Margaret CPA in OH

Curious - what does it mean, 'on a domain?' I thought there were only desktop or server choices. I have a 'domain name' for my site but, since ATX is not cloud-based, I'm having trouble understanding this situation. Would you explain for this simpleton?

So I have finally downloaded the software and followed the instructions - thanks! I never would have figured that out. I tried it out by uploading to Verifyle and see that only the boxes under 2 under Return preparation and filing allow a checkmark, that is, a little hand with pointer finger appears. With all the other boxes, one has to click on the box and type in an X or something. Is there a way to make all the boxes like the ones with the finger and checkmark? Thanks so much for your help!

No worries. I still have no clue about the 'exclusion' thing so clearly don't know it all. I was just pretty happy that I got the same figure for the building but have no idea what to do, if anything, about the 'depreciation' on an 'exclusion' that shows up only on the depreciation schedule. Maybe she will go somewhere else for 2022 then a not my problem!

Again my thanks, Judy. I am, I hope after 35+ years, pretty much aware of depreciation calcs and this one, $18,764, was within a couple of dollars of mine using a table and the ATX calc. Non-depreciable land was listed as $129,000 with an exclusion of -$64,500 but no depreciation of course. I didn't think it was needed in my post. I just have no clue what, if anything, to do with the exclusion thing and the negative figure which did not appear on the Deloitte return - only the expected amount did. I just looked at 2019, forgot she sent it. Deloitte did prepare and MFJ. There is no 'exclusion' of anything there so it must be some cute way to indicate his and hers although 2019 shows 100% business use and 2020 is 50% so took care of that as MFS. Scratching head, will stop worrying. Client guessed something about the exclusion of primary residence when qualifying time met but that doesn't, to me, explain the 50% for the land. She may or may not return as a client for 2022. The divorce was final in 2022 and the condo sold in 2022. Perhaps all will be revealed in the future, just maybe not to me. Thanks again for the PA help. I shall carry on and hope for the best with the Philly returns!

Thanks again, Judy. You are correct, the loss is not taken into account for adjusted PA taxable income. I confess I didn't get that far as I was so flummoxed seeing it appear on line 5 when it did not on the Deloitte return. I guess I will carry on and maybe everything else will work with overrides as needed.

Thanks for the reply, Judy. I guess I have to call tech support. The loss is carrying from PA40 Sch D to page 1 of PA40 and deducts it on line 5. Sch D is clearly marked loss, x in the box. I saw the reconciliation page for Line 1a but only column Income from Federal is correct. PA Resident does not pick up either the Medicare wages or state wages data entry box on the W-2 or when I enter into another ATX worksheet that allows typed entry for Taxable PA Resident compensation. It does show Box 1 and Box 5 wages, different amounts but the workspace above is not picking up the correct figure so I get a message that the taxable compensation amounts below do not equal line 4 above. No kidding! But why? So off to support I go. The depreciation issue is a statement with the 1040, not on Philadelphia. The condo is in Philly but I wasn't clear that the depreciation weirdness is the schedule with the IRS 1040. I just have no clue what, if anything, to do with that. Sch. E just took the Building amount. Thanks again. Time to call support and wait.... At least I know the loss should not be showing and the wages should be Medicare, not box 1. The Deloitte return does not have the worksheet you mention, just a statement. ATX has a worksheet that doesn't work. Sigh...

New client, referral, contacted me last week to file her MFS 2021 returns, IRS and PA and Philadelphia. 2020 was filed by now ex-spouses Deloitte firm and I have copies. He lives in Hong Kong so address is Hong Kong but she lived then and does now live in Philadelphia. I matched the 1040 save for $1 but the PA 40 wants to deduct the $46,000+ loss on PA Sch D. She had to cash in her 401(k). In reading the instructions online from PA tax, it seems correct but the Deloitte firm didn't take it. So what is correct? Also,they jointly owned a condo in Philly and the depreciation schedule shows a Building $516,000 50% use, Basis for Dep. $516,000 Beg Acc Dep $52,383, Currrent $18,764, Ending Dep $71, 147 Less Exclusion -$250,000 50% use Basis for Dep -$250,000 NO Beg Acc Dep, Current Yr -$9382, End Accum Dep -$9382 What is this exclusion thing? The amount of depreciation on the return is just the amount shown for the building, $18,764. Scratching my head here. It was sold in 2022. Lastly the return copy contains Form 8948 AND 8879 but client says that her ex said it was efiled without her review or signature. He has also provided a detailed account of what she owes him as he paid all the tax due to IRS, PA and Philly as well as the penalties and interest. He also paid $10,000 toward her IRS account which she verified after I told her to set up an online account which she promptly did. As she wants me to prepare her 2021 returns and confirm his amount of what she owes him. I need the most help with that PA 40 and the loss ATX wants to deduct. Oh, it also does not want to take the state taxable income which appears per the instructions and the 2020 return copy that it is Medicare wages. I can't click on input the right things to get that figure on the form without overriding. Thanks so much for any help. I've got precious few days to get this out to her and submitted.

Hi Judy Good to hear from you! I agree with all you said and fondly recall the barbeque bash we sent one year to those outstanding folks. Good people, all. Like you, I am downsizing and looking at maybe 3 more years as my license renews end of this year. Best to you on your journey - it's been so great to have this community in various configurations since 1997 for me.

I agree with cbslee but was assuming, perhaps in error, that this person was not affiliated with a national group, sort of starting a free standing church. Could be wrong.

A few years ago I might have stepped up but don't want to take on something like this now. If it/he was already established, it would be different. But he would need to look into filing a 1023 for a determination as to church status after incorporating in the state. At least that would be in the right direction to prove the religious exemption. Our church was established in 1867 so never received an exemption from IRS because, well, it didn't exist. Suddenly the local tax agency is asking for it. We really do not want to pay for the filing. Perhaps he could begin by googling and might find links such as https://www.remixtures.com/how-to-start-a-religious-organization/ and https://www.nolo.com/legal-encyclopedia/how-to-form-a-religious-nonprofit-organization.html

I think this is especially unfair when one considers how many grandparents or foster parents are 65+, still working and having all the same responsibilities and more of many younger people. It is income restricted so only low income people qualify anyway. And people in increasing numbers, I believe, must continue to work instead of retiring. If having worked in low wage jobs, often without retirement plans, they could use a little boost, in my opinion.

If he is a grown up and could manage to sign the forms, he surely must understand that payment is required. I guess one more try at letting him know (maybe actual snail mail) that payment is required to be the 'paid preparer' or else return his documents to him. It's a package. Frankly, I don't require money ahead (yes, my engagement letter says it does) but in 25 years I've had exactly one client fail to pay me. It seems your clients are a bit different from mine. Good luck and I hope it isn't a lot of money although you should get compensation for the work done, for sure.

Would this be Kofax Power PDF 5 Standard for Windows? It's $129 which seems reasonable. I just want to get the right Kofax software. And thanks again!

Thanks, but how do you get it into Kofax to send or upload to clients? Do you save it as a pdf then open it in Kofax? Tech is not my strong suit

Hi, I use the questionnaire in the comprehensive organizer to help clients, well, organize. I really appreciate it when they actually check the Y or N boxes. Now, however, with the Verifyle portal, it would be much easier if they could simply check those boxes online or on their computer/phone and reload rather than printing it out. I cannot figure out how to make those boxes 'checkable' though. One client did it and I asked how but he never repliee - trade secret, I guess. Any ideas? I used to have desktop Adobe Pro but no longer and refuse to pay monthly service fees as I could never get the value out of the software. Thanks for any help or advice!

Well, if absolutely certain that he is not entitled to it, I would send it back. However you include an assumption about the 2010 return so it may actually be valid. Maybe. One option is to put it into a separate stand alone account and wait some period of time (whatever SOL might be), and see if someone comes knocking. He has managed to survive until now without the funds so maybe he could be on hold with IRS if really desperate to confirm if it's really his to keep.

My son did that several years ago when the limit was $4000. It made a huge difference and he is now set with real estate. I'm not sure of any requirement that the 10% penalty exemption is restricted to contributions. It seems a bit confusing to have exceptions but not for earnings, too. I did not look at IRC Sec. 408A(d), the reference given in Quickfinders.

Thanks. They do reflect strongly my beliefs.

Interesting to learn the differences among the states for ethics requirements. Are Ohioans more ethical, as in, we don't need no stinkin' ethics or at least not so often Given some of the challenges by some clients, it probably is not so bad to be reminded with some frequency. Not to say some clients are unethical... /s

We only need 3 hours every 3 years, not 4. But those can be intense hours depending on the instructor. Well, when it is/was live instruction and the leader put you on the spot, made you think. The online course is less intimidating but the answers still point to being honest and, well ethical.

I don't remember the date but I tried to renew last week while I was thinking about. Not an option. I put it on my calendar to try today but the system says it's down for maintenance. Maybe Nov. 1 is the date. On my calendar for then.

I have a second drive in the box, an external drive in a safe (yes, consumer priced but rated fire proof and easily accessible for me to grab and run) and BackBlaze continuous cloud back up. That's what I do and hope it's enough for 3 more years. There are limits for us all both technologically and price wise.

Congratulations, Joel, and do continue to drop in. Words of wisdom and advice from experience are always welcome and needed. I am just sending in for my 3 year license renewal then calling it. I'll be 79 then and probably more than ready. If I get desperate, there is always VITA! We also want to move within a couple of years (missed the boom this year, alas) so that will save changing addresses. I imagine many of your clients tried to dissuade you as mine have. I better start preparing them hoping they don't leave too soon! Enjoy a 'tax free' season next year

Catherine, I'm happy that you are doing good self care. I'm trying after bringing home a Covid souvenir from a month of travel. Paxlovid did great, allowed me to walk a half marathon last Saturday but tested positive Sunday for the rebound. Still weakly positive yesterday. I didn't even have time to get booster or a flu shot as they became available while we were still traveling. I'm happy I am only beginning prep for next season and actually have no client work at all now. Just wanting my life back and to feel good again.

My Church and Clergy Tax Guide resource states that, if paid $600 or more, a non-employee must receive a 1099-NEC (used to be 1099-MISC). I haven't looked to see the instructions for the 1099-NEC if there is a way to indicate HA as there is in Box 14 on a W-2. All minister returns I've done and W-2's prepared for ministers when I managed the church payroll for several years, showed wages in Box 1 and HA. Most had FWH and SWH for their convenience but, of course, filed as self-employed and paid SE tax on both wages and HA.