Lion EA

Rita, does she have relatives I could fix up with my clients? Maybe we could organize a dating service on the side.

I'm more behind than ever. Will get the corps done by Monday, I think, and one partnership that's been in the stack forever and a trust project that's months old. Then I hope to pick up speed on personal returns. But, I have a couple on extension already and will require extensions by this weekend.

Other Country. But, no details until $300/$600 for passive investment income.

Right, adjustments have two parts. In my software, I pick a code from drop-down menu for one box and then put the amount of the adjustment in the next box. Watch your input/read the input screens, look at how it appears on 8949 (is it what you expect?), and read the diagnostics. I sometimes have to change a number to a negative number in an adjustment.

Hey, Gail, did she pay the price that she valued it at on her tax return?

I start with the 1099-B and make sure the proceeds match. Then, I turn to the supplemental information for basis information and other details. If covered, and SI doesn't match 1099-B, then I have to report adjustments. If uncovered, I stick with SI info. And, then I have to make sure I agree with stock option basis, that the SI really included the W-2 code V. If not, more adjustments. I think it got more complicated this year for preparers.

So, if her broker is charging $1,000 to trade, you can charge $500 to report the trades. I'd probably invoice $1,000 and Loyal Client Discount $500

Kiddie Tax could come into play on kids' returns, requiring info from parents' returns. Pretty sure the SSN should be the kids' SSNs. Will hurt them come FAFSA time, though. Think I would nominee and try to get brokerage to change SSNs for 2015.

Thanx, Catherine. Eric told us about that when he added that for us. But, I'd forgotten and was searching for AMT or something recently and couldn't remember where to find it, if I was remembering right, etc. READ.

Ah, inventory, good catch Mr. Davis. I have managed to avoid clients with inventory. Well, except for the optician with some contacts for sale, but I know he found his ending inventory on his own ceiling, and he's gone now. He was the only one willing to pay for my time to adjust his QB file after preparing his returns (or even to LET me adjust), though, and did his own payroll beautifully. So, I miss him. As for property tax, I can't seem to get them to believe equipment isn't an expense. So, for the most part, I gave up. I print their Equipment detail and prepare the income tax returns and property tax returns. But, if I adjust their QB file and explain why, leave them written instructions on where to put what, they don't continue. (QB prefills the transactions for them, so it's always SALY.) The DIY owners/wives or PT bookkeepers use QB for money in/money out to record checks/charge cards and not for accounting. (Had one call me to ask where to put large check the shareholders/H/W wrote to themselves at tax time. I'd set up an account labeled with their names and 95/5% for distributions so bookkeeper didn't have to do the math or even understand QB terminology. I explained, as I do about twice/year, to put it in 95/5 and I would break it up into their names at tax time. I found it under Marketing expenses!) CT property tax forms ask about the amounts paid to ICs/Forms 1099-MISC, consumable office supplies, etc. So, my biggest issue with property tax forms has been to get Postage/Shipping in it's own account and out of Office Supplies to not inflate the expenses we have to report. Yeah, I've given up. I get a Backup. Do my own thing with it for my tax prep purpose. I pick one issue each year per client and work on that. Since late 2013, have been working with one on the $500 threshold for Equipment. Just worked on that firm yesterday to start their returns, and moved all the little amounts out of Equipment. And, Repairs was actually Office Cleaning, so I think I'll insist on a name change on that account. And, don't get me started on the ones who bring me a Quicken file.

Or, beneath you...

Thanx, Judy.

I just printed some reports tonight for an S-corp: P&L, BS, detail of equipment, detail of shareholder distributions. I'll also get detail of salaries to split out officers from other employees. I did a lot of drilling down, because I am not their bookkeeper. She put things in equipment that didn't belong there and had some expenses as negative income, things like that. As Ill said, for a Sch C you will only need a P&L.

Move to the Bahamas. And, bring Tom over at tax time, paying his expenses.

Not until they're divorced or separated by state law. Living separately does not make them single. MFJ or MFS.

To file HOH, don't you need a qualifying child and not a qualifying relative? Doesn't her son fail the age test?

Oh, my, Tom. Yeah, as I get older, my clients get older. Do your best. BUT, if you have to dig or wait while someone digs or suspect there's a better outcome out there, put him on extension. Have him pay in with the extension and pay his first ES payment, but put him on extension. The kids may get involved someday and think someone's cheating their father. Document, document, document.

Have him pull out his paperwork from the purchases.

Don't just work on from here to there. Work on from here through the rest of his life. Retirement and future health issues. Estate plan (providing for wife, kids.) Maybe you see an S-corp in his future. Assemble a team for him that starts with you but includes a financial planner (or more than one), lawyer, investment adviser, etc.

Read your state requirements. (In CT he would have to file if any CT w/h.)

Not too many states have any type of official legal separation any more. (CT does not.) If you have a friendly, local lawyer who could cite your state's law, you'll be more confident. And, use Rita's articles.

Are guns and ammo a deduction for Rita if she has to use them on PITA clients?

Their missing paperwork should state the start date; might well be 1 January 2016. One common reason for organizing an LLC is to hold rentals to protect personal assets if someone's hurt or something in the rental. If SMLLC and no employees, no reason for an SS-4; but I prefer NOT to use my SSN so have an EIN. Tell client to bring you info. He can contact his SOTS to obtain copies, maybe for a fee, or search online. Not your problem!

Don't use ATX, so can't answer that part of it. Is 0 an option? Is there an N/A option?

Max out 401(k). If they have a fully taxable investment account, invest a portion in double tax-free municipal bonds. Non-deductible IRA contributions immediately converted to Roth IRAs to shelter earnings and appreciation. Work with employer for an accountable expense plan instead of un-reimbursed employee expenses. Raise rent. Pay property taxes in January instead of December. Teacher may have a 457 plan available also. Employ children re rental or start a side biz and employ children. Teacher may want a sabbatical. Hire a fee-only financial planner.