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Happy New Year to you all! I know that I am late to the party, but I want you all to know how much I enjoy everyone on this board, and rely on your wisdom and experience, and kindness in sharing it!

I remember a former boss of mine told me one year that he had resolved to eat more and enjoy it. He was making fun of all those failed diet resolutions in his past. About half-way through the year, he admitted that was a mistake - he was actually keeping that resolution and had gained 15 pounds since New Years!

it always amazes me that clients think i am automatically their retirement expert as well as their tax expert - and lets not forget financial investment expert, real estate expert, and all around "I don't want to bother to ask my lawyer so i'll bug my accountant" expert.

mmm yuck. I get asked to discuss vehicle use as well. (Umpire avocation.) Some say a (magical) person told them all miles to and from games is deductible. They also say all clothes and gear are as well. Both are incorrect if one wants to be accurate. For us umpires types (not all details are included for length, I suspect you all understand) unless we are very careful, and have another job location, we are merely commuting to and from games. Not all gear is deductible either, such as socks can be worn for other uses, even though the ones we prefer for games are $20 or more... same for wicking undershirts we like to wear. Now the $400 plus lid I put my melon in is deductible (and the best I can buy at any price) since I cannot really wear it for other uses, and I replace it after every good hit. I only have the one melon... We spend a large amount of "training" time on this issue, over a pittance of taxable income... I break even at best, given proper deductions, and I take a large number of games. Well, I actually lose, as my SWMBO of 31 years and counting gets my gross umpire pay, and I have to pay my expenses myself! It is still a great deal for me, since I get to work some great games at great parks, sometimes with one of our sons, and run around like I was still young. I have promised SWMBO to stop if I am "that guy" who cannot get where I need to be, or age 70, whichever comes first , or if I get hit in the melon and have any concussion symptoms. (Thank you for this forum. it is a nice break from my day gig, which is crazy for the next few weeks. It is my "April 15" and "October 15" rolled into a few days. Not even my dogs will come into my office this week.)

The instructions say to input the taxable income and tax for the specific base year. So if he was not required to file in 2012, I would leave that part blank. Due to the mathematical maze of Schedule J, he might end up with little or no savings since he is not jumping up into a high income tax bracket. And if he does, I am not aware of anything in the code that says he is not entitled to it. Reg 1.1301-1(b)(1)(iv) clearly states that the taxpayer does not need to be engaged in farming in the base years.

Gail nailed that answer.

You are so right. I spent 15 minutes yesterday with a person I just met who's about to start a business in 2017. He did not understand that "depreciate," "write off," and "deduct" meant subtract. I couldn't figure out why he kept asking me the same question: "You mean I can't take off the equipment?" I decided I need to listen a little more carefully and explain things like I'm talking to a fifth grader when I'm talking about taxes. Never underestimate your client's intelligence. Always underestimate your client's knowledge. I've got to remember that.

As I mentioned, if IRS claims client is required to follow the court order (claim child in odd years) instead of IRS Form 8332, it seems reasonable to amend 2013 (still open) and 2015 when client did NOT claim child per IRS Form 8332. The problem with claiming the child for 2016 is that IRS has refused to acknowledge their own signed Form 8332 whereby custodial parent relinquished claiming the child. Recall that this 2014 audit denied client's claim for exemption. As client has rental properties and K-1 coming from another entity, it will not be possible to file quickly. Due to uneasy relations between client and ex, it may not be possible to discern her plans. It seems to me a definitive resolution from IRS must be made before filing 2016. And IF IRS decides to go with court document (odd years), I think it entirely appropriate to amend 2013 and 2015 and attach IRS determination to ignore it's own required document. We shall see what happens in March with advocate. Oh, I tried to get to an appeals officer but was denied. I tried to get to the examiner but was denied direct contact or return call. I tried to contact examiner's supervisor but was denied direct contact or return call. I finally sent in 12203 as last ditch effort but client then decided to try tax court although probably a day late. I don't know his decision as to mailing the tax court form or signing the waiver and making a payment. Guess I will find out eventually! Thanks to all who chimed in here. This is the first time I've ever had a client with issues like this even after 25 years+ of practice. Never to late to learn!

Happy New Year! to EVERYONE here. I could NOT run my business without y'all.

http://www.lifehack.org/articles/communication/50-new-years-resolution-ideas-and-how-achieve-each-them.html Although most of mine come to naught; hope, like spring, springs eternal. So....I surfed part-way through the above list before becoming overwhelmed by the enormity of these tasks (this positive stuff is tough). I consulted a friend who said he's resolved to make no more resolutions in order to avoid disappointment in himself, but that seemed to be....hmmm...not quite fair (or something). Well, to get to it, let's see - what's possible in that list? EXERCISE! That's got to be a good one -- two months ago the doc told me to: (a) stop using my treadmill for a coat-hanger and (b) walk on it 30 minutes a day. I told him that's impossible and he cut his recommendation to 15 minutes (reminds me of that "Goodfellas" movie joke: doc gives a guy six months to live; guy says he can't pay the bill; doc gives him another six months). But I digress - what about 5 minutes? Yeah I know that's pitiful, but it's doable. I'll place the walker in front of the TV, enable closed captions (the treadmill motor's loud), and tune in an action movie with lots of swordfighting and stuff (a treadmill is extremely boring). Next doctor's visit I'll tell him I'm phasing the program in um...uh...well...gradually. Okay, let's formulate plan B (just in case). I noticed "BE POLITE" in the list. That doesn't sound too daunting and I'm mostly polite anyway (could probably pull that one off 99%). Still, being in the tax prep business; shouldn't we be allowed a little leeway? "Cut us some slack" as they say, since we must resist the occasional urge to lunge across the desk and strangle that (pick one: crazy/stupid/arrogant) ignoramus. Enough about my lofty goals. What's YOUR resolution?

The problem is that the people who do this aren't actually getting "refunds" they are getting money they never had - EITC and CTC. So if the government (you and I) wants to give them "free" money and the cost to get it comes out of the "free" money, they don't care. This is one reason I have never liked EITC. I have a whole list.

According to SSA Retirement Planner: If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2017, that limit is $16,920. In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2017, the limit on your earnings is $44,880 but we only count earnings before the month you reach your full retirement age. Note: If your earnings will be over the limit for the year but you will be retired for part of the year, we have a special rule that applies to earnings for one year. The special rule lets us pay a full Social Security check for any whole month we consider you retired, regardless of your yearly earnings.

We have already submitted documentation to IRS and it has been denied based on the court document not Form 8332. The problem is, as mentioned, IRS regs say 8332 is necessary, not court document. Also, IRS accepted 8332 for even years for 2006, 2008, 2010, and 2012. If they now deny for 2014, do we amend 2013 and 2015 and send court document not 8332? And if they then accept this exemption for the odd years, do they recoup funds from mother? Doubt it!

Yeah, this guy has commuting miles at the very least.

Exactly. On the one hand they claim they want us to save for our own retirement. On the other, they make the rules ever-changing and harder to follow. This would be a case of "poop or get off the pot" except they cannot decide which social end they really want to achieve - more taxation NOW or more taxation later; more retirement savings to lighten the socsec burden or less retirement savings that push more government control. And I will stop right there, lest I cross the line into "political" posting. No, I will say one more thing: all the legis-vermin in DC (and most of those in the state houses, as well) need a good spanking (except for those who would like it; they don't get spanked) and some hard lessons in economics. *And* get locked into a room with no calculator, lots of dull pencils, insufficient erasers, and NOT let out until they do their own taxes correctly. Mwa-hah-hah!

I've always thought the stretch IRA fell outside the original intent of IRA plans. I don't fault anyone for availing themselves of whatever the laws permit (full disclosure - I inherited a relatively small one that I am stretching out as long as possible). But there really isn't a good argument for allowing the stretch IRA to exist. I have the same view of the backdoor Roth, but that's another issue altogether.

Thanks so much, Judy! I was told that the shares were jointly owned having been bought with joint funds but I kinda, sorta doubt it. As noted, I have much reading to do before calling the corporate attorney which I've permission to do and the attorney has permission to speak. I'm 'back to work' tomorrow and think my new client got cheated in this settlement but, hey, did she ask any tax person's advice ahead of time? No. Does her attorney know anything about tax laws let alone 1244 stock. I sincerely doubt it. To boot, she has to pay her ex $12,000 per year as she 'makes' more money with her pension and Social Security so she has to sell stock every year. Sigh, it won't be her happiest year. I hope she can find some way to take this back to court. Thanks again!

Happy New Year to all......and good luck with your upcoming season!

Thank you...same to you! Let's make it a good year!

I resolved not to make any resolutions. Dang! Only one day into the year and I already failed.

I started thinking about resolving to eat healthier, exercise more, gain more fitness, lose weight... ... and then I smelled the cookies my husband baked, fresh out of the oven. Let's just say I didn't turn them down. Le sigh ~

I resolve to do all I do for the glory of God. I resolve

To all the GREAT folks here !

I pretty much manage that one.

To be more understanding of clients that are difficult. Oh hell, I make that one every year and break it in February. I like Elrod's last one, that should be easy.

Happy New Year! ............

Happy New Year to everyone, and hope you all have a healthy and prosperous 2017! I'm looking forward to it. I've learned a lot from this forum over the years and continue to do so. This year went by really fast. It's hard to believe tomorrow is the last day!

Right back atcha, Catherine!

I decided to get Drake now (Dec), rather than waiting until late Jan as I usually do. The program just blows my mind with its user-friendly features. After paying, the download took 10 - 15 minutes. I set up a few preferences, transferred my macros form last year, and did a printer setup, all in about 30 min. Ran a pro-forma for a client and all looked good. The only thing left to do is install the state programs when they are available. Drake cannot be beat for simplicity and efficiency.