Margaret CPA in OH

Client and partner have been traveling from TN to OH twice monthly since relocating to TN in about 2022. They are both psychologists with personal counseling practices. Most of their counseling is via telehealth but they have some OH clients that they see personally when in OH from original practice. I do not prepare the partner's returns so cannot speak to the handling of expenses there. As they were long time residents of the area and my client attends church and sings in the choir and is a deacon, her visits to OH are both for business and personal purposes. She has rented an office for in person counseling in OH but does only telehealth in TN where she also does her billing. She wrote that she and partner decided to rent an efficiency apartment last September for overnight stays on those visits in OH. I don't know if there are other stays when not meeting clients. My client does NOT use the apartment for 100% business and has done telehealth from that location only once since September. Partner does a lot from there, I think. My client has not had to pay for overnight stays since relocating to TN until September as they were staying with a close friend at no cost. Close friend moved in with sister so no more free stays. I'm thinking that my client might be able to expense her share of the rent for those nights she stays in OH when meeting clients in person. Her share is one half of the monthly lease payment. She has never taken any kind of travel expense, meals or lodging but I think it appropriate to deduct something for overnight stays when she does do business here as it is too far to commute to TN. Thoughts?

Thanks, Lee B, for the reply. That's pretty much my position, too. I may get flak but then I'll just retire Or retire from her. Yes, I do seem to get them, don't I? And I haven't touched on the new client with 7 rentals in 5 states with a 1031 exchange in 2022 that took me for a loop when I saw no depreciation in 2023. Now I know why. Then there is the Air BnB he bought in 2023 with $7000 in 'consumables' and sold in 2024. Why, oh why, did I say yes to this guy? Sigh, partner of recently deceased neighbor's son, so a sympathy gesture, I guess. At least the data entry in my 2023 program results in the same bottom line so that's good. And he is very well organized...unlike some others. And according to his 2022 and 2023 invoices, he is accustomed to paying a fair amount of money. So there's that!

A long time client, self-employed psychologist, relocated from this state to another but continued to come back to this state twice monthly to counsel clients. During COVID she also began telehealth sessions from new home state. Her partner was doing the same and renting an office in this state for use while present. My client paid half the rent to partner but chose not to claim expense as she did not want to 1099 partner. Two years ago she rented an office in this state for sessions, claimed the expense so 1099. I just got notified (when reminding clients that it is 1099 time) that she moved to another local community and, by the way, she and partner are leasing an efficiency apartment locally to stay when working in-state rather than staying with friends as before. (That friend moved and no longer has room.) They are both on the lease. Client pays the rent and partner gives her half. Client has done telehealth just once from the apartment but partner does it a lot from the apartment. This is hurting my brain. Client does not do billing/office work from apartment but also has never claimed home office in now resident state. Client has never tried to claim mileage from new state to this state as she always participated in church activities and many other social events with friends while providing counseling sessions in person for just a few hours. I don't think that has changed - no additional in person sessions in this state, just a nicer, better place to stay overnight. Ideas? My inclination is to deny claim of rent in this state as she is here for just a short time but paying for full time facility, well, half of it. Can I retire now? And BOI, do I want to!

And I am soooo unprepared! Can I retire today?

I already have 3 of these for my position as church treasurer and other relationships. I was glad that one of them recognized the ATX QR code and allowed me to add it so I didn't have to get yet another one. I am s bit terrified of losing this phone and am beginning to understand the need to have it on me or at hand all the time. I hate it. And I need an upgrade for security updates and am nervous about losing something important. Sigh...Happy New Year!

I have two clients that insist on coming to see me, usually bearing small gifts, but their returns are very simple. One client has a very complex return but still wants to visit when it's completed to review. She does upload documents to the portal. I get documents (scan to my laptop) at one client couple in assisted living and deliver the returns when completed. All others are on my time table. I have a poster wit my office hours - likely you all have seen it, too, but it's real for me: Open most days about 9 or 10. Occasionally as early as 7, but SOME DAYS as late as 12 or 1. We close about 5:30 or 6 and occasionally about 4 or 5, BUT sometimes as late as 11 or 12. Some days or afternoons, we aren't here at all and lately I've been here all the time EXCEPT when I'm someplace else. The latter timing was very appropriate when I was training for spring marathons over 12 years. It was so great to go out for my runs in the middle of the day for a break!

Geez, and I thought I was the bees knees with my single new curved 32 inch monitor. I just can't keep up with the youth of today!

I keep a pdf copy and the client always has a pdf copy in their Verifyle account. I gave up paper copies several years ago. On rare occasion, I may have a copy of a more complicated return with all the statements and worksheets but can't think of any at the moment. I also have an internal backup drive, an external hard drive (both used weekly or more) and a constant online Backblaze backup.

The client said about $700,000. She also said the tax was $78,000 although I'm not sure how she got that figure. I looked at 2023 1099R and back calculated the FWH to see the ratio. It looks more like about $650,000. I hope she gets the information from the bank as I asked. It will be tough for her going forward especially if she has to enter memory care with diminished assets.

Thanks to all for confirming that really nothing could be done. She is not in a position to take advantage of this loss in any way as it was neither business nor casualty. She has already refinanced her mortgage based on her sister's recommendation. I don't know the details but am fairly certain I would have advised against that. She thought she needed more cash currently. I think she now has a higher rate. Alas, dementia is not a reason to have other taxpayers cover her losses or taxes owed. The scammers are just awful humans, in my opinion. I'm wondering whether, with my aging clientele, I should reiterate a caveat to maybe contact me if someone approaches or calls them about sending money. This client said her gut feeling that something was wrong about this but hesitated to ask either her sister or me. The phrase "can't fix stupid" comes to mind but, sadly, so does the fact that adults with dementia are truly not of sound mind.

A client with a measure of dementia creeping in called me with her tale of woe. She has been too embarrassed to call me months ago when this began. Apparently she fell for a scam which resulted in her sending several hundreds of thousands from her IRA. She finally got suspicious when it was never enough and contacted an acquaintance in the FBI. Ironically she had taken a citizen's course about the FBI a few years ago so had a contact but her dementia interfered. The agent told her that this was a major scam going around and, of course, a federal offense. He took down lots of details as she kept many notes. A case is being built against these folks. She is hoping that there will be some mitigation but I think not. I told her to get information from the bank and, to avoid further embarrassment, to just state her CPA needs this for year end tax planning. She seems to think that $78,000 was the tax and I'm hoping that was withheld. No state tax, though. I think she is up that creek but told her I would look into this. She has enough to live on but it will be a reduced lifestyle going forward. If she owes (almost for sure), additional tax, I assured her that payment plans are possible. Is there anything I am missing that she or I should know? I've had clients with stolen identities but this is a first. These are despicable people taking advantage of elderly.

Hi Judy, and welcome back for however long. There are a number of us that hearken back to those days and, like you, soooo close to retirement. Some already have. I've got about 2 years on my license but actually still enjoy - for now - the season with about 50 clients. They, of course, tell me I am not allowed to retire. My Google search showed Nov. 30, 8:59pm.

On a 1099NEC I transposed numbers of an SSN IRS sent a notice that the number did not match IRS records. The notice portion of What's next states "You don't need to do anything if: You made a clerical error in reporting and the payee name or TIN on this list is not what is in your records, or ... Some time ago I also had such an error and filed another form, 1099MISC when that was the only option, marked Corrected. Now, however, I cannot just make the change on this one form and efile as the message is that I cannot efile when in accepted status. ATX folks went round and round, had me create an independent file for this recipient only marked Corrected but the message is that I cannot efile when the original is not in accepted status. It seems maybe I should not do anything? However, when I search for corrections, it seems I must file a corrected form. But I have no paper forms. Suggestions?

The client I currently have with this situation incurs significantly higher expenses for qualified LTC services. Not all is reimbursed. The excess expenses that were not reimbursed were carried to Schedule A and listed as unreimbursed ltc expenses. the past two years have put this client well over the standard deduction.

I finally got around to reading the information on the link provided above including the FAQ's. I do not see this definite answer about sole proprietors. I must be reading past basic information. I sincerely hope this is true but would love to read it myself so maybe someone with a sharper brain and eyes (almost everyone!) could point me there. I am also confused about SM LLC's. I have a client who files a Schedule C and is SM LLC. Her newest enterprise is a wine store which just opened and I think will be very successful All I can find is the flow chart that shows it 'May be a domestic reporting company' but I go in circles with the definition of a domestic reporting company and 'may be.' I've done the Google and read several references without seeing definitive answers to my questions so any guidance here would be most appreciated!

Wow. I hope I don't have to do this. So far I've had only one client in all these years take an early withdrawal and it was for first time home buyer.

I think I will include in my cover letter, in addition to the information about foreign bank account reporting through FinCEN and that I do NOT prepare this, information about BOI with links and that I do NOT prepare this either. Just a heads up thing. I don't think any of my clients have this requirement.

The authenticator I use provides a 6 digit code to your mileage must vary.

I hear you! I HATE having to have my phone at my fingertips all the time. I try to remember that I'm adding steps. Yes, my authenticator is a phone app but I don't have to use it often so am prepared to have the phone available. My choice was to use my fingerprint which is how I protect my phone. It can get annoying but I now automatically pick it up with my left hand and my fingertip goes right to the spot. I still have a landline for my business and will keep it until I retire. I leave my cell on vibrate and the sound off about 90% of the time. It annoys some folks trying to reach me because they have to leave a message. And I don't answer unidentified calls on either phone. Since I don't have every contact ever in my cell, lots of calls are unidentified and not all callers leave a message. Also my cell isolates identified spam calls very effectively.

I also have an authenticator on my phone which I was required by the bank to have for my position as church treasurer. I turns out that OH|ID was added to the list. I don't recall that it was an option to select when I set that up (I tend to forget too much these days) so it must be possible to keep adding those that offer or require this. Yes? I, too, wonder about losing or even changing my phone. It's a Pixel 4a so kind of old but I love the smaller size. There are very few available now that I can comfortably hold in my hand but I know I need a newer phone soon!

I, too, used to password protect pdf copies of returns before using Verifyle. Now Verifyle requires the client to access with email and password but has 2fa as an option which I will look into soon. Sigh....

I was just now reading about this through Tax Talk News and am scratching my head on how to manage. So as a sole practitioner I have to use 2FA to access a pdf file on my computer? I have to text to myself or call myself or email myself every time I want to look at a client file? My computer is password protected as is the ATX software but I don't have each client pw protected as I am the only user. If so, how do I confirm to myself that I am me, the authorized user? I realize that I will have to do something more now with Verifyle but my clients are not going to like it. At least I know it is an option so will have to read up on how to implement for myself and for each client. Retirement is REALLY looking better all the time! I'm getting too tired of soooo many hoops....

Marilyn, you sound like my husband! He had been coughing and wheezing and feeling awful for weeks. I finally convinced him to go to Urgent Care and pneumonia! He wasn't hospitalized and got worse so back to the ER 5 days later and a change in meds. He is much better now but really weak still. Denial is strong with folks who are so accustomed to pushing through. I'm so glad you both are on the mend!

From Jody Blazek Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition: The type of indebted property subject to the debt-financed rules is best defined by listing those that are not included in the term. Exempt-Use Property. When substantially al of the actual use of the real, tangible, or intangible property is substantially related to the performance of the organization's charitable, educational, or other exempt functions, the property is not subject to the debt-financed rules. IRC Sec513(b)(1)(A)(i)The exempt purpose usage must occur at least 85 percent or more of the time. Such use must be actually devoted to exempt activity purposes and used directly in the organization's exempt or related activities to be exempt. I could go on but it's a book. From my church's experience, we rent only to non-profits, 501(c)(3) organizations. And with that, keep in mind that you may be subject to real estate tax. We discovered that not all states or municipalities waive real estate tax on churches or non-profits. Now we are subject to re tax on all the space for which we collect rent. Your state may differ. Your organization may want to restrict rental to exempt organizations. We thought that our doing so would be all that was needed. As a church, all the Space Sharers (as we call them), do support all of our mission and ministry in their respective missions so we do not have to file a 990T for UBIT and we never rent to for-profit organizations. Let us know the outcome.

I also use Firefox but additionally have AdBlock Plus. You can block just about any thing with it and selectively unblock particular sites always or once. And I never stay signed in to Google anything.