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Terry D

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About Terry D

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    ATX Guru

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  1. Client's spouse works in health care. She works temporarily in California. She does share an apartment with another nurse and pays rent while she is in California. Her residence has been and still is in NC. She does come home to be with her husband frequently. I am waiting for her to tell me the number of days she spends in CA as well as if this is will continue to be a temporary assignment or permanent one. She does not qualify for any of the 2106 expenses due to the TCJA. but I don't know how important it maybe to establish a tax home. I just need to know why type of CA return to file. Her employer withholds CA income taxes so my first instinct is to file a CA non-resident return to be able to take the credit for taxes paid to another on the NC return. She does file jointly with her spouse who is the main taxpayer. Any help or guidance here is appreciated.
  2. My question as well, if this was, is or is being considered a Ponzi scheme. If so, there is a way to recover the loss.
  3. Yes, I've noticed that at times, the simplified method is best.
  4. No offense taken. Yes, our police officers deserve more than they currently receive. I have a lot of friends who are police officers and quite frankly, at least three in my client base. One is on bicycle patrol and checks on my office frequently. That is irreplaceable. On another note, and as with any profession, folks who are not in the trenches normally can't appreciate what all is involved in doing a particular job. Just like us, some folks don't have any idea what it takes to be a professional tax preparer. The last nonsense I heard was that only took you half an hour to prepare and you charge what????
  5. Anyone have any insight regarding the renewal of the PMI insurance deduction. My efforts have returned still expired.
  6. Thanks, I did take the expenses except the hair cuts and the gym. I'm still on the fence with the gym Physical fitness is a requirement of the job. I'm looking for a reference or something to support this. I did expense the mower as well and did as Abby said, divided it three ways. BTW- I am a teacher and yes, I do take the 250 deduction. Also, I spend quite a bit more than 250.00 per year providing for my students in one form or other. Some kids take field trips with me that have no funds to buy breakfast, lunch; etc. I fund those all of the time. I purchase technology items to use in the classroom. I teach automotive technology and have purchased many parts to help a kid out. Yes, I keep receipts. Yes, my heart goes out to law enforcement. They are seriously under paid for what they do. Teachers do not have cushy jobs. Most say we whine and get paid all summer to stay home. That is as far from the truth as it gets. I am a 10 month employee and am unemployed for two months each year. No, I cannot collect unemployment for those two months. While the summer is supposed to be leisure time, I spend a good amount of that time at training seminars and taking my kids to contests after school all without pay. Oh year those holidays, the majority of the time is spent working. Eight hour days??? Not hardly. Trust me, the $250.00 is an insult. I am considered a veteran teacher here in NC. With that status, I have not gotten any significant raise since 2007 when we had to give some of our salary back to the State. Younger teachers and teachers with less than 6 years experience have received the highest percentage of the increases given by the State. Veteran teachers have not receive any more than 1% and in some cases nothing at all. This is why most, if not all, teachers work two jobs. I have worked two jobs my entire career plus this tax business for the last 22 years. I am happily retiring from teaching in two years. My response is to not take anything away from law enforcement. They put their life on the line every day and I can't imagine going to work and wondering if I will be coming home at the end of the day. Yes, they have crappy hours too and deserve so much more.
  7. Client is a police officer who also works as a school resource officer. As a resource officer, he is paid via 1099 Misc. A school resource officer is a sub-contractor and does not work for the school system. So, with that said, my client has listed several expenses with some that I am questioning. Cleaning of uniforms is a legitimate expense, and work boots specific for the job ( I am questioning this as well because they can be used for both places and of course no 2016 this year). Hair cuts?????? No correct? I don't know why I am even asking that one. Same client has rental property and bought a mower specified for his rental activities. I need a bit of help on how this is depreciated. He has three properties that it is used on. Thanks
  8. Just an update. The client brought me returns back to 2007. This was very helpful. I did find the depreciable basis of one property and the calculation of the profit percentage for the installment sale. Assuming the depreciation was correct when the profit percentage was calculated, it is correct. The last purchased rental depreciation was calculated without subtracting the land value. I retrieved the figures from the county site. Now, the bad, no interest on the installment sale reported any where in any year. The installment sale originated in 2015. I scoured those returns for the interest. Why, I don't know other than looking for the possibility of the numbers being placed somewhere else and not on line 8a from the previous form 1040. Each year line 8a is blank except for 2016 has 37.00 on that line. So, 3115 it is and all the bad news to the client. The total interest NOT reported is approximately 8K. 2018 is 3900.00. Here is what I hate about this. First year this client comes to me and will have to pay dearly. I'm sure it makes him wonder if he should have came to me at all. I am going to ask the client what the previous preparer's background is. All return copies back to 2007 were not signed and has been completed using HRB online software. I have documented proof of my findings and printed the 6252 instructions to show him where the interest should have been reported. All I can do is advise him that he is responsible to file an accurate return and the 2015, 2016, & 2017 should amended to reflect the tax due. Yes, he will owe money for 2015. No, this is not my only client, there are at least 15 returns waiting and most of them are rental properties with one that may need a gift tax return completed. Working long hours but have my mind made up that anything after the 9th goes on extension. Anything that has been dropped off and not completed by the 10th goes on extension. I have a few that are on hold for additional information. Those may hit the extension block as well. Oh yeah Margaret, our favorite CRUT it due any day and you know that is definitely getting an extension.
  9. Margaret, it appears I was unclear. The profit recognized on the 6252 is to be directed either to Sch D or 4797. I don't know where the 4562 came from. Also this client trusted the previous preparer and didn't even know about any worksheets or depreciation schedules. As I said, the interest earned from the installment payments wasn't even put on the return for 2017. Duiring our meeting he had a copy of 2016 but I don't know about anything any farther back. Worth asking though. Yes, I am aware the profit percentage stays the same each year. But with the way everything else is done, I question if this was calculated correctly as well.
  10. Cbslee, I agree with you totally. I plan on checking with the county when I get a moment to do so. I don't think they have copies of the Hud1. But if they do, then I still don't have the other items that may add to the depreciation.
  11. New client came in with a few rental properties, normal W-2 and income stuff, and an installment sale of a property they were renting to the tenant. They also brought the previous return. I have found a few errors and don't know exactly what to do. So here goes 1. All rentals have been depreciated over a period of years. NO ^3@%^ depreciation schedules! The client has asked for them but hasn't gotten any good response. Only response so far is "the program calculates the depreciation and that is what is used every year" What, really? Based on the current depreciation figures, it looks as though the property acquisition cost including the land was the basis of the depreciation. This is a maybe and backing to the depreciation came relatively close. Yes, there are other possible depreciable improvements. My best guess is to use the figures from the 2017 return to back into the cost basis to continue the depreciation as is. This is for each property as well. 2. Installment sale. All gain from the profit percentage was put on form 4562. In my opinion and because it was rental property, the gain should have been reported on form 4797. Second problem, there is no worksheet showing the calculation for the profit percentage. I can't even begin to determine the basis at the time of the sale because again, no depreciation schedules. So, I have no choice but to use the profit percentage from 2017 correct? 3 Interest from the installment sale was not reported AT ALL on the 2017 return. This is like $3800.00. I did have the client sign an engagement letter that includes the language regarding not doing an independent review of their information with the return being prepared from the information they provided.; etc. Is this something that I should contact my E & O about? The previous preparer has gone out of business and is no longer preparing returns. My first response was to send them back to him/her. This return is good revenue but...…. Advice and insight please.
  12. <<<<<whacky and no sense making reporting.>>>>>>> Don't you just love that grammar??? Yes, I am college educated even though it doesn't show.
  13. Update, spoke with the daughter, she does indeed have POA for both parents. I asked for a copy of it to maintain in my files. Also, required the daughter to be present when we review the return. Daughter really didn't think this was any big deal and I reinforced that with this was the only way I would prepare the return, no other exceptions.
  14. Well there is one more advantage to them coming to the office, they eat the candy my wife provides which helps keep my waistline under control. Yeah, I hate the one at a time form thing. I guess they think we have never seen these forms before. Also, I like the ones that here's the pile, you'll know which forms you need. That usually follows with is there anything you think I'm missing or that maybe I didn't receive? Once again, I consult my crystal ball for guidance.
  15. Filing education credits and college statement analysis. As I said, these are people providing higher education but for some unknown reason can't see the importance of accuracy. Maybe the colleges should be fined by the IRS for whacky and no sense making reporting.
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