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Possi

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About Possi

  • Rank
    Advanced Member

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  • State
    VA
  • Gender
    Female

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  1. Yes. Page 4 of the 3115, line 26 is where the cumulative adjustment would go, and flow to the tax return accordingly.
  2. Thanks for this response, Rita. I have done this at least once before, so I was surprised when the new preparer said it could only be used if NO dep'n was taken. This client has had to move to a CA preparer, and I am going to send her some documentation to support this. She is telling me that I must amend and that the depreciation missed will be depreciation lost. Here is what I found, letting her know she can do this: https://taxmap.irs.gov/taxmap/pubs/p946-008.htm Specifically: Changes in depreciation that are not a change in method of accounting (and may only be made on an amended return) include the following. An adjustment in the useful life of a depreciable asset for which depreciation is determined under section 167. A change in use of an asset in the hands of the same taxpayer. Making a late depreciation election or revoking a timely valid depreciation election (including the election not to deduct the special depreciation allowance). If you elected not to claim any special depreciation allowance, a change from not claiming to claiming the special depreciation allowance is a revocation of the election and is not an accounting method change. Generally, you must get IRS approval to make a late depreciation election or revoke a depreciation election. You must submit a request for a letter ruling to make a late election or revoke an election. Any change in the placed in service date of a depreciable asset.
  3. In 2005, I began depreciating a rental: He purchased it for 230,378. Land was 58,000. Depreciation should have been based on 172,378. I depreciated 172,378 MINUS 58,000, leaving only 154,378 basis for depreciation. Is the 3115 (adjustment for depreciation) only allowed if NO depreciation was taken? Or can I use it to adjust the depreciation that was allowed?
  4. Possi

    LLC Reporting

    I learn something new every day. Every. Day.
  5. Possi

    Non-filer coming out of the woods.

    Thanks, y'all. I won't even attempt it!
  6. My great client got married in 2017 to a man who hasn't filed for 2010 forward. The great state of VA was going to levy his account for about $8k when he called me. That was for the 2014 tax year, so I started there. He is having to get a new security clearance for his job which requires he file a tax return for every year. I did '13, '14, '15 and '16. He owes a couple thousand each year. Now, I'm backing up the truck and doing 2010, 2011 and 2012. For 2010, he owes $1,757 in federal taxes for that year. I am thinking of overriding the 2210 so it won't address the penalty since it will only include the penalty that year ($38). It's not correct or helpful. Just curious, how much will the penalty and interest be? I used to have a program that someone recommended to me (from this site) but I didn't use it enough to justify the cost. Can anyone run that number for me? Or point me to a site?
  7. Possi

    Thank you RitaB...what a wonderful day

    It was so wonderful to meet y'all. I don't help much on the board, but I DO learn much! I hope I was able to teach y'all a few life lessons, like maybe stick a $50 bill in your coat pocket before partying, and read the signs before you mouth off to your neighbor across the water... Rita has been like a sister to me for many years, even long-distance, and her gift of hospitality is greater than most people I know. The kids helped with whole hearts. How refreshing is that?! I love the whole family. So wonderful to meet all y'all. When it's time for another gathering, count me in... as long as Rita's there!
  8. I have wondered whether VA and other states will allow itemizing even if the standard deduction is taken on the federal. This woke me up, from the article, "H&R Block, like many tax practitioners, tends to charge larger fees for more complex returns. " I don't charge enough for more complex returns, so this is my gateway to step into reality.
  9. Possi

    June 23 Get Together / Shameless Plug

    You know I'll be there! Cheers!
  10. It would be a wonderful thing if we could get compensated for being the gatekeepers, wouldn't it? Just think of it. ChaChing!
  11. Possi

    Router Hack Alert

    Thanks! I posted this on my FB page, too.
  12. Possi

    Tax Prep Fees still not Paid

    I have a few who won't pay until next year, but I'm slowly firing them. I really do hate begging to be paid. Once, when working for a small tax and accounting office, I had taken over the bookkeeping for a mechanic's business. I asked him where his "accounts receivable" info was. He said he didn't know what that was. So, I told him that was the account with details on clients who owed them money. He looked at me like I didn't have a head on my shoulders. Then he said, "Nobody owes me money. If they don't pay me when the work is done, well... I have their CAR!" So, if a client can't afford to get their taxes done, I do hold payments until their refund is deposited. But, I AM holding payments. That way, I have very few outstanding.
  13. Possi

    Form 8283

    I couldn't buy the amount of clothing my clients give away every year. And if my "Misc Household" stuff was worth what they are claiming, I'd KEEP it. Oh how I wish this was gone. Love the "H8 8283 Club!"
  14. Possi

    Summer Gathering

    I think this got "thought up" one day when Rita took a 10 minute break from the site. I'll be there!
  15. Possi

    I love this new client!

    It's the little things that bring a tear, right? LOVE it. I have 2 retired military officers who bring huge files, lots of paper, and spreadsheets that bring that joyful tear. I go in alone, and come out refreshed... just like a shower. Ahhhhhh......
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