BHoffman

Client received a 1099M and a W2 from his employer.  Tells me the 1099M was for a Christmas bonus, and employer did this for some stupid reason.  I can enter this to Sch C, but what about the QBI deduction?

I vote yes and he would be considered an SSTB.

The problem is that AZ legislature has not decided whether to conform to the 2018 federal tax changes so there could be a need for amended AZ returns.  I just prepared one with property taxes in excess of $10,000.  Not allowed on the 1040, and I guess TBD on the AZ 140.  

AZ posted this notice regarding conformity.  I’m efiling AZ returns as my Drake software is computing the new standard deduction and exemption amount with the COLA.  

https://azdor.gov/news-events-notices/news/arizona-department-revenue-releases-important-2019-taxpayer-guidance

Not sure of your client’s details but I did find this article

https://www.thetaxadviser.com/issues/2010/jan/ccorporationsasscorporationsubsidiaries.html

IRS won their appeal to reinstate PTIN fees.   https://www.journalofaccountancy.com/news/2019/mar/court-upholds-irs-ptin-program-201920752.html

Perhaps because it is my understanding that AAA ( not always the same as basis) is irrelevant unless E&P exists and I agree with Abby.   If the Corporation elected S from day one, then there is no E&P.  Please see the article below that gives a pretty clear explanation. 

https://www.forbes.com/sites/anthonynitti/2014/04/08/tax-geek-tuesday-are-those-s-corporation-distributions-taxable/#51ea0396a22e

I’ll opine that the cost of the pond and the demolition could be added to the total original cost of the 15 acres, and then apportion that total to the 6 acres.  I would not apportion the pond cost solely to the 6 acres unless those acres don’t share a boundary with the remaining nine.

cbslee - get well soon!  

That screeching sound when I ask for a year end brokerage account 1099 "Tax form", and instead get 100 pages of various interim statements.  

FYI - form 4137 is used by the employee for unreported tip income.  

Client received a CP2000 for not reporting the income from a form 1099-R.  The notice is showing $12,000 in unreported income from Mass Mutual.  The client did receive a 1099R from Mass Mutual, and I dutifully entered it in except forgot to prepare form 8606.

Box 1 $12,000

Box 2 $0.00

Box 5 $12,000

Box 7 B 8

My understanding is that the return of excess contribution from a ROTH is not taxed.  Only the earnings from the ROTH are taxed, and it looks like there are none as yet.  Can someone advise on how to respond to the CP2000?  Thanks!

Yardley,  does your E&O insurance company provide sample engagement letters?

Hi Jack - thanks for responding.  I can't file 1099 forms via Drake and found an older thread that suggested efilemyforms.com  Tried that, and it works great!  I only have about 5 or 6 forms to file.  

Well, I forgot my FIRE password and want to use an online 1099 filing company.  Any suggestions?  Thanks!

 I do not include the name of the client, nor do I sign the engagement letter but it does appear on my letterhead.   The sample tax engagement letter on my E&O insurer's website says this:  "To accept our firm’s offer to perform services based upon on the terms set forth in this Agreement, forward the completed tax organizer and other tax return information requested to us. By doing so, you are agreeing to be bound by the terms set forth above.", which is the same thing.  It's hard enough to get the signed 8879 forms.

I started emailing my pre season tax letter, engagement letter, privacy policy, and my own very EZ organizer to cut down on time and mailing costs.  I only have to snail mail a few. My engagement letter doesn’t have to be signed and says “When you submit your tax information to me you acknowledge and agree to the following terms and conditions for my services.”

 I found that very few clients ever used the multi page detailed organizers I used to mail out. Sent the emails out today and am getting lots of thank you replies.

I moved from AZ to FL into my deceased father’s house. The office here is tiny compared to the one I had in Phoenix.  So far, so good with client retention. Wish me luck and accept my best wishes that your tax season is the easiest and most profitable ever!!

Thanks!

Merry Christmas!

Can anyone suggest a good, free remote log in program?  I have one client who has trouble using join.me and wonder if there is an easier way.  I need to log into their computer once every year.  Thanks and Merry Christmas!

Of course I didn't believe your post was serious.  One spoof deserves another.  

My concern is that the upcoming tax season is going to be somewhat of a gray area with all of the changes.  If you post that the "IRS released a statement", then that's maybe not so funny.  Better to present yourself as a conduit with a Deep Throat rogue IRS agent who feeds you this information in a dark underground parking garage.

Yeah, I got that.  Trolling isn't nice.  Don't forget that crap we all went through a few years ago with that 3115 debacle because of bell ringers.  Be nice.  

I'm still very curious as to where you obtained this information.  Your post says "The IRS has released questions which will appear on the 8867 by the year 2025".    To whom?  Where can I find the release?  If it isn't public, then where did you get it?

I want to see where the IRS has released these questions.  I need to see it now as I'm trying to put together a retirement plan.  If this is valid, I need to know as this will probably tip the scale in favor or earlier rather than later retirement.  It's important that I can verify what you posted now and not in seven years.

Where did you get this information?  I would like to read it in depth.  Thanks!

He shouldn’t have any mortgage boot as long as the new debt is more than the old debt.  There isn’t any depreciation recapture if the new property has a higher Basis than the old property. 

The nature of the income determines the tax treatment.  Whether the client is in an ordinary business or is an investor should have been determined when he first began reporting.  Limited Liability Companies are just legal entities.  LLC does not automatically equate to the tax requirement of a Sch C.  I have lots of rentals reported by LLCs on Sch E.