RitaB

Oh my gosh! Me, too! Here is part of an e-mail I just sent to client yesterday, cause I knew she didn't understand: "The Edward Jones statement does not show the cost basis in the shares (your kids) exchanged for other shares. EJ may think it is not necessary, or they may not have the history. Here's from one of my tax guides: Transfer of mutual fund shares. Any exchange of shares in one fund for shares in another fund is treated as a sale. This is true even if shares in one fund are exchanged for shares in another fund within the same family of funds. Author's Comment: This is a source of confusion for clients. The investment community may use the terms "transfer" or "exchange," but for tax purposes the transaction is a sale and a purchase." The quote is from The Tax Book. I will have to keep it handy...

If I can interrupt the love fest (just kidding, I love you all, too) This MORON broker just told me that my client's IRA was a Traditional IRA, not a ROTH. (Well, I'm lookin at the &^*% form, and IT SAYS ROTH.) I sent him a fax of the Investment Summary with the word "ROTH" circled saying, "Here's why I thought it was a ROTH..." Just my contribution to the sarcasm, cause I am all over it today...

Yes, I think you are right, Linda. I would also show the 1099-Misc amount as income on Sch C, with an explanation like "Employer reimbursement properly reported on Form 2106" deducting the same figure under "other deductions." Otherwise, he'll get letter in two years asking why you didn't report the 1099 income. One time I tried to handle this by including an explanation on the 2106. They didn't see it.

Wow. This is what's important. My oldest, who is not even very thoughtful, just made my day! Come on guys - we can do this!! Thank you, everybody, for all you do to help me. --- Rita

Well, yeah, plus the value of his own labor.

I know! One guy really rubbed me the wrong way cause he let it slip that he had asked the lady at HRB if he could deduct his losses. (I had ALREADY talked to him for 20 minutes on the phone about it.) HRB gal said yes, up to $3000 a year. Which is technically correct, IF HE HAD A LOSS. I was already mad, cause he wasn't willing to believe what I had told him, so I asked him, "OK, you weren't exactly bustin a move to get in here and tell me about your GAINS for the the past three years. Why not? Do I need to amend all those returns?" "Well, I didn't sell anything." Pause. Look of enlightenment comes over his expression. There will be another, different, look when I increase his fee this year by $50 for having the nerve to double check with HRB. I now know that he's only with me because I charge less than HRB. I am so tired a bending over backwards to help people who are not loyal to me. HRB gal didn't ask the right questions, and I'm sure she has been trained NOT TO, so the TP comes in to get the return done.

Just report it correctly, as if the form had distribution code "1" in box 7. I don't think you'll hear a word. Be sure he pays penalty, and I guess you could attach a note. I doubt I would bother, unless you wanna charge him real good for it, since he apparently doesn't bother talking to you...

because they "couldn't afford to pay the taxes on the a lot of earnings." That's exactly what she said. Not that they were conservative investors. Or afraid of a market crash. She knew they'd probably make more money, but since taxes would be higher, they didn't do it. They are in their 40's. That, to me, is like saying, "I could pay off my mortgage, but it's such a good tax write off." I had a pastor years ago to tell me he gave up a pay increase because the taxes would be too high. I explained to him that even if you did enter a higher bracket (he would have stayed in 15% bracket), just a portion of your income gets taxed at higher rate, not all of it. Besides, you'd be keeping the net after taxes. I mean, the tax rate is not 100%, right? What are people thinking? Does anybody know?

First of all, thanks for reminding me that I have to do the 1120-H for the POA that I do bookkeeping for. I had not even thought about it! Yes, you will complete the top portion where the lines have letters not numbers, but you'll report the interest income on line 2.

Wow, for a minute there I thought cathyan was talking to herself, and answering back.

I had my first experience with a 1099-Q Saturday, and I could not find an input screen (like for 1099-R) either. I took a guess that it would go on 1040, line 21 and it did. I had more trouble seeing the line on 5329 for their penalty, and it was right in front of me. Go figure!

Whew. I'm going home. Are you guys just exhausted, or what? I don't care if I never do another S-Corp.

No, but I am working on an S-Corp, and every other entry it seems like the program is saving the file (or calculating), and it takes forever. I have resorted to filing when it starts whatever it's doing. Yes, I know that is a mistake, cause now my clients will have a place to sit, but I can't stand sitting in front of this screen waiting to enter stuff on this return. The little returns are going OK.

You are not losing it. They are getting $300 for the child born in 2008, cause you are doing what Ray said. It's 71 degrees here, and I am in this office. I have no life.

When my sister was in college Chemical Engineering program, recruiters would take employee prospects out for dinner to get to know them a little. It was a very competive job market, I guess. Anyway, a couple of big company execs took one of her friends out to eat, were asking him questions, etc. One of the recruiters asked Kevin if he was a procrastinator. Kevin, a straight A Chem E student did not know what the word meant. They was a very long pause. He tried to look like he was being very thoughtful, trying to give an accurate and complete answer. Then he said, "I like to think I am."

Yes, and ask about tax-free assistance. I find that the more questions I ask, the more I think that the 1098-T is a worthless document.

Good one, Jack, but just admit it, you are taking files out of the cabinet right now and putting them in your chairs, aren't you?

Sister-in-Law's dependent (aka deadbeat) boyfriend told me at MY MOTHER-IN-LAW'S FUNERAL that he thought the law had NOT changed, and that GF could file as HOH. OK, so out of work BF keeps up with tax laws. Guess he's too qualified for this job market. On second thought, BF is watching TV and eating Cheetos all day while GF and I work. Maybe he IS the smart one.

Haha! You guys crack me up. Thanks, Ray, and you contributors for this thread! One thing I really have done for the past three weeks is leave tax files that I'm finished with piled in the office chairs that clients normally sit in. I can't believe I never thought of this before. It looks terrible, but people don't stay nearly as long if they're having to stand up. Now, with this lowered overhead thing, they'd actually have to stoop. Wow, that should really get them moving along...

One thought, won't the mileage records that your construction clients get off your ceiling be concealed? Oh, wait, I see that the ceiling will be "lowered." Sounds like a smart move, then.

Hi, Ladies, oh she does that to me EVERY year. She isn't hateful about it, and never says anything about the price, but I REALLY get tired of it. I charged $85 each for 2006 and 2007, and this year when I had to input five entries in that dadgum 8283, I thought, "Yep, I'm goin up!" So, when I told her she COULD do it herself, she said, "No, I'm too afraid I'll make a mistake." She thanked me kindly when she left. I'm sure she'll be back. Now I am wondering about the gardener. If she missed EIC, RRC, RE tax, SE? My church "friend" who I have always charged $50, actually brought in his copy of the return he TRIED to e-file online and couldn't. Entered unemployment $1000, and it was $2450. Missed Sch SE for his wife's class she did on the side, entered 8 digits for bank routing #, three of which were not even correct, missed RE tax. This year I charged $75. Regarding people who say the computer does all the work, don't you want to tell them: OK, you go buy a computer, and software, and a building, and insurance, and utilities... and set up shop yourself. If it's so easy, why are we bustin our butts right now to get it all done? Why isn't everybody doing this? Argghhhh!

From now on, and I did this today, my response to this is gonna be, "Well, yes, you should just do this yourself." Wealthy lady came home from cruise, got my message that her return was ready. Return had retirement, Sch A, Sch B, Sch D (not bad), five entries on 8283, taxable SS. $100. She says, "You know, I did my gardener's return for him, I really don't know why I don't do my own return myself. I guess I'm afraid I'll miss the taxable SS." Me: "Oh, it's not that bad, really! Here's my worksheet, attached to your copy. You can do this, no problem. Hey, I hate to lose you, but I'm really overextending myself anyway." I am REALLY tired of people who do this. They need me more than I need them.

I don't blame you one bit! When my mother-in-law passed away, my husband's sister asked if I did estate returns. "Not this one," I said.

That's a good question, since you can make contributions for 2008 in 2009, and if a Traditional IRA, you're deducting money contibuted in a different year. But, taxbilly is right (as usual). Conversions are reported in the actual year they're done. I had to look it up. Thanks for the question! Rita

Oh, yeah. Some in my family want to drop off at my house. (I have an office in town.) They also want to call me at home with questions. I don't let them. It is bad enough that they get the world's lowest rate - they are not coming to my house with their taxes, too. Thanksgiving and Christmas are enough.