Leaderboard

And in driving wind and rain, what a rush! Women all over America should be proud. Way to go girl!

No Caller ID?! We can see the last 50 incoming calls and dial those numbers with the push of a button. What I HATE is when they call me on one number but want me to call back on a different number. I always call them back on the number the called me from first, for MY convenience.

Copious notes in ATX is the only way I remember most of these things and also how I pass on what I've learned so my employees are better/faster next year. Always be learning, always be improving, always look for ways to save time and aggravation.

The investment advisor is wrong. The RMD is calculated based on the December 31st balance of the immediate preceding year, and that is adjusted to include any outstanding rollovers or recharacterized Roth IRA conversions that were not in any traditional IRA during the year. That information is taken from directly from each of the worksheets provided by the IRS to calculate RMDs.

Desiree Linden, she'll be on the Wheaties Box if not already. I forgot she was in the London and Rio Olympics. I was so choked up because she is the first American woman to win Boston (a tough run) since 1985, I didn't even know her name until the last half hour while I was finishing up some extensions and watching in awe that she could win. This was huge. And of course so many other Americans finished up there in the top five. What a day, with weather like this it makes you say to yourself, anything is possible.

Yes... I hate that. And, if you are not sure that you have the right number, you don't know if you got the right person as well. Rich

PROBLEM SOLVED......DISCARD THE EF INFO FORM, RECREATE AND E-FILE AGAIN. THIRD TIME IS A CHARM. THE ID SUBMISSION YEAR WAS CORRECTLY LISTED AS 2018 THIS TIME!

And this is why I choose email still. I can print to pdf and save in the client file. Only 2-3 clients even know my cell number because they are members of the same church. I never have the sound on when I am working as there has been a recent inundation of spam calls here. It's using the area code and first 3 digits of my number so I quit answering or calling back. I was fooled once thinking it was a neighbor. I just respond to left messages. Technology can be very good, very useful and also a pain in the patooty. I choose to use it for my convenience. Ms. Cranky Luddite now signing off.

My client spoke to SSA and they confirmed that she was not deceased. SSA said they would send an alert to IRS and I will try e filing again in a few weeks.

Yeah buddy!!!

This is strange. I have no idea other than some computer or human malfunction. I'll let you know what my client finds out. Also, to correct the quote from the famous shrink, should be "Be Alive, until you're dead."

Caller ID yes, but sometimes only the number appears on missed calls, I have a million things to do, so if you don't leave a message you are not getting a callback. I am a one person business, I tried answering ever single call that came in the past, but I notice I was getting no work done and leaving the office after 7pm for the last 8 years, missed my daughter's first 8 years of childhood for being married to my work/clients. <- my biggest regret and saddens me everyday.

The check will be cashed because banks process those. That's why it's mailed to a PO box.

Starting at our cutoff - we tell folks coming in after that a number of things. First, no guarantee that the return will be done. Second, where can I reach you at a number or numbers that will be answered during the day, evenings and weekends. Third, if you fail to answer our call, we will assume you do not want your return finished. Fourth, we will not leave a voice mail - refer back to number 3. We will go a long, long way to help those that want to help themselves - but won't move much off center for the other camp. BTW - we have very few issues like the one described - maybe two out of all of the returns we did this year.

I decided to have client mail in an Extension with payment and instructed her to watch to see if it is cashed. She will try rectifying this with SSA by phone as she is a busy professional. May take awhile for her to get down to the SSA office. She thinks this is really funny as we've had some back and forth banter (I've been calling her Casper and after I tried resubmitting I offered condolences). I also told her what you guys said and she will use Mark Twain's quote, she loved that. She doesn't think we have a sick sense of humor, she's a Psycho Analyst and has heard worse. She did say there is a famous Freudian psychiatrist who summed up death pretty well, he said "You're alive until you're dead." I think I learned that is Psych 101. My curiosity now is if she gets her SS check, 3rd Wednesday every month, we'll soon find out. If not I predict she will find the time to get down to the office.

Well first of all extension until you get time to sort this out. You are doubting depreciation schedules, so is this client new to you? Offhand I can't think of anything your missing, but then again it's past my bedtime. How about schedule J, farm income averaging? The sale of farm equipment qualifies as elected farm income. Schedule J helps if taxpayer was in lower tax bracket in 3 previous years.

Most trusts have to use a calendar year. Estates can use a fiscal year. An estate 1041 ending June 30 2018 will be due Oct 15. You can file for a five-month extension.

Glad we could help!

Another client's bookkeeper coded $36,000 of Sch C owner contributions as revenue in 2016 (I'm amending that one) and $42,000 in owner contributions as revenue in 2017 (I caught that one). I have never seen a bookkeeper do this before, and didn't look at the revenue details until preparing 2017 because my gut started screaming at me. I did check to make sure she didn't deduct his estimated tax payments. I questioned the additional revenue in 2016 since his payroll wages did not increase as would be expected. He told me he worked a lot in the field. Fine. So, I base his estimated payments on that amount and he dramatically overpays in 2017. Big fat refunds for 2016 and 2017.

Sure, no problem. If you want the cite, I looked it up. It is sec 408(a)(6) that says the calculation follows the same rules as in 401(a)(9) that covers qualified plans.

Judy, thanks for pointing me in the right direction. Much appreciated.

All I can say is if you are using ATX, the way the worksheets and Form 3800 work together is almost incomprehensible.

(IRA Phaseouts if you are covered by a retirement plan at work from irs.gov) If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take... single or head of household $62,000 or less a full deduction up to the amount of your contribution limit. more than $62,000 but less than $72,000 a partial deduction. $72,000 or more no deduction. married filing jointly or qualifying widow(er) $99,000 or less a full deduction up to the amount of your contribution limit. more than $99,000 but less than $119,000 a partial deduction. $119,000 or more no deduction. married filing separately less than $10,000 a partial deduction. $10,000 or more no deduction. If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status

The other suggestions are good - but if you decide you want to chat, you know where to find me, Lynn!

I guess the advisor is thinking that the amount was not part of the balance of the IRA at 12/31/17 and therefore will not be included in the calculation because it isn't in the 5498 amount. But I thought the reason 5498's were not issued until May or June was so they could include contributions made in the first 3 1/2 months of the year for the previous year, and I would think that would include rollover amounts. But I am just speculating and thinking out loud. I don't think it is legitimate, but you might get away with it. Like so many other things....

If it's all investment income, you can often ignore the state if the bene doesn't live there. But states are all different. My philosophy is, don't file the state, and if no one screams, it's all good!

Yes, I add the TN FAE to the personal return.

How would you like to have an 85-year old client withdraw $ 130,000 from an IRA, keep $ 25,000, and roll over the balance to another institution within 60 days, and not consider having Federal income tax taken out of the amount taken as a distribution?

I would vote for the client. The bank bozos are in business to make money and, perhaps, the client didn't even ask for advice. Could be client just got a check and deposited it, no questions. And, try as we might, too many of our clients forget again and again our advice that if money is involved, please ask US FIRST! We can't fix stupid or wilful disregard. We are advisors not parents (well, most of us aren't parents of our clients.)

Took it all out, they withheld taxes at 20%. Put in non-retirement account. Past the 60 days... I don't know whom to blame more, the client or the bozos at the bank getting the financial account.

Depends on how the timber was treated on the tax return. If treated as ordinary income then DPAD. However if treated as capital gain, such as in the case of a Section 631(a) election, then considered sale of real property and not a DPAD.

Didn't your client just do a rollover within 60 days? Or did he take all the cash? Or put it in a non retirement account? Did he think he was putting it into a retirement account?

My TP just went to the social security office, and they told him he wasn't dead (which I had already figured out). Seriously, I got a reject that SS has locked his SSN because he is deceased, but SS office does not show that. They were willing to give the letter saying he wasn't dead, so I will send that with a paper file. Any thoughts on what is going on? Thanks.

Talked to a client yesterday about his 2017 return. His mom passed a couple of years ago. He transferred all his stretch IRA's from JP Morgan Chase to a local bank which has trust services. I asked him why he took the distributions, his response, because I didn't want to work with Chase. Tax bill is about $65,000. I seriously do not understand clients or the people that assist them sometimes...

I can't believe how many people I've called and they haven't set up their voicemail. I do not want to continually call them, because it just ticks me off! Everything ticks me off right now, I guess. Bonnie

A beneficiary can refuse acceptance of their portion. They can't then dictate who gets their portion.

thx - I understand the accrual portion - you can finish up without really receiving - knowing it is coming.. Do I need to do anything paperwise or just when I file for an extension or just when I file ? if it closes June 2018 - 1 year - if I do not chose a short year - just 1 year - when is it first due without an extension.. and I realized after, I should not have said trust as this is an estate.. sorry.

There are two things to keep in mind. For the first year the estate can chose a short year for any number of months it choses. Secondly, the estate can adopt an accrual method of accounting. Those are powerful tools in timing income, expenses, and distributions to beneficiaries!

Yet again, asking for help makes the answer come out of hiding!

Now you're the hero!

I will have to check and see if Cox offers something like that. Thanks!

Learned something today, but this year's peeps already went on Line 21. Wonder if I can remember for next year.

I have clients that Sometimes call me nonstop, I only return their call if they leave a message, other that they can call all they want. My office phone is not a cellphone, it doesn't receive texts nor tells me of the missed calls.

...on the Planner form if I had the preference to print without zeros checked.

I don't want to give my cell number either and so I recently activated the texting function available through my Comcast service where I can send and receive that will come in directly to my computer instead. I haven't had to resort to that yet. Maybe you have something similar that would work for you?

Without a way to get a timely message to or response from them, especially at this late in the game, it serves them right if we are unable to file anything. I've got a few that just disappear and reappear like nothing is wrong.

It was nice to see KC's name on this post. She was just a great member of this community and I hope she is doing well.

I'm about 20-25 miles north of Albany. Very small town. Not much here but the Hudson river which is 50' from my front door. I am blessed to have a room with a view and since I work from home? An office with a view. To Tom - I'm glad I made your day. Too many times we forget who we help and only remember those we failed. Shame on us. I'm about to resurrect the thread that sent me on the path I researched and led me to your post. At the 11th hour? I appreciate any and all advice. Thank you for the warm welcome. I appreciate it more than any of you will ever know.