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I told my new client at drop off I needed the Depreciation Schedule. Crickets. I mailed them a letter last week telling them I have to have the depreciation schedule, and I sent three sample depreciation schedules, cause they are not the sharpest never mind. I said I'd be happy to look thru old tax returns if they would bring them in, but the easiest thing for all us would be to ask the 2019 preparer for the Depreciation Schedule. He just brought in four years of Schedule E's, one of which I had. Me: Go to the preparer's office now. Walk in there, now, and ask for the Depreciation Schedule. Now. He: Ok. Otherwise how's it looking?

It's looking like I'm going to either fire you, or hurt you badly!

My only comment is that K1 forms are often prepared wrong.

For the 4th time my e-services account has had attempted and failed access thus locked - again - for 24 hours. Why me? The only good thing is that it means access was denied to whoever is trying this. Just so frustrating! It's good the sun is shining today and 69 degrees plus a good workout, finally, back at the gym so my mood isn't as bad as it could be. Hope your Monday is going well!

You received this response on The Tax Book forum several hours ago: This point was argued by the IRS last year, and there is a Chief Counsel memorandum that addresses its finding. This is from the last item from The Tax Advisor. Link to the actual memorandum that also has an example of partners with loss limitations because of basis and at-risk rules as it impacts SE tax: https://www.irs.gov/pub/irs-wd/202009024.pdf

Seems like it shouldn't have taken so long to come up with such a simplistic solution , but here we go: If someone owes APTC, just delete the form from the return. LOL "As part of the American Rescue Plan, it was determined that any excess advance health insurance premiums credits from Form 8962, Line 29 do not need to be repaid (Form 1040, Schedule 2, Line 2). On 4/1/21, IRS provided guidance for preparers and announced the following: Preparers should not send or e-file Form 8962 when Line 29 is greater than 0 IRS will suspend any correspondence that is generated if a taxpayer gets Premium Tax Credit (PTC) and does not send in the Form 8962 reconciliation Exception: Form 8962 will still be required to claim any credit on Line 26 We have not yet updated ATX to accommodate this change. What this means for you: For returns where Line 29 is greater than 0, you can: Discard Form 8962 from the return and e-file; OR Wait until the ATX change is made to accommodate this regulatory update."

Here's a hug.

Why would you subject your client to $120,000 SE income from the partnership regardless of the CCA? Do you understand the basic concept of SE income from a partnership? The fact that the partner was allocated a $150,000 loss and a $120,000 GP indicate the partnership correctly allocated -$30,000. If you were to follow the CCA the negative $30,000 SE income would be suspended.

It seems they send these out earlier and earlier every year. And no, I have no plans to renew before season is even over.

I suppose I should point out that the CCA isn't authoritative and shouldn't be cited as precedent but serves as internal guidance. I posted it because it does have the code and reg sections cited, and also notates a rev ruling that's been erroneously used to justify allowing the loss in the calculation of net earnings from self-employment.

I am curious about how your software is handling it. Is the disallowed loss of $30K also flowing to Sch SE, or is the program using the $132K and prompted your question?

Some possibilities: Adoption assistance (AAP), IHSS, State sponsored aid (CA has programs to cover medical items not covered elsewhere, for example), succession issues (special needs trusts, etc.). Not so much as to alter tax prep in strange ways, but understanding the items which do not affect tax prep in case the client gives you items which can be ignored.

Meals would be at 50% or the per diem rates. Lodging at reasonable not extravagant cost.

I think originally the IRS was requiring you to be alive at the time of the payment to receive the stimulus payment. That was later clarified to be if you were alive 1/1/20, you got the 2020 stimulus payments. So your method of handling this is correct.

If the prior accountant is a CPA licensed by the state a call to the state licensing department (or threat to do same) might provide the push to provide the necessary information.

Expanded eligibility for Child and Dependent Care Expenses.

Adoption credit has added benefits when adopting special need children. Also, children will not "age out" of certain benefits. ABLE accounts. I haven't had that situation, but do read up on taxes and special need children.

As it happens this info is a Godsend to me as well. My grandfather was a rural delivery person in the 1920's. Among some items he left were 400 postcards from that time period in their original packaging and I need to determine their value.

Not possible unless you have access to Hermoine Granger's time-turner gadget. A good rule of thumb as clients get older, for sure.

I don't have one to try, but I got an alert that this is now fixed and direct debit dates after 4/15 will work (as long as your software allows them).