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Is it like a hug? If I like you then you get a like, too? That should refill you, right? If so consider yourself hugged/liked.

It's a secret.

Maybe a few of us have some extra "likes" we can part with for a while. I have a few small likes I can loan you, but I'll need them back in mid-April.

http://www.youtube.com/watch?feature=player_embedded&v=XcqiCLmbrNU

If he comes home to sleep then no deduction.

Well, in that case, I would show detail on his bill adding up to $1,970 and then give him a Loyal Client Discount or Organized Client Discount of ($1,500) or so. I'd probably aim for what the prior preparer charged -- because you're not a pineapple and you don't make mistakes and the prior would've had a price increase anyway. But, help with a cow is priceless.

I believe that your client has incurred a prohibited transaction, with the wife's corporation, that has disqualified his IRA and subjected it to tax and penalties.

I have one of these every year. 3 different accounts, all I get is a pdf that I convert (Try to) to excel. Import as a csv file. This year over 560 transactions, Net LT Gain $349! But "Investment Advisory Fees" over $4,000. Makes you wonder if people even look at these statements. This couple is not that old. You would think they would know better. Do Not get me started with the advise they decided upon with same advisor to convert every IRA / 401K to a ROTH. Mind you close to a $1M value. Yes 2010 was a good year to do it, but it still cost mucho taxes even spread over 2 years. They are at the height of earnings, and they will never recoup this cost in retirement. Best time to do this is in your 20's or 30's - not late 50's.

So if his investment advisor charged him $19,700, then how much are you going to charge him to report his investment activity? I vote for $1,970 or more because you're not a pineapple. (I really vote for $19,700, but you're in TN.)

Yeah, I don't wanna comment on EVERYTHING. I want to buy some likes, Vanna. So I can keep it on the down low and encourage my fam here.

Are those all for Rita? Judy should grab a few, she also ran out once. How many posts can we like before we run out?

You are so good to me, John. And I know the interest rate will be miniscule. Or (nothing).

I don't know, but it's criminal.

SOME costs might be, such as if she needs to be moved by ambulance or patient transfer service. Cost of moving special medical equipment, too. But just normal 'moving expense', no.

It is so nice! Drake updates are no problem! No worries! Drake just works...like it is supposed to! The more I use Drake the more I love it. I love the features, the built in email, the planner, the estimates are easy to program. And I have used about half of the paper this year, last year with ATX I wasted paper, time, and stress level was very, very high. Now I just concentrate on my clients and their taxes. Nice! Nice! Nice! I am glad ATX is somewhat better this year but they still have trouble with their updates as is shown today. My sympathies to you ATXer's. Hope is gets better soon. Taxtrio

I agree. Quadruple the fee. Give them a 25% discount for this year only. If they complain, tell them you're removing the discount.

I have a standard line..I underbid your return, based on the work involved it should be $xxx, given this your fee will be increased by x amount a year until it is within acceptable range.

I would just tell them in person. And if they slapped me or spit on me, oh well, there might be an additional fee. I got a feeling they are going to bail. Might as well suffer a little. And you know I'm kidding, right? But really I'd just explain, "Hey, I'm not charging you enough, and if you can find someone to do your return for less, no hard feelings." Maybe rub some onion on your hands and wipe your eyes so a tear rolls down.

If this is the case, I'd go with giving them the higher bill now...but showing them the discount...with a note that there won't be the same discount next year. Depending on the situation, it's not a good policy to burn bridges. Word of mouth in such a situation can be bad PR.

once you realized that the work was much more than prior years you should have let them know. I have called clients with "you know in the past my fees were always around x but this year I see you have xxx stk trades and a k-1 requiring 2 new states. Just want you to know that my fee will have to go up at least X%. Would you like me to continue on this return?" Can't blind side them after you do the work, and you don't want to piss them off. You might even get the response, "yeah, I figured this year would take you much longer." I never have set fees but clients do sort of expect them to be in line with prior years. You don't say why you want to 3x their fees but I would never reference that you are letting them know so they can go elsewhere. What if next year its a simple return and would be profitable for you under your current rates? You sound like you are apologizing for having to charge more next year. I never apologize, I might say, Hey I am glad your are doing so well or that you are presenting a more complex return. It means you are growing and I get to make some more money. Let them apologize if they have an issue with you getting paid for your work and knowledge.

Catherine- If using ATX, NC D-400 form, click on data tab & near bottom is area "Residence Status" to choose either full, part-time or non-resident. After that click on form tab 2 (second page of D-400) & go to where you see lines 53, 54, & 55. Clicking on either 53 or 54 will bunny hop to the allocation worksheet where fed AGI is brought into col A, you enter into col B NC amounts. The NC DOR website is pretty helpful, choose the Tax Professional button then under "Individual Income" click on Filing Requirements where one of the choices is Non-Res/PY topics. A little further down this page is "Adjustments to Fed AGI" that if your client has any of the topics mentioned you may want to click on the item. Hope this has been useful http://www.dor.state.nc.us/

No exception. Hopefully the following helps. There is no financial hardship exception to the 10% early withdrawal penalty (Sheikh; Gallagher). Thus, retirement plan distributions used to meet normal living expenses following a job loss or pay cut are subject to income tax and penalty, unless the distribution meets one of the specified exceptions. The only exceptions are those discussed. Certain transactions, such as borrowing from an IRA or pledging IRA assets as security for a loan, will trigger a deemed distribution (and thus income recognition) of that portion of the IRA balance borrowed or used to secure the loan [IRC Sec. 408(e)(3) and (4)]. Such deemed distributions can also give rise to the 10% tax on early distributions. Furthermore, investing IRA funds in certain types of collectibles (e.g., art, rugs, antiques, gems, stamps, certain coins—see Key Issue 7A) results in a deemed distribution of the cost of the investment and results in the 10% tax [IRC Sec. 408(m)]. The 10% tax also applies to early distributions (before age 591/2) from modified endowment contracts (more commonly known as single premium life insurance policies) and tax-deferred annuities [IRC Sec. 72(q) and (v)]. (See Key Issue 34C for more on tax-deferred annuities.)

I would double the fee at pick up for THIS year. Then the fee for NEXT year would be triple.... Rich

I'm not sure I agree with Jack just because I am not 100% certain. I do however have clients who use their retirement accounts to invest in real estate. In researching this, I found out about all the rules and prohibited transactions (which jack refers to) and determined that most clients are not savvy enough to do this on their own without significant guidance. Per your description, I suspect this is the case with your clients. That being said, I would have the concern that the IRA has become disqualified and is now fully taxable. This is one you need to spend some time and read up on. Not the most convenient right now but did they really just decide to tell you all this? If so, they can wait and live with the consequences. Where is the money? Is it back safely in an IRA or a legitimate self-directed IRA? I know this isn't that helpful but I'm just trying to throw some questions out there and continue the conversation. Julie

If this was a new return, and had not been closed or saved at least once, the autosave will not function. When you create a new return, after inputting demographic info, perform a save. Autosave will then work. This is a complete change from prior years where it would autosave an incomplete return.

No, I'm not a pineapple, but I am incredibly reasonable with fees. I charged him $425 for Sch A, Sch B, Sch D, 8949 with 14 entries, Sch F, 4562, AMT, 1116, 8283 with 4 entries, 8959 (which ATX did for me and I still don't know how they knew the amount withheld for MC AND that it was off $85, but thanks), TN return. He whined a little cause the CPA in Nashville charged him $465 last year and he found two mistakes. Things are different here. He's pretty sharp (except about the financial advisor); he might use my return and do it himself next year if I charge him the correct fee. I have two kids in college and zero help from their dad. I need him. Oh, yeah, he actually took pictures of the hay he sold, had bills of sale, took pictures of the stuff he donated. He's more anal about record keeping than I am. That's saying a lot. Plus he lives two miles from me and said next time I need help with a cow and my boys are gone, call him.

Offhand, I can't answer about the NC part-year. The "oddities" I can think of offhand for them, however, are on pension income, self-employment income, severance pay, and charitable contributions. Almost all pension/IRA accounts get a $2000 exclusion.for pirvate pensions, or $4000 for government pensions. Up to $35000 of severance wages received as a result of permanent involuntary termination through no fault of your own is excludable from NC income. Net Business Income that is not considered passive can be excluded up to $50,000. Depending on income, charitable contributions are sometimes (rarely) deductible without itemizing. If you took the tuition and fees deduction on the federal, that has to be added back for the state. No exclusion from income for discharge of qualified principal residence indebtedness, or IRA used for charitable contribution, nor can you deduct tuition and fees or DPAD on NC. And they do not recognize same-sex marriages. I hope someone from NC will also post - we do a few NR NC returns, and a few resident NC returns since we are near the border. But I am not an expert!

I just had the same situation only not quite so many transactions. I'm going to attach a pdf.

Yes, agree with Randall. The retained earnings balance will differ from the AAA in this case since distributions can't reduce the AAA below zero.

BTW, community college in CA is still really really cheap. I'm going to bet most of that $1400 is for books. Also, there are still places to live in CA that are pretty damn cheap. Just sayin'

You've got to be clearer as to what he's doing. I got lost after his IRA loaned money to wife's corp

Given the name of the subject's Instagram blog, he doesn't know it's for NYC taxation either. Good luck with going viral too; he just painted a big target on himself!

This is the first time I've seen this. I don't think my machine updated. Benefit of sleeping in and not getting to work on any returns all afternoon, I guess.

So there will be an update update??

Well, now I have "likes". Am I the only one who is running out of these? Didn't somebody say they ran out the other day? Did I dream that? Is it time to go home yet?

So sorry to hear that. A loss that would be a stressor at any time is doubly so during tax season. I'll be praying for you.

I agree, report on the 1040s.

Just what we need on the last week of March.... We have removed the ATX tax and FAM 13.5 updates while we investigate an issue related to opening returns that were marked complete in 2012 and rolled over into 2013. Our Development Team is working diligently on a resolution, and we will release more information as soon as it is available. If you have returns that will not open after installing 13.5, please take no action on those returns until we post a resolution. Thank you for your patience. Posted by Stephanie Bradford at 2:46PM

And you know Deb is going: "The return has been filed and accepted. Why are you people still talking?" And I ran out of "likes" again, Pacun, or I would like your short and sweet "she qualifies". This is no way to live.

I love both of you too much to be mad. Psssh. Bring it on. You always hurt the one you love. That's what I hear.

what if there was heavy depreciation that wiped out profits but left plenty of cash in the business?

Actually...Where did the cash come from? If there was no "Profit" how can they have distributions in excess of basis? Especially $132k worth of distributions... Then there is this possible answer: They borrowed money for something else or refinanced it, and took the cash. Leaving the debt in the business, so then they really have a "Debt-financed distribution" and the treatment of that is different. Its easy to just put it into the "S-Distribution" slot, but really, it isn't. Rich

You'll want to use exception 1 or exception 3 or possibly both. If the basis was provided to the IRS use exception 3. Enter the short term and long term totals directly to Sch D line 1a/8a. If the basis was not provided to the IRS, but you have a statement containing all the same information in a similar format use exception 1. The IRS even has an adjustment code for you to use to indicate you are doing this - code M. The statement is then either mailed with 8453 or attach as a PDF to the return. If you have some that do have basis reported to the IRS and some that don't, you can use both exceptions. Enter on 1a/8a the ones that have basis reported to the IRS. Nothing else needs to go to the IRS for those ones. Then use exception 1 and mail or attach the statement for the rest.

Oh...and paid $1,700 in transaction fees.