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Oh, I wondered why he wanted to use depreciation and actual expenses. The sister. Got it. As Sara pointed out, SMR does include depreciation. Sometimes you can explain, and other times I would explain AND do the 2106 both ways to illustrate. Then there are the hard headed people who are determined they know, and I let them shoot themselves in the foot. Like the ones who don't want to pay me to prepare 1099s and show up at tax time with the red IRS copy in their paperwork. I don't say a word - they got this...

You are so right. I spent 15 minutes yesterday with a person I just met who's about to start a business in 2017. He did not understand that "depreciate," "write off," and "deduct" meant subtract. I couldn't figure out why he kept asking me the same question: "You mean I can't take off the equipment?" I decided I need to listen a little more carefully and explain things like I'm talking to a fifth grader when I'm talking about taxes. Never underestimate your client's intelligence. Always underestimate your client's knowledge. I've got to remember that.

Yes, you should open your template return occasionally, so the forms update. I just rolled mine over and half the forms aren't even available yet.

It is mind boggling to see the number of clients who don't recognize or care about the amount of interest they are paying on these products. The article in the original post makes reference to two "loans". I picked up a new client last year that was part of the HRB debacle of get part of your refund Dec 15th so on and son, and said when it was all said and done, the total cost was close to $500.00. I can't afford to throw away $500.00 and I know I sure could do a lot with it.

Putting things into layman's terms is sometimes difficult, especially the complex vehicle rules.

Three tax preparers I have known for many years via NY/CT-ATP partnered to produce Fingertip Tax Facts. Tom, especially, is an amazing researcher; he tracks down answers to questions posted on our NY/CT-ATP bulletin board with speed and appropriate cites. Kristin brought me in to work with her a few years ago, I to prepare an S-corp, she the 1040 with spouse’s Sch C, and a great remote QB expert to keep their bookkeeping straight for the two businesses and personal; so I know her thoroughness. I trust their expertise and already ordered for my practice. Website (with bios) is fingertiptaxfacts.com Facebook is fb.com/fingertiptaxfacts Just thought some of you might want to check out Fingertip Tax Facts for yourself. And, spread the word around your own networks. (If you don't want to click on links, message me to email you a .pdf file. It's too large to upload.)

Client received a 90 day letter notice dated Oct. 4 and let me know in mid-November after trying to resolve himself. I got Taxpayer Advocate involved but they won't respond until Jan. 18 with final determination in March. Meanwhile, what exactly, is 90 days? Business days or calendar days? What about holidays when no mail was possible? I've found the form for simplified procedure as the amount is $1600. Is it too late to mail this? Ideas? The holidays and lack of quick response from IRS have wreaked havoc on this situation. I have placed at least 12 calls to the listed number and received not a single return call from the examiner, only letters.

90 days is 90 days including weekends and Holidays, but I believe the 90 days cannot end on a weekend or Holiday. The final date is usually on the notice. The notice was dated Oct. 4? By my math 90 days would = 27 days in Oct; 30 days in Nov; 31 days in Dec and 2 days in Jan. January 2nd was a Holiday so January 3rd was the due date.

If the notice was dated 10/4/16, wouldn't the 90th day be 1/2/17 and you are already beyond the deadline?

Yeah, this guy has commuting miles at the very least.

If you get paid the federal maximum mileage rate it is not taxable because it is considered to be a reimbursement. That's what I was trying to convey.

My client is a W-2 employee. I planned on doing as "Ringers" stated but just wanted some confirmation my thinking was on target. Rita, I am with you totally. This client does not qualify for EITC either. This client claims his sister has an LLC and depreciates a vehicle she uses for business so he is thinking he should do the same. His argument is the vehicle depreciated due to the mileage put on ii which he is correct to the extent a vehicle naturally depreciates regardless of how you put the mileage on from either personal or business. Just have to have the right words to make all of this make sense to my client.

Thanks, Abby. My home page is Chat. Think I will change it now. I don't want to miss anything!

Yes. Create a template return that has all the forms you want. Then just copy that to create a new client.

Exactly. On the one hand they claim they want us to save for our own retirement. On the other, they make the rules ever-changing and harder to follow. This would be a case of "poop or get off the pot" except they cannot decide which social end they really want to achieve - more taxation NOW or more taxation later; more retirement savings to lighten the socsec burden or less retirement savings that push more government control. And I will stop right there, lest I cross the line into "political" posting. No, I will say one more thing: all the legis-vermin in DC (and most of those in the state houses, as well) need a good spanking (except for those who would like it; they don't get spanked) and some hard lessons in economics. *And* get locked into a room with no calculator, lots of dull pencils, insufficient erasers, and NOT let out until they do their own taxes correctly. Mwa-hah-hah!

Actually: The intent is to eventually tax the amounts in the IRA's at some point, From the IRS's POV, the sooner the better. Therefore, you have the RMD Rules. I like the stretch IRA rules. I think they are a good rule. The Money stays invested, but the feds start to get some money from the funds. Abolishing the stretch rules, which have only existed for 15-18 years, would be a real bad idea. If you get $500k from a parent who dies, your effective tax rate on that, right now, excluding state tax, could be 44%. That is HUGE money grab by the government. The whole ROTH Rules are being driven by investment lobby. The money is invested, but it is taxed up front, The government likes that. IF they restrict ROTH, which I expect them to do anyway, and they also blow up the "stretch" rule's, the government is in for a bonanza. There is supposed to be 10 trillion or so in assets moving from the baby-boomers to the next generation. A big chunk is in pension funds, IRA's and 401(k)'s Rich

I would take his actual expenses (gas, depreciatoin, repairs, insurance, licenses, stickers, washes, etc.) multiplied by his business use of the vehicle (not counting commuting and any other personal use) and then subtract the reimbursement he receives from this total. Both the expenses and reimbursement would be shown on a 2106 as long as he is a W-2 employee, Schedule C if 1099 subcontractor. This is what I have always done in the past when I encountered similar situations.

Thank you...same to you! Let's make it a good year!