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You probably need to ask a lawyer for a proper answer, but what is his recourse if you ignore him? If you need to respond to him, be short, be to the point, be stone cold, do not be emotional. I'd suggest something like: "You requested 5/18. I originally agreed to that. Your request to move that to April, and now March, is not feasible. I will let you know on 5/1 if 5/18 is still feasible for me or if I need more time." Do not go into detail. Do not state reasons for your decision. Reasons are something to be refuted; do not give him that option. When he responds, most likely angrily, do not answer his questions and again, do not go into detail or give reasons for your decisions. Remain stone cold and keep your reply short. Reply with something like: I have stated numerous times that your request is unattainable. I will update you on 5/1. If he responds, reply with: "I'm sorry, I cannot do that. As I do not have time for your temper tantrums, I will block your email and phone number until 5/1 and contact you with an update at that time." You have the right to walk away from an abusive situation. Exercise that right.

I think the "collapse" in housing has little to do with taxes and everything to do with interest rates. No one wants to give up a 3-4% mortgage unless they have to. On the other hand, those complaining about 7% rates must not remember the 80's when rates were 13% or more. As for tax items not adjusted for inflation, we have the $300/$600 election for the foreign tax credit.

Personally I think the dependent care credit, and most other credits, should be eliminated and tax rates lowered, but adjusted for inflation, the items mentioned above are: $3000 dependent care credit initiated 1976. Adjusted for inflation, $16,551 $3000 capital loss limit initiated 1978. Adjusted for inflation, $14,723 25K/32K social security thresholds initiated 1984. Adjusted for inflation, $75,256 / $96,328 I'm sure there's a ton more, but the few other items I can think of that haven't been adjusted for inflation: $25 Gift limit initiated 1962. Adjusted for inflation, $255 $25K passive loss limit initiated 1987. Adjusted for inflation, $68,962 $150K passive income threshold initiated 1987. Adjusted for inflation, $413,776 $10K SALT deduction limit initiated 2018. Adjusted for inflation, $12,375 $10K FBAR threshold initiated 1970. Adjusted for inflation, $82,096

I'm old enough to remember a major recession caused in large part to people buying McMansions they couldn't afford.

The 25/32 income figures go back to the 1983 change to make 50% of social security possibly taxable.

Almost every client I have, has "some" Social Security included in taxable income. When I started in this business, only the "pretty well-off" did.

Many elements are not adjusted for inflation. Which is the worst, i.e. needs adjustment more than any other? My vote is for Child Care Credit. The $3000 and $6000 limit has been around forever. The increased percentage?? Forget about it - if the couple gets more than 20% they can't afford to pay babysitting nowadays. To make matters worse, employers have gone absolutely ga-ga over a new benefit - up to $10,000 tax deferral for babysitting. Some employees are going after this like a pig after slop. But it only works if it negates the Child Care Credit in its entirety. And if the spouse doesn't work or have earned income, ALL of it is taxable. My clients find out about it too late, and drop it after one year of misery. Yes, my vote is for the Child Care Credit - dubious benefit, and nowhere NEAR the hyper-inflated cost of paying a babysitting service.

At the very bottom of the Main Info form, there's a checkbox for Late election to file 2553. When you check it, it put the text on the top of the 1120S. Then answer question G bear the top of the 1120S, Yes. Then attach the scanned 2553 to the efile.

If it's any consolation, my middle brother has not spoken to me in 20 years, since my Mother passed in 2004. He was the POA. I was the personal caregiver. Go figure. To this day, I have no idea for sure what his problem is. He had first pickings on everything and he exercised that ability. Death and Families just don't always go well.

In my locality, home real estate activity has collapsed. Residential real estate prices have not dropped at all and are very unlikely to do so. Commercial and apartment complexes are very different scenarios from individual residential. A year ago I saw multiple apartment complexes pitched as having a 5% return on equity - you can get that from a treasury bond - why buy an apartment complex? Think about the price drop required to go from a 5% return on cash flow to 7-9%.

$3,000 net capital loss allowable per year. I have clients who won't live long enough to use all their capital losses!

Long story - in order to end almost 4 years of my mom's trust with myself as Trustee I agreed to let my brother take over rather than go to court - So he is in the process of auctioning off the contents of her home - She wanted us to take as much as we wanted - had lists all over and names on items but would not give it before her passing - wanted to wait - he said he did not want anything and was not into clutter or hoarding - appraiser said it was the nicest "hoarding" place he ever saw as it was clean and organized and displayed. Anyway so 6 siblings- myself as oldest (power thing here) and 5 brothers got to pick 6 items and rest is being auctioned online - at least 6 of them, over 700 items each time. Now the issue is he wants the 10 boxes, tubs, etc of papers to finish the reports, and inventory, and his original email stated May 18th to finish the paperwork.. I am fine with that, then he said April and now he said Mar!! I said I am good with May. He says no, now.. Can I ignore his demand until May? Neither I nor anyone in the office has time - we are swamped! They dragged it out 4 years - he can wait .. It needs to be gone through to make sure there are no private papers in there. And copies made of certain items. Not a quick pu and run.. I, emotionally and psychologically cannot deal with this until after tax season - one of the reasons I settled - They were not very nice.. D/WI

I use Windows Remote Desktop to access my PC Desktop (running ATX through my server) via both my Surface Pro 9 and my MacBook Pro. Both are as stable and quick as they are when I'm in the office working directly on the desktop. I have zero problems with remote access that I don't have when sitting at the PC. That said, ATX crashes every two or three returns, and you have to restart each time you print something large, but these things seem to happen regardless.

To be translucent: It seems there will be no Windows 12 per se later this year, just a major upgrade to the current Windows 11. So for me, even the upcoming new surface machines did not get my attention. But, what did, was the ASUS ZenBook Duo 2024, which was just left at my door. The dual screens are perfect for me, maybe even to rid the separate monitor. The Surface Pro convertible is a great machine, but it does not work well as a laptop itself (meaning on an actual lap). I dis look at a competing dual screen, but I could not get past the country of origin of the competitor. I have always preferred portrait orientation for what I do, and this new machine looks perfect. I'll still likely use my old trusty keyboard, but they have a similar layout (option) which has lighted keys and mouse area which has caught my eye. I like a track ball for most use, not the pad, so I'll stick with that too. As with the surface, the pop out "leg" has a raised edge, which is a great for a special cable lock when I need it. I will likely miss the convertible aspect, but if the screens are as nice as I think, the screens will be in place of my monitor, so I will actually gain some desk space in the corner of the visitor/granddaughter room which used to be my office. The new intel chip is a good part of what got me to be willing to go through a computer move yet again. I opted for the core ultra 7, as it is more than enough for my needs, and the core ultra 9 uses more power/produces more heat, and may not even be able to function at full song because of the form factor of the device. The screens are not so bit I needed the extra resolution with the upgraded model, as I tens to use either lower res or more mag anyway, so I can work without special specs.

Follow up. The buyout check was actually written by the bank to the leaving partner, but the client didn't show it in the check register given to me or the printout of revenues and expenses. I'm waiting on the buyout agreement to hopefully determine if the payment should be 736(a) or 736(b). I hope that it's b or it will be a huge surprise to the outgoing partner to have ordinary income. I'm pretty sure that was not the intention, but I don't know how it was written up.

And their lobbyists and those who have a featherbed position (such as overseeing a local tax), etc. Thus the (un)common sense rule tax simplification will NEVER happen. We face this all the time, and no one wants it - simplification. CA passed a rule for utilities to be more fair, which essentially means an access fee, then rates (lower) per usage. I suspect anti solar (the utilities themselves) were in on this as lowering the usage rates helps kill solar adoption. Fair?, likely, assuming all were to play nice and really come up with a realistic access fee. BUT, the rule was also tasked with paying for discounts, not increasing cost for certain groups, etc. So even what could have been a straigt access/usage plan got "played" with, and now, most of the people subject to this new rule want it to be revisited - the old dance with what you know because of fear you will be the one skewered by that nasty old "change".

My understanding is that the recipient processor issues the 1099Ks. I know that this exception has reduced the number of 1099 NECs that I have to issue for my clients.

That is what I am thinking. I probably worded my question awkwardly. I think QBO as the payment processor should issue the 1099K, which would relieve the payor of the responsibility to produce a 1099NEC for the recipient. Is that how you see it? Tom Longview, TX

As a 2x admin, I communicated only through the JD I retained. While it was cold, it prevented any sort of direct arguments. It was awful, including having to force one relative out of a home they essentially were using as a squat. The squatter has at least 1mil of ready cash, and for about three years now, has not cashed a check from the estate, or made attempt to convert, >100k. But it did help get me to revisit my own plans and clean up a few things. We went with a plan which allows editing on the fly (sort of a subscription) as it fits us for the next decade or so. No worry about how much a small revision would cost.

I know it's red. Most of mine reject because I create it and then it's more than 5 days when the client signs and pays. I'm just thinking it would be a little more fun.

Frog, how can you say that the real estate market is 'slowed' down??? I am a very lucky person and I tend to buy real estate right before it goes boom. Sacramento; bought in 2000, 2001, 2003. Real estate market went gangbusters, collapsed in 2008-2012. I bought a house for $75000 in 2008! Decided to sell my main house (bought for 215,000 in 2000-worth $125,000 in 2008) for $750,000 in 2016. Bought current house in Reno (and what a glorious house it is!) for $330,000. Worth $600,000? or so now. In Reno you can't get a house now for under $400,000. Where I live double-wides on an acre go for $350-400,000. Like I said, I'm lucky. But first time buyers aren't where I was, able to buy a starter home for $75,000 in Sacramento in the 1990s. People can't find a place to rent for under $1500/month.

Thank you, @mwrightea - that's (mainly) what I told the client. I've added in to the basis the assessments that were tagged with comments such as "Assessment - road improvements" plus a couple of selling fees. Thank you. No, they most certainly did *not* tell him about penalties for not withholding taxes - and of course, none were withheld. They're going to have a tidy little bill from Colorado.

Sadly, we have a lot of realtors in Colorado that think they are tax experts when selling a property. Colorado will assess penalty for not withholding and submitting taxes at time of sale if your client is a nonresident and transaction is taxable in Colorado. I'm betting the realtor didn't tell your client that little nugget. The Colorado capital gain exclusion is not something that most realtors are familiar with. Assessments for improvements are added to basis. HOA expenditures are not added to basis we follow must federal rules.

Well, cry me a river. To be at the 20% LTCG rate, their marginal rate is at a minimum 35%. So, they get a discount of 15%. Those at 12% marginal rate have 0 for LTCG rates or a 12% discount. Middle income people at 22% marginal rate and 15% get a 7% discount.

Sound like trickle down voodoo economics to me.

The 50% figure came from the fact that the employer paid in 50%, except for the self-employed. The 85% came about because someone calculated that, with earnings, the part employees pay in, amounts to 15% of the benefits paid out. Not sure if they factored in inflation, or not.

@joanmcqIf you are getting the code 38 reject, go over to the efile page and look at the solution there. It worked for me. I don't trust myself to tell you the steps but it was simple to follow. Tom Longview, TX

Thank you all for this post. Had the issue, followed the above and the issue was resolved. Appreciate this board so much. Tom Longview, TX

yes, just had a client with modest income who took $15k out of her IRA with 20% withholding--she still owed because of the additional Social Security income being taxed. It's been $25,000 and $32,000 since...the 90's?

Good one Lion. Another is the dreaded Obamacare tax, especially the 3.8% NIT on investments. The problem with taxing investments affects the sale of real estate, which depresses jobs for those who work but do not earn enough to pay the tax. This has been a point of contention with capital gains for decades.

These are supposedly the restarted automated collection letters that have been suspended for several years. The IRS says that these taxpayers should have received an initial balance due letter with an explanation? Perhaps you could ask your client to request a transcript?

My state does this also. Only solution I've come up with is to call the tax authority. The problem is both are past the Check Box authorization so you have to file authorization. No clue why anyone in management thought it was a reasonable process.

If you are using ATX, go to elections and use the tab for "Dispositions, Disasters...". Then use the first option on top of the page. If you are deferring income from sale of calves due to drought use the 3rd one.