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How do I get everyone to like this so jklcpa wins

Aaaawwww. Thanks! Just call me the Wiz. And remember, on April 17th, nobody gets in to see the Wizard. Not no way. No no how.

Judy, you are a super duper moderator EVERY week! You should have a permanent star!

Actually the IRS position makes sense. Only 3K of Child Care expense is allowed for the credit per child, regardless of how much you actually pay. That is pretty clear in the rules. Since the employer provided care was not taxable, you can't deduct the amount of the 3K in allowed expense that was not taxable, or you would have a double dip. Allowing you to apply the employer reimbursement to the amounts above 3K would mean you got to blow past the statutory limit. "Fair" is a very bad term to use in the context of tax. It all depends on the point of view. Tom Modesto, CA

Judy, I don't know if this will qualify or not. But.... one of my more brilliant business clients (Sch C) had in their expenses for 2017 $300.00 deposit to open a new checking account. I mean really, you just can't make this stuff up.

I tell them the standard donation amount is zero, or in TN southern talk Zee Row.

Oh yes! In Customize Master Forms: Open 1040, 1040 EF, Comparison & 4868 Enter an amount on Comparison line 63 Total tax Prior Year column Link line 63 prior year to 4868 tab 1 line 4. Enter 0 on 4868 line 7. Check box Lock amounts and carry Restore line 63 on Comparison Efile Info-Check Practitioner PIN Efile Info-Link taxpayer & spouse PIN to 1040 EF Efile Info-Check ERO entered checkbox for taxpayer Efile Info-Link ERO entered checkbox for spouse to 1040 EF checkbox Efile Info-link Date Signed to 1040 date Efile Info-Enter ERO PIN Payment-Check Paper check

What happened to the concept of preparing taxes based on documents presented by the taxpayer. How do we justify creating deductions by the paid preparer? If preparers can create a $10 deduction can they create a $10,000 deductions even though the taxpayer says so? Where do you draw the line? Is it the preparer's or taxpayer's return?

I never said how much time I spent on it. I said it was a PITA and I should clarify that this client's entire return is the PITA, not just this. The client's giant spreadsheet of donated goods still needed "intervention", and by the end of the season I may need an intervention.

Client: Do I have to report that? Me: Yes. Have you ever noticed, the answer is always yes? Please stop telling me about income and then asking me if you have to report it.

Not even Dorothy and Toto? You have too much of a heart to say no. And what about the brains and courage that all tax preparers hope for at times, surely you would continue to help us out.

Many 1099's that I've done show $0 cost basis on their non-reported sales but then disclose the cost basis that is in their records on other pages. For example I brought in a bunch of securities for a client and provided a cost basis. Those ended up as E's on their 1099 with the cost basis noted. I've notice the last few years it is VERY rare that someone doesn't have something for a cost basis on the 1099.

And it could be a split basis with mother's original basis and step up on half the basis when inherited. As Gail states, that should have been established on the gift tax return. If not, some investigation will need to be done. At any rate, the daughter's basis is most likely north of zero.

Was a gift tax return filed in 2012? It should have been, and the basis should have been established at that time as the basis the mother had in the lot, assuming that it was less than the FMV in 2012. If so, the lesser of the mother's basis on the gift tax return or the FMV on the gift tax return should be the daughter's basis upon sale. Perhaps that is why the appraisal was done.

Abby Normal, you are just amazing! Well deserved Star for so many reasons.

Our tax system was not designed or ever intended to be "fair." It is a progressive tax intended to tax the wealthy at higher rates (although with more loopholes) than the poor, and to accomplish certain social and economic goals that have nothing to do with taxation.

I finished one this evening that was very similar to this. Nine trips, all to Goodwill, and I broke down by groups of similar items. The client is very organized and had it all summarized and broken down by types of items and by date, and it was still a PITA.

This gal does list, so lots of different things were donated, furniture, clothing, sports equipment, books, etc., and using the Goodwill calculator, the whole mess was just under $2,000. So, no risk of a group of similar items being over $5,000. Had a guy donate his record collection to a symphony in his home state. They paid for the appraisal and sent him the paperwork which we efiled as a .pdf with his return. $15,000 or so!

Lion, if people give "similar" items to charity and the total FMV is over $5k, they have to have an appraisal, just like if they gave one item worth that much. So if all those receipts contain "clothing, household, misc," that's "similar" and should have been appraised (yea, right). I only allow maybe 15% of cost, maybe 20% if most of the stuff was new. It boggles my mind that the IRS is so picky about having a receipt for every single cash donation but these noncash ones get a free ride. On the other hand, I will not push clients for bank interest under $10 (I do pick it up if it's on the mortgage escrow statement). It will hardly ever make a difference, and I waste enough time getting big numbers out of them like college financial transcripts and out of state property taxes.

I still use an email program which allows (via an add on) me to send messages with a delay. Gives me a chance to catch myself should I be too flippant or just plain wrong. Something about hitting the send button (even if a delayed send), on occasion, sharpens my thoughts. Does not prevent foot on keyboard errors, but can make them rarer. On the other hand, when I have a less than optimal situation (such as a mistake), I usually end up becoming an expert on the issue, so the mistake is never wasted. Rule 1. The umpire is always right. Rule 2. If the umpire is wrong, see Rule 1. It is actually true, because when #2 happened, I made it a point to learn/relearn the rule/interpretation, making Rule 1 true again (I kicked the call before, it should have been X). Admitting, trying never to repeat, and learning from my mistakes has been very productive in all my endeavors...

my new response when I ask for interest income and I get "those answers": it's hardly anything I didn't get a form it is less than $10 the bank says I don't have to report it of course, I have already gone through the spiel: "If it is less than $10, then the bank does not have to report it to you; but you have to report it to the IRS. You have to look at your year-end bank statement to get the figure". ...so, you didn't get a form... it is less than $10... so $10 per account will cover it that has gotten a few people to look. And yes, sometimes it is .12; and sometime $2.37 and makes no difference (but it goes on the return!) but sometimes it is $37.12 and they "didn't get a form" because it is online and they didn't look . As we all know..sometimes $2.37 does make a difference. Ugh! knocked them out of Tuition deduction of $2,000 for that $2. But it has to go on the return!

Raise their price $40 and give them a $20 discount.

Well, ship, don't ask me the standard amount for a donation. Hellur? There is no standard amount for a donation. Yeah, I know what they mean, but learn how to talk, you peanut butter jar donating cheapskates.

Boy you guys and gals are harsh. If they want to deduct 500, I let 'em deduct 500. At 15% that's only $75 tax. And if they tell me what they paid for something, I give 'em 20-25% of that.

Oh, they give me a number then, I just like to be a smart ass I mean educate my clients.

Clients put a $20 off H&R Block coupon in the packet they dropped off. Coupon code 69439 for anyone who wants to use it .

I want to salvage a confessional from an old church.... and put it in the corner of my office. When the client says "Do I..." I would just say "Go over there and tell them your sins..." LOL

Exactly!

It would be helpful to know the times of the year when the TP lived in CA and when he lived in other states. Your OP makes it seem like he was a resident of NV to start the year, but it does not say that explicitly. I am going to assume he was domiciled in NV at the beginning of the year for some part, earned income in NV for that period of time, and then lived in NV but worked in CA for some period of time, and then moved his domicile to CA and finished the year there? Is that correct? Based on the above assumptions, he would file as a PY resident in CA and claim all the income he earned in CA for this year. The NV income earned while domiciled in NV would not be taxable to CA. FYI, CA taxes the worldwide income of all domiciled residents, and gives credit for taxes paid to other states. If there is no tax paid to the other state (like in NV), there is no credit. That is why documenting the period of time that he was not a domiciled resident in CA is so important. If the TP was never domiciled in CA, but earned income in the state, he would file a NR and pay income tax on the CA source income. Domicile is key for you to figure out what needs to be filed and what is taxable in CA. Tom Modesto, CA

Many years ago you were required to file a 1041 for a revocable trust while still alive. They voided that and allow you to include it on your personal return since it ends up there anywhere. Have one client who INSISTS on filing a 1041 for his trust but oddly he doesn't require it for his wife's small trust. I put his social security number on there as that's what the prior CPA did and his attorney dictated I do. He's been doing it for 40 years and the IRS has never once commented on it.

And they all want a BIG return... you know ..a BIG tax return where they get a big check! Oh you mean your tax refund...

I really am, cause they can't even itemize. But the one who wanted to deduct the used peanut butter jars she donated to Vacation Bible School? Uh. They were worth zero. ZEE. ROW.

I have been subpoenaed by prosecutors to see if I had any access, knowledge, or any other information about what our customers did or did not do. Usually just a statement made via recorded phone call gets me out of the loop. No defense counsel has asked for my "help", so far...

Here's an interesting article from 2011 about an EA who apparently didn't know the nuances of his software and went to jail over it. (That's complete BS, you know something else was going on there, but it was on the interwebs and all): http://www.cpa-connecticut.com/blog/?p=2057

Had one today. They did sell their house and downsized. 13 Goodwill/other receipts. Some listings, such as oak end tables, 6 leather purses, that kind of detail, but NO dollar amounts. (Pet stroller donated to Humane Society, letter received, used once, paid $120 !!) I emailed her. Same thing, wanted standard amount, $500 she asked? "Good will , I gave them so much due to move - I say the value should be what ever the guideline is. $500? You choose. The stroller was only used once I paid $ 120.00" She's an artist, so I don't think I'll get much more out of her. I know they downsized, so I may sit here with my Goodwill list and her lists (which are short, so I might actually do this) and give her some conservative numbers. And, charge her a bookkeeping fee. Otherwise, I've been doing zero or $10 per receipt or whatever my mood dictates when clients don't respond. If they don't make any cash donations, church or whatever, I go with zero for Goodwill if they won't commit. At least this couple did give money to a couple of organizations.

I think that's because we are quick on our feet tending to all the craziness. Sometimes in two places at once, or so it seems.

There is no software to handle accounting for someone with no experience or training in accounting. In other words, it is impossible to create accounting software which can be blindly used. Same for tax prep, despite many attempts...

If there had not been a trust it would be an "estate" income tax return 1041 with the taxpayers ss#. Edit: I stand corrected. Estate also must obtain a new TIN.

Oh, let 'em have $25, it won't change their tax in most cases.

Judy, we are all accessories but not to worry - our lips are sealed!

Crying. ISTG.

Those places better be unmarked. Now I'm an accessory to her misdeeds.

Isn't that the name of Rita's back 40? Just saying @RitaB Tom Modesto, CA

Yeah, but where is the 'place'.

June 23, and I already have a place card with your name on it.

I'm the only one in here, but I am totally going to start doing this.

Yes, please proceed as if our answers are correct because there is no way you can convince the IRS that your clients deserve the full credit as you requested it.

With the tiny amounts usually involved in "cash in lieu" sales, I usually use a basis of zero. That way they can keep their entire original basis in the shares they do own,. The math is complicated enough trying to calculate basis of each share when they received 1.4087351645 shares for each one they had. Adding a couple of bucks in gains to their tax return for the partial share sold isn't going to change anyone's tax bracket.

Yes