you know and then move on and enjoy your well deserved retirement. There's nothing more you can do. Best of luck to you and your family but certainly stay part of this forum as you have much to offer!

I did....received it a few weeks ago. I'm still "negotiating" with my account rep.

Thanks very much for everyone responses.