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Client decides to jump on board the direct marketing bandwagon and start a "business" selling hand bags/purses (through Thirty-One). I sit down with her and explain the whole idea of business vs. hobby and explain to her what expenses might be deductible if we do approach it as a business...to assist in reducing the affect of her $1,000 1099-MISC income. She admits that there is no area of her home used exclusively for this activity, so no OIH...thus I inform her that she cannot deduct mileage...even if it was business-related...which was in itself questionable. I also inform her that her cell phone is not deductible since (among other reasons) she does not have another home phone...just her cell. She seems to understand and leaves me with her papers with a positive attitude...understandably since her product cost and other legitimate expenses would reduce her "profit" to only approx. $300.00....not having much affect if any on her usual refund. However, this evening, she e-mails me that she has been talking to other people she knows that do such "businesses" and they have been deducting such expenses for years...and that if I cannot deduct those things, she wants her papers back...below is my response...first time in my 16 years that this has happened. She is a nice young lady, but so be it...I do not have time for that crap. I understand completely. I pride myself on preparing returns according to IRS regulations in a manner that would hold up under IRS audit. A person can claim anything on their tax returns and not suffer any negative consequences…until they are audited….and there are no shortage of preparers willing to claim those deductions in order to attract or retain clients. While the chances of you being the unlucky one is really small, I will not lower my standards or risk my professional reputation by putting my name on a return that I consider questionable. I will be home tomorrow evening after 7:00pm, and other evenings this week after 6:00pm. I will have your papers ready.

So at church this morning, the Pastor says in his sermon that we are going to get audited by God some day. On the way home, my 18 year old son says he isn't worried about that audit because he will have a mileage log and his receipts when he gets there. He must be listening more than my wife and I think when we talk about clients at home. Tom Hollister, CA

Remember this when dealing with stupid, argumentative people and clients -

We're not trying to slice things into tiny slivers, but there are some potential deductions. Lots of folks have an office in home where they nonetheless do NOT qualify for the home office deduction, because of the "exclusive" rule. If I had a rented office and brought my house bills in to work on in "off" times, my rent would still be fully deductible. If I sit here, at my work desk, and use it to look up my home banking to make sure I did schedule that electric bill -- boom; I've just lost my "exclusive" use and the home office deduction. But this IS my business's sole office, and when I go to a client's site, that is solely business miles -- I'm going to their location for the purpose of doing work that cannot be done from/at my location for whatever reason. As for the cell phone -- yes, the first line to the house is personal. But did she add specific services *just* for the business? A larger data plan, more text messages, a nationwide instead of local, the ability to hook up a fax? There may be some exclusive-to-business services that are deductible. OTOH -- she may just want to deduct everything as others have told her. In which case, here's your hat what's your hurry.

I agree with Pencil on this one. No need to tell her how ethical you are and obviously she is not. It can come across as pompous and that's when you lose, because that's all that the client latches on to in the message. They pick up their papers with an attitude, then move on and need to ridicule you to others, because you have turned the table on them. Now they are the ones who are insulted and need to find friends who agree with their position and console them. You have plenty of professionals on this site who have your back. We probably all have our own story of a client who has pushed our limits. I have had clients leave and return for similar reasons. Others, oh well. Next! Stay professional. There are a lot of fish in the sea. There are a lot of fish for me!

$15 FOR 1096, $5 per person, etc plus additional $5 per phone call or W-9 we have to retrieve for them - never had to but man some of them this year!

Well, imma tell you right now, less is more. And if you think I'm touching an Admin Console, you're outta your mind. I found a bunch of Egyptian hieroglyphics one step past where you told me backups were. Assume that's them. Not really the best way to name a backup, in my opinion, but hey, who am I to argue? A backup is a backup.

Change banks. Make it known to the branch manager that you are and why you are. Too many banks that will appreciate your business.

Speaking of wierd client interactions, a very elegant lady just walked into my office to inquire if I would be wiling to consult with her on her tax return because she did a "simple 1031 exchange" last year and isn't sure how to handle THAT PART of her return. Ignoring the fact that I won't prepare PART OF a return, I explained that I looked into doing some dedicated work on 1031 exchanges several years ago, and after becoming aware of all the pitfalls I decided to avoid them altogether. SO I'm not the person she needs to be speaking with. Naturally, it didn't end there. So we talked about 15 minutes about other rental properties she owns (more red flags for me), and something a little unusual about this "simple" 1031 exchange she failed to mention at the outset (something which might in fact blow the whole deal for her if it's ever examined). I wished her well, and as she was leaving she mentioned that maybe I should "read up on 1031 exchanges so I could help out if someone came in with the same questions in the future". "Thanks for the advice, ma'am, but that particular train left the station long before you came in my door - did you miss the part where I said I DECIDED years ago not to do that very thing?". It's obvious once again that people frequently only hear what they want to hear. Fortunately there are no papers to return in this case since I never accepted any from her. Didn't even ask her name. And best of all, I had not given her a business card. I've learned not to be so quick to hand out that card until I know a little more about the situation. (It would have been awkward asking her to return the business card as she left my office).

jshtax, I think Jack is correct that something you've done is creating your backup problem: From the "Back Up folder size issue WARNING" topic ( ), your post from 1/25/14 that is #28 in that thread: Post #5 in this topic where you accessed the admin console to perform backup functions: And back in December, we both questioned why ATX had published written instructions on their website and in their printed materials that changing the backup location was possible: Remember?

Judy explained it well. Most macros are written in such a way that they will perform an automated or repetitive task from anywhere within the program, although you can write them to begin their work while you are in a particular form. It's a little difficult to explain if you aren't familiar with them. But if you will go through the steps to write one or two simple ones, you will quickly appreciate their potential. There are several places on the Drake Forum where Macros are discussed in detail, and a number of users have shared their Macros there.

I'd be inclined to leave this one off the return and deal with the CP2000 when or IF one appears. No sense waving a red flag in front of the bull at the outset. If IRS has questions, they know how to get in touch.

I am so sick of snow. I know I live in a "lake effect" area, but this year I can't wait for spring! We put 4 snow tires on each of our vehicles. 2 vehicles carry my 2 college student daughters to campus everyday. My car 8 yrs and the only manual transmission is great in the snow, but I worry every day with them driving. Please see picture from our back yard this AM. I wish they would let me hand deliver the Hawaii Corporate Tax Return at work... Snow is thigh high in the driveway.. And this mornings Temperature (02/17/2014) was -15 degrees - I can't wait for winter to be over! Thank you Catherine for the heads up attaching a picture, Brain was not working last night..

While OneDesk is a reseller of OltPro, they certainly are on top of any problems that need attention. I a beginning to get very comfortable with this software. I did notice that any instructional letters for form K-1 are not included. Just printed a 1065 48 page return and no K-1 instruction letters. We tried to create a custom letter bu the program did/does not contain the fields for the partners. I feel they will fix this for next year. As a simple work around, I created a letter to go with the K-1.

I would simply thank her for considering my services, and invite her to consult again if she has a need. And explain that I am returning her papers by mail, without charge. No other comment has any business purpose.

Two years ago I lost a good client and nearly lost her as a friend over education expenses and claiming her son as a dependent. He was well over 24 and she no longer paid for his education - he did, as a doctoral candidate. She did not pay for more than 50% of his support, the student loans were in his name and taken after his BS degree plus he worked part-time. He did sleep at her home sometimes but not always and bought most of his own food, paid for his own insurance, gas and clothes. I supplied all the references and, in fact, completed the returns correctly. She never signed the 8879 so it never got filed by me. Sometimes you just have to do what is right.

I may copy that wording!! Well spoken and well played!! Tell her to research what the IRS did to Amway... On second thought, don't tell her anything else! You are wise to send her packing.

Have to hand it to those people at Apple Computer. They know how to create loyalty by providing a great product and super service. The MacBook arrived today - a day earlier than projected. (always smart to under-promise and over-deliver). Took the computer out of the box, read the note that the battery is already fully charged, and took about 20 minutes to set it up. After making the internet connection, I was reading email and am now posting to this forum on it. The quality is obvious in the construction and in the performance. I think this changeover is going to be fun.

It is a great article, but as the author pointed out, it is difficult to get people to see the wisdom of Rothifying when applicable. No matte how you run the numbers and how valid it looks, they will usually still hold out. Just can't bring themselves to turn loose of the money now. I did it a couple of years ago for part of some IRA money I had, and intended to do some more in 2013. But kept putting it off until it was too late.

Sorry for the user name confusion. My original user name on some other boards was Ranger. That was taken by another user (who seldom posted) on the original ATX board so I became DANRVAN there and I carried that over to this board. Then I started using Ranger which (was not taken on this board) to be consistent between the boards. I have not been consistent here and one is remembered on my laptop so they got crossed when I used it instead of the desktop. I will try to delete one of the usernames to prevent further confusion.

Normally, these are re-assessments by the county for property taxes and should be included on the schedule A for property taxes. Make sure it is based on the value of the land and not bond payments. It happens all the time when a property on the county books for X dollars of value is sold for a higher amount. The property taxes go up, and the county issues a special assessment to get the difference in the amount of taxes from the day of the sale to the date that the regular assessment is made by the county. Hope this helps. Tom Hollister, CA

from a facebook friend

Ultimately what the safe harbor provision for 1098-MA comes down to, is you can't deduct more than you paid. If I make mortgage payments of $500/month and at the end of the year receive a 1098 showing $10,000 of mortgage interest and also a 1098-MA showing $7,000 the safe harbor provision permits me to deduct $6,000 of mortgage interest (and taxes and ... limit $6,000 total for everything). The total of the payments I actually made. Without the safe harbor provision you would probably have to figure out of the $6,000 paid by the taxpayer how much actually was applied to principal vs. interest and deduct a smaller number. So the safe harbor provision lets you apply all of the taxpayer's payments to mortgage interest and none to principal and deduct the smaller of what the taxpayer payments are or the amount showing on 1098.

In chilly CT, many people pick out their retirement homes while still working and better able to qualify for a mortgage. Many use it as a second home, some as a vacation home, and some as a rental. Eventually (unless one passes away, and sometimes because one passed away) they move to that warmer clime. They usually continue to send their tax documents to me. I currently have clients in FL, NC, VA, and coastal CT. I have lost a couple to preparers in AZ, but their prior year returns contained the depreciation schedules, etc..

Sounds to me like, technically, the estate was selling estate property before distribution to the heirs. Passing through sales proceeds via K-1 to the heirs is the right way to handle it. Assuming there were no provisions in the will/trust documents that required something else. Read the legal documents; while we are not lawyers (and don't even play ones on TV) we still need to read those. There are provisions that can affect how we handle taxation of certain items, pass-through to beneficiaries, and more.

I have a bunch of engineers as clients and there are lots of tax folks (around here, at least) who won't touch them with a 10' pole. Double-check, nit-pick, demand explanations.... at some level I understand (being an scientist/engineer by training myself) but it can get annoying. I remember a client some years back (moved; went to someone else, whew) who spent several hours of hisr own time investigating a $4 "discrepancy" between my depreciation figures (from ATX, on several TENS of thousands of dollars of equipment) and the ones he got from QuickBooks -- and wanted me to "justify" MY figures!! Yeah, right. $4 out of thousands, and he wants a dissertation. I think I told him that QB uses a less-sophisticated algorithm for those calculations because they want you to pay more for their more-sophisticated fixed asset manager software. He bought that explanation and decided he could let the $4 difference ride -- for that year, anyway.

Only once. I ask them to come get their information and take their chances. Only lost 1 client. The following year he was back, with a CP200 and a look of helplessness. His fees are now double what they originally were. I do not have time to play games with people that insult my professional abilities by checking me with Turbo-Tax. If they have a question about the return, I am glad to answer, but don't use a cheap software to challenge me.

Client brought a container of Wilbur Buds (premium chocolates) today for our gang. For the past two weeks we gave our clients personal size boxes of Sweetheart candies. Gotta love this time of year. We're just not going to get hung up on the small stuff.

Jack, my message may have been a tad bit different from the op's message. I didn't really copy it down. I just thought I would tell my little story and how I avoided a third message. All turned out well. I closed the program and opened it again with no problem. As I said, I just thought ATX was busy with lots of folks trying to log in simultaneously. I believe I understand that server has more than one definition as you have explained a multitude of time in a variety of ways. I don't believe you had to SHOUT to express yourself. Lower case works fine, too. I'm not sure why you are reviving your favorite phrase about male bovine scat regarding my system (if that was your intention). Mine is, as yours, well above the recommendations. It seems you get your shorts in a bunch whenever this issue arises and feel compelled to, again, let posters know that you are the expert in this area. Most of us know it and appreciate your expertise. I venture to state, however, that showing your irritation at repeating yourself is not always a welcomed response. Perhaps you might save a pre-written response somewhere and simply post it whenever you see this request/comment/complaint appear, yet again. I fear for your stress level and would dearly prefer that you maintain your composure and willingness to continue to assist those of us seeking help with new issues. I wasn't asking for advice or assistance in this case. I merely related my experience on the chance that someone else may find such a simple solution, at least once, and not have to halt work. It worked for me - once - might work for another. Don't know if not tried. Thanks for your many efforts to assist in so many ways. They are appreciated most of the time. Shouting via upper case and bold type is not always so appreciated, in my opinion. If a colleague in your office asked similar questions, even repeatedly, would that also be your response?

I just look at them, while on the phone, and tell them: "I am getting paid $150 an hour whether you are on the phone or not" And then I lean back. Rich

I get bottles of single malt from family that I don't charge and have received huckleberry pies at times from others. Got 2 dozen cookies the other day...

I always encourage clients to take cell phone calls. They usually have enough sense to know whether it's important or not, and I don't think I'm smart enough to make that decision for them (even with my crystal ball). There is always something for me to double-check while they are on the phone, either some item related to their business or even if it's just to take a quick look at my email & texts. (another benefit of multiple monitors, BTW). So their brief period of inattention doesn't threaten my ego or insult my professionalism. And we are all able keep the business/personal life ball in motion. (My idea of true multi-taksing) But it is also significant that I don't have a schedule full of appointments back-to-back like many of you do, so I can understand why delays during appointments can be problematic if your work flow is organized in that manner.

I have toys for the kids to play with too, but they would rather play with MY toys. I also have treats, but today chocolate was a mistake as I was wiping it up after they left. I have no issues with phones. If they need to take the call, they will ask me first if it is OK, just as I ask them if it is someone that I really need to talk to.