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Possi

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About Possi

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    Advanced Member

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  • State
    VA
  • Gender
    Female

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  1. Rant for the Day

    The light at the end of the tunnel, IMHO, is when the IRS stops making our offices the stopping point for welfare checks. Nobody should ever get more refund than they pre-paid in taxes without going to a government agency and qualifying for free money. It infuriates me, can you tell? But, I smile and do the Dorito Dance with every big (honest) refund because that's my job. I have a few substantial LLC single owners who routinely use their business account for personal use. I am now insisting they hire a bookkeeper or I am no longer doing their tax returns. Fortunately, I have enough clientele to make these demands. The risk to us tax pros is too great these days, to play around with Sch C's and refundable credits. No refundable credits on this particular return, but I recently had a Single Owner LLC tell me that she did her own taxes this year. She just used MY work from last year, took my numbers out and plugged hers in. I have been doing her taxes for at least 15 years. My only response was, "Good luck with that. I hope it doesn't blow back on you." I felt like I was robbed at gunpoint. Oh, and the best part? I was dropping off the Easter Cantata booklet and CD so she would sing in the choir with us. Praise The Lord! ermagerd
  2. Unreimbursed Partner Expenses

    The first year, 2015, he worked on a W2 from another firm, so that year needs to be prorated. But now, it's all the partnership. Thanks for chiming in!
  3. Unreimbursed Partner Expenses

    Wouldn't that have come to light on K1?
  4. Unreimbursed Partner Expenses

    I will, to see if it's stipulated. But I have never read one before. Always something new.
  5. Unreimbursed Partner Expenses

    Thanks! That's what I thought. All the typical business expenses that would normally be reflected on a 2106 should be deductible there, as it relates to this particular income. First, I need to check his partnership agreement and make sure it is addressed there. I believe if it is an "accepted practice," it doesn't have to be spelled out in the agreement though. Need to look that up again before I go back to this return. I don't know why in all my years, I never was aware of this deduction. I don't do partnership returns or corporate returns. I have a lot of K1's, and need to look back at the partnership ones. I don't think I have but one partnership with active income. But what a surprise this was. I wonder how many others are missing this deduction. Maybe just this one... me...
  6. Well, this is a new one for me. I didn't know until recently, that partners in a partnership can deduct their business expenses on the K1. This is huge because it directly reduces the self employment tax as well as ordinary income tax. I read that "The unreimbursed expenses have to be required under the partnership agreement. For example, the partnership agreement should state that each partner is required to pay his own automobile or cellphone costs in pursuit of the partnership’s business. Accordingly, the partner would record standard mileage or actual auto expenses plus business cellphone use, and claim that as UPE. If the partner is subject to self-employment tax on the net earnings of the partnership, then he could reduce the income subject to tax by the UPE." My doctor is new in this partnership. Before this, he was paid on a regular W2. Is there any limit to his business deductions on the K1, meaning can we deduct all of his business (work) expenses as they relate to him, and not necessarily to the partnership? ex. CE, Legal, professional dues, supplies, etc.?
  7. This could come in handy for certain clients

    Got mine ordered. Thanks. Whew. How long have we waited for THIS?
  8. PLLC or SCorp?

    Each partner maxes out the pension plan, shaving the max off their income. He is taxed as a disregarded entity and pays SE tax on the income, but SS tax maxes out, and he pays the medicare tax plus the additional medicare tax on high income, so how can he save 30K? Even if he took a "reasonable salary," at that income level he will still max out on SS tax and be hit with add'l medicare. So, I don't see how he can save by incorporating. Can you help me to see it?
  9. Do you accept credit card payments?

    I definitely do not want to send invoices to clients. This needs to be seamless! That's the reason I was using the TW software company. Now that I'm getting ripped off, I have to make the change. Thanks for all the suggestions. I'll talk to the bank first, then shop.
  10. Do you accept credit card payments?

    I don't have a web site. I really do not want to use the software company after this year. I feel like I got robbed. I have several hundred transactions a year, so it's a pretty weighty decision for me. I need to have only one source so I can track it easily, too.
  11. Do you accept credit card payments?

    Wow. 2.75 is not bad at all. Thanks!
  12. Do you accept credit card payments?

    When you are doing a lot of credit cards, and a lot of volume, it pays to compare prices. If I hadn't gotten slammed with itransact, which CCH endorsed by incorporating it with the program, I would have stayed with them. The price was very competitive and the software was easy to use. The operative word in this statement is "WAS."
  13. I use TaxWise, also a CCH company. I have used iTransact with the software for many years without a problem. Last November they automatically signed me up for 2 different "programs" that cost me dearly. When I realized what was happening, they told me that the notice was on one of my statements and that I would have had to opt OUT in order to NOT be slammed. If you use iTransact for credit card payments, check your statement! So, my question is this, if you take credit cards, do you use iTransact, another software-linked CC company, or Paypal or Square? I'm a lone ranger here, so my son-in-law did some research and he advised me to shift to Paypal. He have me a little processor box to use for "live" credit card transactions. There is a slightly higher fee for credit cards that are entered remotely. Thanks for any info you can share.
  14. tax package that will do Pay per return

    Taxwise, also CCH, has a PPR program, too.
  15. PLLC or SCorp?

    His only NII was $582, NIIT was only $22, so it's not an issue. His additional medicare tax was $1686.
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