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I've also seen 50% wrong. But I've seen 90% in the client's favor. The woman who baked and took her entire country kitchen as OIH, saying it's 25% of her house; and then using .25 as the depreciation factor instead of 0.0256 or whatever it is, depreciating in 4 years instead of 39 years, but continuing to depreciate on her DIY return. The man that drove 90,000 biz miles in prior years, meaning he drove 360 miles a day and had no time to actually work (CT's small with old roads, long rush hours, and slow speeds during prime drive times). Those that claim their parents who probably make too much to qualify as dependents, because CT homes in Fairfield County are pricey with high property taxes and large oil heat bills, so don't get me started. Those that failed to start with Federal AGI on nonresident state returns, so their tax bracket was too low. Huge "cash" donations that were actually in-kind and likely not FMV, as well as needing to be on 8283 with details, such as the guy who gave away $10,000 of computers EVERY year. At least I'm not seeing those huge unreimbursed employee expenses on DIY returns now.

I'm with Bulldog Tom and Lion. No matter the year being prepared, if it is current work it is charged at my current rates. If the clients are late because of procrastination or disorganization, then they are paying more for that because I raise rates each year, and if the work involves me working even more on it because of that disorganization, again a higher fee will be the result.

Ahem, I take offense at the title "You Guys." Many posters here are not guys. Did you only want the guys to answer?Now that I've moved to the South, I've taken a liking to the term y'all. It's gender neutral, respectful to both old and young, and sounds friendly. I used to think it was slang until I read some linguists' take on it and I'm now with them.

This was a grantor trust until the grantor died, so yes there was step-up basis in 2002. The wording you quoted clearly shows that the father retained power of appointment (he could do whatever he wanted with the trust), so it was a grantor trust. Not sure if it was a complex trust, which can change from year to year, but that doesn't affect your answer to this question.

From the code: Windows and doors must meet specific energy star requirements, so generally only the more expensive ones qualify. "Insulation" has the least requirements (must meet IEEC standards) and manufacturers are claiming that things like window shades qualify, but from the instructions for Form 5695: So I think you are out of luck.

Ain't that the truth! I used to say, (%'s that have always held true), "50% of all self-prepared returns, I have ever seen, are wrong. And 90% of them were wrong in the IRS's favor."

Prior year returns get my current-year rates, adjusted as always for complexity of the return in question. Won't even look until after 4/15 or they can go elsewhere. Have a new one this year, two amended returns, sent by his brother who is handling their now just-passed mother's final return. He's fine with waiting until May, after discovering an error for 2021 & 2022 (thanks, TTx - the gift that keeps on giving).

Father didn't own the land in 2002, so father's death didn't step up land basis. But my brain is fried, so keep researching!

I feel the same as Bulldog, but I do not take any new clients that are behind in tax returns until after April 15th, they have to go on extension. If they are not willing to do that then they are not the client for me. I feel like the clients that keep up on their returns in a timely manner deserve to be taken care during the regular tax season. For the most part that has worked out well for me, however there is ALWAYS exceptions.

Yes, because the cash used to pay the expenses, increases the basis by the exact same amount as the expense.

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.

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.

You don't know my visa bill, if only paying minimum payments.

I have an open bookcase in my office just for the convenience of my clients. They are free to browse and take a book or two. They often leave books as well. The readers in my clientele love it.

Once again it just shows that out Tax Law is complex and that knowledgeable people can arrive at different conclusions.

I have closed some corporations over the years but not recently, For some additional input on this topic, according to The Tax Book: "A Corporation will terminate upon the complete liquidation of the corporation's assets." "Note: A complete liquidation can occur even though the corporation retains a small amount of assets to settle debts and pay final administrative costs. Amounts remaining are then distributed to shareholders." "Post-termination expenses: Expenses of a corporation incurred after a complete liquidation are treated as capital expenses (additions to stock basis)." A classic example would the final bill for preparing the last corporate tax return.

The code is fairly clear on this. A corporation is in existence if it retains a bank account and is in the winding down process regardless of state law, therefore a return is required. The final distributions are reportable transactions. Per 1.6012-2 (1) "shall make a return of income regardless of whether it has taxable income or regardless of the amount of its gross income." (2) "A corporation in existence during any portion of a taxable year is required to make a return. If a corporation was not in existence throughout an annual accounting period (either calendar year or fiscal year), the corporation is required to make a return for that fractional part of a year during which it was in existence. A corporation is not in existence after it ceases business and dissolves, retaining no assets, whether or not under State law it may thereafter be treated as continuing as a corporation for certain limited purposes connected with winding up its affairs"

Danrvan, I absolutely always agree with you, and interestingly, this time, I don't, so I'm certain that I must be wrong (and I mean that sincerely and respectfully). I always appreciate your answers, and I think you're very knowledgeable. I think you can leave the bank account open to handle any final issues, taxes, etc, and make final distributions to owners, but you can't conduct any more business, and you must mark the return final and close your account with the IRS. I'm not trying to disagree ... I just want to get more information, because I looked for a bit, and I can't find support either way. If fact, some states require that you not distribute assets until you've formally dissolved your business (filed for dissolution), so that would be interesting to handle. I might be thinking too technically on the legal side and not on the tax side. Again, I'm pretty certain I'm wrong on this given that the answer came from DanRVan, but I would love to get a better understanding. Schiralli, I've done it the way you have before, unfortunately, so I'm in your boat ... we'll face the feds together ;)! Thanks much!

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

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.