Leaderboard

I have met you. This is way to easy. You are still not tall enough to hit your head when walking under the table. Tom Modesto, CA

What @Abby Normal said. Report on F8949; use cost basis. Any remaining "gain" is then excluded under Section 121 for primary residence. Remember that includes time spent in a nursing home etc; those are considered temporary/disregarded absences for the sake of the exclusion. If you don't file the return, your client WILL get a letter demanding $20K in tax plus penalties and interest. In her 80's she'll have forgotten any conversation when she gets the letter. Prevent the stroke and file the return!

Engineers call that stuff snot-strips.

Find the other scan window. Since it will scan 2 sides, there are two glass covers to clean. It may not be easy to get to, but that will take care of the streaks. Be diligent about the stick-em_pucky that so many places use. When you see it, immediately remove it from the papers. I HATE STICK-EM-PUCKY!

If she's lived in and owned the home for 2 of the past 5 years, you don't have to bother her with cost basis info. Well, you could ask her if she remembers how much she paid for it and give the HUD a glance for sale expenses, but you don't have to make her frantic looking for original sale docs, improvements, etc. Even if you put the whole $80k in as the sales price and zero basis, you could still exclude the whole gain under Sect 121. Because she got the 1099S, however, you do have to report it.

I started emailing my pre season tax letter, engagement letter, privacy policy, and my own very EZ organizer to cut down on time and mailing costs. I only have to snail mail a few. My engagement letter doesn’t have to be signed and says “When you submit your tax information to me you acknowledge and agree to the following terms and conditions for my services.” I found that very few clients ever used the multi page detailed organizers I used to mail out. Sent the emails out today and am getting lots of thank you replies. I moved from AZ to FL into my deceased father’s house. The office here is tiny compared to the one I had in Phoenix. So far, so good with client retention. Wish me luck and accept my best wishes that your tax season is the easiest and most profitable ever!!

We start to get panicked phone calls by January 10th if folks don't have them in-hand. Which phone calls then interrupt our attempts to deal with W2s and 1099s. Ugh; can't win.

Even if a trailer is personal property, it still is a residence. Options: 1. What I have always done if I am filing a return anyway is to report the sale and claim the exclusion in order to avoid a potential IRS letter and the panic call from the client. 2. Don't report and deal with the IRS letter when and if it happens. Just explain the choices to your client and make an informed decision together.

Email from Drake.

Thanks for the 'push' to do more emailing. This will be the last year for all the printing and mailing, I think, save for the few. Do you still include the name and address of each client on the emailed engagement letter? Do you sign it? I like the idea of the acknowledgement statement but may check with my insurer to be sure that suffices. The only detailed organizer pages I send out are for those who have self employment income and expenses and/or rentals to remind them of what they had the prior year. Could also be emailed, though. As can my questionnaire. But then I do want the returned questionnaire and very few have the capability of scanning to email in return. Giving this some thought!

I have few senior client who need paper copy. I always print duplex for client copy. My printer is Brother 5370DW almost 5 year old but still work as promised.

Because this update is going to disable local admin accounts. https://mspoweruser.com/new-windows-10-october-2018-update-issue-will-disable-your-local-administrator-account/amp/?__twitter_impression=true

No, it goes on 8949 and there are two codes you'll need: one for expense of sale (E) and one for the exclusion amount of gain (H). And they must be entered alphabetically. If it's not a gain then just use the other code (O). https://www.irs.gov/instructions/i8949#idm140253094361072

83 year old mother - file a return. Enter the 1099 as a sale on your schedule D and use a cost basis of the amount of the sale up to the exclusion portion.

hmmmm....big box....how exciting. Oh look - the 2017 deluxe version of "the Tax Book". (got that last year.) And 2018 version of the State Tax Handbook. (Also got that last year.) And the 2019 Master Tax Guide. Well, at least 1 thing I can use. Do they just send a kid into the inventory room and tell them to clean off the shelves?

Trying to get them ready but I don't like to send them too early. I want them to get there before they get all their paperwork and have a chance to lose it, but not early enough that they put the organizer away never to be found. It is a guessing game.

Just be sure you ask the questions regarding length of residence and ownership, etc. Then what cbslee said.

End of this week. Use most of the short form's pages but the Questions from the comprehensive Organizer to create a hybrid for clients; inflates this week's prep time but cuts down followup questions later. Not too few clients skip everything but the questions, engagement letter and basic info. [Btw, eternally grateful to Abby Normal for recommending Nuance PDF and its auto-filling facilitator.]

I'd love to send mine out today, but I can't get Engagement Letters yet unless I roll all my clients over one by one. The batch rollover in Drake will be available this week... they're late, probably due to the huge tax law changes. In prior years we've had everything printed out, envelopes stuffed, ready to pop in the mailbox on the first business day of the year. Not this year, though - so we have our checklist and general letter printed and ready, and mailing labels ready. As soon as we get batch rollover out they go! Then we'll start on payroll client W2s and business client 1099s. It begins! God help us all.

I'm sending out my Tax Organizers today! Happy New Year everyone

Supposedly, 9,880 IRS employees are still working. Secretary Mnuchin has assured everyone that there will be no delays in the opening of tax season or in the issuing of refunds.

Yes, but who is getting the computers and programs ready for the filing season? Is anyone at home?