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Sales of privately held stock may be reported by the installment method (I don't have a cite handy but many years ago had a client in similar circumstances).

Hey Y'all! I'm still here, but I sold my business last September. I'll be working for the new owners for a few more years. The sale was a sale of stock, and they will pay me installments with interest, in case anyone was wondering how that goes. He could have purchased my client list and depreciated it himself, but instead chose to make it a stock purchase so I'd get the better tax advantage. I think I can simply report the stock sale on the Sch D and interest on the Sch B each year without having to do the "installment sale" form 6252. Correct me if I'm wrong. Not owning the business was an immediate weight off my shoulders. I'm glad I trusted God on this one. Donna

Congratulations & God Bless You!

And, chocolate, lots of dark chocolate!

Whether correct or not, at least we can be reasonably sure they won't disagree with it! Whereas if their figures are wrong, we all know we'll be the ones having to prove to the service that they are wrong. Ugh. Ibuprofen, acetaminophen, CBD tincture, red wine, and a brand-new bottle of Lagavulin 16 year. That's what it's going to take!

Red wine, maybe an extra glass for soothing purposes.

In looking over the various increases in what will be our workload this season I am going down to the store and buy several additional bottles of ibuprofen or acetaminophen. I wish you all good luck as I feel sure we will need as much of it as we can get.

Thanks, y'all. The sale truly was an answer to prayer. Now I can sell my house and rent a nice apartment. It is the only way I can afford a salt water pool and 24/7 fitness center! LOL

If the sale price includes future payments that are contingent on earnings, you might want to read the following article: https://www.cpajournal.com/2020/06/16/accounting-for-sales-with-contingent-obligations/

I have already heard from clients who have received two letters; one for the husband and one for the wife. Can things get any more messed up than they already are? Two is almost worse than none. They just aren't going to "get it"

Just as an opener. How many of your clients are going to locate must less remember those Child Credit letters and EIP letters from the Service. I am reading a married couple will receive a Child Credit letter to the wife and one to the husband. Am I reading this correctly ? It appears so illogical to me. I don't know about youall but my fees so stable for years are going to take a considerable jump.

I've upgraded to CBD tincture to keep me sane, calm, and focused. Auto-delivery.

I wonder if this would fly? PITA Fee - whatever it takes to make you go somewhere else next year Tom Longview, TX

Installment sale on 6252 that will flow to Sch D unless you elect out by reporting entire transaction on D in 2021. Interest goes on Sch B and purchaser should issue you a 1099INT each year it exceeds threshold.

Yes there was thread discussing this, last month I think.

I think that it depends on how you are reporting it. If you report the entire sale and profit this year, then you can report the interest directly on the Sch B and there would be no reason to do the 6252. I am really not sure you can report the sale of stock as an installment sale - I would want to look that up before I expressed an opinion.

If you are trying to keep the cost down, large capacity thumb drives on sale are very inexpensive. You just have to develop a regimen and follow it.

You can't, at least not to the almighty IRS. Trace the payment. It's early days, as they say on my Brit Box mysteries.

I hired an IT guy to set me up with back-ups when he set up my new computer. Well worth the money. I got a recommendation from a small tax prep firm in my NYCTATP group back when we were live; he raved about the guy he'd used for 20 years. IT guy set me up with an external hard-drive plus cloud backup. I pay him a small retainer ($150/quarter) plus his hourly rate is low for any extra work for his retainer clients. He taught me how to maintain the system; I changed the time on one drive to 4 am because I work late, I upped the frequency during tax season, and I check to make sure the backup folders contain data and check the dates. But I still ask him to check on it during his monthly checks on my system. One less thing to worry about. I can do what I do best, and use him for what he does best. Ask around to find a local guy you trust.

How could I have forgotten the chocolate?!?!

Online backup is a good choice, it won’t slow down the computer after it has fully backed up all your files, I would recommend starting on a Friday night and not touching the computer until Monday. FYI like any other backup software, make sure you know what is backed up, you might be surprised to find out your software was not part of the backup.

RE: the letters regarding EIP and Child tax credit. The IRS did send them to both parties. I have them in hand from one of my clients now. They have 10 children so you can figure they say on top of this stuff.

Yes, definitely bring back the good old days. I don't do the satellite or cable subscriptions to watch TV. Cust the cord many years ago. If you can get the ME TV Channel, they play a ton of the old shows. Spectrum has picked up this channel but mainly it is available on an antenna. I always watch Perry Mason twice a day and of course, he always wins. It is interesting to see the cast of characters who played on his show(s). Will never stop laughing at Tim Conway and Harvey Korman in the Carol Burnett show. Good old clean wholesome shows. Antenna TV is another one. For us, the antenna, a Roku stick with hulu and Philo for a total cost of about 35.00 per month works perfect. I digress.

Not only our workload, but the increase in cost of supplies. Paper has doubled and tripled in price. I use a lot of paper as noted in another thread. I shopped online for a couple of hours and ended up finding the best deal by far at Sam's Club. An employee delivered it after dark, but I have 2 cases sitting in my office now. I was sure I had more in the storage room. The only thing that is going to keep me sane is my assistant, Lisa.

Yes, when a sale price is spread over more than one tax year the default reporting method is the installment sale method reported on 6252. The election to report the entire transaction in the initial year of sale is accomplished by reporting the entire sale transaction on schedule D.

The article was helpful, but almost over my head. The sale isn't contingent on income. I can take the money and run if I want. But, I want to work a few more years. If I stay and pull in a specified amount of gross receipts cumulatively, over 3 or four years, (as long as it takes me to reach that goal, but within 4 years) I will get a bonus payment after 4 years. As I read the article, this is not a contingency, so those rules don't apply. I think it's in my best interest to do the 6252, and not take the whole hit on one tax return. That's what you mean by "reporting the entire transaction on D in 2021," right? I just hope LTCG rates don't go up in the next few years. THANK YOU, JUDY!

I use Acronis to back up on-site, and iDrive to back up to the cloud. Acronis does an incremental backup nightly and full backup weekly. iDrive backs up all new files to the cloud nightly. Carbonite requires you to choose each and every folder you want backed up. Both Acronis and iDrive default to all folders, but allow you to choose any you don't want backed up (mostly temp files). At some point I may switch to using Acronis' online backup system, just to have it all the same, but I've been very happy with iDrive. Some years ago I used Mozy and that was also set as a daily backup. Strange thing was, sometimes it only took a minute or two, and other times it took hours and did slow my computer down on those occasions. They could never explain the difference, and I did not like that. They may well have changed since then, so I would not discount them because of my experience over 5 years ago. Hope this helps.

If the IRS records say my client received their stimulus rebate and my client says they didn't receive the rebate, how do you prove a negative?

None of the online backup services should slow down your computer, if you set up for once (or even twice) a day backup, rather than continual. PC Magazine gives high ratings to Mozy. iDrive. Acronis. OneBackup.

I usually buy a external hardware from Costco and use the software included, an 8TB drive is priced under $150.00, not bad for the amount of TB and software.

1099-MISC, INT and DIV are still 2 to a page. 1099-NEC is 3 to a page

I'm looking for it now. Thanks!

I keep on top of small everyday shredding in the office. Fro the big once or twice a year purge, I pack it into boxes and call Ship'N'Shred. They pick up, shred, and send me a Certificate of Destruction the next day. They will also do hard drives and other media, too, but I've never tried those.

A number of years ago before I started efiling 1099s, I printed and mailed in black & white 1099s on plain paper. I know you're not supposed to do that, but I never have had a problem.

@Abby NormalThanks for confirming my understanding. The 8582 is attached and there is a schedule attached as well showing the prior year total un-allowed losses. There is no schedule to support the 4797 entries. The 8582 has two K-1s in the section for losses from 2 schedules on page 3, worksheet 7. There is a ratio on worksheet 7, I guess I could use the amount claimed divided by the amount claimed to come up with the amount of the carryforward. Seems sketchy to me to do it that way. @jklcpaThank you for that generous offer, but I don't feel right sending this off without client consent, even blacked out. Thank to all of you for your input. I think I just need to have the client get me a supporting schedule for the "mysterious prior year un-allowed 4797 loss". Tom Longview, TX

Judy, I was just doing research that included what had been done in other cost segregation studies. An ex board member thought that it was an improvement, so I wanted to cover all of my bases. He isn't in the business of doing accounting or construction, but I still wanted to listen and bounce it off of my back office. ( All of you wonderful people) I would lose my mind without all of you.

I don't know, I just went to a security update class by an attorney and besides scaring the **** out of me they suggested we use the MFA along with many other things. Every time I go to one of these classes I just went to quit!

I put one of my minions (kids) on that job. I too, used a call out service, once. I have seen where a local service has community locations from time to time and have heard of a bank or two offering a shredding day. UPS stores and mail drops may offer shredding.

The 3 Million unprocessed business returns included 2 Million unprocessed Form 941 & Form 941 X returns. I have a client with an unresolved overpayment on their 2020 4th quarter 941. I have been waiting to see if the IRS will refund the overpayment, no communication yet. I have wondering how much longer I should wait before I file a 941 X, even though it would probably take a long for my client to get their refund.

As of last week, the unprocessed personal tax returns included 2.3 Million Form 1040 X amended returns.

The slow processing is yet another reason all TP's should spend the effort to not get into a refund situation, or a penalty situation. I suppose that puts extra work (if wanted) and extra income opportunity for preparers, as preparing a mock return before the deposit deadlines are getting to be a necessity, unless depositing 100% of prior year is not going to cause a refund situation. It will be interesting to see how fast returns are processed for 2021, such as for those who had a new child during 2021. Since the IRS failed to provided the planned method of reporting new births, those parents were not able to receive the monthly child payments, and will possibly/likely be wanting to get the credit (likely a refund) ASAP. Al eligible parents will be wanting their remaining amount of the credit as well...

There are other "self" issues. Consumer printers are completely unreliable as to where they print on a page. The "printable" area on a page may not be properly reported by the printer's software, resulting in not being able to precisely print at a certain location. In my case, I have to provide a way for users to manually adjust the print position. Just the slop of the paper feed system induces a certain amount of inaccuracy. (Jet printers generally flip the paper only once so pre printed numbered checks have to be reverse collated in the tray, and jet printers cannot print as close to the bottom of the page as other printers.) Then there is the issue with PDF's no longer being reliably accurate as to what the preparer wanted. The user can substitute fonts, adjust margins, etc., making the entire reason for a PDF (so it looks the same on any printer) moot. I get that issue nearly daily - why can I not save a "check" as a PDF and have someone else print it? Print quality is another issue. No bold, must use certain font's and sizes, etc. Of course, the user can cause issues there, by settings such as econo mode, inferior paper, old ink/toner, etc. Another issue is duplex. It is allowed on many forms, but consumer printers and paper choices may cause bleeding, which puts the submitter AND us at risk for penalty, so no duplex for us.

It’s so bad, an IRS agent I know decided to retire late last year.

A client made an $8000 extension payment using Direct Pay on 5/17/21. The wife made the payment and used her social security number. The irs didn't credit the payment to their account. Return efiled 6/6/21. Irs sends letter 7/5 saying client owes $7120. We write back with Direct Pay confirmation & proof of bank transfer. Irs sends letter 8/9 stating client now owes $7160. Client is very nervous. Client gets more nervous when they can't get through to irs on phone. For some reason, when I tell client the irs is about a year behind in opening mail, they get more nervous. Client wants to pay amount to stop further notices. We write irs telling them if they opened and processed their mail, they wouldn't be sending us this 2nd notice; however, to end this futile process of receiving IRS notices and sending replies that go unprocessed until the IRS levies client's bank account for tax they don’t owe, here's a check. When you bother to get around to processing this and our previous correspondence and realize you screwed up, apply the $7200 overpayment to the taxpayer's 2021 account. On 1/3/22, a mere 4.5 months from our second letter to the irs, the irs sent a letter, account transcript, and refund check for $7240. Maybe they are catching up. Or maybe this was just a lucky fluke.

It's always great when you see a child realize his dream and succeed. Congratulations you did good.

The first smile, he kept his dream as a secret; now, he made and is proud of it!

Terrific news. Have a good friend who recently retired from UA (flight attendant) after more than 40 years. She was not even in the top 50 of seniority... Several other friends are A/P at SFO. One of our sons wanted to be a garbage man (we would not be allowed to ride with him!). Back then, there were no ready made garbage truck toys. Pilot was next, but at the time, his only route was through the regionals, and he prefers a different lifestyle. He then went into medical research for 5 years, and is now working towards trauma surgery. For us, we are most proud of his volunteer time at local free clinics, community based clinics, and at a VA facility. I fully expect him to take up flying again, once he chooses where to practice. (He is a strong believer in not being few times in the air per year private ticket guy. He wants to be up a couple times a month, at least, to keep current.)

Congrats. Where did he get his flying training? Military? Air Force? or civilian?

Congratulations to Andrew, and also to you.

Ah, look at that smile!