jklcpa

One of my Delaware couples own a house in North Carolina that they turned into a rental starting in July, 2012. It is short-term vacation type of rental. The house is in joint names but the management company issued each of them a 1099-misc for $3427. They've had a rocky relationship in the past and is most likely the reason for splitting the income onto 2 1099s. I believe they will file a joint federal return and would not have to file a NC return if filing on a joint basis because the filing threshold is $11,000 (but is $2,500 if filing separate returns). Is there any reason why I should consider filing a NC return? If they separate or file separately in the future, would it be better to file the return to document the activity and the depreciation even though they wouldn't own anything for 2012? Would you start out with the property split onto 2 columns of the Sch E because of the 2 1099s or add them together?

I charge by the hour for bookkeeping. The monthly fees are pretty consistent from month to month for any given client, but every so often there will be additional amounts for worker comp audits, bonus calculations, whatever else a client without a bookkeeper might come up with that he/she doesn't want to do. I don't offer to process payroll because it would be hard to compete on price, and I don't want to be tied to a client every single week or two weeks. Unless you have staff that would handle the payroll processing, then you must be available when the client calls in hours and earnings. And then you have to be available when that client has made mistakes calling those in after the payroll is run and delivered and needs to be corrected. How would you handle your vacations or other times that might make you unavailable? Most of my clients have outside payroll processing with availability of direct deposit, cafeteria and retirement plans where the deduction/contribution is managed by ADP or Paychex.

I'm a night owl too and have been since I was a little child. It was always a struggle for my mom to get me up for school each morning, always running late for the bus. Now my husband says good night twice, the second time is after he gets up in the night for cookies and milk. I sometimes work up until about 2am and that's my limit. This was the first morning that I didn't have early morning appts with clients, I slept in until 9am and it was wonderful.

Someone here or on another forum had this when the SS database had the incorrect DOD. Also, the SS database takes some time to update, so if the person died near the end of 2012 that could be causing problems as well.

Aren't parts of OH getting horribly strong storms tonight with tornado watches? It was very warm here today, supposed to be 80 tomorrow and then cooling back down. It was almost too hot, and last week with the cold and the strong winds I couldn't get warm.

The IRS is processing the current submissions before the backlog from yesterday. The Quick Alert I received this evening from IRS says this: The IRS continues to prioritize creation of the acknowledgements for Sunday's submissions. Although we anticipated completing that task by midnight on Monday, the process is taking longer than expected. We will continue to work them throughout the night and will provide a status by 8:00 am, Eastern on Tuesday, April 9th. As federal submissions are accepted, the linked state submissions will be Made Available for state retrieval. Thank you for your patience and support.

Same with me. One return sent yesterday and still no ack, but today's acks came back within minutes. What's also odd about yesterday's filing is that I've received the PA ack, so the fed did put that through even though the fed return itself hasn't been processed yet.

John, the thing I found in converting the business returns was that the net income tied in but the line entries for some of the individual line items (mostly in the other expenses) would be on the wrong lines when Drake tried to convert the detail of the the other expenses (ex: line 26 for the corp returns). An example might be that accounting & legal entered in ATX ended up on the bank charges line in Drake. I corrected the 2011 converted returns in Drake prior to rolling over to 2012. Some entries on the partnership returns didn't convert exactly correctly either. I can't recall now what it was, but might have been the cash distributions entered on Sch K, but they weren't showing on M-2? FWIW, every single asset and its depreciation for regular and AMT methods converted perfectly. Even though the net income was correct, I did fix those entries that were showing up on the wrong lines because it was affecting the comparision schedule that my clients like and that I used as part of my review process.

I don't see where I, or anyone else, said exactly that ^. To be very specific then, I'll state it as this: NJ does not have a separate form for part-year residents. The resident form is used to report the NJ sourced income for the period of residency, and the nonresident return is needed to report the sale of the house that occurred after the taxpayer left NJ and moved to CA. I think the link that I provided made that clear. So when Joan wrote "...so I prepare both the resident and nonresident returns..." and because she had another post about this same taxpayer where she indicated that she'd read about the proper use of the resident form in this regard, I believe Joan to be capable of completing the resident form for the period of part-year NJ residency accurately and with the proration of credits, exclusions, exemptions and deductions.

You can't. It's a function of the forum based on the number of posts you've made. The answer to your question - stay with us here on this forum and keep posting!

Dog hair is an accessory!

It is possible that a taxpayer would be required to file both, just as Joan says. I don't remember the specifics related to her client, but here is a link that describes when both types of returns are required: http://www.state.nj.us/treasury/taxation/njit26.shtml I'm sorry, Joan, I don't have an answer to the efiling question.

Eight hours of sleep is a luxury! I've been limping along due to only averaging about 5-6 hours of sleep a night. Next Tuesday may not exist as I might just sleep through it. I had one close call where I threw on clothes and met with a client who I worked with at one time, and she knows I'm not a morning person. It wasn't my fault. It was the stupid alarm clock that has the option to have the alarm set for weekends, weekends or all days. Well, the alarm was set to go off but only on the weekends. It has way too many buttons, and I inadvertantly changed the setting when I shut off the alarm the morning before! The designer of this clock should be fired. lol I don't like my clients seeing me with bed head or sheet wrinkles embossed on my face or looking like these -->

Lion, you summed it up perfectly. The laundry gets done when one of us is out of underwear! I also have piles of personal paperwork, semi-sorted, that needs attention too. Bills to be paid, paid bills to be filed, mail that I'll look at someday. The only paperwork that is current is that the bills do get paid on time. At least my office looks fairly neat and tidy, and I do draw the line at not meeting the clients in sweats and slippers. That's ok for when I'm not seeing clients. I do at least pull on a nice shirt or sweater and some sort of nicer slacks.

This is a partnership whose sole purpose is to hold several life insurance policies that would fund the stockholder redemption of a C corp. Partnership and C corp owned by the same person(s). The policies were transferred out of the corp to avoid the AMT on the proceeds on death. The policies are old ones that have a lot of cash value and dividends that cover a substantial portion of the premiums. The only items on this return are a small amount of bank charges and the nontaxable increase in value. So I put the business code as 999999-Unable to classify, but what of the description? Hold an investment? And there is no product or service, so what to put there?

From pub 502 Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. However, you cannot include in medical expenses fees for the management of a guardianship estate, fees for conducting the affairs of the person being treated, or other fees that are not necessary for medical care. The above is in the legal section, but it does say that fees paid for conducting the patient's affairs... are not deductible. I wouldn't deduct the expense.

I think the client still owes PA. The reciprocity agreements are for employees living in one state and working in the other. At least for a PA resident with SE income from NJ, the PA resident must file a nonresident return and report the income. I'd be surprised if it isn't the same for an NJ resident with SE income from PA sources.

I do too, unless the client has something like 2 inches of contribution receipts with a nice summary already done for me. In cases like that, I'd keep the summary. But specifically with e-filing, aren't we required to keep copies of any documents that have withholding, the W-2s and 1099s? If the W-2s or 1099s are multi-part forms, yes, I keep one of the originals.

Or use PA Sch NRH, page 2 to allow the program to calc the net profit attributable to PA. I'm coming up with a tax of $75 based on your senario. PA % of gross receipts of total is 8.26% X net profit of $29449 would give a PA taxable profit of $2432 X PA rate of 3.07% = $75. If ATX is like it was in prior years, it won't like if there's no employer name in PA on page 1 of the NRH.

I keep copies of all W-2s and 1099s with withholding. I thought this was required to keep these even if efiling. Glue balls, good one Rita!

It's refreshing to step away from the desk and do some mundane task, isn't it? Remembering to put it in the dryer is where I fail. The last time, I was drying clothes at 2am. At least I was so tired that it didn't keep me awake.

I use the folders like John. If it's too thick to fit in one folder, then the return is in one and source docs in another. That return sounds like the ones that I've had coming in recently. I have a heavy duty stapler for the really thick returns. I used to bind them all in expensive covers, but most clients don't care. I've been using the two pocket folders for the last 2 years and only bind the ones that are too thick to fit in the folders.

Joan, you aren't the only one. The first one I did, I was also looking for it on the pension line until I looked up the proper presentation.

That's just the thing...she and the daughter did check. The daughter works for a law firm that is over at SSA at least once a week and has a contact person there. Daughter will be helping to fix this by delivering the signed form back tomorrow and finding out the exact amount.

Where did they film those really old pay telephones? Do pay telephones even still exist? lol Joan, you will have to save rain water to make coffee. How many cups per year will that allow you?