Margaret CPA in OH

Interesting! I cannot find in the index of my 2018 guide any reference to contract or employee contract. Also, in my denomination (Presbyterian) there is no contract, rather a call with terms of call including the designation of a housing allowance. You are correct that the housing allowance must be designated before the new year. It is in effect only on designation by the governing council and in the minutes. We've had that issue from time to time when the session didn't take action timely. The amount remains the same unless changed by action. I went back and looked at Chapter 2 and see about contractual clergy. However, if they are not employees, I don't see how they could receive or expect a W-2. That's what we have always issued. What is your workaround? Just negating is on Sch. C as designated housing? If it is in the contract, the support is clearly there. Just curious: if you know, why is this contract for only 2 days at a time twice yearly? While having lived many years and been quite involved in my church in various capacities and having had clergy clients, this is new to me. I am happy to learn something new.

Sorry, Lynn, there is nothing in my Church and Clergy Tax Guide about contracts and I, personally, have never heard of them for clergy. It seems strange for only 2 days at a time, too. As it is a contract issue (as I see it), perhaps this is better addressed by an attorney familiar with contracts especially for clergy. And I'm not sure what the actual question is and/or how it relates to tax other than covering 3 tax years. Interesting situation!

I'm guessing it wasn't a slam dunk trying to align the 'traditional' figures with the new 1040 arrangement in a way that makes sense. It will be interesting to see!

From the Forms Release button on the program, the list shows Feb. 4.

Thanks, Lion. I suspect that there will not be a K-1 as to date only Forms 1099-MISC have been received. I believe this and the predecessor ownership was on an individual basis, not in an entity, as evidenced by the Heirship Deed copy I have. There is no mention anywhere of an entity, only names of individuals. And I've already received the 1099 with the proceeds listed under Rent hence my original question I sort of think it was originally land owned by great-great someone or other and the rights to the gas and oil were sold to this Range Resources but not the actually property. I thought I was selling the actual ownership in the property - that 1/72 share - and it would be deeded over to the company that has been sending the royalty checks. I'm hoping they call me back. The rep with whom I spoke did not seem to know much but took down my questions promising to get back to me. Otherwise, I will muddle through. I just really want to be completely done with this to avoid probate. All her other assets are to go to charities if she doesn't use them up for long term care first. To quote another poster: "Oh Lord, why me?"

Thanks so much, Tom, for your insights. As it happens, I am POA for this client now in a memory care unit. I've been trying to get her assets out of possible probate. This is the last thing and I thought it was done. In January I succeeded in transferring "ALL of grantor's one-seventy second interest in the oil, gas, and other hydrocarbons...as described as follows...BEING a part of the same oil and gas interest that was granted and conveyed in Deed Book...(to her father and other family members, only names of persons, no entities) in 1946..." and only describes very specific tracts of land. For 2016 (just when she was beginning to lose it) and 2017, her Forms 1099 stated only royalties, nothing about rents. The dollar value of the purchase of the above is the amount in Box 1 Rent. The date of the sale is the date I signed it, January 25, 2018. The date she inherited this was her father's date of death, intestate, in 1997. There is an affidavit of heirship dating back to 1940, her grandfather is named there. I called the county courthouse but there is no record of value for basis purposes. I am happy to use 0 as the basis as her tax won't change. My biggest problem is how to show this jumping from Sch. E, Rents, to 4797/Sch. D, as a capital asset. Guess I can just plug in the numbers and explain when/if the query arrives. Sigh, and it is only beginning...

It used to be much easier if you merely wanted it to look like a signature. You could choose a font in the master form and it would show up. I really liked that option. It was prettier than my actual signature! I just use the printed one now as it is permitted by IRS and agencies. And I think the process by Hahn104 is above my pay grade

Judy, thanks for the explanation of views. I honestly did not think that folks were purposely not answering or ignoring the question. It was probably more like seeing what new strange situation arose, was it like anything in their experience, just maybe they might know the answer or provide a suggestion - which is what finally happened! And I am so grateful for that and for all on this board, even guests.

Well, scottmcfly. that was my thought as well but the 1099 shows the proceeds at Rent and I have no clear understanding of how to get that figure onto 4797 when the IRS computers are likely looking for a match to Box 1 Rent on what? Sch. E? Of coiurse I have no basis but the amount isn't so great that 0 wouldn't work. I did put in a call to a representative of the issuer of the royalty checks because I also don't understand why she kept receiving checks following the 'sale' but thought maybe they were distributions for prior income - or something. If I ever have another client with this stuff, I think I will suggest they keep moving on! I'm getting too old and confused to learn much new stuff.

Thanks so much! I honestly didn't try the search engines thinking a: this would be a bit esoteric and b: surely someone of this esteemed collection of brains would know the answer. You've given me a start anyway!

Yippee! It worked! Thanks Abby. Now I just get to re-enter bunches of data but better than having to re-enter bunches of assets!

Bump - with 38 views I don't seem to be the only one with questions. Surely some of you good folks have had experience with oil and gas interests. Please offer hints, anyway, if not actual chapter and verse. Anything would be much appreciated.

Do you have Max or 1040?

Under Tools be sure you have entered the data for preparer and checked the box Print Signature. Under Options/Preferences/Preparer Manager, select the preparer to Enter this preparer's information on all new returns or ERO's information.

My fixed assets and depreciation are not rolling over for Sch. C. I downgraded from Max to 1040 plus ppr for 3 trusts and am really annoyed so far. I fear this may be another 'gotcha' as I was given misleading (to say the least) information about the payroll ppr aspect. I waited to complain until 4562 was available thinking that was related. Call in now to sales rep. I fear another $1000 to pay the ransom.

A client has sold gas and oil/ mineral rights. The 1099 MISC shows the proceeds in Box 1, Rents. I called to see about this but was told that was where such things were listed. This is completely new to me. I've always listed the royalties on Sch. E but somehow showing rents with no real estate info seems odd. It seems it should be Sch. D. There is no recoverable record of basis. Related, is the attorney fee then deductible from this? Does the attorney require a Form 1099 MISC as it was over $600? This wasn't the client's trade or business, mind you. Seems great-great (maybe even more greats back to the 1800's) grandpappy in PA invested in this and she somehow inherited 1.38888889% share. It's the last possible probatable item and she wants to be rid of it. Making me a little crazy here and so early in the season!

Thanks for this. I've just spent (wasted) time on the chat. Arthur J originally said that 1099-INT was not covered in the Payroll package. I asked why was it then even available! So my error is thinking the INT was due January 31, too, but it isn't until February 28? Is that for e-filing or getting the form into the recipient's hands? It just hasn't been a problem until now.

Message says forms not approved. I have e-filed 1099-MISC forms. What could possibly be the difference? I couldn't find anything on the forms update list about efiling.

Yes, I couldn't find the usual ack notice. I think we have to include the client letter now and choose efiled. At least that is what I have done.

Welcome back, indeed, KC! You've been greatly missed. We all hope you are well and continue to contribute - or just lurk - your sound reasoning and considerable knowledge. You will have to attend our next soiree!

I've been using this form for several years and include it with the electronic return (or printed for those few) so folks can more readily see how changes in their income and deductions from last year resulted in the current year's higher or lower taxes. I wish there was a comparable form for the state but those fluctuations aren't as obvious any way. It tends to forestall some questions from clients.

Is it possible to print labels for the 1099 recipients from the payroll package? I've not purchased the envelopes this year for my church but have prepared the 1099's as usual. It would be nice to give them printed labels for the church envelopes. I spent a bit of time in the KB but could find only how to print a label for the issuing company, not individual recipients. It may not be possible, either, as too much to ask.

Online list shows release on Jan. 25. You could also just compare with last year's return the hard way. It will be interesting to see the new comparison form and how it shows the placements of income and deductions between somewhat different return formats.

I use the engagement letter every year for every engagement for a couple of reasons. All those mentioned by Rich. I am a member of the AICPA and insured by their affiliate. There is a significant premium discount for using them. Several years ago I called for advice about a potential claim (didn't happen, though). When I forwarded the signed engagement letter, I was assured then that all was covered. It was a great relief. If any potential client looks askance at the requirement to sign said letter, we part ways. We need to know the expectations of each other and who, exactly, is responsible for what. I am still amazed at the number of folks who seem to have lost or misplaced prior year tax returns. I actually wonder if they have a clue as to the location of the supporting documents. More than once I have been asked about a W-2 or other document for a prior year. Yes, I do, in fact, have a copy. Where is theirs (she asked rhetorically)?

Ah, payroll compliance, new 'improved version. Um hum. I am trying a corrected W-2 since it has the same EIN as the 1099's so no extra charge ($10 per EIN) but the data from the W-2C does not flow to the W-3C and, of course, those fields are not accessible. After 2 hrs, 54 minutes on hold I did reach a really nice tech person who couldn't figure it out (it shouldn't do that - duh!) and ran it up to the next level. I stressed the importance of expedience so we will see. If it isn't fixed, BSO direct it is. I guess the 'if it ain't broke, don't fix it' adage didn't apply here. The new program looks prettier, matches better but doesn't work as well. Whatever happened to beta testing before prime time? /s