Lee B

Darn, I left out a word

I often find the 5 minute limit to editing my own post too short , because I left out a phrase or several words etc I think 15 minutes would much more reasonable and less frustrating

Copied from the J of A: "Under the notice, the postponement applies to any individual who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021. The IRS says the postponement also applies to the filing of all schedules, returns, and other forms that are filed as attachments to forms in the Form 1040 series or are required to be filed by the due date of the Form 1040 series. The IRS lists as examples Schedules H and SE, as well as Forms 965-A, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E, and 8938. Also, elections that are made or required to be made on a timely filed form in the Form 1040 series (or attachment to the form) will be considered timely if filed on such form or attachment, as appropriate, on or before May 17, 2021. The notice also extends the postponement to claims for credit or refund of federal income tax that absent the notice would expire on or after April 15, 2021, and before May 17, 2021 (this generally affects 2017 tax years). The notice also automatically postpones to May 17 the time for affected taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). The postponement also applies to the time for reporting payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. The postponement also applies to individuals who are required to file and furnish Form 5498, IRA Contribution Information; Form 5498-ESA, Coverdell ESA Contribution Information; or Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, (the Form 5498 series) that would generally be due June 1, 2021. That deadline is postponed to June 30, 2021."

Current IRS Guidance does appear to include adding back the exclusion amount to arrive at Household Income.

Interesting, I have a client who used to do the exact same thing as a side business. He didn't seem to have any problem tracking everything and giving me a year end inventory.

You can give him some assistance with guesstimating a year end inventory. If he doesn't follow through, what are you going to do,?

Since, he is not conducting like a business then it's a hobby

That's not a payroll service, that's a . . . . . . . . .

It's been this way for almost 20 years and it hasn't changed

Maybe, maybe not

The PPP Loan Expense Window begins the day the funds are deposited in your clients checking account. There is no delaying the starting date. You can pick your ending date by choosing your expense window of any number of weeks between 8 and 24. The best strategy is to maximize the $ amount of your PPP Loan Forgiveness, then if there are any payroll dollars left over use those dollars for the ERC.

This thread is gaining a lot of circular momentum

No, what does took over building mean? It's not not exactly precise terminology!

First question - What does this mean?

Office Depot currently has 8 ream cases of 94 bright paper for $ 24.99

Thanks everyone for all of the useful input. I did say in my original post that none of the the work appeared to be a Leasehold Improvement. However, when the property was purchased the house was definitely not in condition to be rented. There were a number of electrical and plumbing code violations that had to be fixed, plus other cosmetic fixes to things that just looked ugly. In addition all of this R & M had to be done before the property could be placed in service, therefore I have decided to capitalize the $ 11,700.

My understanding is that the IRS still hasn't given any guidance yet, which the soft ware providers need to change the date beyond April 15th

I guess I have a problem with ignoring the legal ramifications of a business/tax scenario which would potentially affect my client's business and personal financial well being. If you have employee's in Oregon, state law mandates the employer to maintain Worker's Compensation Insurance, which is not a tax issue. My practice is mostly a monthly write up/payroll/tax all inclusive service where for my larger clients I am their unofficial controller/CFO once every month.meeting with them at a minimum. So if my client's heeded for a brick wall, I am going to say something

I got 2 bxs of Office Depot 94 bright 8 reams per case for $26 per case recently. I guess I am getting feeble and decrepit, my back really likes the 8 ream cases due to the lighter weight

While I agree that a PTS Return should be filed, depending on the circumstances, the expenses could be start up expenses or be deductible expenses.

I have a client who has a total of 9 rental properties, 2 which were purchased during 2020. One, an older house was purchased in early July. The prepurchase Inspection Report had a laundry list of repair & maintenance items that were needed, none of which constituted a leasehold improvement, which cost $11,700 and several months to complete. The house was advertised for rent in September, but was not rented for several months. Total 2020 rent for this house was only $1,558 and other deductible expenses totaled $ 5,682. Would you go ahead and deduct the $ 11,700 as R & M. Note: the other properties generate enough taxable income to easily cover this potential loss, therefore passive loss limitations are not in play.

Bonnie, If your client wants a online payroll program that does "everything", most functions can be run from a smartphone or tablet, has employee access thru a phone app, take a good look at a program called "Gusto" It's at the top or near the top of all the ratings, reviews and cost.

I have been using online payroll for over 8 years now. Doesn't mean I would vouch for it. Actually I will be looking a replacement after tax season is over. I already use Medlin for my smaller accounts, less than 10 employees. Almost all of the services charge between $39 and $69 per month plus $ 4 per employee per month.

No, mine says PayPal

Clients that I used to have, 3 brothers owned some commercial property, 2 restaurant buildings. Prior accountant, a CPA Firm filed as 1/3 each joint ventures, then I took over and followed the same joint venture pattern. After 2 years, each brother received a letter from the IRS telling them that had to file as a Partnership and that if they didn't they would be subject to the monthly PTS failure to file penalty. Needless to say we then filed a 1065.