Margaret CPA in OH

Jainen, now _that_ is tax planning extraordinaire! You didn't gain guru status fer nuthin'! Just watch out as the housing allowance exclusion is being challenged now. But you and your legal beagle will surely manage to find any other loopholes available. I am in awe of the prowess...

Maybe, to reassure your nerves, check again that you didn't omit that $20 you received for the ride to airport you provided and the $5 bill you found in the park. If you're lucky, you might end up owing a dollar or two to ease your mind. If not, then figure out what you did wrong to allow the gummint to hold all that money instead of having in your pocket! Or, just relax, breathe a deep sigh, smile, and, yes, smell those roses....

Ohio is in the same boat. The Use Tax law has been on the books since 1936 but is increasingly being enforced. To efile now, ATX does have a warning if that form isn't completed Yes or NO. I no longer automatically check it. I make clients, if here, answer and, if electronically reviewing returns, print the page, check and complete, sign and return. Ohio DOT also now wants a check that a taxpayer receiving a direct deposit has read the blurb that it isn't the fault of Ohio if that deposit goes astray. Pretty sure they must have been sued at least once to get that. I also make clients check and sign the form that states, as the 8879, "under penalties of perjury..." I don't want an Ohio return audited and the client come back and say I didn't ask them about online or other purchases. As mentioned more than once this season, retirement looks increasingly interesting. I don't mind asking clients the questions but I really don't want to be an auditor.

I just browsed the IN dor site and read that part year, non-resident returns can, indeed be efiled using Indiana's I-File online free filing http://www.in.gov/dor/3723.htm . There are then options to click through for tax pros, etc. I didn't do that but it could be that one can file directly or find an ero/software that accommodates but not all do. I didn't pursue to the end, assuming that Mike has already done that.

Hey Catherine, don't forget the therapeutic head massage, too! I love that icon and think we are all experiencing that feeling 'bout now. Happy digging - I think I'll be back in June (same Concord client, widower now) looking for some fresh veggies. I'll let you know.

As one who has 3 contractors I can tell you that one option to live is to use lots of credit cards to buy the materials. They are deductible in the year charged but payments may be minimal. I still can't believe the balances due on one of my clients. He has had 2 cards/accounts closed with huge balances outstanding. He has to write a check now for every purchase at Home Depot. I don't see him ever coming out of it and, yes, he owes me some, but keeps up with payments.

I agree, Kea. I had what I thought would be very good clients a couple of years ago until they were unhappy with my refusal to take certain deductions. Then they disputed the bill and refused to pay. In a letter I was told that it was too intimidating in my office because I had a newspaper headline about a tax preparer being sentenced for fraudulent returns. Not really sure they actually got the connection but I am glad they didn't return. Of course I wouldn't have them return without them paying the previous year. Only time I was ever stiffed.

The massages are for a specific medical condition, severe scoliosis, for this woman. She did have a physician's prescription. I asked when she came over so feel good about that. I wanted to be prepared for a, um, discussion, but the prescription took care of that. And the practioner is a licensed therapeutic massage professional. I need one now!

Yes, aren't we/they all special. Kinda makes me crazy when clients don't want to accept certain results even when I point out all the positive things that benefit them. Never enough.

Today, I think I could be competitive.

mwpope - diabolical - I like it!

I have used line 12 for reported points, too. I think the idea is to show amortized points that are deductible whether or not reported. This distinguishes fully deductible points, too.

I don't see it listed but 80+ year old client with severe arthritis but still working! 3 days weekly at a clinic for the homeless mentally ill has $3000+ expense and $3000+ for acupuncture and $900 for physical therapy I see acupuncture listed as deductible but not massage. Maybe only if prescribed by physician? Thoughts on this appreciated because I think I'm going to get an argument...

Aha, I should have read more carefully. Without reading the section 25A noted, I would say the exam cost would not be deductible nor would the study books be unless, as noted in QF, the books purchase are paid to the eligible... I would not consider the exam in the same 'class' as tuition and fees but maybe you could ask the question. In this case, I may lean to non-decuctible certainly without more info, probably from reading section 25A and checking with the institution. Your mileage may vary.

My handy dandy QF states that books, supplies and equipment qualify if they must be paid to the eligible educational institution as a condition of the students enrollment or attendance at the institution. IRC Section 25A.

Not sure I would want to live today twice - it's gonna be tough but the sun is shining and that's good.

I liked that story, too! How wonderfully strange are our animal companions, whether we choose them or they choose us. Thanks, Catherine!

Thanks, Terry D. Good reminders at the end for us all.

Kea, I was't complaining about what this great exercise cost _us_, rather trying to get at whether the amount in play was worth YOUR time spent and possibly having to bill the client to resolve an issue worth less than that. Turns out at $4000, it was worth pursuing some satisfactory resolution. Are we there yet? Much of the time we spend on this board in these discussions are in part continuing education for some and theoretical exercises for others. I almost never consider the cost to me as wasted because I receive much more than I am able to provide. And I almost never bill clients for time spent researching here.

Hmmmm, just how much in tax is this single payment worth? If we combined all the potentially billable time from the professionals chiming in on this, I imagine it would exceed whatever the tax is. JohnH, the client may have forfeited the use of the funds but the funds did not make it to the agency. I would not take the deduction in 2010.

Alas, mine came yesterday. I replied that the timing could hardly to worse and to please contact me AFTER APRIL 18. What on earth were they thinking? I also received an email to Mark My Calendar for the CCH User Conference in Nov. with registration beginning May 2. I've half a mind (all there is left now) to go and try to make some folks understand the concept of timing.

Pub. 17, page 249. Basically, insulation, exterior doors and windows, metal or asphalt roof, certain heat pump water coolers, electric heat pumps cental air, natural gas/propane/oil water heaters, biomass stoves, certain advanced fans. No dishwashers in the list.

If you click on line 61, page 2 of the 1040, Federal Income Tax Withheld, one of the fields, #9 Taxes withheld (1099-B)in ATX, is blue and you can input it there.

My guess is that your thumb was probably too busy at the time being stuck in a dike to hold back the latest flood. I just replaced a cartridge and am puzzled as to why the print is fainter than the one I took out. We're talkin' name brand HP 49X, the $140+ kind. I've shaken, rolled, whatever. I did order another already just in case this puppy doesn't last as long as it should. First time this has happened.

I received LOTS of information today that should resolve just about everything and make tax go away. Guardian kept saying he was in a home with some assistance. Today I found out it is skilled nursing so, yes, all deductible. I've also put her on task to list supplies and prescriptions but not otc. She also found old returns from 2000-2004 with HOORAY the worksheets with the simplified method utilized. This may have been before he was completely lost to alcohol. Anyway, it is a HUGE help. Unfortunately it looks as if about 75-80% is taxable but that is better than 100% and the medical should take care of a lot. Thanks again for all the help and hints. I'll know a lot more the next time it shows up!