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I understand your problem. My Mother In Law who had dementia lived with us for 21 months after she couldn't live by herself anymore. Frankly, it was the most difficult thing that I have ever done! One day she would be very nice and with it. The next day she would be extremely angry and sarcastic and couldn't remember anything. You can deal with the situation as best you can, just smile and be agreeable or you can try to have a meeting with her husband, which could totally backfire! Sometimes it can be very hard to remember that it's a disease and that the lovely person that you used to know is still there.

Merry Christmas!

Assuming they are still married, call the husband or send him a letter directly. In the securities industry, we are required to get a signed form which is the client's Trusted Contact. You can contact that person in a situation like this but not in any other non-emergency situation. You need to contact the husband and see if he can aid, is aware of the situation and maybe there is a family member you can be given for future problems. Once you have dementia, it rarely gets better for a long period of time. The medication might help for a while but eventually it stops working. If the husband isn't an option, see if the friend knows of a child. I think you have an ethical responsibility to contact family members as much as possible and let them know a problem is developing.

That's interesting as he admits his gambling acitivity is equivalent to a part time job. A part time job doesn't cut it. It has to be on a full time basis and be necessary for a livelyhood. In Groetzinger, 480 U.S. 23 (1987), the Supreme Court established the professional gambler standard: "If one's gambling activity is pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and is not a mere hobby, it is a trade or business.

Catherine, what will you enter on the line where you back out the cost of the item(s) to net $1 profit? Occasional gamblers with net losses who don't itemize can't just "back out" the money spent on their bets. Similarly, hobby income must be reported but expenses (including COGS) are no longer deductible. Infrequent sellers who market their treasures online (where they are most likely to be paid through a system that issues 1099ks), are selling an asset for which they have basis--typical Sch D stuff. You seem to want to protect your clients from your fees since you charge by the form. If your client has a Sch D activity, why are you reluctant to charge? Do the D and 8949 at no charge then. Better that than have an IRS notice to deal with a couple of years down the road. MC Breck has a great idea about entering the EIN so it's easier to prove that the 1099k amount was indeed reported on the return.

If you buy something and then sell it at a profit, that's a short term capital gain. It's going to be taxed as ordinary income so it doesn't really matter if you put it on "other income" or list as a short term capital gain. I think your record keeping should be the same to prove your profit. If you buy a rehab property, rehab it and sell it the common reporting is a capital gain. That doesn't mean it shows up on a 1099b. Be sure and include the EIN with the capital gain so the IRS can link the 1099-k.

To you and your family as well, Elrod! Plus, of course, everyone here.

Been through this as well and there is no easy answer. One suggestion, maybe contact an attorney regarding the ability to sign a POA competently. I would only do this after your discussion with both Mr. & Mrs. I would definitely try to find out if there were any other family members who could get involved. For you, I think you have to know the person who you are preparing a tax return for understands. Kinda similar to working with someone who speaks another language where an interpreter is needed. Maybe things will work out with Mr.

Dementia is very difficult for other people to deal with for exactly that reason. At this stage, I suspect you will just have to deal with it as best that you can.

Be Happy...Be Safe...

I wonder, at what point is a person no longer competent to sign a POA? I know when my wife took her mother to get her to sign a POA, I don't her mother understood what she was signing.

A delicate situation for sure. Easier said than done, but I believe all clients should have a backup plan in the event they are no longer able to handle their financial affairs. In your situation, I would arrange a meeting with both Mr. and Mrs. Longtime Client. Send a letter addressed to both, so he is likely to see it. Then when you meet and Mrs. brings up the refund question for the umpteenth time, you can gentle say something to the effect “as we have previously discussed your refund was received last May (or whenever).” Maybe Mr. will pick up on the repetitive cycle you are going through. The goal of your meeting is to find out who you should contact if both become incapacitated and bring husband on board. Hopefully he is not on the same medication; and you can persuade them to obtain a durable power of attorney.

I had the surgery several years ago and remember having similar issues as NECCPA. They told me to use eye drops that were Preservative Free. I had problems and my husband had none, we had surgery the same day by the same doctor. I think the fact that I only use one eye at a time entered into it. Just let me say that after the healing and the glasses adjustment is over; it is the most miraculous and wonderful thing that I ever experienced. I couldn't read the numbers on the microwave without grabbing cheaters. Now, much of the time I don't wear any glasses at all. Once again I say that these new glasses are wonderful. Nobody ever suggest blue light protection before. It is a game winner. Sun on a LOT of snow such as we have today, would have made it very difficult to work before. For two years I struggled with glasses that they never could get right. Went to a different vendor this time and what a difference. Good luck, happiness and a very happy Holiday Season to all of you. We all know what lies ahead for us.

Use saline eye drops, such as Refresh, many, many times per day. Eye doctor also has me on Restasis morning and night. The blue-light-blocking multi-focus glasses help a lot. And, close your eyes frequently during the day. Cataract surgery was a huge blessing. I was reading a restaurant menu after my first eye was done; something I couldn't do before with dim restaurant lighting and tiny fancy fonts on the menu. Hubby said I was just showing off!! I had both eyes done during December 2019.

I don't get the advice to not report anything on the tax return if selling whatever at a loss when a 1099K is received. I suspect IRS computers will be busy matching those forms with tax returns and spitting out notices if matching amounts aren't found. If you paid $2000 for your couch and sold it for $1k, PayPal will send your a 1099K. I'd put it on the 8949 and code it as personal so the loss won't compute.

From my perspective, my daily checking and savings do not need to be in the trust, since it is a relatively small amount (not even a month's expenses). The accounts will automatically transfer to the person who will be managing our estate, enough to keep things going for a couple of weeks in case other access gets held up. Same for a life policy, it is a small one, and will go directly to two desired people, outside of anything else. Our main cash holding accounts are in the trust, as is our home. We monitor to make sure anything not in the trust will be probate proof (small estate exception). A trust is not an end all/catch all, it is part of an overall plan (to me).

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