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Max W

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About Max W

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    Advanced Member

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    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

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  1. Solution to IRS bottlenecks

    Well, at least one thing hasn't been tried - form 3911. https://www.irs.gov/pub/irs-pdf/f3911.pdf This will put a trace on the refund. I have had, on more than one occasion, returns that were assigned to someone who either was moved to another location, resigned, or died. In every instance, the returns were lost including 12 of one client's 941's. I'm assuming that you got the transcripts confirming the refund. At least you can show these to the client so they don't think you are doing nothing. One thing I would have done after the second stall, is to ask to speak to their supervisor. The supe of the guy who said he couldn't do anything might have been able to do something as they have access to more info, and have much more experience than the phone people.
  2. SVS asked about penalty abatement. Use Form 843, write "FIRST TIME ABATE" across the top. As long client has a clean record going back 3 years, it should work. https://www.irs.gov/pub/irs-pdf/f843.pdf
  3. Solution to IRS bottlenecks

    " But I can't think of anything that hasn't been tried." Edsel, it would be helpful for us if you told us what HAS been tried, so we don't cover the same ground twice.
  4. no K-1 but wants to file??

    Just because the client didn't receive a K-1 doesn't mean there isn't one. The first thing I would do is pull the Income transcripts for that year. It is always possible that the 1065 was filed, but the TMP didn't bother to send out the K-1's. I'd also try to get a transcript of the 1065. If no K-1, I prefer reporting netting the income on Line 21 with any SE tax going on to the SE form. However, be careful that the client's partnership basis is not exceeded by the losses.
  5. Rental Property Land Value

    For years, there was an 80/20 rule that was a good approximation for most of the country. That was when RE prices grew at a rate of 1% above the rate of inflation. However, beginning in the 1980's with land conservancy trusts, which took a lot of buildable land off the market. the added expense of environmental impast studies, and then the easy financing policies from the 90's on, price growth became skewed particularly in the East and West coastal areas. On the one hand there were actions decreasing supply and increasing costs and financial and lending policies increasing demand. Now, it is not possible to make estimates of the Building/Land ratios because they are all over the place. So, now, as Catherine suggests, it is best to use property tax statements to get the right ratio. A good example of both methods is found in a return I prepared recently. The client had lived on the East Coast and was transferred to SF, in 2015, where he bought a rental property. He had his usual preparer in CT prepare the 2015 return and this preparer used the 80/20 rule. However, his property tax statement for 2016 was nearly the reverse of this. It was 30% Building and 70% Land. There is an interesting interactive chart that shows the relative price changes, from 1980 to 2016, for 3 US cities. You can have a little fun with this clicking on the other cities to the right of the chart . The east and west coast cities showed the largest bubbles; mid-western cities not so much, but Pittsburgh was a straight line, meaning it was barely affected by the housing chaos. https://www.economist.com/blogs/graphicdetail/2016/08/daily-chart-20
  6. Blocking IP addresses

    Opera browser now incorporates a free VPN. I have been using it for about a week now and have no complaints, yet.
  7. Trac Lease

    What makes TRAC leasing unique is the treatment of residual value. At the end of the lease, if the equipment sells for more than the predetermined residual value, the lessee gets the difference. If it sells for less, the lessee pays the difference. Here is a very clear explanation of TRAC leasing and an example of how the residual is handled. http://financewithafp.com/2010/01/what-is-a-trac-lease/
  8. mileage log

    I think it is going to be on how lenient the auditor is. I have had direct expenses accepted with only 3 or 4 odometer readings, from maintenance receipts, spread over a three year period. With another audit, expenses were accepted, even though the odometers on both vehicles used for business were broken. The client was a musician on tour most of the year and used a motor home.
  9. OIC when 941 taxes are also in arrears

    Please see my response in bold in the Quote.
  10. Section 121 & community property

    Tom, thanks for your hypotheses. They certainly provide some avenues to pursue. The house was re-fied in 2005 and spouse's name was on the loan papers and it was paid out of a joint account, although there are no longer any records to substantiate it.
  11. Section 121 & community property

    Yes, that is what it would probably turn to. What I have been able to find out is that if the client and spouse had split up before he died, he would have to go to court to claim community property. It is not automatic. Essentially, she gifted him half, but there would be no basis as it would have between spouses.
  12. Client sold home last year that had been purchased in 1986. The following year she got married, but did not change title to house. Husband contributed to mortgage payments effectively making house community property (CA). He died in 2009. Is there any way she can claim stepped up basis? TIA
  13. "she just wants him to get her SS when she dies " Interesting, since the SS stops when she dies, or better said, when her death becomes known, as there have been cases where the death was covered up and the SS checks kept rolling in.
  14. I use Paypal for most of my internet, store and restaurant purchases. I get an immediate email on my cell phone. If someone tries to use my Paypal account, which happened once, I know right away and cancel the card and get a new one.
  15. Equifax, freezing credit and E-Services

    You might be locked out of E-services when you are required to make the 6 month change in password? Or, when you renew your PTIN.