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Terry D

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Everything posted by Terry D

  1. Yes, definitely bring back the good old days. I don't do the satellite or cable subscriptions to watch TV. Cust the cord many years ago. If you can get the ME TV Channel, they play a ton of the old shows. Spectrum has picked up this channel but mainly it is available on an antenna. I always watch Perry Mason twice a day and of course, he always wins. It is interesting to see the cast of characters who played on his show(s). Will never stop laughing at Tim Conway and Harvey Korman in the Carol Burnett show. Good old clean wholesome shows. Antenna TV is another one. For us, the antenna, a Roku stick with hulu and Philo for a total cost of about 35.00 per month works perfect. I digress.
  2. I agree, but it would be nice if all credentialed preparers, EA, CPA & Attorney's could fall under some type of exception. Granted, just because you have the letters behind your name doesn't mean you are 100% honest. Just with a license on the line, I would one would give deep consideration to doing anything that would end their career. Just sayin.
  3. That is the six million dollar question. Most probably won't even know what we're talking about. It will take extra time, but each person should create an account with the IRS to access their information. It would be nice if the IRS would provide us with a tool to check and verify what the client received. That is, if the information the IRS has is correct. Hence all of the issues with the stimulus payments.
  4. Hi Tom, I'll put my 2 cents worth in. First, I agree with all of the previous responses you received. Personally, I would want to see all of the previous worksheets regardless of what the taxpayer has to do to get them. They were his at the time the returns were prepared anyway. Like you, why does the 4797 exist if there were no sale or a scrapped asset? Abby is correct distributions reduce basis and I don't see how they would release the suspended losses either. It sounds as though the previous preparer may have been confused as well or maybe they were privy to information you don't have. Can you see the K-1 forms from the previous years? That may help with deciding what to do. Your idea of assuming ordinary passive losses and netting the losses against ordinary income in the future would seem to be the best approach. However, I would want to cover my *&^ a bit. I literally hate that word assume.
  5. Terry D

    EA & NAEA

    I used Gleim which is much harder than the actual tests. However, with Gleim you will definitely learn which makes it better in my opinion. I wanted to advance my knowledge as well pass the tests.
  6. Terry D

    EA & NAEA

    Just an announcement, I have passed all three parts and the EA exam and have submitted my application for Enrollment. For those who are considering becoming an EA, I will tell you the three parts are not a cake walk but are not as difficult as when there were four parts. I tried becoming an EA way back when it was a paper-pencil test. Didn't do well so I put it on the back burner until I retired from my teaching job. Fast forward 26 years and here we are. For those who are new or seasoned EA's did you join the NAEA? They are offering a good discount for new EA's just wondering if it is worth the investment. Opinions please.
  7. The exams are administered in a Prometric test center. Nothing is permitted in the exam room. A locker is assigned and everything you have must be placed in the locker. Prior to entering the test room, they use a wand to check for any items just like the airport TSA but just a bit worse. Rolling up your shirt sleeves, pulling up pant legs and if you wear glasses, you must take them off and turn them over and over to allow them to inspect for cameras. The test center admin will give you scratch paper, a $1.00 Dollar General calculator and a pencil. Results are given immediately, either pass or fail. All tests passing scores for all tests range between 105-130. Areas of proficiency are given if you pass and that's it. No idea of what you missed nor what your score is just "passed" which is really all you care about. If you fail, then you are given a score and again, areas you need to work on. Being 100% honest, the test(s) that I have taken have not seemed to be too bad. 24+ plus years prep experience helps. Corps are going to be the tough area for me.
  8. Catherine, I am studying for the EA using Gleim. Yes, it is down to three parts but, Part 2 the business, estates, trusts; etc is the big one that I believe is two of the previous areas combined. I've passed Part 1 and 3 and plan on passing Part 2 before Jan 15th. I know all about the triple negatives. Canidates may seem to have it easier but I don't think so. What bothers me is the folks who are passing the tests and have never prepared a tax return. Wish me luck on the last exam.
  9. Both the excess contribution and the earnings as a result of the excess contribution must be withdrawn to avoid the penalties. Here is an article that will explain things very clear. Hope this helps. Roth IRA Excess Contribution | The Motley Fool
  10. I agree with cbslee to use a common sense approach. it is difficult to tell who uses the most electricity; etc. Personally, I would average the cost between the cabins and subtract out 1/10 of the expenses. Absolutely keep a separate spreadsheet for depreciation of each cabin and it's contents. This will enable you to properly capitalize any improvement costs. With that said, was the purchase all inclusive or were each cabin have it's own acquisition cost? Again, if all were the same or relatively similar size, cost averaging and subtracting out the 1/10 might be the way to go.
  11. Looking at different ways for taxpayers and myself to sign any and all tax forms that are "legal signatures". What legally takes the place of a "wet signature". I'm curious about such items as disclosure consent forms, 2848, 8821 and of course form 8879. We are required by law to provide the client with a "signed" copy of the return. Prior to all of the technology, I used to sign the forms in the presence of the client. How are you doing this? I can use the rubber stamp feature in Drake to do so which is a replica of my "real" signature. Personally, I don't like computer generated signatures. Is docusign the way to go? I recently sold my home and purchased a new home. Only certain documents requiring notarization were wet signed. During the process how was it known that I actually signed the forms and that it wasn't someone else? I know most electronic signature software requires some form of identification or goes through an identify verification but still wondering. Another issue, my elderly clients who have difficulty with technology. I know we could tell the client to print, sign, scan and return it but not everyone has those capabilities. I'm wondering about all of this cause I moved my home and office to another state and am attempting to meet with my established clients remotely. Looing for opinions.
  12. >>>>>> I agree with Deb that a trace may need to be put on the payments if clients' accounts show they were paid.<<<<<<< How do you start this trace? My client in the second scenario has setup an account to obtain the transcripts and information. However, he screwed it up to where the passwords don't work and we cannot get in. I will ask to see if they may have received the debit card and didn't know what it was. This guy is pretty good with his banking and keeping track of it. Another scenario. What to do with a client (namely me) who wants to create the secure online account but their credit is frozen so the ID cannot be proven? One thought, my wife's credit is not frozen and of course, we file MFJ. That might be my only option until I can get through the PPL. Thanks for all of the suggestions and allowing me to vent a little.
  13. I need some suggestions from my friends here. I have two individual scenarios that I am working on. One the client may have failed to provide or did not receive some 1099R forms. They did receive a CP2000 from the IRS. I have gathered the appropriate POA and 8821, plus spoke with Fidelity and found some discrepancies. We're waiting on Fidelity to fax or mail the 1099-R forms. In the mean time, I'm trying to contact the IRS (PPL) and cannot get an answer. Always get the message due to high volume we cannot take your call and to call back tomorrow. This has been ongoing for months. My client is on a deadline and a response is due by July 1. I have prepared a statement of response to the CP2000, will get the client to sign it and fax it to the number on the CP2000. Any other suggestions with this one? Problem number 2. The IRS claims my client received both stimulus payments. I had them gather their bank account statements. The first payment was received via direct deposit. They have not received the 2nd payment. No checks received and no direct deposits. I have their bank statements from Jan 1 thru April 30 and no deposits from the Department of The Treasury. Called the numbers on the notice CP12 and get the same crappy message. Mind you I start calling at 7:00 am, and fail to understand how they're too busy first thing. I think this is a BS routine to not answer the phone. I tried calling Friday and forgot about the new Juneteenth holiday. Different message. Anyone have any other numbers inside the IRS that can be used. I have a few clients, including me, that has not received any stimulus payments and as far as I know, my return for 2019 has not been processed. I have two clients who have not received their 2019 refunds. I wonder if any of the field offices near me are open for walk-in service. Any other suggestions?
  14. I think the two recommendations regarding speaking to the attorney who created the trust, and obtaining the trust instrument before you do anything are the best two answers in this case. Personally, I don't see how you can proceed until you do.
  15. I too made the switch to Drake after the 2012 debacle. Tried several other programs trying to save money. You get what you pay for. I just renewed Drake for next year. I use the Drake Accounting package as well and you just can't beat the price. Everything for $1345.00. If you purchase before May 31. Yes, it has a learning curve. Each year I learn more and become even more satisfied I made the switch. I agree with Max. Download a previous version of Drake for a test drive. I just learned yesterday that when completing a Sch C, Drake has a search function for finding the NAICS business code that is by far easier than scrolling through the codes looking for the one that is a match.
  16. Thanks for all the replies. Gleim seems to be the best choice. Right now they are offering 20% off and the first 72 hours of CPE is included. So, Gleim it is.
  17. I looked for reviews of the PassKey courses and didn’t really find any. Pricing sounds good but is it comparable or close to Gleim?
  18. Now that I will be officially retired from my teaching job in two weeks, I have been looking into taking my tax practice to a higher level and seeking a EA recognition. Have been looking at Gleim and want to know what others think. Right now, they are offering 20% off the premier package which is a good deal. Opinions please.
  19. Catherine, When I used to visit my family in Stoughton, the Dunkin Doughnut ruled. They are better than Krispy Kreme. Now, here in the South, Krispy Kreme is king. But like you, I'll pass as well and they are less than 30 minutes away from me. Artery plugging death wad.
  20. It is strange the same rules apply to MFS and MFJ. I would definitely report the husband's unemployment compensation and let the program calculate the exclusion. Not sure what software you're using.
  21. The attorney fees in this case were approximately $1100.00. Not looking at the return at this moment. If the HUD pre-payment rules were not met, why did the court rule in my client's favor? i agree this all falls in a gray area. I am going to expense the fees as they are not a large amount. I don't know all the details surrounding the court ruling. I definitely agree this is not for maintaining the integrity of the rental property. But, it could fall under the course of normal business type expense. I am meeting with the client tomorrow to review the return so hopefully we can have some insightful conversation about this.
  22. I'm a bit confused here. I never suggested MFS. That simply cannot be. They have never been married so only options are single, HOH. I verified they have been together for 18 years and have never lived in another state. My only concern at this point is how many years to amend. IRS statute is 7 years to collect. All tax returns were filed on time, just used the wrong status. I am going to attempt a phone call to the IRS PPL for some guidance. Might be a stretch but I'm at least going to make the effort. I agree the HOH and Single deductions together is more than MFJ. Agree also, this might not be too bad. There are years where only one worked. That may be a little more expensive year. This is indeed a summer project for me. Client agreed to file 2020 separately or HOH for each and which ever status returns the best outcome for both. Then I'll tackle this mess.
  23. Thankyou, those were my thoughts as well. I did question capitalizing it but agree there is no need.
  24. Just to add, and I may have answered my own questions. I did find this on Freshbooks and will look further. Still not sure it it applies 100%. Apparently the guy who financed (seller) the property didn't want to give up the interest. "Legal fees linked to handling, protecting or maintaining income-producing property are usually tax deductible"
  25. Client purchased a home on an installment sale agreement (seller financed). Contract drawn up everything legitimate, all payments including interest paid on time. Client purchased this property and rented it out almost immediately, never lived in the property. Two years into the installment agreement, client wanted to payoff the contract. No early payment language or penalties. Owner who financed refused the payoff. In TY 2020 client hired an attorney and through the courts was able to pay off the property. Because this has been a rental, are the attorney fees deductible? Haven't done any research yet, but was hoping someone here may have experienced this. The fees, if deductible, would be on Schedule E. Because the IRS has determined rental activity is indeed a business, my first instinct is to say the attorney fees are deductible.
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