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New client - he said the previous preparer made mental errors like sending him emails meant for someone else and including a copy of someone else's tax form in his information. Three W2's Child Tax Credit - no daycare 1 div, 1 int 1 capital gain entry They charged $520. Including generating a new client entry and running through itemizing, it took me an hour.

Me too, you’ve got to be fair, it will pay off in the long run.

I guess I'm undercharging as well. I would be nowhere near that charge for that return.

Not to beat a dead horse if you think you got this...but.... I have a client who works for Tesla. They get quarterly awards of stock options. Tesla is very good about giving the worker all the details of the awards, so it is just a matter of hunting for the award date and the amount of income that was included for that lot when it was awarded. Just finished that return last week. From your original post above, it is not clear that the client has "sold" the stocks, just exercised the right to purchase the stocks. If that is the case, then there will not be a 1099B. At the point of grant (not exercise of grant, but the grant of the options), there is generally no reporting, because there is nothing of value that has changed hands. The employee has the option, but not the requirement, to purchase the shares at a given price (the option price). If they don't actually choose to purchase, they have received nothing from their employer. This is what it sounds like happened to your client. Then, when she was leaving the company, she exercised the options, purchasing shares at a discount to the FMV on that date. The amount she gave the company (the option price) is basis, as well as the spread between the option price and the FMV on the date of exercise of the option. The spread is the portion that should be included in the W2 at ordinary rates. This is also the amount you need to hold on to for the actual sale of the stocks when it happens, because the broker may or may not have the correct basis reported on the 1099B. If there is no 1099B, then there is no sale. Double check with your client that they did not receive a check. If she got a check, she should also get the corresponding 1099B. In a lot of cases, the grant, the exercise and the sale all happen on the same day. Even in this case, there should be a 1099B. It generally results in a small CG loss due to the broker commission (as Judy said above). Back to your original problem. The real question is: Did she sell? If so, make her get the brokerage statement. If not, then ask her where the stocks are held right now, because she owns them and some broker is holding them in an account with her name on it. Hope this is clear as mud for you? Tom Modesto, CA

The amount of knowledge and the willingness to share such an incredible amount of detail by people taking time out of their busy day to help others never ceases to amaze me on this forum. What a great resource and absolutely terrific group of members in the ATX Community!

I think the available for rent to begin depreciation is at the time of when the property is first placed in service. Example; property was purchased in August, and repairs were necessary before the property is rented and it takes till November to complete. Depreciation begins in November. During idle time, depreciation and expenses like utilities and property tax are still claimed.

It is bonus depreciation and allowed on rentals. You can opt out and do regular depreciation. use the options tab on fixed assets

I try to bring in all new clients at $500 minimum. That doesn't always work. But, I'm in pricey Fairfield County, CT so it does work sometimes. Even when I charge less, I print the full price and then a discount. And, I have long time clients at a fraction of that price. And, families with deep discounts or free for kids or.... I get more complaints when I raise prices than I do when I start high with a new client.

Thank you, Roberts. I've been seeing things that suggest "Other income" without SS or MEDA. I wasn't seeing much guidance on the state, so was leaning to resident state. I will follow your lead. The government doesn't have to follow their own rules! They have specific requirement for 1099s, but the Social Security form is the worst size, worst layout, thicker paper, and that rubber cement that sticks to everything...

"Placed in service" means available for rent which includes the period it is advertised for rent but before actually collecting rental income.

My client had to exercise options when she left the company. I haven't done these in a long time, but when I did, I believe there was a 1099B reporting the sale, and I added to the basis the amount from the W2 box 12, code V. The paperwork accompanying the W2 indicates it is completely justified in the W2 and that I don't have to do anything else. Which means these stocks are being taxed at ordinary income tax rates. If there is to be no 1099B issued, is there any other action I need to be taking?

Hey Tom, see some of my concerns and ignorance in comments above. Subsequently I have paid for Verifyle (I'm not in an organization that includes it; that would be more than the $108 annual fee or $9 per month so don't even need it all year). There have been a few kinks but the clients that have so far used it are really happy. It includes e-signing and documents can easily be uploaded and downloaded either way. You can contact me if you want/need more info. I really like it and am glad I finally 'get it.'

You have to enter an amount on line 1f that is larger the the Estimated withholding and other payments at the top, by the amount you want the total estimates to be.

You could if you are allowed to split the lot. Otherwise, you would be a co-owner of the entire duplex, much the same as condos owners are co-owners of the community.

People look at their pay stubs with FIT, SIT, FICA, MED, 401(k), health insurance, and on and on, and don't count their refunds and think they pay too much income tax.

Print attachment to a PDF. Go to efile menu and choose attach file.

It was my understanding that it is all justified in the W2, and the taxpayer is hammered with ordinary income. I believe (and pray I am validated here) that there is nothing else I need to do. If a 1099B is issued for these stocks however, the amount in Box 12, code V, has already been taxed as ordinary income, so that amount is then bumped into the basis of the stocks "sold."

Schedule C and deduct part of cell payment.