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Terry D

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About Terry D

  • Rank
    ATX Guru
  • Birthday 08/08/1955

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  • State
    NC
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    Male

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  1. Terry D

    Depreciation Question

    Exactly, and Gail is spot on. Setting up the asset with a 179 expense will return the same result as a normal expense. I, like Judy, practice by myself and I have to do it right regardless. 21 years and have not done it any other way. Through the course of time, I have made mistakes due to lack of understanding but have always corrected them. I agree with Pacun too, regardless of what the auditor or anyone else says, do it right. Thanks to all!
  2. Terry D

    LLC Reporting

    I agree. A single member LLC can be considered a disregarded entity thus the Sch C. However, I don't understand the rationale either. Also, wondering about Judy's response as well. What is the nature of this business?
  3. Terry D

    Docu Sign

    I have nothing to add other than I totally agree with Catherine. I used signature flow as well. Works perfect and the cost is based on the authentication protocol as she said. Well worth it.
  4. Terry D

    IRS Seeking Comments on Postcard 1040

    Thanks cbslee. I will prepare my letter as well. I agree with the statement about the new "post card" tax return being a political talking point. However, it has left the general public to believe that tax code has been re-written and simplified making the old form obsolete. As I see it, this is a redesign of the form and what makes up the content remains complex.
  5. Terry D

    New alimony rules

    Correct! Perhaps a better explanation would be no tax deduction for the payer as child support payments are never tax deductible and child support payments for the recipient have never been included in taxable income. Now alimony works the same way only for agreements entered into after 12-31-2018.
  6. Terry D

    Accounting Question

    Abby Normal you are correct. Moving forward, I guess I was not overthinking this scenario. I was aware of adjusting entries for prior closed periods. The check my client received was a refund for a prior period as I stated in the OP. This refund now causes the WC expense for the closed period to be overstated. I just couldn't remember the JE to correct a prior period reporting error. This helped trigger my memory. http://smallbusiness.chron.com/book-prior-year-adjustment-accounting-77570.html Now, the need for an amended return. With this client, I have discovered a few small errors that would cause an overstatement of operating expense and some an understatement of expenses which very well end up in a wash. When I finalize all of this, statements will be included in the notes that identify the adjustments with the outcome and determine the need for an amended return.
  7. Terry D

    Accounting Question

    Thanks rfassett, your response was my original thought and as you said, I began to overthink it. This guy is normally very good and I do all of his WC audits and neither of us had any idea this would have been overpaid. The audit always takes place in June, he received this check in February. ILLMAS, I would love to see someone's prepaid insurance worksheet. This client's WC premiums are for three employees in an auto repair shop at a direct expense of 100% so no real involved calcs. However, I have another client who tracks their own WC insurance and I know they screw it up every time in their QB and I have to fix it. Thanks!
  8. Terry D

    Accounting Question

    Regarding workman's compensation insurance. To simplify things a bit, this client's workman's comp insurance is paid for periods in the future. Example; premium paid in June 2018 covers the period from 6/18/2018 thru 6/18/2019. This is an accrual basis client. I always debit the WC pre-paid insurance account and calculate the period ending adjustments. The client received a check in February 2018 from the insurance company as an overpayment as a result of an audit credit. The stub with the check does not say what period the credit is for. Apparently, and I think it is safe to assume, this is for the period of 6/17/2017 thru 6/18/2018. I'm probably overthinking this but where do I apply this credit? It seems to me this credit would be applied to the previous period and therefore effectively reduce the insurance expense for the year ending 12/31/2017 which results in overstated insurance expense, thus requiring the tax return to be amended. Is there a better way to handle this?
  9. Terry D

    Depreciation Question

    No, just the 500.00 prior to 1/1/2018.
  10. Terry D

    Depreciation Question

    Thanks rfassett, No I am not picking up the 2700.00 as income. Your response was my first thought. But, the bartering thing made me wonder. My client provided services ( repair of vehicles which is his primary business) in exchange for the balance due on the container. I don't have any information regarding the repair of the vehicles or what parts he purchased to facilitate the repair.
  11. Terry D

    Depreciation Question

    Client purchased a storage container for his business in June of 2017. The only thing I received from him was a receipt showing 500.00 paid as rent for the use of this container. He has now purchased the container and told me the original deal was rent with the option to buy. Because I expensed the rental out last year ( I was not told about this deal) for 500.00. Do I put this on the books for total purchase price of $3200.00 or $2700.00? $3200.00 (original agreed upon purchase price) - $500.00 rent paid = $2700.00 balance due. It appears my client had every intent of purchasing the container. I have looked at all of the lease w/options scenarios. This is a portable container (RR Car) and i don't feel it fits any of those scenarios. Normal rent was $75.00 per month. Client said the $500.00 rent paid was like a down payment. Receipt noted the rent received covered a period of 6 months. Now to muddy the waters a bit more, my client bartered the remaining balance. He repaired the container owner's vehicle(s) in exchange for the container. 1. I am almost positive that we cannot depreciate the full amount due to the rent expense for 2017. 2. Do I amend the 2017 schedule C, remove the rental expense, add the container to the assets and begin depreciation for the full price? 30 The only cash used toward the purchase of the container was the 500.00 rent. Any suggestions on how to handle this please?
  12. Terry D

    Drake & Microsoft Updates (Printing Issues)

    Sorry it took so long to respond. I am using both Win 7 and 10. I am using a laptop that has Win 7 for my elderly clients that I travel to. Win 10 in the office. Drake on both operating systems were affected.
  13. Just thought I would let everyone know, that apparently the last update from Microsoft for Win 7 & 10 really screwed some things up. I was not able to print anything from with the software. Drake users need to check their print settings. All of mine all the way back to 2014 were changed. To check the settings, go to setup, printer, print settings. Click on F8, select your printer. Be sure ALL of the printer tray settings are set to automatic. Click update and then save. Once I did this, all of my print functions returned to normal.
  14. Terry D

    Thank you RitaB...what a wonderful day

    Sounds like this was a really great time and I am so sorry I missed it. I had to attend to issues with my mother who is in a skilled nursing facility. The last 14 months have been a roller coaster ride. However, I hope I can get meet the folks here at some other gathering.
  15. Terry D

    Qualified Joint Venture/ EIN

    Okay, there is one thing I already have found. I shouldn't listen to the bank. Under IRS guidelines, there can be two owners of a sole-proprietorship. When I registered the business numerous years ago, my wife and I both were listed as the owners. Also, an LLC cannot qualify to be a joint venture unless you are in a community property state. Yes, I like the idea of the liability protection under the LLC and as we increase our client base, it very well maybe the best thing to do. But for right now, I can continue to operate under my EIN as a qualified joint venture. I am busy enough at this time without having to deal with re-structuring my own business. Any advice or suggestion will be appreciated.
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