Lion EA

I think it was almost immediate. Check your Junk folder. Here's contact info for a Brass Tax person who answered a question I had: [email protected]

You will have a $0 adjustment for 481 if all depreciable items are not now supplies/materials/repairs and all old supplies/materials/repairs are not now to be depreciated. I have a client with not much biz income that we've been depreciated items under $200. So, now we get to take the remaining depreciation as a negative 481 adjustment, a deduction on her Schedule C. It helps her accept my fee! I also have a client with a lot of biz income that I know I looked for items over $1000 when I checked his QB, so am dreading prepping his 2014 return where I might discover supplies that should be depreciated and have to add to his profits due to a positive 481 adjustment. I've been talking to him for months, but I know the reality will make him unhappy.

Any hints of if AICPA is making any headway with the IRS?

I did the same, emailed Lisa and received that response from one of them at BrassTax.

Gosh, a fiscal year! That's worse than the one I'm working on with about 30 small assets to write off that will amount to a total deduction of a whopping $200 or so. And, she keeps texting me to see if I'm done yet, and how much is this going to cost me, and....

If your client has been in business before the final or temporary repair regs, he probably did not follow the new repair regs and needs to change his accounting method. 2014 is the last year you can file Form 3115 without a hefty user fee. The parts that worry me the most are materials and supplies. Unless I did the bookkeeping, I don't know necessarily what all was in those bulk numbers. And, for some of my not-so-small anymore businesses, I know I didn't look very hard at anything under $1000. So, I may have some items that should be depreciated that were not. Plus I have some very small business that did not need more expenses where we are depreciating some very small items, such as a $100 chair, that should be supplies now. And, this is taking a very long time to go through and call clients with questions and drill down into their QB files. I have a new client who gave me his 2013 S-corp return with pages and pages of depreciation where each item was "Equipment." He doesn't know, and he feels his old preparer is too expensive and does not want to cause any more bills from him. I have some calls in today to clients to urge them to accept extensions. Yes, I need more time. But, more importantly, I want to see where the IRS is going to go with this. Will AICPA convince the IRS that small businesses should include a simple statement of compliance rather than Forms 3115?

That's what we're hoping for in a couple weeks, per Catherine's post above. In the meantime, the best inexpensive solution I've found is Lisa Ihm's $20 booklet and free spreadsheet. My copy was PRIOR to 2015-13 and 2015-14. http://brasstax.com/3115%20Booklet.htm

I've had only two reject, a couple of years apart, with reject codes reading something like DOD cannot be current year. Maybe it had to do with how often the SSA updates their database.

I'm really pushing extensions, as you say, for Forms 3115. And, also, to see what direction the IRS will really go with this. But, I'm getting a lot of pushback and refusals for filing extensions.

Years ago someone stole a bunch of checks from Emmanuel Church and wrote checks to cash and signed them Manny Church. So, now our accounts are in the name of Emmanuel Episcopal Church.

In the past, IIRC we could efile when the DOD was the tax year but not if the DOD was the filing year (2015 when a 2014 return). But, last year SSA started freezing deceased taxpayers files in some cases as a preventive measure against identity theft, or whatever. I always try efiling, but warn the spouse or rep that they might need to mail it in. Frustrating.

Did they ask Omar for his autograph? That's probably showing my age. Did they ask to take a selfie with Omar?

I'm moving so slowly. Was stuck on one who used the marketplace, but it ended up being Medicaid. Now, am dragging my feet over filling out my first 3115. And, people have been mailing in and UPS and dropping off and mailing and.... My back hurts and my chiropractor closed due to the storm. I'm in slow motion.

I am very sorry for you loss and hope that the prayers and warm wishes sent your way will help you find peace. You were a devoted husband with years of good memories to help light your way during dark times. Call upon us at anytime for anything.

OK, I've taken myself around in a complete circle. Is it $200 OR $500? $200 AND $500? Or is one materials/supplies vs. capitalization and the other something else entirely? And, which election section is which? I'm getting more confused the more I read.

I keep rescheduling a new client from Monday to Monday to Monday to...! She may go someplace else if it keeps snowing every Monday during tax season. (And, yes, the Monday appointments have been her choice to fit the working schedules of both spouses.)

The tiebreaker rules come into play if two people try to claim one child; the IRS steps in to break the tie. If the parents living together cooperate, which I would expect since they're both parents and living together, you can work it out to the best benefit of the whole household staying within the law. Pacun's way works. However, did she (maybe via a joint checking account) pay half the upkeep of the house? It is possible for her to be HOH if the housing costs aren't expensive. You see their whole picture. Run the numbers every way you can think of. Do a housing spreadsheet. Also, some planning for 2015 is an opportunity for you to help them pay the lowest legal tax liability.

Yes. If they were not in business, then they don't have an accounting method until they start in business. So, you have a chance to start them out under the new repair regs. Would also apply to a 2013 return just being filed now as new repair regs could be used for 2013, I think. Annual elections.

Some timeframes have to be within a certain time of the lack of insurance. Not sure about bankruptcy. But, if insurance gap was February - May, maybe the bankruptcy needs to be within six months before or after the gap, or during the gap. I have no idea. Charge him a bundle for research.

Sample forms filled out as examples from BrassTax for $20. Worth the money. And, a spreadsheet for attachments is free. http://brasstax.com/3115%20Booklet.htm Also, free newsletters from David & Mary Mellem: Dave L Mellem <[email protected]> Make sure you ask him for his 01/30/2015 newsletter Form 3115 Requirements and Our Interpretation.

Form 3115 as part of return with pdf attachments for any worksheets I create outside the return. Still have to mail a second one to Ogden or where ever. Only a very specific list of documents get mailed with 8453.

Talk to her about MFJ. It might save them both some money.

Didn't they spend their wedding night together? Just met at the JP's office and then went their separate ways?!

If he's gone the second half of the year, never to return, HOH is easy to defend for the spouse. But they got married in November! I'd suspect they spent at least a few hours under the same roof. And, he's in the military! That just screams temporary. (Either he's getting out someday or she's going to join him some day or just spend R&Rs together.) Both those choices really imply that they will eventually spend time under the same roof (and probably already have). I think it would be hard to defend that this is a permanent separation when they just got married in November. Doesn't marriage imply you intend to spend some time together? Really tough sell to an auditor. Now, if they'd been married with him in the military and her filing for divorce in November, maybe you could make a case.