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So this just happened. Client calls and tell me he's purchasing health insurance. Congrats. "I've not had any health insurance for any of 2016. Will I still have to pay the penalty for 2016?" I just need all of you to appreciate this moment with me. I wonder if my soul has been removed to make room for all this sarcasm I managed to push down. Happy New Year.

We can finally copy preferences to other computers so we only have to set them up once. Yay! We can choose a default font for our letters. Double yay! We can bulk set sections of Print Packets. Yay! We can set it to enter in all CAPS so I don't have to worry about data entry folks using mixed case. We can bookmark PDFs. Nice. Zip code lookup? Thanks!

Hug after he has coverage. C'mon, I'm willing to work with people.

Did you tell him the truth or line him up for a hug?

Just smile and say, " I am sure the penalty will be repealed on January 20th, retroactively.

There is another way to use a portable generator to run many of the things in your home without running a bunch of long extension cords and swapping them. You can have an electrician install a cut-off device so that the generated electricity doesn't feed back out to the street, and the electrician also installs a plug that will feed the generator's electricity directly into the home's wiring. The generator may not run the entire house, but you can turn off the breaker switches so that it is running only those that you choose to have "on", and you can switch those on and off as needed.

We occasionally have the same problem (except for water) and sometimes it's out for a week or more. We've used portable generators from Lowe's for the computers, but everything else is back to pioneer days and, as you say, we're wearing out faster than the machinery. If I may, can I ask where do you get a whole house generator (local or national company?) and about how much does the thing cost (plus installation-varies according to locale I suppose). Never mind if you'd rather not say, but thanks anyway. P.S. Has anybody else here noticed that once your local utility office consolidates, closes down, and moves off; then service quality declines rapidly. Our suppliers moved three states away and, while assuring us service would be the same or even better, things went straight downhill. At one time I could have a serviceman here in an hour; now it's either a clueless clerk who wants to know what state I'm located in, or a recording saying all will be fixed in X days (and, implicitly, "stop bothering us").

I like "pdf Factory" from Fineprint for this task. You set it up as a printer in your computer. Whenever you need a PDF of a document or a set, you choose this as the printer. Once the document is in pdf Factory, you can manipulate it in numerous ways, including setting a password for security. cost is about $60, and well worth it. http://fineprint.com/pdf/

We have a portable generator, with the cutoff switch/panel that Catherine describes, for our house. By judicious switching as needed we can run the well pump, freezer, refrigerator, furnace and lighting that we need. My husband can even watch television if the cable did not go out when the power did. We have had the same generator since 2000 (for some reason there was a really good sale on generators that year, lol.) However, my parents are in their 80's and their back up heat source is a wood stove. I am trying really hard to talk them into an automatic, permanent generator. I don't think either of the them needs to be worrying about putting gas in a generator, or pulling the cord to start the motor. And since we leave more than 10 miles away, I don't want to have to try get to them in a bad storm. But they are used to the way things are and I may never talk them into changing. And we don't have that many multi-day power outages.

We use Nuance Power PDF Standard. We found version 1.0 on ebay for about $30.

Cannot stress enough not to feed power back. It can kill someone. If power outages are annoying, then an auto switch generator is the way to go. If not annoying enough to spend on automatic transfer and permanent generator, then a portable is fine. Even for a week in '86, I was able to run a donut shop on one small generator. Home is just as easy, when you realize how little really needs power at a single time. The real secret is to have a generator in advance, and to test it once a quarter. Hard to get a generator when many are looking at the same time. A $300-$400 portable generator and about $50 in two good extension cords will run almost any household enough to keep lit, warm, and fed - including any home medical needs. A decent permanent gen is probably $5k without installation. The 8 to 12k installed sounds about right, new or old. Just paying an electrician to permit (getting permit, getting inspection) is at least five hours of their time... For that amount, my outages would have to be several times a year for weeks at a time, which would likely only be in a rural place I could not live in since it probably would not have high speed internet at a price I could stomach.

We , really my mother as it was her house at the time, contacted a local electrician re the cost of installing a whole house generator for our ~1800 swift house in the New Orleans area. Prices vary, depending on the preferred max output. I think the range they quoted was $8000-$12000; my mother opted not to pursue this. I would expect installation costs to be less on a new construction, or at least you are less aware of the cost !

The Senate Committee on Finance voted 26-0 in September to kill the "Stretch IRA" for non-spousal beneficiaries -- putting trillions of dollars of legacy wealth in danger of being collected by the tax man. "This is going to be big," said James Lange, a Pittsburgh-based tax accountant, attorney and author. "It's not a done deal. It's not immediately effective. But in the past when you had a 26-0 Senate vote, the legislation always became law the next year." The Senate proposal will be included in a bill called the Retirement Enhancement and Savings Act, and would require beneficiaries of an inherited IRA or other qualified retirement account to pay all taxes due on the account within five years of the owner's death. The proposed law does not apply to surviving spouses. Surviving spouses may still spread the taxes due on the account across their life span or roll the money into another retirement account.

Yesterday, I am in the middle of my compliance test for Fee Collect when the power goes out. My monitors and computer are fine, because they are on a battery backup. So I decide to finish the exam before I shut down the computer. That is when I discovered that my router to the internet is not on battery backup. The internet was down and I could not submit my answers. I need to put my router on the battery backup. I don't know why that never crossed my mind before....maybe I am getting old. But I passed the test both times.... Tom Newark, CA

Abby, I've seen you post a lot of good ideas for enhancements on the "official" board. Maybe they're actually paying attention?

No, dear. Your soul is safe. You may find at some time in the future that you have an uncontrollable sarcasm explosion, however! Holuhraun Volcano Iceland

It wouldn't have any effect on the sec 179 that Rich is attempting to claim.

I output a pdf file of the return, then I use Adobe Standard to encrypt the file with a password.

Tom, I get it. I might even be inclined to do what you are doing, provided I had some written documentation allowing me to do so (a notarized letter from the owner/employer might do it). The end result is probably the same, the road to get there is where it gets sticky, and if called on to prove out, will get stickier. All "defense" is a loss since defense is rarely free or reimbursed. I am just too far along in career and life to take the same chances as when younger/newer. A nod from an owner/employer they want me to withhold or do something which I cannot back up via the regulations, without documentation stating I was forced to do so against my advice, and I am not doing it. Notice 2008-1 (IRS) was clear about what needed to be done, and why, and it does not say to alter a paycheck, to withhold taxes, or to alter a 940 or 941. It only covers including the amount in certain places on a W2. I could avoid answering a large number similar emails each year if there were updated instructions from the IRS (to me, 208-1 is clear, but not all agree). Unfortunately, there is no reason for the IRS to do so. The common question I get is "someone" told my customer it has to be wages, and has to show up on a 941 and 940, and that the 941 forms MUST equal the W3 (which are all incorrect as best I can tell, and I am willing to be shown anything to the contrary, since I cannot find such information myself). Smart? Well if you consider the school of hard knocks, plus knowing how to use a search engine, as smart, sure, I can usually find what I am looking for even if not what I was expecting to find. The real smart part, as I have learned along the way, is first realizing I could be wrong, and then to remain open to that possibility. After several years of my position on the shareholder insurance, no one has been able to show me anything contrary, but I am still looking and asking... I did not even want to add the ability to handle the shareholder insurance when 2008-1 came out, since it is something which cannot be tracked through a paycheck. But, too many customers are 2% shareholders, so I had no choice. I tried to find logic to allow it to be part of a paycheck, and am still looking. I really do not like untraceable "adjustments" - since I will eventually take the heat when a customer asks why a W2 has an amount which was not part of paychecks when they forget the reason themselves, and insist they did not make the adjustment.

There's a lot more in the law, including eliminating Roth conversions. http://www.finance.senate.gov/ranking-members-news/wyden-proposal-would-crack-down-on-tax-avoidance-in-retirement-plans-create-new-opportunities-for-working-americans-to-save

Why are people so afraid of the gift tax? I've had many clients believe they can't give away more than $14k a year (or $12k if they're stuck with what they heard in the past). You can give as much as you want away, but if it's over $14k you must file a gift tax return. Unless you've given away $5.45m ($10.9m MFJ), you will pay no gift taxes. You file the return only because that's how the gov't keeps track of your lifetime gifts. If what you've gifted plus what's left over when you die is more than the above threshholds, you will pay some estate tax. This affects very few people. Those with that kind of wealth usually set up trusts, whatever to avoid it. Note, though, that some states have lower threshholds. Instead of dancing around with joint accounts and such, tell your client just to give the person the money and file the 709. All they'll loose is your fee. I charge $350 for federal and state.

I am not sure what you are saying here FDNY. But if you are saying the example in 25.2511-1 (h)(4) does not apply because an existing account was involved instead of a new account, then I disagree. The example given is just that; an example. Regardless of whether it was an existing account or a new account a completed gift has not occurred because donor has not relinquished control and no actual transfer has taken place between A and B. Since it is a joint account, "A" could draw out the entire amount, so then what happens to the 'gift" to B? It would be different if there was a transfer of an interest of real estate. In that case "B" would have title and right of ownership in his name. In the case of the joint bank account he has the ability to draw out the funds, but until that point, he does not have control over any given portion of the funds. On the other hand, "A" has does not give up anything until "B" draws the money out. Reg § 25.2511-2(b) discusses how control or reserve of control relates to gifting.

The building isn't just $534 in depreciation, because you can section 179 Restaurant improvements. And this would qualify under that section. And then we have next years income that we would like to offset... That is why I have the questions. The kitchen equipment is easy, and then I have a building, that I can use the kitchen area, but not the rest of it. So I can place a building in service over several periods. IF I get a segment analysis done by a architect, then I have costs associated with different areas of the building, and then I can have them placed in service as the permits allow. Some in 2016, and some in 2017. Rich

Jingle bells, Ready your Dells W2s soon on their way Oh what fun it is to ride With our community all the way Hey, Jingle bells, client yells I need my refund today Oh what fun it is to ride For the day we get our pay Jingle bells, ATX cells Tax bingo all the way Oh what fun it is to bide For the day we can shout Yay! Jingle bells, Jingle bells, Jingle all the way Oh what fun it is to ride On a one horse open sleigh It's Christmas! Happy Holidays to All, And to All, A Good Night!

Merry Christmas to everyone!

I stand corrected, simply putting someone else's name on an account does not constitute a completed gift, only when it is withdrawn as Dan states. I learn something new everyday around here.

A few days in Dec? Have 600k in income that could use a little Sec 179 against it... This is restaurant number 2. 150k in Equipment, and 1million in Building. Only a portion of the building? Place in service the kitchen area, but not the dining, restrooms or parking?

There is no gift until money is drawn out by the individual whose is name is placed on the account for his / her own personal use. So you can put kid's name on a million dollar account, but there is no reportable gift unless the kid draws out over $14,000 for his own use. See Reg. § 25.2511-1(h)(4).

ADP battery backups have worked well for me but replacing the battery is quite expensive. I too have a generator to plug in but as Medlin said it is important to swap between appliances and electronic items. A gasoline generator cannot hold a steady rpm and therefore produces a ragged AC sine wave which electronic devices do not like. So, if I am running the office, nothing else is running that would cause the speed on the generator to vary.

I would tend to agree except don't forget about bonus depreciation or the fact that in 2016 there are permissible write-offs on major equipment purchases that could indeed have a tax benefit that otherwise may not be available in 2017. Just my 2 cents worth.

The new house I bought came with a gas generator that automatically kicks in if the power goes out. I have no idea if we've had a power outage! But yeah, I'm out in the country now too.

And Merry Christmas to all who celebrate!

Thank you my friend. I knew I could depend on you for the special effect. All the best, Bill

FNDY......You are a fine poet.......Well done...

Wonderful!! Beats the pants off the nanny payroll snafu I was battling much of today. Hysterical client calls in tears...and it got worse from there. I *think* we have it under control; Merry bleeping Christmas, though. Sheesh! This is what happens when clients do NOT listen to me.

If the kitchen equipment is in the building, looks to me like the building is already in use. Does he have to be serving customers in the dining room to be "in business?"

Are they using that equipment to prepare the catered food? And is the catering business in the same entity as the restaurant? If so and so, then yes to your question. Merry Christmas!

I'm out in the country so lose power often and for long periods (11 days during one of the storms during tax season a few years back). No power means no electricity, no water, no toilets, no anything. We're getting too old to haul water to flush toilets. We finally put in a whole house generator, feeling we're also too old to be dragging out a generator in the snow and ice. I no longer worry about losing power when I have deadlines to meet, and we don't get cold. It's worth every penny we spent to have it work seamlessly with no work on our part.

I gave up on the batteries. Seemed like they were always worn out when needed. Generator for me... One cord to power office items, one to swap among refrigerators and heater. Also had an outage yesterday. Was the kind when you know it is not quick since it did not try to self reset. Had the gen up in minutes, although I need to clean the garage so the cords are neater... and with the gen. (Have a rolling storage crate I picked up which will now hold all.) For me, I have enough backups I do not worry about what I might lose when the power goes out. At most, a few minutes of work to redo, but usually none to redo (save often)

Good job! Good job!

Congratulations Tom. Good thing the test doesn't have a "Technology" section.