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Ain't that the truth! I took one this year - referral from existing, good, clients. She's poison, and is now trying to poison the good clients against me. Trying desperately to think of how to get rid of her in a way she'll believe (she's a leech, whining and constantly begging me to call her, because she wants me to explain what was perfectly clear in email - I can't understand it for her and there are no words of less than one syllable). At this point I almost don't care about keeping the other clients - if they're dumb enough to believe her words about me, when they've been with me for over a decade, then maybe I don't want them, either!

There are some clients you just can't charge enough to make it worthwhile to fool with them.

Perfect. I must remember this.

And, I can get the $800 the client expects using the IRS method. Sometimes it's NOT a blessing to have smart clients! Using what CCH told me (use a biz % override) I can get no closer than $799 or $802. I already have a note to preparer in return that will roll over next year and a piece of paper in their paper file and opened a client2021 folder in their computer folder with a note. I'm finishing proofreading this afternoon and sending to them to eSign. Thank you all.

For IRS, the tax forms (1040 series, 1065, and 1120 series) all have a "name change" box near the top. Check that and it will change the IRS master file. You could write to the address where the return is filed, but I've never bothered. YMMV for the state(s) and their various depts. My state DOR requires it in writing for a global change for all its separate depts (withholding, inc tax, gross receipts tax, unemployment) and DE Sec of State for franchise tax is completely separate from DOR and definitely requires notification along with a fee.

We took two different approaches to this and they are both correct, except I read the basis number wrong. In regards to the 300,00, he did not receive it, it went to the buyer, so it is was not realized in regards to the "exchange". From the perspective of the exchange, his new basis is the old basis plus what he paid in cash; or you can look at it as the 300,000 + 210,000 -22,500. Either way you come up with the same answer.

I had to learn about VC several years ago when one of the boss's clients started mining. He's my client now and still mines. He has the magic software and this year gave me a 29-page 8949, all filled out. Put the totals on the return, attached the pdf, done! He did all the work (well, his software did), but I still charge him a lot because of my "specialized knowledge." As of now, VC is not subject to FINCEN reporting. Proposed rules may change that. If held in a foreign exchange and greater than $50k, it should be reported on Form 8938.

That doesn't mean you have to take him back!

I rarely have ANY luck searching the IRS website for information. Sometimes I do better using an external search engine and limiting results to irs dot gov, but not always. But the folks on this forum always find results! I think I am keyword-impaired.

Judy beat me to it - make a note for yourself to double check the square footage for 2021. I've used the adjust-the-size method in the past as a forced correction; good to know it's an officially blessed method!

Each topic on the forum has its own unique web address, so it is possible to save it to your browser's bookmarks like any other page. Was it me? I post a lot of articles.

It does seem clunky, and if your software carries the sq ft over to next year, you'll have to remember to increase it to the full sq ft, not the diluted average.

I googled "OIH for partial year" with that acronym and the IRS FAQs page was at the top of the list. I guess I get lucky with a lot of my searches.

I Google but use the irs.gov finds and the AnswerConnect finds, but that means only one search to get all those. Well, as many searches as I can think of combinations/permutations of search terms.

There's a utility to redownload all forms for a return. Mark the return and look under the Support menu, and then Customer Service Utilities.

You know, I searched the IRS website for a very long time last night, and found lots of articles about the Simplified Method for OIH, but not a one mentioned less than a year, a biz starting or ending. Many of them discussed what to do for 2020 if the Simplified Method was or was not used in 2019. My search terms (and I used several combinations) never took to me to a Q&A page. That's why I love this forum: multiple sets of eyes, multiple ways to look for information... Thank you.

Thank you, all. My client had the grand total all worked out -- correctly -- but I couldn't see the right data entry to show the detail without prorating the square footage. Now I can show him that the IRS instructions DO match his computation. (This is a client who never told me last April that he was starting a biz then, so Surprise! as I started preparing his 2020 return last week. In response to my requests, the expenses dribbled in. Want to get this done today.)

Here's a new WSJ article about Cryptocurrency and increased IRS attention. Reading the article it reminds me exactly of the issues & misinformation that used to surround the barter exchanges - right down to some of the silly notions about whether or not they were taxable. (The article appears to be behind a paywall, but I was able to click right through & get access). https://www.wsj.com/articles/bitcoin-irs-comes-for-crypto-investors-who-havent-paid-their-taxes-11620937095

According to the IRS Q&A on OIH, you prorate and only count the month if it was for more than 15 days. This is accomplished by paring down the square footage by coming up with the average sq ft over 12 months. This should help: IRS Q&A page on OIH

Well he relented.

Triple it and ensure he leaves! lol