clay

A question came up as to who claims the credit when a plug-in electric vehicle is leased. Some dealerships say the individual leasing the car claims the credit on their income tax return. Other dealerships calculate the credit and reduce the selling price. IRS instructions say the purchaser takes the credit, to be determined by the name on the title. A leased car stays in the name of the dealership. So the dealership obtains the credit and it is at their option to pass the credit onto the consumer. Has anyone had a tax client come who leased a plug-in but never received a credit on the lease, saying the dealership told them to take the credit on their tax return?

If there was income from IL while a NYS resident, use IT-112-R.

I know preparers who would say clients never questioned their fees because of the amount paper included with the client's copy of the return.

No section 179 unless the rental property is part of a business. Section 179 only applies to a trade or business (e.g Sch C).

If they sold the house before she died, the basis is what she paid plus capital improvements. In this case she died while still having the house. The quitclaim in this case was finalized effective upon her death and the basis is the appraised value upon death.

I renewed my EA in December, just received my card this week

I have a policy where I give a free tax return in the year a couple is married. It is my wedding gift to them. Thank goodness I never had 3 in one year! But I have had some divorce and remarry, I want to kid them they are doing that for free tax returns!!!!

Have you questioned the client on how they come up with the cost of goods sold, especially the ending inventory?

I purchase most of my tax office supplies at Amazon. I have Prime which usually gives you 2 day free shipping. I bought toner supplies. writing pads, pens, envelopes, folders, etc. all at generally a lot less than Staples. As an example. I bought a box of 10 x 13 Tyvek envelopes for $20 less than Staples. I just bring the Staples website and the Amazon website up on the computer and compare prices. Amazon has the JK Lasser book for $18.

I use Brother laser duplex printers, saves on paper. Cost per page for a laser cartridge is less than ink cartridges and the laser cartridges give you more pages. But I do have a HP Laser Jet 4 that is over 20 years old and still working; it weighs much more than the Brother printers - must be less plastic inside! Just runs slow.

What have you folks found to be the best scanners, and software to manage the scanned documents?

Is anyone using a Microsoft Surface Pro computer to prepare taxes?

Is anyone running their tax program on a Mac? They are supposedly the best machine, but my understanding is that tax programs are not written to run on a Mac and you need VM Ware or something similar on the machine to run the program in Windows. I was considering a refurbished Mac notebook.

I admire and am miffed by the number of returns many people can personally prepare in a year. My numbers are not enough close and I wish I knew how to do more, especially since I work 7 days a week in this business for 10 weeks. I have very few "just W-2" returns. When people show up, I try to minimize the small talk but that usually ends up being longer than I prefer. And then when you are working on the return and you ask for business miles for a Schedule C, they always look up at the ceiling, I look to, but I never see the numbers they must be seeing; they move their head back and forth and then I guess it just shows up for them. But consider the time just to fill out that one line. Then you have the education credit and all they have is the 1098-T. Or the the question did you install replacement windows or replace the furnace - yeah, I paid 2300 for a furnace. Now they need to find the receipt. And mom lived with you last year, how much did she make - not much. OK so this goes on and on and before you know it well over an hour has passed, maybe close to two. And you are not finished, not even close. And you need to reopen their return every time they call back with the info because it is not complete. And then you have people calling to schedule/ reschedule; there is copying, mailing, keeping track of the billings, etc. So HOW do you prepare so many returns in a one person shop? I believe we all have the same amount of time available - 24 hours per day. If the answer is extensions, OK. Or is there something else you do that enables you to prepare so many returns?

Done, 7:30 am 4/15. NO extensions.

Just wondering how the rest of you are doing in working toward a profit. My income from my tax business after 3 weeks has been enough to cover major operating costs of rent (luckily I am able to rent an office for just 2.5 months); tax software; continuing education; postage; electric (heat is included in the rent); office supplies; and cell phone. So the rest of my fees for the remainder of the tax season will go toward variable costs of the business; taxes; and to pay me. I have no staff and I operate what I would call a small business, although I generally work 7 days a week for 10 weeks, about an average of 9-10 hours per day. I had no major equipment costs this year...yet! How long is it taking into the tax season for other preparers to turn a "profit"?

My software will not give me the sid# until after the IRS accepts the return. I either have to write the number in on the 8879 or print the sid# and attach to the 8879.

Get the DETAILS, not a summary. Not all expenses qualify for the credit

Seems that for efiling this year an employer's state ID number is required. W-2s for NYS employees do not list a State ID #. Has anyone in NY run up against this? It was suggested that I use the Federal ID# but I am pretty certain the NY # is different. At least on their 1099-r pensions it is. Supposedly employers were told a State ID# is required on the W-2 if the State has an income tax. I guess NYS chose not to conform.

If you did not remove the plywood under the shingles, this might be a repair. At least that is what they told us at a tax update class.

Duplex saves on paper costs and postage (mailing client fewer pages) and storage. This assumes you print copies for your clients and your files. I tried the scanning thing but just too time consuming and I like having the prior year hard copy in front of me. BUT, I do have PDF copies of the returns on my computer.

We have fleece bedsheets , with a blanket and comforter - VERY warm.

And I am guessing VITA does not use ATX or whatever software you are using and so now you have to learn a new tax software! Wonderful..

For years I always watched the 11:00 news at night. I just found the news to be depressing. I wasn't a fan of Conan, but one night about a year ago we decided to watch his show vs the news. We now watch his show Monday through Thursday (bummer no Friday show!) at 11:00. We generally watch the monologue and sometimes stay up to watch his first guest. We love the show, we like his sense of humor, and he makes us laugh. MUCH better than the news!!

A client of mine received an IRS notice asking for $10,000. The reason is for earnings on a 1099-Q in 2011. The funds were spent on eligible college costs so we will respond with the info. But is this typical of the IRS to send out notices when there is earnings on a 1099-Q withdrawal from a 529 college savings program? Should I have added an attachment to the return to document the expenses? What is everyone else doing? An IRS notice like this creates extreme anxiety and stress for the taxpayer.