taxxcpa

The IRS accepted my daughter' return Jan 13.  Her refund ($6900) will finally go into her bank account tomorrow , May 18.  All she had was her W-2 and her husband's and  itemized deductions.

1 hour ago, RitaB said:

On gross income Sch C did he put, "I didn't really make anything this year"?

No.  He always showed a small profit

One ex-IRS tax preparer would show, in parenthesis, "ill health" by the husband's or the wife's occupation.  Net to the depreciation on his own return, he had his car listed and after the model he had "bad shape"  I suppose he thought the IRS might take those comments to explain why they didn't need to audit those returns

You can use Drake's forms entry for Form 1040--but it does not exist for 1020 or 1065

I retired at the end of the 2014 tax season.

I gpt one of those.  The guy wanted my CPA certificate number and said someone I'd never heard of recommended me.  Then he wrote a nasty e-mail saying I was posing as a pillar of the community and I wasn't a CPA.  I told him to check with the state board.  Then he said he thought Atticus was my last name.  I finally told him I did not want him as a client

I retired and sold what was left of my practice to another CPA.  The only calls I've had from former clients was one woman who got an e-mail saying she owed tax and they were sending the police after her if she didn't pay them.  I told her I had gotten the same call,  The other call was from a man who needed the password to open his return I'd prepared.

Their new CPA must be doing a good job.

I reported it as K-1 income for form 1041 under "other portfolio income."

One year the IRS raised a question about it, but agreed, in the end, that I had done it correctly

I had a client who handed his forms to me one at a time explaining that "This is my W-2, and this is my wife's W-2"

Others would give me all medical receipts which were less than 7.5% of their income.  I had to add them to make sure though

Once I had some clients who had first  gone to someone who listed both the husband and the wife as Head of Household on two separate returns.  They came to me because they suspected this wasn't right

Severance tax is called production tax in Texas. In Texas It is 7% of the "wellhead"value of gas ( or 4.6% of the wellhead value of oil.)  Since gas must be compressed and gathered (to a delivery point to the pipeline) that is deductible in calculating tax on sales price minus these costs.

In some states gas is taxed by the MCF rather than wellhead value. 

I don't think you really need to know any more about severance tax than how much they paid.  On schedule E show the gross amount received then deduct depletion (15% of gross amount) and deduct any gathering and compression fees charged.

I meant 15% depletion--not 15% royalty

You can deduct gathering and compression fees.  Severance tax should be calculated on the net after these deductions charged to royalty owners,

Report gross royalty on Schedule E then deduct gathering fees and 15% royalty

I ALWAYS CHARGE $2.00 for a 1065

A guy I know, Chuck Davidson,went to Purdue, got a degree in chemical engineering and later became CEO  of Noble Energy, now retired.  

I knew him at ARCO.  He was very helpful to me

Donald Trump promised to put H&R Block out of business when he gets elected

I quit working at 84.

The employer probably gives his employee the "tax-free" money and hopes the employee won't report it on his return.  If it is a cash business the employer receives money that he does not report and pays the employee from these funds.

Donald Trump says he is going to drive H & R Block out of business (along with all other tax preparers)

Carly Fiorina is going to have a three page tax law, which would have the same effect.

And who knows whar Jeb Bush wants to do about it

Stick with Pro Seties

I upgraded to Win 10.  I had a couple of problems but solved them

Sounds like a $20,000 in income and a $ 4000 capital loss

They may be questioning it due to the large increase in income

Drake has a members only message board visible only after you are approved for membership.  You must have posted  500 messages (or be granted a waiver) and be invited.

It appears if you are a member when you access the message board.  Maybe this is what you meant by the "secret handshake".

KKR sends its K-1 about April 30.  I sold it in the margin account and bought it in the IRA account to avoid this in the future.