Jump to content
ATX Community

Terry D

  • Content count

  • Joined

  • Last visited

  • Days Won


About Terry D

  • Rank
    ATX Guru
  • Birthday 08/08/1955

Contact Methods

  • ICQ

Profile Information

  • State
  • Gender

Recent Profile Visitors

6,816 profile views
  1. invoicing software

    QuickBooks here too. I use the square system to process credit cards plus a PayPal account for online payments. Drake's support is phenomenal so no issues there. However, QB is another story. I agree with Tom.
  2. 1040 to 1041 (rental property)

    I*'ll just add my 2 cents worth. Abby said the magic word 'IF". Before you do anything, find out what type of trust this is, get the trust instrument and read it. Doing so will give you all the details you need regarding what the trust is, terms, and tax filing requirements. I never touch any trust of any kind unless I have the trust instrument. There are trusts that have exhorbant penalties to do this any other way.
  3. Do you accept credit card payments?

    I use Square. It is completely trouble free, no hassles, no monthly fees, no PCI insurance, no maintaining proof of destruction of client records. I bought the chip reader as well. Again, no troubles. I get my funds always within two days.
  4. filing a zero estate tax return(?)

    I'm not sure here but if an EIN was applied for the IRS may very well be looking for a 1041. Just sayin
  5. PLLC or SCorp?

    I agree an unreasonably low salary. Remember though that even though the SS is maxed there is still the match which totals the SE tax. Yes he gets 1/2 credit adjustment on form 1040 page 1 which lowers the income but he SE tax is calculated on the pass thru income. That is the only thing I could see that would not be calculated if he indeed incorporated. I have done these comparisons as I mentioned. Taking into consideration the adjustment for SE, Amounts withheld as an employee, and other tax that would be paid out of pocket, the only savings is usually the SE tax. As a disregarded entity he is subject to SE tax but as an S-Corp, SE tax is not calculated on the pass thru.

    I'll put in my 2.5 cents worth. I have to agree with Catherine and Jklcpa when it comes to Drake. I flipped flopped back and forth for a couple of years when it came to deciding to use Drake. I bought Drake for 2016 last year and have no regrets. Matter of fact, I purchased Drake again before May 31 to get the best discount. Moving forward, and as long as I am able to prepare taxes, I will purchase Drake. Do as Catherine says, download the previous year and play with it. If all you have used is ATX, switching from forms driven to input driven software such as Drake may be a bit challenging. If you have used other input driven platforms, then the learning curve will not be so bad. There are folks here to help you and I can tell you I am still learning features of Drake and I am amazed at how much easier it has made my life as a tax preparer. Don't forget to look at the secure file pro feature. The document cabinet is also amazing. Thanks to Drake, my office is nearly paperless. I took Catherine's advice and subscripted to signature flow for electronic signatures. All of this flows nicely into Drake. Adding documents external to drake takes a couple extra clicks but it is well worth it.
  7. NT - For the math guru in you

    Gosh Elrod, just wondering what you put in the search box to get that image, I can't watch too long as I become sympathetic.
  8. PLLC or SCorp?

    There are a lot of questions that need to be addressed to determine the best tax strategy for your client. I am assuming he is currently taxed as a disregarded entity and pays self-employment tax on the income minus expenses from the partnership. AT 350K plus income, the 30K savings if it were SE tax may very well be a close figure. It would take some time, but you really need to do a complete comparison with both entities to see the possibilities.
  9. That's a great offer Jack, I only live about 4.5 hours from Knoxville but have to work at my day job tomorrow. I do hope someone takes advantage of this.

    >>>>>The way I see this is that the estate should file a final<<<<<< I would prepare a 1041 showing the transactions and distributions as you say. However, I would not check the box as the final return so as to allow time for any unknowns. >>>>> do all the expences associated with real estate become deductible by the heirs<<<<< Why would they be deductible when the heirs were reimbursed as you pointed out in your original post. Out of pocket, and then reimbursed equals a wash. If the real estate sat empty since 2011, when the heirs sold the property their basis for tax purposes would be FMV at date of death. With that said, and due to recent changes in the real estate market, the heirs may have a gain but then again, may have a loss. That is a transaction for their individual personal tax returns. The proceeds from the sale show show coming into the estate and later being distributed proportionally according to the will. Don't over think this seems pretty straight forward to me.
  11. QB Question

    So that's why when I go to someone's home their pictures are crooked. I can't stand crooked pictures or anything else that is crooked for that matter. I wonder if there is a pill for crooked picture people. Wouldn't you just love to have a pill you could take so you wouldn't give a sh@# about anything when needed.
  12. QB Question

    I agree here as well. Forgot to answer your question. This company has always been an S-Corp. The CFR gives you the necessity of the AAA, OAA and AE&P for both entities. A bit confusing read.
  13. QB Question

    Thanks BHoffman. I have done the same thing with the equity accounts. I give instructions to these folks every year after I make all of the necessary adjustments with the hope they will do as I say. More often than not, those directions are not followed. As I look at what they have done so far this year, they are doing the same things. But, I will ask them to go back and fix their errors with instructions on how to do so. I have even done screen shares with these folks to help. Each account in the COA has what it is used for in the description as well. So, as long as they are willing to pay me to fix this each year, then so be it.
  14. QB Question

    Ok never mind with the first part of my post. I just realized I am way over thinking this and getting confused with account naming and posting. QB online will not allow the creation of the proper sub accounts. All I need is to be able to adjust the beginning RE so the year ending RE will reflect the proper amount. Sorry for the clutter.
  15. QB Question

    To all QuickBooks experts I am in need of some assistance with QB. The client I am working with is an S-Corp client who has been using QB online. While this is my first time using QB online, it is very similar to the desktop version. My question is not relevant to any particular QB version. I apologize for the lengthiness but here goes. First, I started this QB file for these folks in 2013 and they have screwed it up immensely. I normally tell folks that no matter what they do I can generally fix it. So much for putting my foot in my mouth. During their learning curve, the only thing I have used their file for is income and expenses. I have been preparing the financials separately each year. I have spent the summer trying to get their QB to match my records per their request and I agree it should. I know QB can automatically close the books at the end of the year and when it does, all it does is finalize to retained earnings. I am not sure if this can be done manually in QB. I have created the AAA account and the OAA accounts but QB online will not allow these as sub accounts to Retained Earnings. Isn't creating sub accounts to RE the the right way to do this? Also, how do I adjust the Retained Earnings to show the income/loss at the end of the year? Which accounts are used to make those entries. The bookkeeper created an account called "Taxes Paid" as an expense account for the shareholder withdrawal and credited the cash account to pay the taxes owed for the year. Yes, Retained Earnings were more than sufficient to make this withdrawal. I made an adjusting entry to DB Retained Earnings and CR the "Taxes Paid" account to correct this entry. My confusion here is the IRS ordering rules which state this withdrawal comes from AAA first. How do I show this in QB? I am at the point to just forego tracking this is in QB and track it as I have been which is accurate. Any help anyone can give me will be appreciated.