Amending an H&R Block return...

[Abby Normal]

1. Street name spelled wrong.
2. Business description totally wrong (horse racing business listed as Offices of Lawyers.)
3. Horse assets misspelled as Hourse twice and once as Houre.
4. 7 year life and no 179 on horses. Was told 179 not allowed. Return prepared several weeks after extenders billed signed allowing 3 year life on racehorses.
5. Amending from a 4,288 balance due to a 1,257 refund, plus similar on state.
6. Father and grandfather are in same business. Asked taxpayer why he didn't use their tax pro and was told it's too far away (18 miles).

That cocktail is going to taste so good tonight!

 

[Gail in Virginia]

I will drive 18 miles every day for $5000. 

[RitaB]

1 hour ago, Abby Normal said:

1. Street name spelled wrong.
2. Business description totally wrong (horse racing business listed as Offices of Lawyers.)
3. Horse assets misspelled as Hourse twice and once as Houre.
4. 7 year life and no 179 on horses. Was told 179 not allowed. Return prepared several weeks after extenders billed signed allowing 3 year life on racehorses.
5. Amending from a 4,288 balance due to a 1,257 refund, plus similar on state.
6. Father and grandfather are in same business. Asked taxpayer why he didn't use their tax pro and was told it's too far away (18 miles).

That cocktail is going to taste so good tonight!

 

Well, I hate all the misspellings and wrong description, but I'm very conservative with depreciation.  Is #4 is the only math change?  I get that it should be three years instead of seven, but I have a hard time taking Section 179 or Bonus Depreciation.  (Actually I never take Bonus Depreciation).

I guess a bird in the hand is worth two in the bush, but what if the deduction would be more beneficial in the future?  OTOH, there's also a lot to be said for a great first impression, and nobody knows the future,  so cheers. 

I got four new clients this past season from a preparer with three initials (and they weren't HRB), and she used Bonus Depreciation on all assets, every year,  even one where the people already had a loss on Sch C.  In my opinion, she really did a disservice to the one with a loss.  No savings at all on SE tax.  Yes, I know she just let the software choose the default. 

[Catherine]

I only use bonus depreciation if there is an overwhelming reason for it - in other words, almost never.  Plus MA doesn't allow it, so right there you end up with two schedules to trace in perpetuity.

They could not even spell horse?!  Really?!  And could not even be consistent in their mis-spelling?  I'd be happy to drive WAY more than 18 miles to find someone competent.  But that's just me.  I still drive 45 miles each way to the dentist after finding a real good one when I lived in Worcester.

[Abby Normal]

These guys don't keep their horses long and want to fully deduct when acquired. They also run them in 'claim' races, where the horse can be claimed for whatever price you put on them, if they do well (win?).

I took Sch C earnings down to just under 400 so not SE tax. Also had winnings in 4 states so getting the Sch C to a small profit means we don't have to file in those other states. Or, at least, we're not filing those states and if they ever come calling we'll fax them the P&L for that state showing almost no income.

[Abby Normal]

39 minutes ago, RitaB said:

Is #4 is the only math change

Sales changed and many expenses changed. They had COGS which I don't get at all. It went from almost 20k in profit down to less than 400.

Taxpayer did make mincemeat out of QBSE with duplicate transactions, missing transactions, personal transactions, etc., but he was able to export it to an excel sheet that I could fix up easily enough.

[RitaB]

16 hours ago, Abby Normal said:

These guys don't keep their horses long and want to fully deduct when acquired. They also run them in 'claim' races, where the horse can be claimed for whatever price you put on them, if they do well (win?).

This is the client you have to remind to tell you when they sell or trade an asset.  And why they have no basis in the asset.  But I get what you're saying I think.

I woke wondering why I think you can't take Section 179 after the due date and discovered that I was thinking about the olden days.  Or perhaps pulled that out of my left ear.  Which is exactly why I cannot do tax returns with the client present.  I would have a heart attack the next day.

Oh, and I would WALK 18 miles to make $5,000.  Or give it to a good dentist.  All day, every day, uphill, barefoot, in the snow, both ways.

[Abby Normal]

1 hour ago, RitaB said:

give it to a good dentist

Didn't you learn from Obama that using pronouns like 'it' or 'that' can cause you a lot of grief? Care to clarify?

https://www.nbc.com/saturday-night-live/video/needleman-the-dentist/n9232

Skip to 1:33 after the ad plays.

[RitaB]

Some days I just open my mouth to change feet. 

[JohnH]

1 hour ago, RitaB said:

Oh, and I would WALK 18 miles to make $5,000.  Or give it to a good dentist.  All day, every day, uphill, barefoot, in the snow, both ways.

But in the snow it's smart to wrap some barbed wire around your bare feet,  just to get a little traction. 

[BLACK BART]

19 hours ago, Catherine said:

...consistent in their mis-spelling?...

Haven't you misspelled misspelling?  According to an unimpeachable source (Wikipedia), there's no dash in there.  If this is correct, consider yourself reprimanded, but not chastised, banished, or anything drastic.

[BLACK BART]

11 hours ago, RitaB said:

Some days I just open my mouth to change feet. 

Me too.  I once said this to a client who couldn't pay me in full:  "Well, if you're short, Mr. Short, you can pay me next month."