Margaret CPA in OH

This may well not help that much but I am a bit surprised about the amount of HO depreciation.  Does that also include allocation of expenses?  Would it be worth checking for the Simplified Method of $5 per square foot.  There would be no depreciation, etc. but also no recapture and may not be as large an impact on the overcontribution.

You are amazing!  I still have not heard back from the client but will be sure to ascertain that the understanding followed this expectation - as I think it did.  I just want to be sure.

Thanks to all who chimed in!  Always more to learn.

After a bit more research, I found this on Cornell Law website:

life estate

A life estate is an interest in property that lasts only for the life of a specific person, usually the possessor of the estate. The owner of a life estate cannot leave the property to anyone in their will as their interest in the property will terminate at their death. The holder has full rights to possess and use the property, and may also transfer their interest during their lifetime. 

If the measuring life for the life estate is someone other than the possessor, the estate is considered a life estate pur autre vie.

A life estate is created by a deed that gives the property to the person "for life" and identifies what should happen to it after that person dies. For example, a deed stating that land would go "to John Doe for life, then to Jane Doe" gives John a valid life estate, and Jane a remainder. John could use the land during his lifetime, and even sell his interest to a third party, but that third party would have to surrender the property to Jane upon John's death.  

So I'm wondering now and again about the deed.  I'm reading this as though the mother (the possessor orignally) transferred the interest during her lifetime (gifted to daughter).  But then it seems that the deed must state that the property is given to the person (mother) "for life."  The client has not yet responded. I hope they used an estate or real estate attorney. 

 kathyc2 is correct. I have a current client that is about to run out of LTC insurance and had another a few years ago that nearly did. What can happen and is currently so with my client is that the expenses can be much greater than the coverage. In my current case, the unreimbursed expenses amounted to $87,777 after reimbursing $85,200.  The per diem was $153,300 ($420 times number of days) and actual expenses were $143,323.

Thanks again.  I'm now wondering if this was something thought to be a solution outside of actual legal guidance. It seems to me that the gift tax returning, gifting the condo to the daughter, was a way to 'transfer' ownership without specifying a life estate, that it was de facto.  I've asked the questions. 

The closing document shows daughter's name only as seller.  I wonder what the deed shows.

Thank you, Marilyn!  As I wrote, this is my first, so unsure of how to handle.  Client will be so happy!  I have no idea why there was a gift tax return, not my client at the time or maybe I would have known all this already.  I will double check on documentation showing life estate rather than just letting mother live there.  Client told me 'life estate,' but I want to see it.

I will still do research but have great guidance now.

Thanks, AbbyNormal!  I did not expect that.  Even though the client/daughter owns it now?  Research ahead!

IRS cares not a whit.  My question relates to the client selling this condo that was gifted to her by now dead mother.  I'm asking about the basis in order to determine gain on sale.  That's all.  If the gift tax return should have had FMV, it would make a difference.  If original basis to mother is correct, I've got it.  Just asking for reassurance.

Client was gifted mother's condo in 2017 with a life estate provision.  Mother died in the fall, condo was sold in March.

I have the mother's 2008 original purchase price/basis and mother did file a gift tax return at the time of gift with that value (not market value).

This is the first I've had.  Was it correct to have the original basis of the condo on the gift? I think that's my only question.  I'm not sure whether client or mother paid taxes, etc. in the interim but they would not have been deductible anyway.  So it was a second home for client and no rent was charged.  Basic sale with LT cap gains?

Here, I believe, are the answers to your questions: https://verifyle.com/

Check Security and Compliance tabs.  I download the pdf of the signed 8879's and can easily print them out along with the paper signed forms from those clients.

I think it meets all the other criteria you list.

When I first began using it, two email addresses were required but that changed recently.  I still use 2 to be sure each has all the access and information. Except for one client couple who share a single email address and account.  It is possible to change the name.

Verifyle also offers 2FA is you choose to use it.  I do not as I know all of my clients.

I'm not Lynn EA but can answer.  I upload the client copy of the returns, pdf.  I then upload what I call the signature pages, beginning with 8879.  The signer(s) are part of the portal with their email address originally entered as a client. The software prompts me to determine if I want to add signatures.  For the client copies, no, but I click Yes for the signature pages. 

All is then uploaded for client access and I am prompted to indicate which signer is to sign first, i.e., taxpayer.  I scroll to the signature line and highlight it.  Then highlight the date line.  I also highlight for initials the bank information and selection for payment or refund.  At the end, I am prompted for the next signer, if there is another.  Repeat the process, review if desired, send. 

The clients receive an email (each one) and are directed to the highlighted spaces to accept/enter.  When the first signer is finished, an email is sent to the next one.  I am notified at every step. 

A few of the folks were reluctant until I or someone explained it's similar to the now ubiquitous signing pads everywhere. 

I think you can try it out.

Verifyle is only $9 per month if you are not with one of those organizations.  I have been using it for 3 or 4 years and am very pleased with the service and responsiveness to my questions at the outset.  I use workspaces, one for each year, and request that all client communication be managed there.  That way I can keep messages for each client in one place.  At the end of the season, I copy the message string to my client file for each one for each year, just in case.

I ran into something similar with an amended OH return.  I decided it was easier to include a 1040X with no change and the explanation that it was being filed solely to amend the state return.  Apparently OH requires a federal return to accompany an efiled return.  Client received a letter last week from IRS acknowledging no change.  Client is still waiting for the refund from the amended OH return.

Thanks, I will forward this to her.  However she told me that she called IRS (don't know what number) and was told that they could not verify her to tell her the EIN.  Did she print out the webpage?  Receive a confirmation letter?  I've asked.  Her problem.  Record keeping is not her strength.

In 2021 client, a SMLLC, obtained an EIN online and emailed the number to me.  I used it to submit 1099 forms in 2021, 2022, 2023.  Client is now working to obtain a state license for this expanded business and the state cannot verify the number.  Nor can IRS via a phone call.  Client did not print out or save the confirmation information on screen so it is possible that the numbers are not correct. 

I've tried a few different options online to find this but, due to privacy concerns, have failed.  If IRS cannot confirm, suggestions?

You have, indeed, had LIFE!  That is so much in such a short time - well, for any length of time.  I'm so sorry for your losses.  Hopefully the brother and daughter may be finding peace within and with you soon.  I'm sure Frankie and Louie are a comfort despite puppy challenges.  I so much want a little dog.  Two cats are sweet but not the same as a dog.  My husband is less understanding. 

Take all the time you need.  We know that without self care, we cannot really care well for others.  Breathe....

I likely posted about this last year but cannot find it.  Nor can I find actual instructions for these returns online.  I can only find filing instructions but not how to complete the forms or the definitions.  Pro Rata Resident taxable income/loss NOT eligible for Income Based Rate... or same for eligible for this rate.

Anyone here 'eligible' to guide me?  This newer client had only losses for 2022, new LLC based in TX.  This year has guaranteed payments and more.  Not sure what to do.

Thanks

Indeed, posted prominently in my space:

Lack of planning on your part does not constitute an emergency on my part.

I also have to remind myself of this frequently, however, as it seems at times I care more about the client than they do.

Like BrewOne, I stopped using MAX when I spun off my business clients which then reduced my individual base.  I frequently do have to use the PPR for additional states or the odd other return (gift tax this year and next year) but charge for that.  I bill by time and add on additional time to cover the cost.  As BrewOne points out, your add on costs can be significant depending on your practice. 

With only a couple more years to go, maybe, I will stick with what I have and gulp down the annoyance of the push for renewal before April 15.  Give us a break already!  Wait a week!

The clergy worksheets are very good to use and reliable, at least they have been for me.  However, I do not see how to use the link described by gfizer when no Schedule C exists.  I have had clergy with and without Sch C income.  When no Sch C exists, I don't understand how it would be appropriate to list expenses there.  I have used the listing on SE as discussed.  Always ready to learn more!

Yes, I have client initial or sign everything.  And the state of Ohio also has a disclosure statement that must be checked:

Check this box to indicate taxpayer has read the disclosure statement(s) related to the direct deposit option selected.  The Ohio Department of Taxation is not respnsible for the misapplication of a direct deposit refund into a checking, savings, IRA or 529 College Advantage account that is caused by the error, negligence, or malfeasance on the part of the taxpayer, electronic filer, financial institution, or any of their agents.

So no Schedule C, I guess.  My most recent clergy has no outside income either. I suggest you group as logically as you can.  It seems odd to need many more lines outside of parsonage expenses.

I had a recently widowed client several years ago with an investment account and so, so many st transactions that had never happened when spouse was alive.  I believed the client was being taken advantage of and suggested that she interview a couple of other investment firms to ask how they would manage her account.  She swapped brokers within months.  Sometimes you just have speak up to alert folks to the possible ramifications of what is happening.  It is then their decision to do nothing or take a more active interest.  Horse to water, etc.

I seem to recall that happening to me once some time ago.  I deleted that return and rolled over again.  It was fine then.  A one shot event for me.  Also pointed again to how we must be aware of what's happening and what to expect as an outcome.  For me, I typically do a quick review of client documents and have a (really) rough idea of expected bottom line.

Such things as a note for QCD and a state deduction or credit which doesn't show up alerts me to something I may have missed.  But really not nice to have data that shouldn't be there before even beginning.  Did support have any clues?