Lion EA

Of course, I'd charge. It's your time. If you're going to work for free, take a vacation instead! Charge them your top hourly rate, plus a PITA fee (I tend to label it The CARES Act or something appropriate on the invoice). And, when they run payroll themselves in QB and call you with questions, charge them your top hourly rate, minimum one hour (or, if you're feeling generous, 15-minute increments) billed monthly. Don't forget to charge them for all the clean-up (bookkeeping on your invoice) you'll be doing for them before you can prepare their tax returns next year. Stop work when an invoice is unpaid. They are going to suck up your time, so start by charging them now. If they don't complain, raise your rates.

My first thought was a sale of an asset and a purchase of an asset. But, I see the step-transaction that Danrvan's explaining.

A vehicle trade-in is a like-kind exchange, but like-kind exchanges are limited to real property only -- with thanks to cbslee for confirming my memory of that TCJA change. You're probably talking about 2019 or 2020, so definitely under the TCJA change.

If you're talking about a like-kind exchange, isn't that for real estate only? TCJA?

TimberTax.org

Welcome to the club!

Did you read the Instructions for Recipient on Form 1099-Q? Look at the first paragraph: https://www.irs.gov/pub/irs-pdf/f1099q.pdf

Is capitalizing expenses an election?

If the house went into the partnership 10 years ago @ $200,000 and the partnership paid $100,000 of expenses over the years, then the adjusted basis is $100,000 and the gain is $190,000.

I think you have to show partners' basis when a sale, and as Bee says, the capital accounts will make your BS balance. No expenses to deduct over the years? Only capital improvements?

Frog, if you're looking at it for an employer, the IRS does have the 15-series of Pubs and offers a spreadsheet that's not bad for small employers. Employers could have a combination of old and new W-4s from their employees. If you're looking at it for an employee. He doesn't have to redo his old W-4 if it's accurate for him. For a new job or to change his withholding with his employer, he does need to use the new W-4 now. The IRS's online withholding calculator is improving. And, your software may have a good W-4 planning worksheet.

Yes, I meant the W-4. Where the old W-4 relied on exemptions, unless a taxpayer filled out all the worksheets re second job, itemizing, etc., the new W-4 doesn't make use of exemptions, unless the taxpayer goes into the middle sections to give more detail about income and credits and such. So, taking the W-4 info to look up on the tax tables will rely on different information and need different tables.

Form W-2 was redone.

Ha!

Oh, yes, both my lawyer client and I agree that ticking boxes does NOT equal understanding what documentation is needed to qualify for a mortgage. And, I do have a blank Form 9325 at the ready in case his lender asks for it, but we don't expect a box-ticker to ask for it as it's not listed by name on his list of boxes. The lender's still asking for an IRS transcript. So, we created a package of printed forms to overwhelm the lender with paper. The lender has been quiet for a couple days, so maybe he ticked in frustration. Or, he left early for the holiday weekend. This is almost as frustrating as the lenders that demand a comfort letter.

I'm a cross & check gal myself. But, I don't want to have to tick someone else's boxes!

I'm in ProSystem, but I usually forward the email acknowledgements I have directed to me for IRS and the states; I add my own intro and forward to the clients. It's in letter format and friendlier feeling. I have an e-file history page that I can upload to FileShare that is simpler, chronological, and includes the amounts of refunds/balances due that I sometimes use and did upload to this client for his lender. But, lo and behold, ProSystem, that I thought had everything and until this point has had everything I ever wanted, does NOT support Form 9325. In their knowledgebase, I see instructions for Form 9325 for ATX and Taxwise, though! A helpful rep researched and added my request to enhancements for 2020 and directed me to the e-file page which I already uploaded. The lender, of course, had them sign Form 4506 to get return copies as-filed. But, I think some or all of that process is slowed by Covid. So, the lender told them to go on Get My Transcript. Neither spouse is able to get on due to the IRS claiming their cells are not in their names. I'm locked out of eServices for the same reason. The IRS says AT&T tells them my cell (since the 1990s) is not in my name; AT&T tells me my cell is in my name (the bill comes in my name!). As my client (a lawyer for a large bank) says, lenders are "box-tickers." I thing that's a perfect description. We peppered the lender with paper in hopes that something will allow them to tick this box and more on with the refinancing.

Thank you, Margaret. I've forwarding the email that's generated as a more "friendly" confirmation (I can add my own intro about refunds or whatever to personalize it to each client's situation), but I think Form 9325 will work better for this couple.

There's an IRS form that populates via the e-file information. I haven't used it; use an email format instead as more user friendly to my clients. However, I have a client that needs to provide information to a lender to refinance and think that form will look better... I tried searching IRS Forms & Pubs and tried Googling. I'm not using the right search terms. I think it's a high number, such as 9XYZ.

IRS doesn't care what a state court/divorce decree says. However, if a bully can take your client back to court because she didn't adhere to the divorce decree, it sounds like he will. This has to be her decision how to file for 2019 after you explain her options. If they were MFJ for 2018, you do have to provide a copy to either spouse. However, you can charge for it (assuming you gave the couple a copy when filed in 2019). Haven't had a separated couple for some time, so someone will jump in here to clarify this...

I have clients that did what yours did -- convert to a Roth and pay the taxes. They're doing it as part of their whole estate plans. They don't expect to use all their various savings during their lifetimes and have the money to pay the taxes now. They're setting it up so their kids don't have to sell something immediately to pay the taxes when they inherit. And, I have clients that were between jobs or transitioning into retirement with part-time employment, so were in a lower tax bracket than they'd been in years. They converted enough to a Roth each year to not go above the 24% bracket (one was able to stay in the 12%) while they were unemployed or underemployed before getting a new job or drawing on their pensions/SS and raising their bracket again. Facts and circumstances.

Deferral of withholding the employee's SS.

If you don't need your 2020 RMD, or don't need all of it to live on, letting it remain in your IRA lets it grow tax deferred longer. Markets took a hit during this pandemic, so you stand a better chance of recovering if more cash remains invested longer this year. Also, as you say, if your IRS withdrawals make more of your SS taxable or put some income in a higher tax bracket, you might want to control how much, if any, you withdraw. Depending on your investments, this might not be a good time to sell to take withdrawals. If this is a low income year for you, and you don't need your full RMD for living expenses, it might be a good time to convert some of your Traditional IRA to a Roth IRA. If you expect to be in a higher bracket or expect to need less to live on in 2021 compared to 2020, then you might want to take your RMD, or a larger portion of it, this year. As with anything tax, the answer is It Depends!

Deferral is for the employEE portion only.

I agree with Gail. I haven't prepared a return for a military member except in classes. But, the difference is NOT in the percentage. The benefit is the longer TIME in which to reside for 24 months out of 15 years or whatever the "military" timeframe is.