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You guys need a hobby

AB: If I could get the landlord on board... my portion of the sign was a "stop-gap" until the entire sign was replaced. The 'black" sign I posted is outside my door in my Centreville office. I am going with a much bolder font... Rich

"No cash - no gain." (BB/2-7-17 post) "Yeah, every single person that ever sold real estate in this town thinks that. Every. Single. One." (RitaB/2-7-17 post)." You're right - they're everywhere. Doubtless you're very much looking forward to breaking the news to the poor soul above (may be the end of a 20 yr. run).

Our hobby is watching online soap operas...

The Office of Management and Budget (OMB) released President Donald Trump’s proposed FY 2018 budget for the federal government on Tuesday. Included in the proposals are several tax items, including a proposal to authorize the IRS to regulate all paid tax return preparers. http://www.journalofaccountancy.com/news/2017/may/trump-budget-tax-proposals-201716729.html

Yes, the qualified written appraisal will be done. The client knows it is required. His attorneys know a few qualified appraisers and are getting quote$.

Yes, it does... and affects "all" the partners.... I would still get the qualified written appraisal. Rich

A twist in the plot! I severely miscalculated the donation amount. The charity will receive 2% of the entire partnership, so it goes like this: FMV = $10m X .02 = $200,000 Unrealized receivables = $1m X .02 = $20,000 Deductible contribution = $200,000 - $20,000 = $180,000 Makes a difference.

This is better than all the reruns on TV during this holiday weekend !!

Yes, I have been squawking about how the charity is apt to treat the shares, but have received no response. I am supposed to get the amended operating agreement tomorrow so the epic saga will continue....

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What's his basis in his membership shares? When he donates, does he use his cost basis or FMV or the lesser of or...? Appreciated shares? Is that why he's trying to give shares now and not cash later? As well as the lawyers, what is a qualified appraisal going to cost him? Does he think he's putting all those expenses on the LLC as a whole and won't need his own lawyer, etc.? Yeah, at my age I might be resigning about now or spinning off the tax returns and just doing the bookkeeping. I'm staying tuned for the next episode of this soap opera!

If the entity is going to be sold, and he is only giving away 2%, or $40k max, just have him write the check to the charity after the sale. Much easier, and cleaner. If he was able to "gift" 40k, but get a much larger deduction, I can understand the reason for haste. But in this case??? The attorneys arranging to make this happen are going to charge more then he is actually going to save in taxes. Point that out to him. Rich

You are correct about the $3500, but I don't know what's going on with your software. FWIW, I've had better luck carrying back losses by preparing amended returns as opposed to using the dreaded form 1139

Good point. The attorneys are working on an amended operating agreement and tell me it will be ready on Tuesday.

IMHO, you under charged your client. My very minimum charge would have been $475. Depending on how many other factors were involved in the actual preparation of the returns is the only way I would feel comfortable in telling you if my fee would exceed $475 or not. It's amazing how some people can split hairs in regard to your fees in preparing something as important as their income tax return. And don't let the fact that you are not a CPA discourage you from charging how much your fees should be. I have seen errors on returns prepared by CPA's, their receptionists, and others regardless of what initials they use on their signature line. If said client doesn't return, consider yourself fortunate as he/she is likely to be a thorn in your side every year. Let them go play "winning through intimidation" somewhere other than your office!

Personally, I would prepare the amended return to see if there is a refund after changing the status. If there is, I would file the SS8, including the DOL letter, and then file the amended return showing the SS8 application and the DOL letter. I would not want the statute to run out on a refund. If the amended return shows a balance due, I would probably advise the client to file the amended return but leave it up to them to decide. Tom Newark, CA

My 20-year client called this week, gonna sell her rental, adjusted basis about 20,000, for 90,000. Congrats! "I'll just make enough to pay off the heat and air unit I think. Just wanna know if that'll cause me to pay back SS benefits." Ummm. (I seriously had to sit there a minute, thinking, this is your one and only concern right now??) No, you'll get to keep em, but they'll be taxable. And I will be mailing you a pretend return so you can see how much of your heat and air conditioning money you best save up for yer tax bill. Love, Rita, EA (Even After 20 years they think if they say they didn't make anything my job is to tell IRS that.)

CPAs and EAs have complained forever that half of the issues on their tests are things they will never, ever see in practice. Probably true, but you never know. I'm sure I forgot a lot of these things that I "learned" studying for the SEE, but guess what? Every so often an issue comes up and something in a hidden brain cell tells me there's a rule for that. Then at least I know to look it up. So, while some tax areas may seem remote and you'll likely never encounter them and will forget the details, knowing that they exist may be helpful someday. I am resigned to the fact that the industry needs regulation. We have all seen the shady and/or stupid things that some tax "pros" produce. And we've all have potential clients walk because they didn't like the result. Where do they go? Back to the jerk who lets them deduct commuting miles, "uniforms that consist of jeans or black pants, nonexistent education, you name it.

So you had yourself one GREAT escape, didn't you?

I have also used Firefox for years with no problems.

Look at the partnership form 4562 and look for a carryforward of the disallowed 179. I think you are correct. The deduction is first limited at the entity level.

Based on David's scenario, I am assuming that his taxpayer had other unrelated wages on his 1040.