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Really, people? I don't know if these people haven't heard that we're busy right now, or if they just don't give a crap, but here are the burning questions today: 1) Hey, Rita, we're selling our house (we hope!) for $175,000 and there used to be a law where you didn't have to declare gains on that. Is that still in effect? You mean your personal residence you bought six years ago for $200,000? No, you don't have to declare the gains on that loss. (She didn't even know it was /s ) 2) Hey, Rita, can I deduct the cost of over-the-counter medicines? It wouldn't matter what I said on that one - they can't itemize but she is on top of it for next year, lemme tell you. Look out Johnson & Johnson and Bayer.

I need a business valuation for the bank by the end of the week. really. I don't even do that.

This is my dream today.

Hey Ron - here is a court order that says you have to provide my divorce attorney with unbridled access to my and my spouse's files that are in your office on or before April 15th. I just received that today via email. How do you spell CONTEMPT OF COURT I could almost give a flip about that right now! But just curious - is email an accepted form of delivery for legal directives? This might be just the thing that drives me out of this business and into retirement! But then again, I have never walked away from a good fight!

You need the manufacturers certification. If it qualifies the condenser is 300, boiler or furnace is 150. The cert should tell you if he got a advanced main air circulating fan. If he did that is worth 50.00. https://energystar.zendesk.com/hc/en-us/articles/211437638-What-is-a-Manufacturer-s-Certification-Statement-Where-can-I-find-it-

We have competitors that try to pull that from time to time. I had to call one a few years ago for my tax client who insisted her units qualified. I asked for the Manufacturers Certification on the equipment and he told me he would work on getting it but in the meantime... "it does qualify".. "I said that's strange because I work at "my hvac co" and I ran the numbers and ratings and it does not qualify. I will put Ms. X on the phone now, please explain it to her."

I don't enter these W-2s. The DD is informational only, so without any taxable wages to report, there really isn't a reason to input into the return.

My suggestion would be to ignore it, unless it is more than your client reported in total sales. Then my suggestion would be to fire the client.

And, HOOOOOOTTT!!!

HVAC is my other job. I deal with this a lot.

Client(s) promises a couple of days before April 15: "I promise next year, I will bring in the information a little earlier" I just don't have the guts to say what a F'n lie

Protesters of any kind get ushered to the door. And ask them to give back your business card on their way out.

and I have a family with a nice Sch C business - and 6 children, EIC, CTC and will not take $$$ from govt..

And way better than the salesman here who tells everybody their SEER 13 unit probably qualifies for a tax credit, yes sirree. No. No, it doesn't.

THAT"S COOOOOOLLL!!!

*This is not racist or political*, I'm just too freaking busy for this stuff. I got an email today from a client. She is helping some refugees and what do they need to do about filing income taxes? I just told her that I'm sorry, I don't know the answer off the top of my head, I would have a bunch of questions and no time to research.

I don't think a settlement for emotional injury is tax free. But if the attorney proved there was physical injury involved some of it may be tax free.

Thanks for taking the time to respond. I know you're slammed like I am.

Rich, nothing related to the owners goes on Sch C, not even the part that is considered the employer's share. Both employee and employer shares for the owner is all reported in the adjustment section on the front of 1040. That way, IRS can see the max limitation has been applied. You try to bury it on the Sch C and IRS can't figure out the compensation and doesn't know how much of that employer's share is attributable to the owner. Next, about the final deduction. The max that may be contributed to a participant's account by one employer in a given year cannot exceed the lesser of $53K or 100% of comp (comp max is $265K), and that limitation includes the employer's share, so I think this client is stuck with a max of the $53K for each of them unless over age 50. This limitation includes the 'ee elective deferrals, 'er match, 'er nonelective amounts, and forfeitures. If I recall though, that max doesn't include catch-up for those over 50, so in those cases the max would be $59K for the 2016 tax year.

Too late to edit! Supposed to be Massachusetts/Mass. Neither posterior nor donkey was intended!

Maybe they plan for him to live in the woods and be entirely self-sufficient and completely off the grid.

Plus the kid will be un-employable. Are the parents prepared to support him his entire life?

I received several texts and phone calls from a friend inviting me to go play golf in his golf tournament on June 3rd... Really? Like you need an answer now? Sheesh.

Roberts: How can they make a 401(k) contribution if they are not working and earning wages from the company?

Just make sure that the total sales include the income from the 1099K. If it does, then there is nothing else to do. If you want to do two separate lines, enter the 1099-k income and then on the next line enter the remainder. When the 1099K's first came out the schedule C had a place to input the amount, however either the following year or the year after it was deleted. The important thing is that total income is reported. For example, here a lot of my hair dressers are using square. The print out the 1099K and if that was all they turned into me I would question it, what about cash, checks, ect... But if they give me a total figure that is more than the 1099K I would make the two line entry, the one for the 1099K and the other for the remainder of the income, to total the total income being reported.

With his 12/31/15 basis of $120,000 plus taxed 2016 income of $1,302,000 less cash withdrawal of $1,200,000, he has a remaining basis in the stock at time of liquidation of $222,000. That $222,000 would be reflected on Form 8949 with zero proceeds, $222,000 basis, long term F category. Yes, this would show as a $222,000 loss which would offset some of the capital gain coming out on the K-1 or other capital gains that the client might have. You are on the right path, in my opinion.

Client installed a 'Split System: Air-Cooled Condensing Unit, Coil with Blower'. I think it qualifies for a $300 credit. He has a printout from Lennox that says $500. Does anyone agree that the max on this system is $300? I know I'm tired. Thanks much.

I have never had anyone try this, and I haven't researched this. My knee-jerk reaction is that this probably isn't allowed since these plans generally follow along with the rules that the medical expenses paid by these plans that allow pre-tax pay'ts via salary reduction have to be deductible medical expenses under the tax laws. Following through with that thought, this should disallow prepaid medical expenses for future care that aren't associated with a long-term care policy or plan. I don't know if there are any special provisions though that may be allowed if this is under a noncommercial, self-funded medical plan that the employer maintains though. Sorry, no definitive answer, just my ramblings from a very tired brain so don't take this as fact. Give it 5 minutes and someone will say I'm wrong. ~sigh~ What does the HR dept or plan administrator say?

2 options I see. Pop $1 in box 1 or delete the W2 (which is what I would do).

I think you are on the right track.

Don't forget....529's can be used for R & B.

I'm very impressed!

I watched the little video and made four macros to fill out extensions (fed/Mass), PIN screen, and EF screen. Including watching the 2.5 minute video, it took me about 4 minutes total. They are THAT simple. *4868>X>>Y is, (if I recall correctly) the macro for extensions. Goes to screen for 4868, puts an "X" in the 4868 box, two tabs to the "Y/N" box to make it yes. Boom, you're done.

Just this week I had a client that sold their personal home that became a rental for the past years, in my head they qualified for the exclusion, but when I put the months on paper they missed the exclusion by 4 months. It's very simple to do.

Good move at this time of year, well, anytime of year is good for firing a client who cannot tell he truth. You have your suspicions and used good judgement. Rest easy now!!

I just fired her via email. I referred her to a very good tax rep guy who likes to gamble himself, and apologized profusely for my incompetence in not being able to adequately represent her with so much at stake...blah, blah, blah. She came in late, she lied about the gambling and knew she should have told me, and she took the advice of "the casino people" without mentioning a thing to me. What else is she hiding? She's a disaster waiting to happen and I kissed her goodbye, nicely. But, I am pi$$ed. I could handle a smaller at-risk amount, but when the wagers and wins are over a half a million dollars, that's a bit much. Cripes, she only makes salary of around $80k per year.

Was this the first RMD (i.e. turned 70 1/2 during 2016)? If so they had until 4/1/17 to take the 2016 RMD. If not, the distribution gets reported on 2017 return along with 2017 RMD. And, I agree with jklcpa and filing 5329. Grace

I agree with Catherine. There are enough folks here to help with Drake questions and Drake support is nothing less than phenomenal. I am an ex-ATX user and during my time with them, never did they answer the phone in three rings. When it was Sabre and William and the others were there, the support was good so I want to give credit where it is deserved. When I left them, I have not looked back and in no way regret the change. Don't waste your time on the third party resellers to save money. Been there and done that and wish I would have just switched to Drake and been done with it. The only one I tried for one year that was halfway decent was Tax Slayer Pro. But...they did not have some of the forms I need. So, why chance it, go with something that others recommend that is solid.

The difference is paying it to the government or paying it to yourself. It's true the dollar figure may be the same, but the benefit changes to one that she will some day get back.

I told this client of mine at 589% of poverty level last year that he would not qualify for APTC. But he knew this insurance guy, BBFB (blah, blah, frikkin blah, per Possi). We have an insurance agent here who has figured every single one of my clients' income incorrectly in "helping" them, and every single one has paid back the subsidy. I didn't want my client taking his return to this guy (or someone else) and being told, "OMG, if she had only told you to put $100 in an IRA..." I have a tremendous aversion to criticism. That's the size of it. For your client, a $6,500 contribution to an IRA would get him down to 386%. A $5,000 contribution would get him down to 399%. My client wasn't even close to being in a position where an IRA would help. I didn't want anybody to be confused about that. Plus, I used to be a Math teacher and it bothers me not to see the real number. A lot.

Bingo!

Such cases don't know, understand, or care about any of the regulations and/or obstacles mentioned. He's interested in making money, period! Everything else (including you) is just white noise to him. They will present you with new facts as you proceed (sometimes invalidating what you've just done) depending on what they consider your "need to know." It would be a good idea to suggest H&R Block, say they have a large staff, you don't, and it's too complicated to get involved with now or later. In the event you do go through with it; I predict a bitter fight about your fee.

Might I recommend you folks all look at Drake, once we get past 4/18 and the dust settles.

interesting. will keep that strategy in mind. I have a husband who is awol. well - not mine own, although it would be nice....

I threw a blank extension form at my crappy neighbor who literally pounded on my door yesterday. The neighbor who lets her two pit bulls run around off leash. Good riddance.