Abby Normal

Tax pros in office are more numerous than they appear.

Oh, let 'em have $25, it won't change their tax in most cases.

Yeah, but for them to be a dependent, their other income has to be so low that NONE of the Social Security will end up being taxable.

Social Security doesn't count towards income when claiming a dependent. It's a carve out.

Yeah, but where is the 'place'.

Indeed. Had a client with dependent care benefits on W2 but no child care expenses listed. He told me they paid cash and could not deduct it. I opened 2016 return while on the phone and he had preschool expenses, so it wasn't taxable last year. But as I was hanging up I realized we (be a team player, it diffuses the blame) had missed entering the DCB on the W2. I try to be efficient when reviewing returns, and we only see DCB once or twice a year, and the DCB was off to the left all by itself on the W2, but it was still a mistake we made. I had to sit with this for a few days before I emailed him the bad news. Frell. (I always had the hots for Chiana, even though I prefer brunettes. She was a bad/tough female character.)

I think you misunderstand my clients.

Because we charge $45 for an 8283?

Oooo, lamb chops!

Out of pocket expenses for charity just get listed like any other donation.

Nothing new since late last year and that wasn't the first case, but I say good!

Much lumping is done.

He deserves everything that's coming his way! Man, oh man. And I get mad at my clients for taking money out of retirement accounts without asking me the tax implications first. Who was his accomplice? He doesn't sound smart enough to form a corporation and elect S status. Ask him for the 2553! And tell him you need the corporations bank statements for the year so you can put it in QuickBooks. make his bill thousands of dollars more than last year, then if he leaves, you've actually gained.

Quarterly Interest Rates Increase for 2nd Quarter 2018 IRS has announced the interest rates for the 2nd quarter of 2018. As of April 1, 2018, the rates increase to: - 5% for most overpayments (4% for corporation overpayments) - 5% for underpayments - 7% for large corporate underpayments - 2.5% for corporate overpayments exceeding $10,000 As in past years when a rate change begins April 1st, for purposes of Form 2210, the former rate of 4% continues to apply through the unextended due date, April 17, 2018. Revenue Ruling 2018-7 https://www.irs.gov/newsroom/interest-rates-increase-for-the-second-quarter-of-2018

And since I customized 3 records of the 8283, it's been a snap to fill out.

I don't understand the problems with 1116... and I'm afraid to ask. Just did one and it had it numbers on it and stuff.

Most shareholder 'loans' are not really loans and are totally undocumented, and never repaid. Making them equity allows for stock basis, avoids imputed interest and gains on repayment of principal if debt basis was used for losses. Not to mention having to track debt basis. You put it in as capital, you take it out as distributions. Easy, peasy.

Sometimes, when donations of goods is in the 501-700 range, I get them to agree to 500 to save more on prep fees than they'll save on taxes.

I don't do shareholder loans. Always goes is as additional paid in capital.

And apparently that legal fee deduction was killed in the new law: https://www.forbes.com/sites/robertwood/2018/03/12/new-tax-on-lawsuit-settlements-legal-fees-cant-be-deducted/#693a8a1e70d7

It was the Moore case (I think) http://caselaw.findlaw.com/md-court-of-appeals/1132400.html But, yeah, lawyers write vague agreements and then get paid to fight about what was meant for years afterward. Tell your divorcing clients to SPELL. IT. OUT. Regardless of what the law says. I asked my mediation attorney why my divorce agreement didn't specifically say that support ended upon remarriage, and she told me that she felt it wasn't necessary because 'that was the law.' I told her she should start doing it.

I just got one this year where the husband gets the 1099R for the full amount, even though the ex gets half. Thankfully no taxes were withheld. We issued 1099R from husband to ex. Also, there poorly crafted mediation agreement says 500/mo until he dies but says nothing about qualifying as alimony or not qualifying. Too many lawyers suck at their job. There was a MD case that went all the way to the state supreme court which, on a split decision, decided that lifetime payments ceased at remarriage because MD law clearly says they do. The ex got remarried one month after the divorce agreement. Alimony was rally high. I remember the surname in the case seemed appropriate.

All of our entity returns and personal property returns are extended the first week of March. We extend all unfinished returns the first week of April, unless we are 100% certain they will file on time and/or are getting a refund. With the way we customize our 4868, extensions go fairly quickly. I could repost if any of you missed it last year.

My experience with ATX support has been very good, with short wait times, helpfulness, etc. Plus, even more importantly, I have rarely needed to call support. Some of that is due to my self-sufficient, dogged nature, but a lot of it is due to the software just working.