Terry D EA

The client statement that th esale wasn't for USD. But if it was other crypto, it is still a taxable event with either gain or loss as I understand it. Correct?

Looking for other's opinions. The following is all taxable gain????? The coin base doc statement in the upper left hand corner says so. Just because it does not say USD, it is still taxable. correct?

I'm just going to go with the return as it is and stop worrying about it. Yes, there is a small amount of EIC which does bother me. But I can't find anything stating you have to have expenses for self-employed income to qualify for EIC. If the IRS questions it, then so be it. I've done my research and have too many other returns to do so it's time to move on.

Gail, I did mention in the OP it was Consolidated 1099DIV. Drake support rep said to attach a pdf. I called to discuss the file upload template and was told the pdf was an option. Yes, I plan on using code M and MW as Abby suggested. The client is trying to get a .csv file for me to upload. But.... if it really isn't necessary, then I'll quite asking for it.

DITTO, this topic came up several times during my studies for the SEE Exam.

No on his own tools and when I asked about supplies he said he did buy some things but did not keep receipts and doesn't know how much he spent. I want to be real careful here. This person is a relative of another client (closely related). The other client pays for everything including the tax due so it is no big deal to this guy. There is a lot of additional detail I cannot give and I have to keep my personal convictions out of this and just prepare the return by the tax code. I did advise I would research further into the QBI which is a 1400 deduction and the guy was not concerned about the difference. Of course not, he's not paying for it. The more questions I ask the more he doesn't seem to care, shruggs his shoulders and says it is what it is.

My OP said 6 pages and I meant 60 pages totaling in 900K+ in transactions with numerous wash sales. Sorry.

Client gave me a 1099NEC with 21k income. He clearly is not operating a business. Claims he does welding and fabricating. All sounds as though he should have been a W-2 employee. Because welding and fab is a "Trade" does he still qualify for the QBI? I put the 1099NEC on Sch C. There are no expenses. The program is generating QBI correctly if he truly qualifies. He also qualified for a small amount of EIC. I'm just uncomfortable doing this when I know full well this in not a business venture. Opinions please.

Cient uploaded their information to my Drake portals. There is a consolidated 1099DIV form that is 6 pages worth of transactions. Normally, I would use the summary page instead of working for the next 6 months entering transactions but there are numerous wash sales. Can I still use the summary page or do the wash sales need to be reported separately. This is from Ameritrade and I am going to ask the client to see if they can get a .csv file for me to upload. Suggestions please.

I print everything and give it to them. My thoughts, they paid for it, it is their information, and they are entitled to it. I agree with Judy, I'd rather see a return with too much detail than one that has little.

Judy, I am of the opinion that this should be pinned at the beginning as it is very valuable information that we all will need now or very soon.

Judy, I absolutely take any and all of your advice as solid and yes, I do believe your response and genuinely appreciated all of the help you have given me over the last 23 years of being on this board. My statement was not to attack CPA's. I have great respect for the profession and am sad that I am too old to take the advanced courses to obtain a CPA license. My wife still wants me to, but I don't think I have it in me. The general contention is when a person has the letters CPA behind their name, the answers or position taken is gospel. One of my instructors in college was a CPA and wouldn't touch taxes. The statement these folks got was they "have" to pay "all" of the cap gains in the quarter of the sale. As you say, we do have a pay as you go tax system and I did say that "generally" to pay the gains tax in the quarter of the sale is true but, I used the annualized method because they do not have enough withholdings without figuring in the gain due to the spouse improperly filling out a W-4 form. They will have enough with the estimated payments to avoid the penalty. Hopefully the spouse gets the W-4 correct. Please don't take offense to may statement as none was intended toward you or any other CPA.

Not getting into any arguing match at all. Thanks for the advice though. I am meeting with these folks tomorrow and will put both scenarios in front of them. As you said, their choice. I know they’ve spent some of the funds on another property and some other things. They’re panicking because of what they were told. My advice was to take the total estimated gain and put it aside to pay each quarter. Did they do that???? Don’t know and if they haven’t, not my problem either. I just needed to hear I gave accurate advice.

So, this would apply to a statutory employee as well correct? A statutory employee is not a "Trade or Business".

Got it. Thanks everyone

My client sold a second home and closed on it January 2022. Does not meet and exclusions and was a rental for one year so depreciation recapture applies to calculate the gain. Got all that. I calculated the gain and prepared estimated tax payments for them to make to avoid any failure to pay estimated tax penalties. They have spoken with someone who claims a CPA has told them they "have" to pay all of the capital gains tax at the end of the quarter of the sale. I have looked and looked and looked and cannot find anything other than a statement that says "Generally" you pay at the end of the quarter of the sale. There is no have to etc. They will have withholdings from both of their jobs but not enough to forgo paying estimated taxes. The only thing I am willing to change is to make the first quarter of 2022 a larger payment because that is when proceeds were received. Am I missing something? Is there another reference that I haven't found that says you MUST pay all of the capital gains in the quarter the home was sold. No mention of this in either Pub 523 or 701 either. I agree, it is a good idea but other circumstances need to be considered. I just wish after the third or fourth time explaining this to the client they would listen. No disrespect to CPA's but frequently wrong advice is given. Ok rant over.

Agree with all the above. Ask for records for the second home to take into consideration improvements, repairs to the building and property. Also, the expense of the sale. Check out Pub 523 and Pub 701. There is a good list of items to include as expenses or improvements to accurately calculate the gain.

Thanks Pacun, this client is from Mexico and I did ask for the consular ID as well. I knew I could prepare the return with the fake ID and did instruct to amend 2020. Amending 2020 is their choice and I told them they were legally required to file an accurate tax return. Like you, I'm not sure if the spouse has an ITIN. They might be scrambling to get one. I guess we'll see. Can you still send the ITIN app with the filing of the return?

In 2020 client told me he was single. I don't think this was on purpose as he was using an interpreter who evidently misunderstood and revealed to me they thought that if the other person (spouse) did not have income, then they did not have to prepare any taxes. With that said, I asked if the spouse had a SS#, answer no. I asked to see the W-2 for the spouse and they openly admitted the SS# was invalid. I asked for an ITIN, they stated they had it at home and would like to reschedule. I stated several times they should seek the advice of someone who they could openly communicate with and not use an interpreter. They want to make sure everything is correct and still want me to amend 2020 and file 2021. If I proceed, I am assuming the 2021 return has to be mailed due to the invalid SS#. Any other suggestions?

Have a client who brought me their son's documents to prepare his taxes. The son is over 18 and lives temporarily in another state serving an internship. Once they're over 18, can we still discuss the tax return with the parents? Is this a gray area? I don't have the permission of the son to do so. Just want to CYA.

If you're talking about the SEE fee as the exam fee, they were $185.00 each. That's what I paid. I wonder what do we get for the 140.00 fee.

Finally got the statement.

Boosting this up. This poor student is doing everything they know to get the account statement from the college. The latest info, the lady at the college who handles this has advised her she does not need to include anything from form 1098T and she doesn't need one. Ok we discussed that, but the student is clearly telling me there was an excess between the financial aid and what was actually spent. I believe those amounts are taxable income even though the student has not received the funds but they remain in her account is constructively received. Any suggestions on how to proceed? I asked if I could contact the school so waiting to hear.

First off, QuickBooks is horrible at tracking inventory. Only method it can use is the cost method. As already mentioned, your client may not have it setup right. I had a manufacturing company that was in multi-user mode which enabled the employees who had access to literally screw up the inventory hence large adjustments that I insisted were red flags. I feel your pain with this but hopefully your client can shed some light on this to help you.

Don't know what software you're using. I went with Drake back when the 2012 (I think that was the date) debacle occurred and have not looked back. I was an ATX user for a number of years, all that way back to the roaring tiger when it was Sabr until CCH bought them and it seemed the software was never the same. Drake is always on top of things but just like others, when it is out of their control, nothing they can do. Example is the Pub 536 wait.