Crank

Yep, I gto a call yesterday but I was on the line and they didnt leave a mesage. I also received and email about renewing now. I am going to renew but this seems a bit early considering we are up to our eyeball in tax work. I think it would have been better to wait until after 4/18. The email also stated "We did want to let you know that we have some new things that are available this year, you can visit us at www.trxalliance.com to find out more info or give me a call." I went to the website and couldnt find anything different from the previous year offer, but I didnt look very close. I wonder what they are refering to? Also, it makes me abit nervous renewing this early since they require the payment now and dont deliver the product for approximately 9 months which would be past the time frame of protection you get by purchasing with a credit card, if they fail to deliver for some reason. I have no reason to believe that it would happen but these kinds of things are worth considering.

I really hate K-1s. I have a K-1 with an amount on line 19C (Distributions) however the TRX / TaxWorks input form only has hard coded input boxes for Lines 19A & 19B. The K-1 instructions dont address this line but I assume its not a "Distribution of money" (19A) so I put it in 19B "Distributions of property other than money". Am I correct putting it on line 19B? Has anyone else had this or a similar issue? Also, the K-1's state that "You may be required to file state returns for each state in which the partnership had operations. The three K-1s for this one client list 18 states each with income ranging up to $59. How do I determine if state returns need to be filed in each of these 18 states (ugh read every single state's income tax guide lines?). And assuming each requires a state return I wonder if TRX can handle a return with 18 states all being efiled. And the bill for this will be ridiculous charging for each state and research time it could be very large for a family of four in the lower end of the 25% tax bracket

Im curious about this also for the rental. For business equipment couldnt you show a sale on 4797 for the adjusted basis amount? This would obviously show no gain or loss and then the adjusted basis would passed to the TP as their basis in the asset for personal use.

On the form 2106 there is a check box at the top of the input form for "Clergy Form 2106"

The problem I reported after the 10.5 upgrade (Fed Sch C depreciation not carrying to the appropriate PA - Sch C line item) has refurfaced with the latest 10.11 upgrade. The strange black Pa audit issue - no description has also returned. This return was headed out the door so I did the easy fix and just entered the correct amount on the PA Sch C. I dont currently have any other returns with a Sch C in prorocess so I can't say if it is just a problem with this return or if it affects all Sch C returns. I guess I could create a sample return to test it. I do however have a return with a Sch E & depreciation which flowws correctly to the PA form. This return was not affected by the earlier 10.5 update problem either. What appeared to fix the earlie problem was to repair the program and reinstall all updates. The strange part of this is that it did not immediately correct the problem but after opening and closing the return several times over the course of about an hour the proble corrected.

The March 2011 edition of PC Magazine has an article on Turbo Tax software. They like it and its probably a good choice for people who can follow all the software rules and answer all the questions correctly (and not just click though choosing whatever it might recommed as a most common answer). Here are the 2010 software costs: All incude Free EFile 1040 EZ - Free to file on their website Deluxe - Adds Sch A and some others - $30 Premiere - Adds Sch D & E - $50 Home & Business - Adds Sch C and probably all personal forms - $75 State returns add $37 for EACH state (free efile also included) For States that have seperate local returns I assume that it doesnt handle these and the Tax Payer is on their own. If you have a problem and would like to talk to an "expert" that will cost $30/30 minutes and $20 for each aditional 20 minutes. Roughly $1/minute but Im sure that if your call is 31 minutes you will be charged full $20 for the 1 minute and that its not pro rated. So Federal and State can range from $67 to $122 (excluding sales tax) with the most the common probably being either $87 or $122 Makes my prices seem like a real bargain considering you get a certified professional and can discuss various items, scenarios, etc. I mentioned in a previous post that the 1st five returns I prepared this season were amendments to correct errors and missed deductions/credits for new clients that either used Turbo Tax or had a friend/relative use Turbo Tax to prepare their returns. For one individual I amended 3 returns (2007-2009) for cost of $100/each which resulted in a total refund of >$4,500. Its amazing what bargains people are getting by hiring a tax professional (some) and still they find an opportunity to complain about prices.

As was mentioned, if the dependent files on their own and does claim themself then you are left with the option of filing without them by the due date or convince the client to amendment the dependent return, file an extension for the client (if the dependent admentment wont clear by the initial due date) and them file with the dependent. I know I added nothing but my opinion to this thread but what I do want to add is that you need to do what you feel is right. I have lost some clients by refusing to do what they insisted even after providing them with concrete documentation supporitng my position. Its hard to lose a client but its also hard to retain them knowing that they are trying to bully you AND basing their agument on obviously flawed logic ... which may be fueled by the enticement of paying lower taxes. At least you get to sleep with a clear conscious ... and unfortunately less revenue. The part that really bugs me is that they can easily find another preparer that will do what they want in light of obvious inaccuracies.

There are no stupid questions. Only stupid clients. Apparently, I tend to attract a disporportionate amount. For those without a sense of humor, insert chuckle here.

Kea, yes that is the repair method I was refering to.

Did anyone else have any problems after yesterdays 10.5 update. I had some information changes and some data stopped flowing through to my state. TaxWorks said it was fine and it was my machine. TRX Tech re-regestered all files , which didnt correct it. Then repaired the program and had to reinastall all updates. Looked like it didnt fix it but after opening and closing various returns and almost an hour later everything flowed correctly again. Very weird. Im begining to hate updates because they change returns and then when the client comes in I have to explain why something is different than what we spoke about on the phone. Also the lack of a way to "undo" something or not have changes you made save to the program bother me. You should be able to close without saving in case you want to not keep changes you just made.

The efile reports (acks) have an MeF indicator. None of mine have gone MeF and I dont not have them disabled. Federeral Acks usually take less than 24 hours.

Resolved converting the fully depreciated vehicle (and the carry-over basis) from business use to personal use fairly easily in the Asset Tracker. It also appears to have correctly calculated the amounts and carried them to the respecive forms correctly. Nice! Depreication can be a real pain sometimes ... lol

Lines 31 & 32 of the invoice setting - 1040 federal tab to be exact in TRX (TaxWorks) are for W-2 with per item amounts.

On recent amendments I have done like this I signed the 1040 because it was different from the original. However, they were very simple returns (1040A's) and I verified all information on the return. I felt the original return was the responsiblity of the original preparer but the amended one was mine.

Figured this out. Option on the right of the asset tracker for "listed items". What confuses me is there is also another vehicle listed and I have never run into a situation like this: TP says he uses this vehicle very little. 2003 vehicle 70.20% business use - no depr taken in 2009 - Cost 15,167, rec basis 10649, accum depr 10570 2003 same vehicle (carryover basis-from trade-in?) 70.20% business use - no depr taken in 2009 - Cost 31,446, rec basis 22078, accum depr 25770 The accum depr exceeds the recovery basis on both entries, this confuses me. Ive looked over Pub 946 and I am at a loss on how to treat this. Any help is REALLY, GREATLY, GREATLY appreciated ... LOL John Edit: TP states person who did his taxes claims that the accum depr exceeds the recovery basis beacuse some years the business use dropped below 50%. This is new to me so I dont know if this is correct or not. Also, TP claims that he converted this vehicle to personal use as of 1/1/10 (thankfully the beginning of the year). So all I need to do is figure out how to handle the disposition of this asset. So once again, I am open to ALL suggestions as I dig through Pubs 946 & 544 (Sales & Other Dispositions of Assets) Thanks! John :)

Picked up a new client who has his own contracting business and uses a Van 100% for the business. Last years tax return shows it being depreciated on for 4562 as "listed property" in Part V, Section A, Line 26. "Property Used More Than 50% In A Qualified Business use:" Depr method is listed as 5 Yr, 200BD-MQ. That amount then carries to pg 1, Part IV, Line 21 "Listed Property" and Line 22 "Total" of the 4562. I believe this is the correct treatment (per Pub 946) however I cant find the correct depreciation method to use in TRX. I have tried both "Vehicles" & "Trucks & Vans" in the type drop down menu and depr methods #3 MACRS 5YR 200DB Switch to SL (which I believe is the correct one) and #105 MACRS 200BD Mid 4th Qtr, but the both slot the depreciation Section III, line 17 MACRS depreciation on the form 4562. Page 2 of the 4562 doesnt even generate. How do I get this depreciation to the Listed Property section line 26 where I believe it is supposed to be? Any help is appreciated. Thanks John

Thanks Terry! Yes, I read that section and I'm favoring this allocation. Based on 50% ownership I would assume $3250 for the long-time resident and $4000 for the first-time homebuyer for a total combined credit of $7250 which seems reasonable and doesnt appear to allocate any portion of the credit to a taxpayer who isnt eligible.

Thanks for the replies!

Has anyone amended a 2007 or 2008 return with ATX this year? The Form 1040X was revised in Jan 2010 and now has check boxes for years 2006 - 2009. However this form has not been updated in the 2007 or 2008 ATX programs which are still using the old version 1040X. I tried calling ATX about this and an issue I had installing 2007 on Windows Vista and they wouldnt even discuss past years programs saying that they are no longer supported. That is just ridiculous. I paid for the software and the it should be suppoted until amendments are no longer accpeted (3 years). I also think they wouldnt answer my questions because I didnt renew with them for this year after using AXT/Saber since the mid 90s. So aside from my ATX rant what is everybody doing when amending 2007/2008 returns with ATX? Is the old 1040X in the programs accpetable to use or do you have to mannually input the numbers into the updated 1040X in the 2009 program? Thanks

TP and girlfriend jointly purchased a home in 2009 within the specified credit dates. TP was a long time home owner, Girlfriend had never owned a home. Since they are not married and filing seperate returns would she qualify for her 50% ownership in the home. I havent really dug into this and thought I would pick some brains here first. Here is the IRS website discussing this and similar scenarios. http://www.irs.gov/newsroom/article/0,,id=206293,00.html Input is greatly appreciated! Thanks John :)

I must be unusual but my conversions went great, depreciation, carryforwards and all. The only problem I had was the 2-year comparison form didnt carry correctly, an easy fix. The first conversion I had about 1/3 fail but there was a thread on here about the conversion process and TaxWorks updated it a few times. So I kept doing conversions 3 or 4 times until they all worked. Oh, and Im printing 8879s the same way. Just input the current date to print and then revise the date to the actual. Not a big hassle but it shouldnt be that difficult to print 8879s.

I dont think I am going to send anything unless they specifically request the returns as Julie suggested. Thanks :)

I havent had any duplicate DCNs in a while and thought I would update this thread. Ryan from Taxworks put me in touch with John Toone (Ryan's brother) at TaxWorks to try to find out why I was getting these errors. Well, long story short, it is believed that a TRX Tech Support individual performed a change to my database after the initial install which reset the DCN counter. I hate that TRX techs always want to do "screen shares" and I am now very carefull about letting them do that any more. I had an issue where a return was generating two local returns in review but only had one in input mode. The TRX Tech suggested a screen share and went into some parts of the progam I wasnt familiar with, reloaded baseline files and did some other changes in an attempt to fix the problem. He never did get the problem fixed, the return still has two locals but it really screwed-up my DCNs. So, just a warning about allowing screen shares. Thanks Ryan, John & Juliana @ TaxWorks for your help on this issue.

I have used ATX since before the buy out. I think 1997 was the first year I used it, when it was called Saber and gave all forms, individual and business for $299. Over the years it just got too expensive since I only do about 100 returns. Overall, I am very satisfied and impressed with TRX (TaxWorks)and plan on renewing for 2011. There are some things I like and some I dont but overall it was worth the switch. If nothing else it showed me that changing programs isn't as much of a shake-up as I anticipated.

Yep, thats what I did. The W-2 were easy since it was a new job so the w-2s corresponded to each individual state. I divided interest and dividends pro-rata and stock sale as of the sale date. The only issue Im am still researching is that MD's return does a calcualtion based on the % of time as a resident and applies that to the federal returns numbers. Since it does this there is an allowance to deduct the income attributable to the other state (Pa) on the MD form. All 3 are being efiled and I havent found anything stating that a physical copy of the federal or Pa returns need to be mailed to MD to verify these amounts. It would be so easy if the efiles were able to do this. Wondering if I should just have the TP mail copies of the Fed & Pa to MD anyway but dont want to complicate the process if it is unnecessary. Thanks for the replies! John