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I definitely would be forced to retire. I hope that everyone remembers Eric before you spend all of your profits. Also, a special Thank You to Judy for her pristine Moderation and all of the rest of you who reach out so generously to help those of us in need. I couldn't do this without all of you.

No, the losses in year of death are handled like any other year. Any capital losses that are unused (those that would carryfwd if the person lived) are lost. They die with the decedent.

Copied from Forbes: “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” — Winston Churchill “Income tax returns are the most imaginative fiction being written today.” — Herman Wouk “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” — Arthur Godfrey “A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.” — G. Gordon Liddy “The taxpayer: that’s someone who works for the federal government, but doesn’t have to take a civil service examination.” — Ronald Reagan “The income tax created more criminals than any other single act of government.” — Barry Goldwater “Collecting more taxes than is absolutely necessary is legalized robbery.” —Calvin Coolidge “This is too difficult for a mathematician. It takes a philosopher. The hardest thing in the world to understand is the income tax.” — Albert Einstein “The difference between death and taxes is death doesn’t get worse every time Congress meets.” — Will Rogers “In 1790, the nation which had fought a revolution against taxation without representation discovered that some of its citizens weren’t much happier about taxation with representation.” — Lyndon B. Johnson “Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents?” — Peg Bracken I'm smiling but I don't feel any wealthier

I don't see anything on my friend Google about a blanket change in the dates that estimates are due, nor do I see anything on the IRS website. I am getting my hair done tomorrow, I will ask my hairdresser.

Ask your hairdresser Tom Longview, TX

Definitely "SALY!" Definitely "it depends" We need a big "maybe" on there. When in doubt "extend". and "Sharpen the pencil" In this town lately we could also have "create an LLC"

How much is reasonable? What do most people take?

Answer on ceiling.

“Don’t steal, the government does not accept the competition.” Unknown

"Everything is bigger in TEXAS!" Oh, you said TAXES....oops Tom Longview, TX

If we were going to commission a special, tax-accountant's version of the Magic 8-Ball, what should be the "answers" on the ball? It depends $500 Answer hazy; Congress is in session Suggestions for others? Let's have some fun with this; be outrageous!

What's the standard deduction for Charity? ...for __________? TikTok But my co-worker's refund is bigger! I'm self-employed; how much will I owe? How big is my refund? Ltr CP2000

SALY Facts & Circumstances Usual & Necessary There's a Form for that Acronym of the Day

Look up the amount used last year

What answer would you like?

If you are not licensed, you cannot legally give investment advice. Series 6, 66, 63, and 7 licensures (or some combination of those). However, as Judy says, the tax benefits (or detriments) of IRAs or other investments is something we can - and should discuss. Start out with "not investment advice; tax consequences only) and reiterate that at the end, too. Along with "talk to your investment advisor." Also remind the client that any tax advice from the investment advisor is suspect. I do wish we could get the licenses of investment "advisors" who give tax advice yoinked the way ours can be for investment advice. I've heard - heck, we've all heard - preposterous and expensive and generally horrible "advice" our clients blithely followed from their "stock guy" that blew up in their faces come tax time. And far too often, we've been hit with the blame and/or the anger.

Ahh, the good old scent of nasty volatile organics. We refer to them here collectively as "methyl ethyl death."

Honestly for the last several years, my experience once I have reached an IRS employee has been satisfactory. Does it take too long to get someone on the phone ? Yes it does. Does it take too long for them to find an answer or to change something in one of their programs? Yes it does. However given the old systems they are still working with that don't share information, I think they are doing the best that they can under difficult circumstances.

Upon sale, the partnership *usually* provides a worksheet for reporting the sale. This is separate from the K-1 (although sometimes appended) and also separate from any brokerage Schedule D-style reporting. In the worksheet, information is provided for determining LTCG, Ordinary Income, Form 4797 sale of business property items, and more. Look for that.

By far my favorite satire site is The Babylon Bee. A recent parody news story pictured one of them with a bar code on their head with the following explanation “To make purchasing congresspeople easier and faster for lobbyists, congresspeople will now have barcodes printed on their foreheads to be conveniently scanned at newly installed self-checkout machines.” The article in and of itself is funny, but the video “News Bulletin” is hilarious. I’d post a link, but it probably violates a few terms of our forum.

Government's view of the economy could be summed up in a few short phrases: If it moves, TAX it. If it keeps moving, regulate it. And if it stops moving, subsidize it." — Ronald Reagan

"Go to the ATX forum, idiot."

But we have always done it that way with Turbo-Tax. Depreciation, what is that?

No matter how many people they hire, it won't improve significantly until they invest in new infrastructure. I had to be transferred three times, over two hours, to reach the person who could access the platform needed to fix the issue. Once I got to the right person, it took 10 minutes to resolve the issue.

Room & Board does NOT qualify for the AOC, but it does qualify to make 529 Plan distributions non-taxable. Way too many details in all the different education benefits!!

On that theme, a favorite of mine is "THE IRS" without the space, is "THEIRS" and that's how they see it!

GOOD question and one reason I detest those %^&Y* things.

There is a particular schedule they want ES payments made, with specific percentages by Date X. Miss that, and there are underpayment penalties. For one year, you could protest based on unequal income (large distributions in December due to investments), but after a year or two, they will expect the taxpayer to expect those distributions. You could try the 2210 with unequal income distribution. I've used that a time or two for clients and gotten penalties waived. But it's not guaranteed. As for getting a refund, that's only dependent on the total paid. Think of it this way: client's total tax is $9,000, and as self-employed they make zero ES payments until January, at which time they pay in $10,000. They'll get a refund on tax, yes, but they will also have penalties for not having paid in anything the previous April, June, and September.

Well, it clearly wasn’t bar codes. Now we have advanced to QR codes. And we have to use QR codes to set up MFA just so we can log into our software. That’s clearly the work of the devil.

These PTPs are notorious for showing losses year after year yet making nice distributions so investors think they are making money. It's return of capital, lowering basis and adding to the surprise gains when they eventually sell. At least they can take those suspended losses at the end, mitigating the tax bite a bit. Always check that the K-1 is in the taxpayer's Soc Sec number and not in an IRA, in which case you don't have to do anything except alert the client that the custodian may have some UBI reporting.

When these K1s are sold, either partially or completely, the broker will normally show the initial investment cost, but the K1 will have attachments showing both a basis adjustment and an ordinary income component of the gain or loss. The basis adjustment increases the gain and the ordinary income component will decrease the gain on the Sch D and also be reported on the 4797 (as Catherine already noted). On 8949, you will use adjustment codes BO to net the two adjustments so the Sch D gain is correct. You can do this even if you're reporting totals from the 1099-B. And the state gain or loss is almost always different, so you'll need an adjustment on the state return, if there's a state income tax. When I see these investments by a client, I always warn them that their tax prep bill will be higher every year that they own them and a lot higher when the sell them.

“The problem with socialism is that you eventually run out of other people's money.” Margaret Thatcher "A tax is a fine for doing well, a fine is a tax for doing wrong." Mark Twain "A person doesn't know how much he has to be thankful for until he has to pay taxes on it." Ann Landers "Worried about an IRS audit? Avoid what's called a red flag. That's something the IRS always looks for. For example, say you have some money left in your bank account after paying taxes. That's a red flag!" Jay Leno

“The art of taxation consists of plucking the goose so as to obtain the most feathers with the least amount of hissing.” Jean-Baptiste Colbert

I truly asked my hairdresser yesterday and she said that I was doing just fine. She is self-employed too.

FREE REFUNDS!

This is all so true. Funny thing is that I still have a desktop calculator and do still have check tapes attached to the office copy on occasion (just in case). BTW, is my nearly perfect new electric Smith-Corona, slightly dusty, now considered an antique?

OK, since we're reminiscing, let's talk about the calculator-only period. A desktop calculator, lookup tables, and rolls of calculator tape - especially the "check tapes" stapled to my office copy of the return. I don't think anyone has mentioned the days of putting a tiny staple at the top of 3 pages with carbon paper inserted between them. Make a mistake and then it was a decision between starting all over or dabbing a tiny bit of White Out on each page, then blowing on it to dry before starting to write again. Then along came the NCR (No Carbon Required) paper sets. It was pricey, but a a real time saver. You just had to be sure not to lick your fingers when handling/sorting/collating the sheets or you'd get a sore throat. (I still wonder what that chemical in the NCR paper might have done to my airways and digestive system) My first copier used rolls of chemically coated paper & liquid toner. You could almost always guarantee a spill when you refilled the reservoir. It also had a really weird smell. (Again, wonder if there were any problematic chemicals in all that stuff.) Or maybe the above-mentioned volatile organic compounds (including formaldehyde, benzene and toluene) acted as a preservative - I'm still here.

But not unexpected or surprising.

If the investment account was joint and originally funded jointly, half of the carryover losses belong to the surviving spouse and can be used on his or her future returns. The deceased spouse's half is lost forever after the final return. Many of us still have clients who lost a fortune in the 2008 market crash, pulled out of the market altogether, and will have to live to be 200 to use up the losses at $3k per year. That $3k limit has been around since 1978 and never adjusted for inflation.

You don't need a computer to send or receive funds electronically, you just need a bank account. With DOGE endangering all of our personal information, I recommend setting up a small balance account at a different bank to receive or pay fund electronically. Then you transfer money to or from that account as needed. That way your real bank info is not out there.

Send him to IRS DirectPay so he can get a payment confirmation: https://www.irs.gov/payments

"In 1867, William M. Springer refused to pay the federal taxes he owed, resulting in one of the first tax cases heard by the U.S. Supreme Court. Before the matter went to the Supreme Court in 1874, how did the government collect the tax due?" In January 1867, after Springer refused to pay the $5,279.78 owed (including tax and penalty), the tax collector levied property in Springfield, Illinois, that Springer owned. The property was advertised and sold at public auction on March 15, 1867. The matter eventually landed in the U.S. Supreme Court (Springer v. U.S.), with Springer claiming that the tax was a direct tax and therefore unconstitutional, and that the seizure and sale of his property deprived him of his property without due process of law. The Supreme Court rejected both arguments and affirmed the federal government's power to levy and collect income taxes, including through the seizure and sale of property. "

" The first nattional income tax in the United States was enacted in 1862 to help finance the war. It started as a 3% tax on incomes over $600 and 5% on incomes over $10,000. These rates were later increased, and the ceiling for the lower tax rate was lowered in 1864. " The Grant Administration repealed these taxes in 1872

Thank you, Abby, for the great reminder. The IRS must RECEIVE the amendment by 10/13/2025. I've been forgetting that lately with e-filing. If you have to paper file, between the USPS and the IRS brokenness, who knows when the IRS will receive any given piece of mail !!!

Either they were paid late or if AGI over 75/150 110% was not paid.

Frog: you CAN warn him that the sale might not be all capital gain rate, that some could be at his ordinary income tax rate. Was he near the top of a bracket last year? And, that the sale involves more time, more calculations, often more forms, so your fee will be a LOT higher. Tell him to bring you every single page and every single piece of paper and every single mailing for year end.

I think they call it the sausage making in DC. I call it Halloween - Senators go to the doors of lobbyists and hold out a bag looking for cash to be put in. The more cash the AICPA can put in the senator's candy bag, the more chance the senator will make changes to the sausage recipe. Not appealing to watch.... Tom Longview, TX

Tom beat me to the RIGHT answer!

Put your house in a trust Buy an SUV Move to Canada Have another child

Google released an emergency update for Chrome to fix a severe vulnerability. If you don't have Chrome set to update automatically, or if you close it infrequently, you should check to make sure you are up to date with the latest version. "The update brings the Stable channel to versions 136.0.7103.113/.114 for Windows and Mac and 136.0.7103.113 for Linux." https://www.malwarebytes.com/blog/news/2025/05/update-your-chrome-to-fix-serious-actively-exploited-vulnerability?utm_source=iterable&utm_medium=email&utm_campaign=b2c_pro_oth_20250526_mayweeklynewsletter_paid_v4_1_174792831761&utm_content=Update_your_Chrome