Margaret CPA in OH

Joan, I am so sorry for your loss. It hurts at any time, it hurts now. Hug Tasha extra. She misses her buddy, too.

The pups are adorable, indeed! But how are they at paper weights like the kitties? I guess they have other specialized skills to earn their keep like being just cute and totally without judgment - pure love. Dogs have owners but cats have staff so I'm not sure if my cats are my staff or I am their staff, waiting on them constantly and replacing the perfectly good food that has been spurned for unknown reasons. I do miss puppies and have only granddogs now. After 60+ years of dog ownership, the last passed a few years ago and we decided to stick with cats now as we can go away for a weekend without a kennel. Still love dogs, though...

What great news, KC! A full and quick recovery is still wished so that those belly laughs will be a joy not a pain!

If I attached this correctly you will see my staff or as it was a couple of years ago. Bonk in the center has passed away after a couple of years of sub q treatments. The other two, Noogie and Tribble are still 'hard at work' holding down documents and fending off mean clients.

While I would not want a client to pay large or small penalties, I am not aware of any option to file an estimated return other than for estimated taxes. I suppose that one could sign the preparer declaration that it is based on all information of which the preparer has any knowledge (bottom of 1040). I wouldn't do it knowing that there exists information that would materially affect the return. I still think the attorney option should be exercised first. YMMV

I just get uncomfortable with the idea of signing and filing a return that you know for certain is not correct or at least do not know for certain that it is correct with the data in hand. With the client's knowledge that it would need to be adjusted later? I wouldn't do that. The attorney route, in my opinion, should be first. At least with actual books and records one could then have real data on which to base the return.

Not I and am getting anxious as clients want and need to know what to do for first quarter and beyond. I cannot understand the reason for that holdup. Did Congress change something with estimated payments?

How did anyone find this out?

I just put total rents received by "Tenants" on my own return, no names.

Jack from Ohio, I wish I could be of as much help to you as you have been to me but I have KNOCK LOTS OF WOOD had no problems. I will suggest that, going forward, you seriously consider scanning source documents before returning to clients. A few years ago I decided to head to much less paper and bought a Scansnap with is really fast and scans both side of documents. I save in a client folder on my computer. This year it greatly helped when I had to go back a few years to copies of documents for a property now sold. If not this year, maybe consider for next year. I do hope you and all those with these troubles get resolutions soon.

I know about the worksheet but don't know when her plan became self only. I have to ask if it was as of Dec. 1 or Jan.1 2013, I guess. Even if I put the self only in Dec. the contributions allowed are fine. Divorce complicates so many things!

New client had employer contributions to family HSA plan, now ex, as of late December, used nearly all of the distributions from plan. She is filing single, of course, but during the year all activity was for family. Any 'proper' way to input other than change it to self-only and consider that status at end of year covered full year? Thanks for insights!

I noticed that on my own and wonder what to do with a client that also has interest income and laundry income with their rental property. I have put those as other but it seems now it will all be rent.

Buuldog Tom, thanks for the direct line to Express Answers. I haven't really used it before, preferring QF, but this time it is perfect! Thanks to all for the help. I hope not to see another one of these but feel much better about how to handle the data if not the client!

Thanks again, Jack from Ohio. I think the pub is 4681. I just want to be sure about terminology before laying the bad news on the client. You make too much sense to be wrong! Here is the link I found from prior year posts here on the subject: http://www.fogelcpa.com/Pages/TaxArticles.aspx The first line is the flowchart to download. Thanks again!

Jack from Ohio, thanks for chiming in. What you write makes more sense to me but doesn't fit with the flow chart by David Fogel. You must know that the 1099-A box 2 says "Balance of principal outstanding" not "amount of mortgage that was cancelled." Is this the same thing? If this is the correct handling then he gets hit with a $26,080 capital gain now and potentially a debt forgiveness later, Fannie Mae depending, of $48.097 as ordinary income? If that happens then he may qualify for the Sec. 108 exclusion? When client told me about this, he said an attorney friend said it wouldn't be taxable. How do I tell him that $26,000 is taxable now even if a COD, should it happen, may not be as it could be excludable? He will be a hurtin' buckaroo, for sure! This seems the kind of thing that drives folks to bankruptcy, eh? Anyway, his situation seems to fit exactly your last observation. I don't think he has the money to pay, though. And his daughter is supposed to start college next fall. Maybe not.... Thanks again!

Thanks, Joan, the link you provided is the one I found earlier from posts last year. I have read over several of the articles and printed the flow chart. My question mostly relates to inputting the figures in the right place to get the right outcome. I suspected there might be a COD later with the check that it was recourse. When I follow the flow chart with the bifurcation between g/l and COD, I get a loss of $22,017. It just seems strange to put the 'selling price' as the fmv into the disposition data field but that's how I also end up with the loss on 4797. I guess I'm just looking for a bit more security that the numbers are going in the right places. This 'seems' right based on the figures that flow and I guess I need to prepare him for the balance of the debt to be demanded. So there may not be any COD. Hope so for his sake! Thanks again!

grandmabee, the client is not claiming exclusion. I may be based on things I have read, especially a flow chart that mentions that COD may be excludable under Sec. 108(a)(1)(D) for rental property and to claim it on Form 982 and reduce the basis of the property. As I wrote, however, he has not received a 1099-C. It is recourse, marked on the 1099-A, so it may not have COD. Don't yet know. cbslee, I have requested all the documentation, not just the 1099-A, so will see. I assume, since the 1099-A shows in Box 1, Date of Lender's acquisition or knowledge of abandonment 12-18-12, that it is finalized and title passed but will clarify. I honestly did not expect to have to deal with any of this at all with my client base so was not fully engaged in learning all the ins and outs. This one took me very much by surprise. I will know more, hopefully, with the documents I have yet to receive. I figured it would be a loss but then he would have COD for income but maybe that would be 2013. I just want to be sure to put the right data in the right places the first time. Thanks!

I have the first and only foreclosure of a client. It was a rental property for 6 years after personal residence. When last tenants moved, he couldn't rent to cover mortgage so let it go to foreclosure. I know several here have done these in the last couple of years so would appreciate help. I have read quite a bit and am fairly sure I understand what should go where but don't readily see how to do it using the disposition tab in fixed assets. The balance of principal outstanding was $209097 and fmv was $161,000. He said he tried to rent on Craigslist for several months but gave up and the date of acquisition is Dec. 18, 2012. He has not received a 1099-C but I think he can claim exclusion on Form 982 as it was rental property. Thanks for any assistance!

Wild guess here - duplicate the return. It is an option on an unopened return. Maybe the duplicate can be opened. Good luck!

Before changing out the 1040 for a 1065, you could duplicate the original so as not to lose the 1040 info. Then choose which one to use as 1065 and which is individual return.

Very good, Tom! I like it.

Here in Ohio, non-profits are not required to withhold tax for residents of another state. As a church treasurer, I discovered that when we had employees from KY. They had to file for Ohio refund and use that to pay KY tax. It was a matter of small church resources, volunteer efforts and getting a withholding account set up in a foreign state. As a nurse, it may be possible that the client of the OP works for a non-profit and/or doesn't want to pay the service for the additional state handling. There is a cost involved.

FYI knell (not knoll) /nel/ Noun The sound of a bell, esp. when rung solemnly for a death or funeral. Verb (of a bell) Ring solemnly, esp. for a death or funeral. I truly hope it is neither. I am not ready to retire (famous last words) and really don't want to get a new program. I think we should all be prepared as best we can, though. So far, knock wood very loudly, I have had no problems that time and updates have not cured.

I just did this when I noticed that my previous lists for NOL carryovers on local returns did not appear as a tab on the bottom as in the past. One local return actually brought up the previous list without numbers, the other one I had to recreate. I just checked to see if they showed up on the print list as the locals want that. Sure enough, they are there!