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Multiple news sources are reporting: It will take the IRS until the end of this summer before everyone gets their return recalculated and their refund issued. None of the IRS's online tools will show the status of these refunds, so we will get a number of client calls. The IRS does not want any amended returns submitted until they have finished this process.

I agree with Yardley. I gave Drake a try twice as I did ProSeries and did like the newness like I had a new toy to play with. But in the end I just feel comfortable with ATX, and for all it's problems and complaints we can all be like martyrs in the tax preparation world. There's so much to be upset about, but it brings us closer together as we don't have to suffer in silence or isolation.

Today's email from Accounting Today had a link to its article about the best cities for accountants, separated into the categories of large, medium, and small. Parkersburg, WV was listed as the #1 small city and was the best overall city of all three categories too.

The eastern panhandle of WV is beautiful and has a vibrant economy, certainly other areas of the state do too. There is much to praise about residents being independent. You won't find a million fast-food restaurants but lots of mom-and-pop places with great, affordable food. Not many big box stores, but you will get to shop at local hardware , appliance, and furniture stores and niche sporting good, auto, plant, you name it places. I once bought a bag of mulch at a local ACE hardware store (family owned), and it was bagged in nearby Virginia. No matter where you go in WV, you'll feel like you're in a neighborhood.

We had an incident when the person doing the efiling filed parents' return instead of son's (same first name as dad). We hadn't started the parents yet, so the filed return was blank. Imagine how many lines of "explanation for changes" that took. The culprit no longer works for us (not her only mistake).... I'm impressed that people are filing amendments already. We have so many on extension that it will be months before we get to amendments. Almost all of our state returns with unemployment that were filed before the law changed will have to be amended. We will have to triage here: Extensions where people will owe money first, then regular extensions if we have the info, then amendments for unemployment, and last amendments where people found another form or just thought up some deductions. I guess the principle is initial filings get priority, then amendments not the fault of the taxpayer, then amends for those who already had their chance to do it right the first time. I'm starting to worry about clients who had lowered income in 2020 but are back to work. That advance child tax credit is going to be sent automatically starting in July. Many will not be eligible based on their 2021 income and, unlike the stimulus payments, my understanding is that overpayments will have to be returned--making for a very unhappy 2021 tax season. Ideally we can warn these clients to opt out of the auto deposits, but I don't know how to begin to identify them. What are others doing?

Finally got a work around that did the trick.

I converted 200 returns to ATX (from another practitioner) in the fall of 2019. Every single depreciation schedule had to be adjusted, so I would recommend converting soon so you have time to review every return. Second what everyone said about checking carryforwards, NOLs, etc. There were also random, inconsistent transfer issues, so just leave yourself plenty of time to open and review each 2020 return prior to the 2021 season. This was my second season with the new peeps, and it was much smoother, so when it feels unmanageable, remind yourself it is a one year issue.

I would add installment sales to that list.

West Virginia has been mentioned, and the timbre of this post is somewhat out-of-ordinary. Gorgeous mountains, but as far as a moving destination, probably weak on communications and infrastructure. West Virginia reflects the stereotype of Appalachian poverty. It is real, indeed many towns have only a few brick buildings aside from maybe a post office or govt social security office. Black lung disease from the coal mines is a reality. But there is always an untold story. I would like to focus on one area, McDowell County, although much of WV is very much like McDowell. A civic map of WV looks very much like a bulb from a spray bottle. At the very bottom of the "bulb" is McDowell county. A recent demographic statistic indicated the per capita income there was the lowest of any county in the US. But along with this bleak perspective, over 90% of the homes are owned outright, partially because banks won't loan money there, and partially because the population has been in these homes for generations. Most of the people at a low income level have no loan service digging into their incomes. As such the people there are fiercely independent and self-reliant. The county seat is Welch, a town built upon straight up-and-down mountain country. The buildings are old and in bad repair. You can get a glimpse of Welch if you have Google Earth, and can see that the houses and streets are built on top of each other. Although the movie was filmed in Petros, TN (another coal town), McDowell County was the home of the "Rocket Boys" from the movie "October Sky" (might have been Jake Gyllenhall's first). The star, Homer Hickam, who became a NASA engineer, had a real-life family pedigree most people don't know about. His father, Homer Hickam, Sr. invented the slender rescue capsule used to rescue coal miners to this very day. People there are very independent, and don't ask anything from outsiders. There is wondrous good among every social strata that we attempt to pigeon-hole. West Virginia? Maybe not your ultimate destination. But if you find yourself driving through, enjoy the beauty of the state and the hospitality of its very real people.

I too made the switch to Drake after the 2012 debacle. Tried several other programs trying to save money. You get what you pay for. I just renewed Drake for next year. I use the Drake Accounting package as well and you just can't beat the price. Everything for $1345.00. If you purchase before May 31. Yes, it has a learning curve. Each year I learn more and become even more satisfied I made the switch. I agree with Max. Download a previous version of Drake for a test drive. I just learned yesterday that when completing a Sch C, Drake has a search function for finding the NAICS business code that is by far easier than scrolling through the codes looking for the one that is a match.

FDNY, your humor is so appreciated! Fortunately I have suffered very little in all the years (since 1997), I have used ATX. Luck? Good computer? Few problem clients? Stars in alignment? No idea but, for me, it ain't broke so I'm not fixing it and meets my needs. I like how it works and, for me, the price is right. I did begin with CCH Pro something back in the mid-eighties when I first worked at a firm but that was filling out the sheets, sending away for coding and, well, ancient technology. Now this program is like my comfy, broken in slippers.

Agreed, a discount wouldn't automatically throw this into personal use, but it does have to be reasonable and justifiable.

A reasonable discount for a good tenant is allowable because you know they'll take better care of it than many other tenants. I'm comfortable with a 25-30% discount for relatives not violating the FMV rule.

There may be more to this. Owner was renting to a relative so depreciation allowed or allowable may come into basis calculations. Was this considered? One has to question whether the rental was at fair value, because every day of rental to relative at less than FMV is considered personal use. If less than FMV, how much depreciation was allowed or allowable? If at FMV, then depreciation will factor into the calculations. So, was this taken into consideration to arrive at the $120,000 of basis, and is there really a loss? Has depreciation recapture been considered? I doubt this will turn into a gain because the selling expenses weren't discussed, but if there is a gain, that gain will be taxed at ordinary rates because the sale is to a related party. Regarding a loss, Sara is correct. Sec 1015(a) is where the tax code places a limitation on the gifted basis so that a loss cannot be transferred by gift from donor to donee, and no one can ever deduct that portion of a loss. If and when the recipient disposes of the property and does incur a loss using the lower basis under the dual basis rule, the loss is limited to the the amount of loss beyond the reduced (dual) basis for computing the loss. In other words, the recipient would never get the benefit of the decline in value from the original donor's cost to its lower FMV at the time of the gift, but CAN take loss beyond that once in his or her ownership.

Sara I am really impressed, I couldn't even decide what the questions were?

Yeah, the best friend of my nephew obtained a Minister's License Online so he could perform the wedding ceremony for them. Only wedding ceremony he ever performed. Perfectly legal in my state.

One more time, I am sooo glad I am not in a community property state

MASEA offers a virtual SEE Prep course: https://maseaonline.org/event-4306436

IRS yesterday confirms that MFJ taxpayers in Community Property States are to split the UI equally between them and then apply the exclusion to each spouse, even if only one had UI. Big break for taxpayers in Community Property States. Tom Modesto, CA

Terry, I don't know if you checked out the North Carolina Society of Enrolled Agents website, but hey have a SEE prep class coming up in July using the Gleim materials. I don't know how the price compares for the class and materials, and just the materials, and I don't have any idea how it is taught or how you learn best. I am sure you will do well either way!

I have only used email to Drake. Usually California problems, a response was always within 30 minutes at most. Most problems solved immediately.

No loss allowed if sold to a related party. I believe the unallowed loss is added to the new owner's basis provided she holds on to the house for a specified period of time. You can research that in your spare time since it won't affect anyone's taxes in 2021. (Spare time--what a concept!)

Before anyone switches to a different software, they should get the trial version (can not print) which would be the prior years software. Would you buy a new car without test driving it? In the last 6 years, besides Drake, I have used Lacerte 3 times, Pro Series twice, Pro-System fx once. They all have their different ways of handling things such as depreciation and stock sales. Drake has it all over the others in these categories, although Lacerte is close. For Sch C, there are lnks right on the worksheet that take you to 8829, Depreciation, auto expenses One thing that hasn't been mentioned is that Drake has a forms option similar to ATX. Their price includes all types of tax returns and all states. There is nothing additional to buy. I think right now they have $400 off of their regular price of $1600 if it us purchased by May 31. For me the frosting on the cake is their customer service which is the fastest, not only for taxes, but for any other you might use. Most of the time the phone doesn't even ring when someone picks up the phone. You don't have to leave a message, or send an email and wait until you get an answer. You will get it right away.