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My inbox is crammed to the hilt. I finished exactly 1 return today. Between the phone and the drop offs and drop ins, I am moving toward panic mode. Then when you tell them they have to come in and sign and pay; they choose to pick their own time (which is also someone else's time, who had an appointment.) No time to study, no time to work, now no desire to work. What is going on? This from Overwhelmsville, WI.

What the heck was I thinking ?

You asked for it!!!!

I prefer this one: Hubble Telescope finds a smiley face! http://www.newsmax.com/TheWire/hubble-finds-smiley-face/2015/02/10/id/623996/

And throw in some "ordinary and necessary" and we can have a party! How lame is that?

Rita -- It may be a case where I am exhausted and punchy, but I laughed SO hard at your "Shariff with two F's" line I cried and got salt tear stains on my glasses and had to go wash them.

I really try not to judge...I can't know all of the sad/gory details of clients' lives and don't want to. However, when a client quits her two part-time jobs at the same time in 2014 because she has hit what she terms "the EIC sweet spot"...sits on her butt the remainder of the year being lazy (her words), chooses not to get insurance (even though subsidy would pay for almost all of it). gets sick and wants sympathy for not having health coverage and instead having big medical bills....then complains to me because her EIC and refund are not higher and how "that damn hospital" won't cut her a break on the bills. Her rent is subsidized through a county agency. She gets WIC (food stamp/card) and child support. Is mentally and physically able to work, but just chooses not to. Bitches to me for 10 minutes about how the government does nothing for her her refund is almost 25 times what she paid in. I need scotch

Thanks for this reminder, KC. I will do that and include the election just to cover the 'ol rear end. I still don't think I need other changes unless the consensus here says otherwise. Wow! I never imagined, as rfasset mentioned, what a can of worms and lengthy posting this would be. Clearly this discussion has been lurking about in the minds of many. Good thing we have each other here and the collective wisdom it provides. Thanks, Eric, again and again for providing this venue!

Don't know who was right and who was wrong - judge for yourself http://www.nydailynews.com/news/national/texas-woman-headbutts-tax-worker-walmart-brawl-article-1.2110362

Thanks, Marco. That is about how I'm feeling with these repair regs.

This has to be the biggest time waster I've ever seen in my entire career. Why didn't someone think of the novel solution to scrubbing the old fixed assets to have a code within our depreciation programs to create the schedules for the net 481 adjustments to flow onto the return automatically if the net end result was a small amount. We could have even scrapped the asset with a new indicator code also. Or how about a Form 3115EZ for those making only changes of nominal amounts for this automatic change in method.

I believe a call to ATX help line is needed.

Well...my son, the civil servant is kind of dissatisfied with his job. Last spring I suggested the HRB class...and I'd transition my clients to him. (DH just sold his business...so why am I still working?) Anyway.....he declined the offer.

I'll just add one thing I don't think anyone mentioned. If you file it before the deadline, it is NOT an Amended return, it is a Superseding Return. A tax return filed subsequent to an original return during the filing period supersedes it as the return of record. The filer must indicate that the return supersedes the original return on the return. A return filed after the expiration of the filing period is referred to as an amended return and does not supersede the original return. A Superseding Return REPLACES the original return, and is thus treated as 'the original'.

Gosh, a fiscal year! That's worse than the one I'm working on with about 30 small assets to write off that will amount to a total deduction of a whopping $200 or so. And, she keeps texting me to see if I'm done yet, and how much is this going to cost me, and....

Are we back to that old "facts and circumstances" frou-frou? Don't we keep running into that *every* bleeping where? You'd think it would wear out by now!

The hour is getting late but my forward brain is telling me that the $200 is for materials and supplies; whereas the $500 is for repairs and improvements, assuming applicable financial statements are not in play. If they are, then that number is $5,000. And for the record, that should be where our angst is anchored. What's fair about that? A company gets a bump of $4,500 on the safe harbor front simply because its has audited financial statements? (Note: there are other applicable financial statements such as those prepared to satisfy a government requirement; and others.) I have quite a few client's that could stand to have the higher threshold - but they are punished because they do not need audited statements? When did the IRS start basing regs on the form of book reporting? Oh wait, I know. With these stupid regs. Enough of that! Good night!

I have been ignored at far lesser folks!

Many thanks Judy. Since she chose not to use any of the credits I'll give them to him. Every tax season I thank my lucky star for this board.

A sign I used to have up back in my engineering days (I did materials and failure analysis, among other things): We have not succeeded in answering all of your questions. In fact, the results we have found raise a whole NEW set of questions. In some ways, we are as confused as ever - but we believe we are confused at a Higher Level, and about More Important things.

Much like Margaret, I have read up on the issue and still have more questions than answers. I recognize that I should have taken classes on the topic but I did not. I did buy a CPE course that was provided on this forum in an earlier post on the topic and found it helpful but I still have questions. With that said, can someone provide a brief explanation on exactly when a 3115 is required? I'm sure there are many instances when it is needed but can someone give a general explanation on when the 3115 is necessary? If clients do have a Schedule C or Schedule E and they have Repairs/Maintenance Expenses and also have depreciation expenses and do not file a 3115 (because they believe and their tax preparer believe it is not necessary) does that warrant immediate scrutiny by the IRS? Will they automatically receive some type of IRS notice...or is it as a result of an audit that it would determined that a 3115 should have been filed? And if no 3115 was filed what are the ramifications of that? Just trying to get a better grasp of this and would appreciate any guidance. Thanks very much.

It's not just me then. I don't have seventy returns in my in box, maybe 10, but I can't get myself motivated, even by my empty bank account. My eyes literally hurt from reading on the computer and it gets to where I can't focus. I did NOTHING yesterday. Well I did go to an AA meeting and then tried to go grocery shopping and to the bank, etc. came out of one store and the heavens opened up. I got drenched walking 10 feet to my car and I was halfway there when the skies opened. Could barely see to drive and gave up on the rest of it. Put in a movie and kept saying I'd get back to the returns. Never did. And I still don't know what to do with the 3115 for the first rental client I'm working on. They replaced the roof. Can I expense? I don't know. And I can't remember what % of basis the safe harbor is! and am sick of looking repair reg stuff up.

Well, I've not read millions of pages, but I have heard enough chatter about it that I believe that three people on four boards understand it, and two of them are lying. I'm not even sure I'm doing the election correctly, but don't say anything, I think it'll be ok.

And no #$*$%^&* election? I am extending all returns that have any Schedule C or E until this is all sorted out. Yes, I have taken 2 8 hour classes and read, read, read until my eyes are glazed. But it still baffles me as to the one, true response. I will now go eat some cookies and watch Castle.

From another newsgroup: This was posted on another list over the weekend. “Good morning everyone, I have some hopeful news. I spoke to someone from the AICPA's Tax Division yesterday and he told me they had a meeting with IRS last Monday about the tangible property regs and the 3115. Nothing certain, but IRS is considering accepting a statement with the return saying that the taxpayer is adopting the new regs instead of having to file a 3115. And, I think more importantly, they may apply the regs prospectively. Presumably, IRS will decide withing 2 weeks whether they'll go this route. So, in his words, "Drag your feet". Wouldn't it have been nice if IRS had made this decision 2 months ago?” Keep your fingers crossed that the IRS will do the right thing!

I have a client in GA. Nice guy...PhD is rocket science type of guy. He bought a zero emisssion car (hey...I'm from NYC...we don't have cars here) and he sent me a certificate showing a $5000 GA credit. I did the return....his tax was about $3000...so the credit covered the entire tax liability. Then he asked me about using the $2000 for next year. I looked all over the form. Didn't see anything about carry-overs from last year or to next year. I read the GA booklet...and it didn't say anything about this. I called the GA tax dept....and the rep never heard of this. But...my client insisted that his friend got this carryover. Long story short (after many google searches)....on the GA Environemental page it mentions this carryover. So....after several calls....I finally got connected to "the right person". This credit does indeed carry over for up to 5 years There is no line for it on the tax return. You (the client or preparer) have to keep track.of how much credit is left, until it's used up. The GA Environment Dept. keeps the certificate on file. Weird.... It's one of those things that "how would you know unless you know".

Frikkin' Unbelievable Nonsense FUN Tom Newark, CA

While it is true that only those forms have a 'check the box' option, it is still true that ANY return filed before the deadline supersedes the previous return. You just need to paper file it, and write on the top [i always highlight it] "Superseding Return". I've done it several times with 1040s, with no problems.

Similar to April 15.

That was painful to watch, Marco, but the last seconds were worth it.

Considering we are "the top minds"...and most of us are baffled...just imaging the baffling of other people. Let those IRS agents be baffled. I remember when they changed the Schedule E a few years back...and nobody noticed. At the IRS conference in the summer one of the speakers said that "since just about nobody got it right" they weren't going to penalize etc. for that year. My passive take on this is to depreciate any repairs over $200 from now on.

Yes, Ron is correct on that. The only thing I want to add is to consider if notifying the state is necessary also, Are there any state or local taxes that having differing rates depending on the business activity? We have a Delaware "gross receipts tax" with a stated rate applied to amounts over a stated exemption, and those are all assigned when the business files its first business license application. The state has a variety of rates and exemptions that it assigns depending on the activity of the business. Filing frequency can also differ.

Maybe the government used the same website creators as they did for healthcare.gov? Makes no sense!! We are only about 50 miles apart....

Wouldn't you know that in the Forms Update, there was a ver. 68 for 4868 to fix efiling rejections! I recreated and it went through perfectly. Judy, I googled the code and found what you did then downloaded the whole list. Funny it should be easier to find there than on IRS site - not! It was a bit misleading that the title I saw was for 1065 errors but it did have the entire list. I also noticed that my query was about 4th on the list. Thanks!

Good thing I'm not upstate....my software doesn't have IT-253 Guess 1: You have to figure out the % of usage of each spouse...and that part rolls over Guess 2: $0 (Just a guess based on NY wants to keep the $$$)

I like it.

"My take - the beneficiaries cannot take a deduction for the taxes and interest on the loan. All of it is investment expense or investment interest, and can only be carried forward until there is income to absorb the loss. Am I on the right track?" Tom, It appears you are on the right track. If there is never any income (or not enough income) to absorb the losses, they cannot be used on the taxpayers personal tax returns until after the trust is dissolved. The trust I dealt with had capital gain losses from the sale of securities each year so my client is now deducting (since the trust no longer exists) the $3,000 maximum capital gain loss each year until the loss is completely used. HOWEVER, you have a unique situation as the funds used to create the losses have been loaned to the trust....I would research it more, but since the losses are because of a loan(s), I would think that the loan(s) (with interest) would have to be repaid before any of the losses are taken on the beneficiaries returns??? Sounds like the research can be delayed as it sounds like it might be years and years before the trust can be dissolved. Cathy

I think they are in alphabetical order for the first 5 or 10 miles, after that I am assuming that it starts adding distance in as a factor. Fun to play with; not sure anyone other than other professionals uses it.

Have the Trustee offer the "life Estate" person something to move out so that they can dispose of the house. Your client is stuck. Usually, even with the life estate, that person still has to pay to live in the house. Which could include the mortgage and taxes. Or, as a minimum, rent. Rich

Make sure on the W-2 or 1099 input screen that the box is marked for "Add to Payer Manager." Also be sure that Payer Manager is checked in the preferences.

Yes, if unearned.

So, forgive my ignorance but I have problems with educating clients about refusing bad checks from Omar Shariff with two Fs, and I just have not studied this. And I really cannot muster up much concern over it, despite the intense anxiety of some on other boards. The "Election to Apply De Minimis Safe Harbor to Expense Cost of Acquired Property" means if I goof and call an asset "supplies" instead of listing it as an asset (and using Section 179, which is what I always do, hello); I will not be taken out and shot if the item costs less than $200. Or $500. And that one election covers both amounts? So how do I know which one I elected? Ron: We were posting at the same time - I'm not ignoring you.

If your client has been in business before the final or temporary repair regs, he probably did not follow the new repair regs and needs to change his accounting method. 2014 is the last year you can file Form 3115 without a hefty user fee. The parts that worry me the most are materials and supplies. Unless I did the bookkeeping, I don't know necessarily what all was in those bulk numbers. And, for some of my not-so-small anymore businesses, I know I didn't look very hard at anything under $1000. So, I may have some items that should be depreciated that were not. Plus I have some very small business that did not need more expenses where we are depreciating some very small items, such as a $100 chair, that should be supplies now. And, this is taking a very long time to go through and call clients with questions and drill down into their QB files. I have a new client who gave me his 2013 S-corp return with pages and pages of depreciation where each item was "Equipment." He doesn't know, and he feels his old preparer is too expensive and does not want to cause any more bills from him. I have some calls in today to clients to urge them to accept extensions. Yes, I need more time. But, more importantly, I want to see where the IRS is going to go with this. Will AICPA convince the IRS that small businesses should include a simple statement of compliance rather than Forms 3115?

OK - first there are no easy answers to most of the questions and no easy summary. However, being a KISS type of guy, I always, always try to bring things down to their simplest element. MY understanding - none of this applies to COGS. Section 263 deals with capitalizing all kinds of things IF your client fits the criteria to have to abide by those rules. Just a WAG, most of us do not have many clients in that boat. So what is this all about and when is a 3115 required and what is the trigger point. It, according to my understanding, and you all can feel free to correct my understanding, is required when the taxpayer has not been in compliance with the regs as they are stated now going back retroactively to when the proposed regs were issued, or something like that. So if your client should have reported depreciation in one manner but did not, to become compliant, a change in accounting method is required, and consequently, a Form 3115. As I am thinking this through, ALL of my write-up clients, because we make the decisions (with their approval) , have been and continue to be compliant and we will not be filing 3115s for any of those. All of our other clients with depreciable assets will have to be analyzed on an individual basis to determine if the decisions they have made over the years has them in compliance with the regs. The elections that are being talked about are "safe-harbor" elections about prospective activity. By definition, safe-harbor means that if you do what you are suppose to in that harbor, no further questions will be made. By making the elections, your client is stating that he is going to remain in compliance with the rules inside of that harbor. Should he venture outside of the harbor, he does so at his own risk. I know this sounds simplistic, and these rules are anything but simple, but those are the basic rules as I understand them. In the words of one much greater than myself, we have nothing to fear but fear itself. Margaret, I do not think you need to do anything with your present situation. Matter of fact, you may already be guilty of over-kill.

Am spending twelve to thirteen hours a day anchored to my computer chair and making very little headway. My in box is running over. We aren't eating decent meals (or hardly any meals). They just keep pouring in. Everyone seems to want their refund before "the IRS runs out of money!" The other side of the coin is all the early filers who are owing this year. I am going to take an early night.

Ok, this check cashing business I'm working on now took a bunch of bad checks on one "OMAR SHARIFF." I can't even tell you people how normal and brilliant and superb you all are. OMG. I guess they thought they could trust him because of the extra "F" there. Crying.

It does not matter whose account it comes out of. They are married. The threshold is $14,000 per person per year. No form 709 is needed. No one will ever question this. Sleep well.