Terry D EA

That would be too funny to see an IRS agent try to visit the address. Make it more interest and use "Lot Nbr" instead of plot number. This is almost as insane as a debt collector trying to collect a debt from someone who is incarcerated. No kidding, unfortunately we have a family member who has done some time that once lived with us. Yep, the debt collector who called me asked for the jail address after I explained where the person was. Just because I am the inquisitive type, I asked him what methods he was going to use to collect the debt and asked him to humor me; his response was you never know unless you try.

I'm thinking signature pad next year. Any thoughts from others?

I change nothing as well. I did notice this year that OneDesk automatically changes the signature when I have been waiting to file them. But.... it doesn't match the original but then again, I do nothing and haven't for the last 18 years.

Thanks again Judy you have really been saving my backside this season and I can't tell you enough how I appreciate it. It is nice to be able to bounce these things off of others. I will look at Pub 547 but you confirmed my initial thougts. Gail I agree it is not the time of year to do reasearch and this can wait a bit and I do appreciate you taking time to respond and it appears you were spot on as well.

Hmmm, I am moving this back to the top to see if I can get any response.

I just printed a tax return for a client that contained approximately 105 pages. Several rental properties, deprecation schedules, 4 Schedule C's Sch D's B's A and the list goes onand on and then the State stuff. Not really complicated but definitely emptied my printer paper drawer. Whew I am glad it is done and the fee is in my cash drawer.

I agree there is a worksheet that addresses all of your questions. I think it is tied to the 5405 form. Like Marilyn, I don't have time to look into it either but see if you get any leads with the 5405 form. I am not using ATX this year so I don't know if a worksheet exists in their software. Common sense says it should. Good Luck!

I posted some questions about this scenario earlier in the year. This client has a multi-family unit that was lost in a fire. He has received a poriton of the funds to rebuild from the insurance company. Here is his question. If he chooses to rebuild, does he have to rebuild on the same lot to avoid any taxable gain? He owns another lot that would be a much better location. We could nothing after alot of research regarding this. He knows he has two years to decide to rebuild and if not then the proceeds are taxable gain but again, we found nothing that says he has to rebuild on the same lot. Any ideas?

You should be able to deduct these on schedule A.

What about the fee the client owes you? I like John's approach as well as SFA and will probably do likewise. But I use a different approach for the client that owes me. I send them a friendly reminder letter of their balance due, then send a certified letter with interest calculated that includes a demand for payment upon receipt. Then and this depends on the amount, a decision is made as to whether to use smalls claims court or not. Only have had a couple over the years do this. But, I am getting ready for one this year who is already two weeks late paying me. I know all about the bank producs and try to save my clients money but next year I will go back to them to eliminate this problem.

I like the CD idea. Just remember the client is entitled to each and every worksheet used to prepare the return as they are ultimately responsible for each line on the return. The only thing I don't include is depreciation schedules that are not created by the software.

I am doing exactly that today. There are no skeletons in the closet to worry about. I prepared the pevious returns and know that without a doubt.

If there is a "Rapid Refill Ink" company in your area, try them to see if they can get or have high volume cartridges. I am using an older HP2015 and get the high volume cartridge from them and only pay 118.00. This gets me 10000 pages. I would guess this would vary wit printer manufacturer.

Thanks Judy for the headup and will do. Have a good evening.

I especially like the ones that come to me from HRB or Liberty and complain about my fees when they paid the other guys twice as much. Go figure? I am not the cheapest in our market area nor am I even close to the most expense. I know the time and effort that I put into completing their returns and have not had major problems or made any major mistakes. A few small ones here and there that were not really significant but nonetheless a mistake. If I was perfect then I wouldn't be human and I feel I charge an adequate fee for the services that I provide. So, if they don't like it they can indeed go elsewhere. The ones who do usually come back.

Thanks KC. I did just that and he will be getting back an additional 5500. I didn't fully understand all of the ins and outs with NOLs. I still am quite fuzzy with them but I have a better understanding now. Took my time and carried back the loss to 2011 which all was absorbed that year because he had significant income that wasn't reduced to zero by the loss. I had lost this guy previously for what ever reasons and now he is back because his other preparer (CPA) couldn't get the work done fast enough and I actually forgot that I prepared his 2011 return and had all the information to complete the 1045. I agree with michaelmars that carry backs are a pain but it appears this was the best choice. I don't forsee a loss this large next year. Of course, no one can tell what will happen.

Thanks Judy. Last year there was a tax due of 1100.00 and no business going further back. So, don't know if I can go back or have to carry forward. I have to leave the office now so I will check on all of this later. Thanks for your help again!

Judy your thoughts were my first initial approach. However, I got to reading some other methods of recording the loss which suggested using the OE account. Like, you. and other than creating a trail, I can't really see the need to do that route. Also, I will use the 4864 to report this. There is so much loss here that not deducting any of the loss wouldn't impact the SE tax.

Schedule C client has a loss of 64K. Income goes negative by 34K. Can this loss be used only to reduce current income to zero and then carry the remaining unused loss forward. NOL?

One of my clients (used car dealer) had a break in (robbery) where cash was stolen. The total amount stolen is recorded as 11,819.00. Their bookkeeper has recorded this as a bad debt expense which it clearly is not a bad debt. One item for 3000.00 was a check whether this was a check written to someone or written to the car dealer, I haven't determined that yet. They have created an undeposted cash clearing account (Asset Account) in QB. I do see the 8819.00 deposited to the undeposited cash clearing account and then reduced by debiting the bad debt account. I am confused as to why they did this and did not setup a theft expense account. Should I report the theft on form 4684 or just take the theft expense? I am willing to listen to anyone's opinion on what accounts should be used to reflect these transactions. Here is my take: Credit Cash - 8819.00 Debit Owner's Equity 8819.00 Debit Theft Expenese 8819.00 Credit owner's Equity 8819.00 OR Credit Cash 8819.00 Debit Theft Expense 8819.00 What to do with the "Undeposited Clearing Account"? It doesn't look like these funds ever made it to the cash account. Geez this is the worst time of year to deal with this.

Agree no deductions

I wouldn't let an auto mechanic work on my car either. An auto technician maybe. I am one and teach auto technology. Cars are tough today. Also, there are alot of kids coming through HS that can't do the basic functions in life such as write a check. Hence the personal finance class we now have.

None here either

Yes we all have done it at sometime or other. This happens because we are human and if the truth be known, we beat ourselves up worse than the client would. Hang in there only 10 days left.

Thanks to all who responded. I planned on keeping the 4562 cause he very well may return this to rental. Judy I will check with him on the fair rental days. I knew that as well and now after some rest I can think clearer. Come on April 15th.