schirallicpa Posted April 7, 2015 Report Posted April 7, 2015 pay big tax. Client owns retail gas/convenience store. Has had it for about 10 years. Finally getting debt paid off. 1120S - 100% ownership. Client bought a vacant building and started renovating it to make it into a retail hardware store - in 2013. Helped with the pro-formas for the bank, and all that. Sets up as 1120S - 100% ownership. Client sells gas store in late 2014. Tells me about it in October, sale takes place in Dec. Client owes 385000 in tax. Because he didn't bother to let anyone know his plans ahead of time. But he just doesn't understand why. Quote
jklcpa Posted April 7, 2015 Report Posted April 7, 2015 He sounds like the guy I'm meeting with tomorrow, although mine does know that when he sells something big he will pay in something like an estimate. He uses the estimate vouchers like deposit slips and pays them at odd dates or adds several together. Last year I gave him the extension for his federal return with explicit instructions, and he sent that in on May 8th because he didn't have the funds on 4/15. Then he tried to say I didn't tell him. I'm supposed to meet with him tomorrow to deliver his personal returns and returns for 2 LLCs, and the adult son's returns too. I received an email this morning from their attorney's assistant that the 2 of them decided to gift the dad's ownership in a third LLC that dad and son own together over entirely to the son. Gifts dtd 12/31 splitting part of dad's ownership to the mom and then further breaking the gift down to be on 12/31 and 1/1/15. They just decided this 2 weeks ago and no one ever mentioned this. 2 Quote
Abby Normal Posted April 7, 2015 Report Posted April 7, 2015 I have elderly clients coming in later today who are upset that they owe 50K on 1.1 million sale of principal residence they bought in 1992. I'm going to tell them to be glad the laws benefit them because if they didn't they would 400K. And to be glad they made so damn much money! 5 Quote
Abby Normal Posted April 7, 2015 Report Posted April 7, 2015 Last year I gave him the extension for his federal return with explicit instructions, and he sent that in on May 8th because he didn't have the funds on 4/15. Then he tried to say I didn't tell him. When I give a client an extension, I always efile it as well. Just in case. 1 Quote
Margaret CPA in OH Posted April 7, 2015 Report Posted April 7, 2015 And what's wrong with a little challenge about now? Doesn't this stuff just keep us on our toes - and out of our minds!!!Far less troubling, but nonetheless irritating - second year client sent me W-2 10 days ago before vacation. Yesterday sent 5 separate emails each with screen shots of power bills, mortgage statements, cell phone bills, county real estate page. I'm supposed to add up this stuff. When I reminded her that I bill by the hour she responded that she would try to get an H&R appointment. Geez, does she think they will be happy to look at screen shots of bills for data entry? She sent added figures this morning.I'm grouchier than I have ever been and I honestly don't think it's all me. Well, maybe.... 5 Quote
michaelmars Posted April 8, 2015 Report Posted April 8, 2015 big question is why is the new building in an S corp? Quote
schirallicpa Posted April 8, 2015 Author Report Posted April 8, 2015 actually - the new building is held personally. But.....my point being we could have deferred gain........................... Quote
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