Terry D EA

I filed a superseded return for ty 2022 with a direct debit for the balance due. So far, no problems or questions. I know this can be done in Drake and would think ATX would provide the same.

Thats what I thought too and without a reference. Client inherits the property at FMV date of death. That's their basis and start over.

On 4/12/2023 at 11:40 AM, JJStephens said:

I've been preparing taxes since 1987. Last month I got a call from our friends at the IRS saying I had been selected at random for a compliance audit. She spent an hour asking questions and then another hour reviewing all my YTD 8879s. Lucky me. I passed the audit just fine, but now I'm slightly paranoid.

I switched from ATX to Drake back in '14. I haven't found a way to have the software supply the signature. I need to check into that.

I've been trying the same thing in Drake without success. I do know if you have a signature pad, you an sign that way. I set up the rubber stamp feature but still cannot have Drake automatically place the signature. 

I've dated the 8879 when preparing as well and have never been questioned. Maybe my lucky day is coming

I need some assistance with preparing two cities on Ohio. Taxpayer lived in two different cities and only earned income in one. The next factor is the client is an Amazon delivery driver that delivers every day outside of the city limits of both cities. If someone could contact me to discuss this, I would appreciate it. Send me a private message with your contact info and I will reach out to you. Thanks in advance to anyone willing to give me a hand.

Thanks for all the replies. I'm in agreement with the majority here. However, I can't go back as far as Tom, you got me by one year. But, I disposed of those years anyway. QB never told me that when I bought the bundle for 2021, 2022 version came free. What??? Intuit giving something free??? I couldn't believe it either. Anyway, I've gone to the 2022 desktop version and will run that forever or as long as I can. Just cause they don't support it any longer doesn't mean it won't work. I don't use QB for payroll so that is a mute point. I know Dennis will not agree with me but, let' go way back to when you bought a record or cassette tape, or 8-track for that matter. If you owned a tape player for the house and one in each car or truck you owned, you could play it in as many devices as you wanted. Even in your friends car. I know ATX used to, and Drake still does, you can install their software on as many machines as you want. We are all in business to make money but I think greed gets in the way as well. 

Catherine,

On the "A" screen in Drake, the lower right hand of the window contains state only information. The 2106 form is highlighted in blue. When you click on the 2106 it opens and you can choose the state at the top. I would think the information should flow from there. I just saw Max basically posted the same thing.

Yeah me too. Like others, I don't care as it is not enough money to worry about. However, I did not like the $149.00 or whatever it was to renew my EA. I want to know what the IRS does for EA's that whatever the service is costs that much. That fee was more than double the fee a year or two ago. My first year was $67.00.

I like Right Networks but yes, they are expensive. I have been thinking about Right Networks hosting Pro-Series and QB but I am pretty sure that is the $200.00 per month. I know that is the charge through Drake. This is a year of change for me and a ton to consider. I don't have time to evaluate anything yet so just asking questions for now.

Client had rental property that I began depreciating back in 2011. The property was rented until he got divorced in 2016 and moved into the property. Client is now remarried and began renting the same property in 2022. Numerous capital improvements. Is my thinking correct. Start the depreciation for TY 2022 using the original cost plus capital improvements, minus accumulated depreciation to arrive at the now depreciable basis. Is this correct or am I missing something? Start with 27.5 years or use the remaining years left? Thanks!

Well see, there you go. I don't do too many returns like this and was not aware the SD differs based on earned income. Thanks!!!

Has anyone been using the premiere desktop version for QB and changed to the subscription based cloud version? I'm looking at doing this very thing and want to know about the functionality of the cloud version. Intuit folks are not very helpful with this. I want to know if the cloud version will allow me as an accountant to serve multiple companies under one subscription or does each company have to have their own subscription. If the latter is true, then this need version will be awfully expensive for folks. Wondering what others are doing with this.

Just wondering but that sounds a bit bizarre to me. Was the program using the dependent standard deduction and then recalculated with the non-dependent standard deduction? Is this maybe what happened? I would check to see if dependency changed in the returns. Normally the excess scholarship funds to go on line 8 or 7 of the 1040. Different line for different years. Adding to or taking away from earned income shouldn't have any affect on the standard deduction or itemized deduction for that matter.

Sad, but you have to do what you have to do. CYA at all costs. Not sure it is needed in this case but a conflict of interest waiver comes to mind.

On 2/11/2023 at 12:40 AM, Slippery Pencil said:

It's been known almost from day one that the irs was going to issue guidance on these refunds.  Why would you file returns which include uncertainties when you know the uncertainty would be resolved in a week or two?  Then when the uncertainty is resolved in the manner opposite of the way you gambled, you complain about it. 

Exactly!!!

A blurb from the IRS notice issued on Friday 2/10. I am still of the opinion the red statement is useless based on what I said above. 

'In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit."

When I read the IRS ruling, GA, MA, SC and VA are not included in taxable income. The language states unless people in those states received a benefit from the rebate. How could anyone receive a benefit from something they had no previous idea they were getting? No one could report an itemized deduction in 2021 for any amount they received in 2022. For me to include in taxable income an amount as such just because the person itemized deductions is unconscionable. I agree to avoid a matching issue to enter the 1099 and then back it out. I believe ignoring it has the potential to raise some unnecessary questions. 

I think you need to remove this post. You are displaying SS# If you can't maybe have Judy look at it to be sure. Not being picky or a pain just trying to protect you. I'm not sure if there is a name column either.

Just curious, and I do have a couple of state returns for more than one state coming up. Are you taking the amount of the 1099 MISC as a negative on other income on the 1040?

Thanks Judy, I apologize, I knew you were in Delaware but thought you filed some returns for MD. I have found that MD has not approved the forms for printing and they can still be filed electronically. Also, support stated the update should fix the wrong line entry on the form I mentioned. I can provide a digital copy but hate to give anything that is not populating correctly. Unprofessional and sloppy in my opinion.

I'd be careful here and don't agree with the 50/50 split. The instructions do say to NOT include any EIC on line 17 which is part of the refundable credits. The non-refundable portion of the CTC would be allocated to each spouse. Question, and not being a smart #%# here, but how do you allocate 1/2 a kid for the refundable credits on line 16? The instructions for the allocation does state you to allocate the items the same way you would a MFS return. A link to the instructions is below. I don't know if this helps you or not.

Instructions for Form 8379 (Rev. November 2021) (irs.gov)

Working in a MD partnership return. Form MD EL101B is the electronic filing form. The form is showing the company name on the line for the fiduciary name and title. I can't see anywhere within the input screens that is causing this. Drake support said they would report it that the info isn't flowing right. Anyone else seeing this? If so, how did you fix it.

Thanks Judy, I'm right there with you on the calculation. Drake is correct, I checked the reports for future years and it matches my calcs as well. With the asset in-service date of 10/1/2022, the MQ is correct as well. Sorry for the confusion. Most of it was frustration on my part and not taking a break.

Ok I guess I need to walk away from this for a while. My math is definitely not right. First mistake, 150DB to determine the percentage the 150 is divided by the years of useful life. In my case 150/15 = 10% and not 15% 

38,932.97 x .010 = 3893.30,   3893.30/12*1.5 (months) = 486.66. 

Using this method, everything matches. My brain hurts. Something so simple and I made a major catastrophe out of it. Too early in the season for this type of brain fart. 

Now I'm questioning my math. Isn't this correct? 150 DB is 15% for the period. So, 38,932.32 x .15 divided by 12 times 2 = 973.32 for the first year. The following years are off as well in Drake. If I use SL, then everything matches perfectly. Sorry to e such a PITA with this.

Crap. My stupid mistake, I chose the ADS instead of ALT.  Now that I chose ALT, the amount of current depreciation is somewhat close to my spreadsheet but not good enough. I tried changing the date of in-service and still cannot get it right. Where is the program getting the "rate" at? Using the same data and change the in-service date to 9/1/2022, the rate changes to 5. This is driving me nuts.