Margaret CPA in OH

The Bush tax cuts were extended for 2 additional years but, as we know all too well, that can change any time. If the reason you are asking is for estate planning purposes, lots of luck! At least for 2010 and probably 2011 and 2012 deaths, there is a carve out for step up as noted in the IRS announcement. So I think it isn't a problem for surviving spouses or for others up to the limit. Personally, I don't have any clients or, sadly, family, that exceed those limits so I don't fret too much. I did have a client pass in July with about $2 million so am eager to have the 8939 approved for filing. We shall see...

Maybe check this on irs.gov http://www.irs.gov/businesses/small/article/0,,id=224515,00.html Form 8939, not yet approved, is Allocation of Increase in Basis for Property Received from a Decedent. I have a copy of the draft dated June 1, 2010, but there are no instructions.

Congratulations on passing! I'm a cpa but I know that the EA exam must be very tough, too. Keep up the good work and let us know how you do.

That's kinda why I have 3 older computers hanging around. They really don't take up much space but I know the programs are there even though I have 2000 forward on this one (XP). You just never know. When I completely retire, all those hard drives get smashed to smithereens! Hmmm, now that I think about it, with 10 years of programs and files on this one, I could probably risk destroying those older ones now. Sentimental, I guess, for when I want to hear that old Saber roar again.

Wow, that was scary. I would be upset, to put it mildly. Are you not able to update electronically? Knock on wood, your experience has never been mine but I do the web updates.

JB, the ONLY reason I click on the notices that a program update has arrived (because I manually update several times daily and always before efiling) is to see what happened to you when updating. I never have such excitement here so have to live vicariously through others... Thanks for sharing!

Contractor (tough year) took no wages as employee (sole sh of s-corp) because there was no money. Dad helped him out with living expenses until he sold his house. He used that money for cash flow for materials on the few jobs he had but has significant loss for the year. I reported no payroll on all 941's. Is it correct to assume that a zero W-2 is not to be filed? Never happened to me before.

Thanks for sharing this great news with your electronic family. As noted above, this is the outcome of much dedication and very hard work by your daughter and all of her support system, mainly YOU! Do let her know this extended family is about as proud of her as you are. Be sure to hug her often.

Now that is really good to know, KC. I was concerned that not waiting would be a major factor against him. From what I understand, hearsay from wife, the client was not dissatisfied with the work, just annoyed because he didn't wait for 3 days. She refused to pay so he sued for payment. That really ticked her off then. So he is out all the way around and I assume she has the benefit of the work done. Just really tough for these folks.

Thanks, KC. I have asked for all documentation so will see what they bring. I am just concerned that the lawsuit and damages may not be against the work product itself but that the client was not given the 3 days to rescind the contract before the work was done. We'll see. I hope it will all be an expense although it will create an NOL. Since they qualified for Medicaid and food stamps and other welfare benefits when he couldn't work, I hope they can get something somehow. I suspect that my bill will be heavily discounted this year, too. They've always paid timely but she was afraid to even call me thinking that they couldn't afford to have their returns done or 1099's sent out. Of the 3 contractors I have, they are by far the hardest hit.

Don't be too hard on yourself. We've all mistimed some important tasks. Two years ago in January I thought it was the perfect time to switch to all cable for phone, tv and internet. I did (an angel was watching over me!) keep my fax line as a land line. Of course the very next week the cable lines were down for about 3 days and all I had was my fax line and cell phone. I immediately went back to the telephone company, throwing myself on their mercy. The csr felt so sorry for me she even gave me another $15 break on my internet service. I think they knew that the cable folks were increasingly competitive. But I learned my lesson - I think!

That WAS amazing! I didn't even know such a thing existed. It must have taken hours of practice. I have trouble finding my mouth sometimes so don't think this would be a career path for me.

This time of year and going forward many topics are posted. I found your original post 15 topics down the page. Keep scrolling...it's still there!

Beautiful, indeed, and now taped to my desk for frequent reference.

I don't have all the documentation yet but, as I understand it,the contractor did the work but, because he didn't give the client 3 days to rescind, she didn't pay him. A 'friend' advised him to sue for payment. That infuriated the client so she sued the contractor for something like damages to her property (the work he did). That suit required him to hire an attorney and, I guess, he lost. My question is not related to the expenses he incurred to get payment. I am uncertain of his expenses to pay the attorney to represent him and the subsequent damages that he had to pay to the client. The first case seems straightforward as it was to collect money becasue he did the work although he did not wait the 3 days and she changed her mind. The second, not so much, as he is defending himself and had to pay when, it seems, he lost. I would think the defense expenses would be deductible but maybe not the 'damages' although that would not be a fine, I think. Yes, he is Sch C.

When I began my paperless journey, I had 13 years of files, too. That is now down to a single (well, multiple copies) dvd. The scanning was a significant undertaking and the shredding entailed an expense to a firm with documentation proving shredding but now I have a single file cabinet with a single folder for each client in case of paper documents being used during an engagement. Everything else is electronic. I now have, thanks to advice from folks on this board, electronic faxes, too, which I can then save in the client files on my computer. While this doesn't directly answer your question as to how long to retain documents, I was unwilling to simply discard - just in case - no matter what the reason. This was easier on me. I do know there are good reasons to NOT keep files beyond a certain time, but this was my choice. And it freed up an entire room in my home.

A client called this morning to explain the difficult prior year when I emailed about possible 1099 prep. Husband is small contractor and was sued by a client. I don't yet have all the details but it appears as though, through ignorance, he did not wait 3 days before beginning job. Client refused to pay and 'friend' advised contractor to sue in small claims court for payment. His client then sued for damages so contractor had to hire attorney and lost the case. He is out materials, subs, attorney fees and whatever damages. I will get documents later. Contractor also fell off ladder and was hospitalized several days. Family then qualified for Medicaid and went on welfare for a while. I cannot find readily where his legal expenses would be deductible. I'm pretty sure any damages assessed would not be, but what about the attorney fees? Thanks for any guidance. The only other client I had with legal issues was a landlord sued by equal housing group for discrimination, never mind the details. It was clear that fine was not deductible and they chose not to even fight it so no other legal fees.

This has to be about the most user friendly thing CCH has done in a while. Thanks for the heads up!

I, too, missed that memo! What about states like Ohio that begin with federal AGI? They have always been piggyback.

For cat lovers and those of us who have cats as paper weights on our home office desks (I had 3 until last summer, now just 2):

That just MUST be about the funniest thing I have read in ages! Thanks for sharing!

Ahhhh, this world is finally returning to normal. Or pretty close. KC is back and several others who have been rarely seen are popping up. But now it's official, I guess. Did Chaz get properly registered yet?

Thanks for the memory! Yes, I used it for a vacation with my husband. We otherwise would not have flown so it was a winner for me.

As soon as I noticed that my check was cashed, I called to ask the status. I was told that I had my original number. I asked about a document stating such and was told that, well, if I would like, one would be sent. I stated that I would like, so one was sent. I don't think I would have received without the request, though. Maybe try to call and ask.

Good to "see" you here again, KC. I hope all your family is well and that this year will be a healthy one for all. Rita, I am like you. I have 2 monitors and this board is ALWAYS open on the right side. I check frequently and feel, as do you, the therapeutic effect as I sit here alone save for 3 hours on Monday mornings when my helper is here. I think if this board goes away (wasn't it about the worst withdrawal ever the last time?), it's time for me to retire! Thanks to Eric for providing the space and to all who contribute in so many ways.