Leaderboard

Aaaaannnnnd, that's why you were awarded the first-ever Tax Stud Star! And, yes, when they love us it goes a long way.

We usually hold broker statement clients to about now, but this guy was in FL and just got back to a stack of mail. But he's one of my longest, best clients and he absolutely loves me... and his wife just died.... so I didn't bill him for a redo.

This is something probably all of us fear. At every juncture during tax season I hold my breath when a program takes a little longer to open or some other non-normal thing goes on. And the fact remains, other than ours and our loved ones health, this is probably the most vulnerable spot for most if not all of us during our busy season. The Serenity Prayer comes to mind right now. God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference. Living one day at a time; enjoying one moment at a time; accepting hardships as the pathway to peace; taking, as He did, this sinful world as it is, not as I would have it; trusting that He will make all things right if I surrender to His Will; that I may be reasonably happy in this life and supremely happy with Him forever in the next. Amen.

Another bump in the road of life Hang in there, hopefully you will have your computer back soon, up and running. Keep us posted

Why not tell them :"You need to put $XXXX into your IRA by XXXXXX to reduce your taxes by $XXX. Here's your extension. Let us know when you get the IRA done and then we'll put your return back in the rotation in the following 30 days or so."

Way to go! Me too, in a few hours - and 2 days ago I would have said no way. A few extensions, one of which I can get a head start on, the rest are waiting on K1s or other pieces. So yea, payroll taxes, clean the office, etc. Wow, can't remember the last time I finished early!

Hooray, @rfassett! We have almost everyone not filed on extension. Couple of folks who only owe us signature pages - but if we have nothing by end of business Friday, they go on extension, too. I will do payroll taxes etc tomorrow; ran payrolls today. The usual slew of "I know you're busy, BUT" questions - that we are ignoring for now. (What I want to tell them all is: If you know we're busy, wait until next week, fer gosh sakes! Do I show up at your door when you're in the middle of cooking, saying "I know you're busy, but if I could *just* get those documents real quick" - you'd kick me out on my patootie!)

Carbonite does not backup the default folders that ATX uses for both data AND backups, so if you're using ATX, move your backup folder to a location that Carbonite does back up. Also, Carbonite only backs up frequently changed files (like tax returns) once every 24 hours. This is why I left them for CrashPlan.

Sorry for the rant. The best of luck to you, NE, with hopes for a quick fix!

I don't know where in NE you are, but I'm in Lawrence, KS, and if you wanted to load your trunk and come down and work on one of my machines (if you use ATX), you are welcome. You could roll over the returns you need to do and put them on a thumb drive.

Thanks. I hope that it's hardware and an easy fix. I just hope that Carbonite and/Easeus restore easily if that's what I need to do.

Hey, more tax return to do! Ok by me. No free lunches either.

Congratulations to you all that are finished. I have one last return that was completed days ago and will be in the client's hands this afternoon, and there are a couple that I need signatures forms back that I'll e-file. Everything else is on extension at this point.

Good to hear from you, Ms. TabbyKats! You seem happy in retirement although dismayed about the resulting former clients treatment. Tha's one reason I won't sell my practice, just assist clients with a transition to another practitioner of their choice. Sorry that I am unable to help from Ohio. I imagine this person would appreciate face to face assistance. Hopefully someone else here will be able to step up. Wishing you happy retirement ongoing!

Yes, thanks, and with a few days to go that's what I do with the heavier ones that take more time to review. Tomorrow is my deadline to complete any return. I don't chase anyone.

You cannot discuss your client with the ex-spouse.

My hard drive was sending signals to Dell that it was in imminent danger of failing. Due to my huge payments to Dell, they sent a new hard drive and a techie to install it, but I postponed the appointment knowing I had to "clone" my old hard drive to the new or face a long spell of restoring backups. My personal techie quit (apparently a feud with my 37-year-old son who hasn't lived here since he was 17, so why am I punished? I think biblically, it's supposed to go the other way!). Dell techie, an IC, was willing to work with me on the side. It took him two visits and him purchasing some new software, but he got me up and running last Thursday morning at 3 a.m.! Closing down is incredibly slow, so I still worry. And, I've been getting that red screen in Chrome. Thought it was under control with Abby's directions, but it returned this morning. The first thing I did was e-file extensions for every client left. Then I got back to preparing returns. Just had an email from a family where I really needed to compute payments, but didn't; so need to get to that this afternoon. We had an out-of-state funeral the weekend before Easter, then Holy Week/Easter. I even took off Easter Sunday, thinking I was on schedule. But, the computer gods have a wicked sense of humor! I also lost internet on Easter, and three days later Optimum was still telling me it was my computer (which sounded plausible, because that was before the new hard drive). So, unable to update my software or e-file returns, I gave in and booked the techie to install the new Dell drive. But, a patient Optimum tech worked out the Optimum issues and got me back online before the new hard drive. We did get a new router and probably need a new modem, as we've been bumped offline since then, but for shorter times. And, I'm postponing my hip replacement until after tax season! But that means I won't be preparing any returns for a while. Yeah, computers are a great help and time savers when everything works right. But, when they go bad, they are huge time wasters. Rant over. Gotta compute those extension payments. And, I have a few 2014 amendments to bang out today/tomorrow. I'm fried.

I love the Serenity prayer. Someday, perhaps I will be able with God's help to live every moment like that.

So you'll have a lousy 16th and 17th, but a great 18th as you'll fill one of Elrod's big glasses with free liquor.

Sorry that the link I provided in my second posts was about vacation homes, and that does not apply to your client's situation. While we are all waiting on interpretations of areas that are loose in the new TCJA, please consider the following when deciding whether you still think that this HELOC interest will be deductible, because it sounds like you want to treat this interest as acquisition indebtedness where some borrowing on home equity loans (as titled by the bank, to differentiate from home equity indebtedness that is a different issue altogether) will be considered home acquisition indebtedness IF the proceeds are used to buy, build or substantially improve the qualified residence and is secured by that residence. A qualified residence under code sec 163 is the taxpayer's principal residence or one other home used as a residence by the taxpayer, and that would not include a newly acquired property to be used solely as a rental. If the loan was for a property that was originally a second home and later converted to a rental, then that interest continues to be deductible under acquisition indebtedness, but a property newly purchased as a rental and never meets the requirement to be a qualified residence will not be considered acquisition indebtedness. If the rental's purchase came from the HELOC, it is clearly home equity indebtedness that will be nondeductible under the new law. Under the old law pre-TCJA, that interest was deductible under the home equity indebtedness if it was below the threshold for borrowing, and was the reason I suggested capitalizing all the carrying charges that you can. code sec 163(h)(3)(B) Hope I got that right!

Proud of you rfasset. I'm trying to tie things up but unfortunately I have a lot of stragglers trying to decide how much to put into an IRA or simple IRA as that is something I always suggest for them to lower their bill. But it amazes me that they will drag it out to the last minute, no consideration for us. Like we are there to serve them. It reminds me of the "Twilight Zone" episode, "To Serve Man," that's what they make me want to do, along the lines of Rita's thinking...our Queen.

Congratulations!

Closing the season with 474 returns done - 5 -1120; 60 -1120S; 26 -1065; 5 - 1041; 3 - 990; 6 - other; and 369 -1040. Extensions are done. Will be here tomorrow, Friday and Monday working on quarterly payroll reports and payrolls and putting out fires - very low key, low stress.

Good News! I have my computer back. They think that it may have been a Windows update that went crazy last night. I knew that there was one there, but I had not told it that it was OK to update. They did it for me today and everything is working. I am paranoid, but I am definitely getting my extensions done early. The really nice thing is that they didn't even charge me. They said that there was no sign of the hard drive failing and that if it happens again, to unplug everything but the essentials and see if they are causing a boot problem. Thanks to everyone for their thoughts. The Serenity prayer did come in handy even after I got up and running. We found another carpet beetle in the house after we have spent probably 36-40 hours total moving furniture, pulling up carpet and spraying everywhere. We had not seen one in over a month. I told my husband that this time, it's not Pinterest, we get an exterminator and find someone to watch the cats Lion, I really feel for you. I hope that your computer makes it through the next few days and that your hip replacement goes well when you find the time.

Just WOW!

Let the lawyers fight it out. They get the big bucks. Tax preparers are a little busy 12 April. Their agreement might require them to trade tax returns. But, it can't tell you how to prepare tax returns. Make notes/save emails from your client describing her situation and your choice of filing status. Good luck!

I like trusts anyway because you're getting all the deductions into AGI. Put the house in the trust and deduct the real estate taxes too.

Maybe the 1041 won't allow 2% deductions next year, and my plan will fall to pieces. CPE gonna be intrestin' this summer!

Nice hearing from you, Tabby. Enjoy your retirement. Don't worry; be happy!

A good math lesson, Rita!

I am also glad to see that my thoughts on this exact situation were actually correct. I warned my client that using a HELOC on his current home to purchase a rental house would not have deductible interest because of the new law in 2018. He did not like my interpretation and went ahead and did it. He will not be happy when he has his 2018 taxes prepared, unless he goes to someone else.

My nephew told his watch he was at a certain bar and where was the closest liquor store. The watch said it would call him a taxi.

CA allows you to itemize even if the federal standard is taken, as long as the schedule A is completed. So no much less work for me. I’m seeing big savings in my people that are hit hard by AMT. but then again, the 200-500k range isn’t exactly middle class.

Hi...I was on this board for a few years and retired 2 years ago. I hope all of you are doing well and that this has been a productive tax season. Some may recall, I when I retired I sold my business to a CPA who is, well, let's just say really not very good. I continue receiving e-mails from former clients about the IRS catching "his mistakes" etc.....and I usually give very general advice. But, I wont get involved beyond that. One of "the formers" e-mailed me a few days. It seems that for 3 years she had a pension plan at work, took an IRA, but he forgot to "check the box" on her return, so it was deducted although her income was too high for the deduction. The IRS did not catch this; her friend did. I told her he should amend...Form 8606 needs to be generated....etc. She called him and he was verbally very abusive to her (not the first time I got this feedback). I told her finding someone new would be costly (I mean, he should do this for free). She is very stressed out. And, continues to e-mail me, although, I told her that I don't want to be involved as I am retired, I never handled anything like this so I don't know the penalties etc, and that it's his responsibility. If anyone would be interested in handling his, please pm me. I've told her that nobody anywhere would be available before 4/17. Since I am retired I don't really care about "the rules"...so please, no advice. Unless I can give her a referral I'm ignoring her e-mails. Thanks to anyone who wants "an introduction"!

I meant to give everyone the annual warning to turn off auto updates for windows. New updates always come out the 2nd Tuesday of every month. Sorry! All my fault. Unless you're on win10, then it's M$'s fault.

Just a sample of how this guy communicates: (honestly....can anyone believe he is in business?) Hi Bonnie, Thank you so much for getting back to me even though you didn't have to. You are such a nice person with so much integrity. After trying to contact David from past two days, he finally called me today (about an hour ago) and instead of being apologetic of his mistakes he was verbally abusive to me. He used the words such as "pain in the ass" and mimicking my voice as to what I was saying. He also called me bitch in the past. He hung up on me few times without even letting me complete what I have to say. Even though he made these mistakes but I was still polite to him understanding that people make mistakes. Anyways, you will be surprised to learn what he told me. He said why do you want to update your return? Do you want to pay more taxes? You can just leave it like that and not be be worried as IRS has not contacted me yet for any of these returns. I was shocked as to how a professional can given me such an advice. The conclusion is he has agreed to file my amended return but I am not sure if he is going to pay any interest and penalty (if applicable). I asked him that and he was not clear if he is going to take care of it or not. I just need your advice about the interest and penalty. Since, I did not have to pay any penalty for several years and filed all my returns on time, do you think IRS might waive the penalties for these returns? If not how I can make David pay for it? For 2017 return, I think there will be no penalty anyways if I file the updated return before the due date (April 17th) but there might be for 2015 and 2016. Finally, I have decided I am not going to do my taxes with him any more as I am disappointed and shocked of his behaviour and rude attitude. His behaviour was completely unprofessional. I am so sorry that I had to write to explain all this to you. You did such a good job in the all the years you did my return. I missed you all these tax seasons so much. Thank you again,

Thanks, I won’t, the ex sent my client an email and it was forwarded to me.

I received a stack of them on Monday morning from a different firm. Turned out every one of them was "corrected" but it didn't change a single one of my entries. Most either changed info about a separate K-1 or they re categorized a qualified dividend to a (wait for it) qualified dividend.

I agree, HELOC loan secured by primary residence used to buy a second home would not be deductible under the new rules because it's personal usage, however, I think if the proceeds are used to buy a rental property, even though the HELOC is on the primary residence and not secured by the rental property purchased, then the rental property can deduct the interest of the HELOC loan on the schedule E. Correct?

Abby......The hard working....Over worked.....Tax preparer.... . ................Coat of arms..????.... .......................

.....until you get caught. http://www.theprogressiveaccountant.com/Tax/feds-sue-three-florida-liberty-operators

Start with "10x big money", same was as how to make a fortune in racing, the software business, etc. I was deposed during a case against a current guest of the federal penal system. He was preparing returns for immigrants, with the refunds deposited into his account (since his "clients" were unbanked. Besides the morality of that alone, the returns were altered for EIC and other items, resulting in a difference between what the client was expecting, and what was received, with the difference remaining in the preparer's account. The court was more than happy to add to the person's "vacation" based on an email threat I had received after the deposition.

This was discussed about a month ago. What Judy is referring to is that the loan must be secured by the property purchased. Example : Proceeds from a Heloc secured by primary residence used to buy second home. Under new rules this is nondeductible. In effect, the old interest ruling rules will not always result in a deduction.

I was driving my son to school this morning, and I noticed that his socks were not appropriate for his uniform. I asked him about it, and he said, "Mom, I don't have any more clean socks, and this is my last clean undershirt". I have to appreciate that he just dealt with it and did not say anything to me until i brought it up. I asked him if he had clean underwear left in the drawer. Yes. I sent one of my staff members to Target for 7 new undershirts and 7 pairs of dress sock. I've become 'that mother'.

What I like is the apparent acceptance of the duty by your staff person. I have always been one to consider my job description to be anything the employer asks, pays me for, and is not against any laws or contracts (the one time I did union work), or against my morals.

Give it a few minutes and someone else may offer some other justification or rationale for taking the deductions.

Was it or not? I would probably say that this was not actually in service as a rental, or if it was for a short period, it was then quickly out of service for an extended period before becoming available again, even if it was from circumstances beyond their control. As to the other expenses, I'd capitalize all of the carrying charges possible so that those aren't completely lost. They'll get the deduction over time via depreciation, but it is better than not as all. You know that HELOC interest on the rental won't be deductible on Sch E starting with 2018, right?

Tom you are NOT crap, and you should NOT be fired. Mistakes happen. We ALL make them. Yours was a bit more spectacular than a bunch, but I would bet if we all dredged our memories we could come up with some pretty spectacular fails. (The mind eventually hides memories that are that painful.) You may find that this client - because you fessed up - will stick to you like glue. Or not. Either way, it says NOTHING about your worth. We love you and we respect you and we value you. If you *were* crap, you wouldn't care about a mistake. The level of your upset proves the level of your skills and your ethics.