Margaret CPA in OH

Thank you for saving them!!! I cannot believe that those markets still exist. I don't eat any meat any longer let alone dog. Different cultures, different values...

Ahh, the dreaded iphone photos... I had to download an app last year but it still took too much time, in my opinion. This year in my cover letter I stressed that photos cost billable time and were often illegible so encouraged those folks to get a FREE app, like Adobe DC, or even use the scan function that many phones now have then send/upload as pdf files. Although I do bill the time, the aggravation isn't worth it but I appreciate that not all folks have scanning capability outside of a phone. And, in my opinion, do waaaaayyyy too much private stuff, like tax info and documents, on their phones. At least I use Verifyle for client info so if a breach, it's on them.

At least your feline assistants appear to be productive. Mine just hold the papers in place. Well, they purr from time to time providing calming vibes.

I have a Surface Pro 7+ and love it. It's my second Surface Pro, needed to upgrade to Win 11 and more. My main desktop is custom built by my computer guru, no games, etc. and he knows everything about it because he built it.

A new client in Philadelphia has begun a multi-member LLC based in TX taxed as partnership. My understanding, shaky at the moment, is that she will have to file a Business Income and Receipts Tax AND a Net Profits Tax return. This seems overkill but here she is. I am confused, however, about the statement that if there are less than or equal to $100,000 in Philadelphia taxable gross receipts, a NTL (No Tax Liability) form can be filed instead. I'm wondering why gross receipts would be taxed if there may be a net loss and possibly even no money to pay tax. And I'm wondering whether this means 100% of the gross receipts or only this client's share, about 18%. The form seems to have a $100,000 exclusion before tax but not sure whether 100% or her share is to be shown. Maybe I can convince her to move to the suburbs... Thanks for any help!

As a CPA you can join AICPA and obtain insurance through it. I just renewed mine for the umpteenth year and have again added the cyber insurance for $190. It is for $100,000 but I think I need to revisit that in light of BrewOne's note. It does say for each 'claim' but I need to better understand the details. Definitions can be tricky.

Thanks all for rearranging my perspective. The client used the term 'donation' to the producer and I didn't think through the issue. I will be back in touch to confirm the likely scenario described by Lion EA which I think is correct. The fact that the producer is a personal friend of like mind and wants to help should not color the situation. Yes, my church (treasurer here) uses a for profit company owned by a member for printing materials. I just have too many things rattling around in the brain at this time. This forum is such a gem!

Thanks, Patrick Michael. This is helpful. My concern is that any 'profit' would not be only to the nonprofit but maybe some allocation, although I don't know that at this time. I wonder if your NP filed a 990-T. It would seem that it was receiving funds (program?) then using those funds to promote the NP or other cause so may have unrelated business income if it was not a program as defined in their 1023 rather business income. My head hurts.....

A very tiny nonprofit wants to donate/give money to a production company to make a film/documentary or something about a book owned by the np to further education about the topic. The production company is for profit. I am not finding outright bans against this but see something about a possible joint venture leading to unrelated business income if, in fact, the idea is profitable. I don't see where this would qualify as a grant or any kind of scholarship. I would anticipate a loss but also am uncertain as to how to report the use of this money. I know there will be an argument. Ideas?

kathyc2, rental property such as this has remaining gain (after 1245 and 1250 dpn recapture) is 1231 and tax at cg rates if held more than a year. This property was a business for the clients as a rental and fits the criteria for the treatment I expected and now have, thanks to 8582 and numbers going where they belong!

The client has never had PAL's. Usually there was small net income and never more than $25,000 loss so any loss was taken contemporaneously. There was ordinary income from 1245 or 1250 depreciation recapture as there was none. The remaining gain should be 1231 taxed as cap gains. But this gain shown on 4797 Part III line 24 and Summary of Part III Gains line 30. There is a small deduction from some small 1245 pieces with the full gain on line 32. Well, I'll be d*****! I finished lunch and just reopened this return, noting that 3 forms were downloaded at 2:43pm. Form 8582, the missing link. A thing of beauty which I completely missed that was missing. All is now right with my little world with this client. That Surprise entry up there? Gone! Without 8582, the data had no correct place to go so just landed in the wrong place. It's unfair to make my brain work so hard at my age but I am so grateful for folks chiming in. I was 90+% certain I was correct but...but... I hope this is the worst thing that happens this season!

Client sold a rental 4th quarter of 2023. I roughed up the gain by hand and now have input into the software. The last client that had a rental sale was in 2019 and the forms look a bit different but should still have similar result. Surprise! Part I line 2 shows PAL adjustment of -102,764. This should be the gain of 1231 property and the worksheet for this shows the gain. I cannot figure out how that became a loss. It should be CG. What am I missing? They need to make a substantial Q4 payment on this gain to avoid being dinged. Is it because the forms are still draft? I've reviewed the instructions again and still think I am right but don't know how to 'make it so.' Any help would be appreciated and I can't believe I'm asking about something I've done so many times but here it is!

I think Catherine has someone that prepared hers or worked with her. It might have been Tech4Accountants. I took my template to my computer guy who has built my last many computers and configured everything including firewall, etc. We worked through it together as he has done this for other firms. I had to fill in the details about equipment the majority of which he provided, connected and secured. He is a cyber security expert so I feel pretty good about my WISP. We followed the IRS Pub. 5708. It took only about an hour so his charge to review and confirm some things was not bad. It will likely be my last straw and surely bring on retirement at the end of this 3 year license period, if not before.

I know, I know... procrastination is a thing. But now that I have a really nice second computer for personal use (Surface Pro) and have the option to install ATX on it, I will do that - promise! Thanks for reminding me, Dad! The guilt complex is enormous Honestly, if I had a complete disaster, I would just throw my hands in the air, retire immediately and curl up and whimper. Now I'll think about that tomorrow. Off to the Longest Night Service.

I use Back Blaze but have not had to reinstall or retrieve yet. I will be sharing this info with my computer guy who builds and services my machines. He uses and recommended Back Blaze. Then again, I also have a second hard drive in the case and an additional external drive both of which I use to back up at least weekly. BB is continuous. So very sorry for this experience for you. At least not in, say, early March! Breathe, enjoy the holidays and babies....

A church would have to file 990-T if ubit was in play. That's at least ONE reason I have been keeping some members from pushing for leasing space to for profit entities. My church has been asked by a bank and other vendors occasionally for the determination letter. We do fall under the umbrella of the Presbyterian Church USA but do not have a separate exemption letter and it is really not worth going to the national office to try to get a copy. Fortunately it has not been an insurmountable problem as I can easily submit a sales tax exemption letter produced by the state and, if needed, a copy of our registration with the SOS office. Just a bit annoying to be even asked for a determination letter as a church and part of what many consider main line for over 150 years.

I'll be happy to read responses. My church was incorporated in 1867 and obtained an EIN many decades ago for employee purposes - before one had to file for TE status. From time to time we are asked to provide our TE determination letter. I have looked into the work to actually get it but it is so expensive so we decline. At least we can point to our state charter as a religious institution so not for profit. It's a bit annoying when there are apparently no means to acknowledge 'pre-existing' conditions when laws change.

I hear you about marketing with seminars and webinars. I take many webinars for many reasons - cost, convenience, topic variety, etc. And then do get on the email marketing list to which I promptly unsubscribe. The valuable information and reference links provided still outweigh the annoyance of having to unsubscribe. Heck, even the AICPA and Ohio Society of CPA's (member of both) more than frequently push 'products' but I accept that and just delete what doesn't interest me. The title or first few words or lines are clues!

Thanks!

Hmm, if closed so quickly, I do hope it is offered again and soon!

I prepare my own engagement letter based on the one provided by AICPA. For additional information, I also have a cover letter where I remind people about FINCEN filing if applicable, my current year rate and other items. For many forms you can customize but I don't see that form/letter in the list. Perhaps someone else who uses it may reply.

So I am not the only one for which this situation is new. I told this now-client that her situation taught me something I had never, in over 30 years of practice, seen. Filing status of single is correct if "(a) taxpayer is single if unmarried or separated from a spouse, either by divorce or a separate maintenance decree, on December 31." My bold and my, because she called it alimony, misspeak. The payments are separate maintenance. From Topic 452: Alimony or Separate Maintenance – In General Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony or separate maintenance payments for federal tax purposes. A payment is alimony or separate maintenance if all the following requirements are met: The spouses don't file a joint return with each other; The payment is in cash (including checks or money orders); The payment is to or for a spouse or a former spouse made under a divorce or separation instrument; The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.); There's no liability to make the payment (in cash or property) after the death of the recipient spouse; The payment isn't treated as child support or a property settlement; and The divorce or separation agreement does not designate the payment as not includable in gross income of the payee spouse and not allowable as a deduction to the payer spouse. And I also have learned more about CA taxation and community property! This is such a great group, right? And I have a new client

The separation agreement was around 2015 or so. Okay, then, about no community if filing single. Since they are not actually divorced, I wasn't sure about 'community' as uncertain that filing status trumped legal arrangement - or however that should be stated. I've just never had anyone filing in a community property state or anyone with alimony. I guess I've lived a charmed professional life! Thanks to all for comments and guidance!

Okay. she just left. She receives $85,000 in alimony, files single (not MFS as I was told) with a court decreed separation agreement, and has only dividends and some cap gains from a few stock sales. I just question about the alimony being CA 'sourced.' It's personal checks not pension or other distributions from spouse. Spouse has retirement income to generate the alimony funds. When spouse dies, likely before her, she will have some pension income as he reduced current distribution for her to have income after he dies. Would that then be CA sourced? It's from a university but not a 2023 issue as he is still alive. Thanks!

Thanks so much, Tom! I've been reading some CA instructions and think I do not understand why the OH resident would have to pay on 50% of community income if there is none (I think only retirement). I read this: Nonresidents of California are taxed only on income from California sources. Nonresidents of California are not taxed on pensions received after December 31, 1995. For more information, get FTB Pub. 1005, Pension and Annuity Guidelines. so wonder how the OH resident must pay on retirement income and SS, for example, when she has moved her accounts (that's another story) to OH fund manager. Why would this retirement income be from CA source? Does that get adjusted in the Schedule CA 540 NR? I'll have to look at that. She will be arriving soon so more details to follow!