Terry D EA

That is my question eactly. Is the incarceration more than a year or if is less than a year can it be considered a short absence for the residency test? Terry D.

Tom and Marilyn I like that idea. Much nicer way of eliminating the PITA clients. After some thought, I will get these folks to do their own payroll taxes. I have a signed agreement for the year but it does state that either party can revoke the agreement at any time. Terry D.

By your post, the partnership owned the home and then sold it to the son which is a sale of a business asset with a gain of 15K and the son now owns the home. I don't see how choice B would work at all. Terry D.

Have a client who is handicapped and spent over 20k on widening entry ways, hall ways, etc to make them accessible for a wheel chair. The kitchen cupboards had to be emoved and were upgraded which would be an increase to the property value and the other expenses that did not increase the property value are fully deductible. My question is, where in the world is the worksheet within ATX for determining the amount of the deduction one can take to determine if any of the expenses that increased the home value are deductible? I looked and looked and couldn't find it and ended up creating a spreadsheet to attach to the return. Any ideas where the worksheet is? Terry D.

Kerry means to privately mail him using his e-mail address. If you click on his name, his profile should pop up with his private e-mail address. Kerry I would help but am in NC and would probably screw up the ME 1040. Good luck! Terry D.

Yes, I have seen these notices as well. The one my client received does show the penalty amount due and is indeed a bill. I have considering the approach that Wayne Brasch mentioned and will approach them with the intent of withdrawing my services completely. As for my current invoice, I still consider it valid and expect payment. They agreed to a service at a price, the service was provided professionally and timely. No excuses here, they should just pay it. How many times do we go to a doctor and the doctor really has no clue what is wrong other than a coverall "virus" and he expects payment. If the same doctor misses the diagnosis we can't withdraw payment, instead, he/she expects payment anyway even if we visit them two or three times we get billed for each visit cured or not. Why is it that as accounting professionals, people seem to think they can treat us differently and refuse to pay for our services? Wouldn't it be nice if we could be like a dentist and only fill one tooth at a time and bring them back for multiple visits when they were already numb in the first place. Let's see, first visit form 1040 page 1, second visit 1040 page 2, third visit Sch A, fourth visit, State Return page 1... and bill $85.00 per visit! Maybe we have been doing it all wrong. Thanks for letting me vent Terry D.

I have an s-corp client that runs their own payroll but has retained my services to process all of the payroll taxes. they use QB and a remote connection really simplifies things. I pay all payroll taxes through the EFTPS system. The client received a letter from the IRS concerning a 940 deposit that the IRS assessed a late filing penalty. My confirmation shows the settlement on 10/31/2009 and filed before 8:00 PM on 10/30 because the client asked me to wait until a deposit was received. Regardless, the payment was timely on my end. This client insists on holding my invoice until I prove that the penalty was generated from something other than my fault. Can a client withhold payment for any kind of reason? My logic is, my current invoice was for services provided at a different time so PAY ME. My engagment makes no reference to me having any liabilty due to late filing errors. If I simply forgot then I would feel like I owe the client something but this is not the case. What is the best way to handle this? This has only occured twice in our short two year realtionship and both times due to the client not having the money on time. Terry D.

Same here everything is printing fine. Terry D.

I am sorry for the confusion with the input form for the 1099C. You are right, there isn't one. The information from the 1099C is put on line 21 of the 1040. Drop down the window and scroll down a bit and you will find it. Don't know what I was thinking when I originally responded. Long day Terry D.

Thanks for all of the replies and help. So far, my cleint did not get the 1099C but you never know. RoyDaleOne, no apologies necessary my original post wasn't very clear. Terry D.

WOW! I can't wait to see te outcome of this one. I hope Ray was joking as well Terry D.

Now that you have stated your client is a sole-proprietor, follow Margaret's advice. Terry D.

The home sale is reported on Schedule D and falls under the 121 exclusion. On form 1099C, there is an input form within ATX for the 1099C and the information will flow to the 1040 as taxable income unless your client would be insolvent or the debt had been discharged in a bankruptcy proceeding. Terry D.

bcolleen, I use the QB payroll as well. The only difference maybe that I am a QB Pro-Advisor and can service 52 clients from one payroll subscription that costs me $150.00 annually. The subscription through the Pro-Advisor membership is the enhanced version. The entire QB Pro -Advisor membership is $599.99 and I too am getting tired of the yearly price increases. What's wrong with this picture, I promote their product, sell it, support it and pay through the nose for it. Seems like there should be some kinda kickback or something. Terry D.

You are right but he bought the truck in 07 and it was repossessed in 08 Terry D.

Truck Driver client was over the road owner-operator. Client apparently didn't think it was necessary to make truck payments and the truck was repossessed. Business began last year as a sole-proprietor with beginning depreciation on the truck. How is this dispostion treated? I have not had to deal with a respossessed asset disposition before and any help is appreciated. Terry D.

JB Here is my opinion for what it is worth. 1. The trips to and from the poultry farm may very well be a commute and not deductible unless the commute would be recognized as from her home to her first job and from the poultry farm to home. Mileage in between would be deductible. 2. The donated van would become a part of her investment in the partnership and would increase her capital account in the partnership. The partnership now owns the van and can deduct the maintenance expenses related to it. she cannot deduct them on her personal return unless she paid for them and did not get reimbursed. If that is the case then form 2106 if she is an employee of the partnership. 3. If she is on the payroll for the partnership then the vehicle expenses (mileage), would be deducted on form 2106 and Sch A as an unreimbursed employee expense. Otherwise they may be deductible on the K-1. I hope this helps in some way. Terry D.

Why are you filing separate? Your client can file MFJ and show the spouse as deceased on the tax return. Unless there is a some situation that warrants the MFS status, MFJ is the way to proceed. Yes, the tax return can be e-filed. Terry D.

Hey JB, I think we all get this kind of stuff more often then we care to. I always tell my clients they have to assign the value to the items they donate. I explain the 500 limit and the need for the 8352 form (I think that is it), and then I direct them to my website to click on the link to the Salvation Army valutaion guide. If you would like, go to www.qptps.com and you can copy the link from there. I do apologize the website needs updating but I am the chief cook and bottle washer in my business and the luxury of time doesn't exist. Terry D.

No, I think you need to read the rules regarding dependency and the support test. Terry D.

KC, Do you know a way to run a report within the ATX program that would allow us to see the names of the returns we have created and transmitted within ATX. I have looked at most of the reports. The e-filing reports only appear to reflect the returns e-filed and I see we can create a report of client's from the return manager. I have been printing both reports any comparing them to make sure that I have not overlooked transmitting any returns. Is there an easier way? Thanks, Terry D.

KC, Yes, I did see that I posted that point backwards. There are some issues with the determination of the housing allowance in this church among some other issues involving the finances. I may be asked to help here and want to be sure of what I am getting into. Thanks for being helpful. Terry D.

Mike, Thank you for your response. Through some investigation, the pastor has been telling the treasurer at the end of each year what the amount of his housing allowance is, which by your statement, this is indeed retroactive and unacceptable. With that the current council has not voted or even viewed the pastor's pay package nor the youth pastor's package and I am of the understanding this has been the practice for a number of years. I will take the time to read Pub 517 and already have the MSSP. If you don't mind, I would like to speak with you privately about some of this. I have your e-mail as you have helped me in the past and I will begin the contact in that manner if you approve. Thanks, Terry D.

Jainen I will reply at the risk of offending you. I initially chose to not respond to you as I felt comments of such a nature do not deserve a response. But, I felt some type of defense was warranted. I do see and recognize both sides of the coin here and I do not have the attitude that you suggest. Matter of fact, your response to this post demonstrates that you appear to be very closed minded and it is purely a shame that you have reduced this to prejudice. Your accusation of prejudice is completly unfounded. You do not know me, nor have you ever met me, and for you to make such an accusation is more than offensive to me. You have been on this discussion board and the ATX old discussion board for some time and you have attacked me more than once with some kind of ill minded unecessary remark. I beg you to find one time or even one instance that I have taken the liberty to do the same to you. Most people on this board including myself, have a high level of respect for you and the knowledge you possess. Why don't you treat others the same? >>In my observation "the Hispanic community" is deeply religious with far more commitment to family values than the general population. It also embodies a strong work ethic, which is the principal reason for immigration in the first place. They don't risk freedom and money just to hide their marital status or claim someone else's kid. << I agree with your statement here completely. If you go back and read my original post, I never made any type of statement to anything you have said in this statement and I ask that you refrain from taking out of context the comments that I made. Terry D.

Thanks for the support taxcpa. I intended no offense in my statement. I didn't even make reference to my clients as business clients either. Many "Puerto Ricans, and folks from El Salvador want to be called 'Hispanic" and get extremely upset if they are called Mexicans. The fact remains, the practice I mentioned, is done in large proportions within the community I mentioned and needs to be stopped. I am originally from Ohio and moved to the South 12 years ago and still get called a yankee, matter of fact, a damned yankee. I guess I am mature enough to not really care at all and all I do is laugh at it. I am sorry if I offended anyone by my earlier post in this thread. That was not my intent. Terry D.