Randall

I'm trying to input an allocation percentage of a half percent (0.5). But it keeps coming out 50%. I have one partner with 97.5% and five partners with 0.5%. I can't figure out what I'm doing wrong or not doing. Any help from anyone?

1099R should say gross distribution $20,000, taxable amount zero.

I'm trying to charge more for new clients, setting my minimums higher, asking in advance about rentals, Sch C activity, Sch D activity, even Sch A stuff. Quoting higher fees up front. For existing clients, trying to keep them but raising fees gradually, unless something new is going on, then letting them know up front that new circumstance will increase the fee.

I used it for the first time this year too. I knew one client would have a lot of trades. I got another one with a little surprise, had more trades than I thought. It was a weekend so I just entered them, not too terribly bad. But next year, I think I'm going to get all clients to have their broker send me the csv file before hand and use the import feature all the time. I think ATX will add improvements to this each year.

I like to use 1040X too. I just have it in my mind that the IRS processing procedures can run much smoother this way.

The SEP max contribution is based on a percentage. The SIMPLE max contribution is based on a dollar amount. So unless the sole prop makes a very high income, the SIMPLE is preferable because he can put in more dollars. I don't know off hand regarding your problem of the sole prop having a regular job and participating in his employer sponsored plan. But for those who only have their business activity, the SIMPLE is usually the preferable plan. Also, if he has employees, his match to them is lower in the SIMPLE than the SEP. For businesses with high turnover though, the SEP may be preferable because of the vesting rules on the employer match. They leave not vested, those dollars are redistributed the everyone else in the plan, the employer getting the biggest chunk of that. So he can grow his own account more over the years. This doesn't answer your problem, just wanted to address the SEP vs SIMPLE topic.

Catherine, something's got to be happening because for the most part, the tax laws were the same, extended two years thru 11 and 12 (although the extenders were extended two years for 10 and 11). So something's happening. Line 61 is before payments and refundabe credits but after the non-refundable credits (lines 48-54). There could be cap gain instead of $3k cap loss. Could be less ordinary dividends, something could trigger more Soc Sec taxable, loss of child credit, ed credits, AMT. I don't know but if normal income (W2) is the same, something else has to give.

Most clients confuse the child credit with the dependent deduction. When you tell them they don't get the cedit anymore, they think they're losing the dependent deduction too. 'What do you mean, I can't claim him anymore!!'

That's what I'm thinking too joan. Remember with the no make work credit, those working got a 2% cut in SS. One recent client couple had a surprise when they owed $5000. He retired mid-year, took some retirement money (no withholding), took SocSec (no withholding),she still worked making decent income (low withholding), they paid off mortgage (much lower deduction). They were a new client but even so, they really didn't plan. But they had the money to pay, just were surprised. Another client, husband died, she took $35k in IRA out at once (no withholding). Couldn't understand why she owed so much. I realize she was under stress but she didn't call me to ask. I wonder why the financial institute didn't talk to her about some withholding on the IRA.

ATX has been good at improving the program from year to year. Hopefully, they'll be adding some good improvements on this for next year. Doesn't help this year I know.

Ask about legal fees included too. You'll have a deductible but you need to know that's your max out of pocket.

I know you said you didn't mix them up, but double check every place the filer and spouse are listed for check marks for spouse, etc. Usually, we have the husband listed first. When I have the wife as surviving spouse, I put her first as filer with the deceased husband 2nd as spouse. There are several places to make changes including filer info, W2s, 1099s that are marked as filer or spouse. Not saying that's your problem, just saying double check.

The statement about principal and interest may be from the investment point of view (whether retirement account or nonretirement account) and not reflect tax basis and taxable growth above basis. If the annuity is an IRA, the insurance company may not know if it were a deductible or nondeductible IRA. The client needs to provide info this. As fredazcpa said, need 8606. Or history statements of money going into the IRA and source, with copy of 1040 showing no deduction.

JohnH - I'm not going to fall for that one. I'm not that tired or that much of an idiot.

Beam me up, Scotty!

I'm an idiot twice. I've seen this before and still fell for it. Sheesh. Leave me alone.

A lot of people just don't understand what a corp or LLC is about. They are separate entities. Sometimes it seems absurd to file more returns and such, but they should realize what their form of business is and how it is to be reported. If they want to change it, do the proper procedures for dissolving the entity, etc. But until then, you have to file the proper forms.

I agree about the comfort level of getting the acknowledgement. Same with the extensions. I put off efiling extensions until a few years ago, I scratched my head and asked myself why am I sending these in paper. I just efiled all my corp extensions. I'll do 1040s the first week of April. Try to contact clients I think might owe something for a payment to send in but at least the extensions will be filed.

I began efiling 1120s and 1065s last year. I put it off several years because Ky still isn't up on these. But I decided I could still save a little time and paper by efiling the Fed and paper filing the state.

Sometimes I think certified means I'm 'genuine certified', meaning I'm 'out there'. I think CPA has come to one of those things where the initials just mean the initials and the original words carry less meaning. Way back in college, I thought auditing was a real neat thing, then I did some of it and wasn't sure (inside) what the heck it was all about. In recent years, I'm very skeptical it means anything at all. With the scandals of Enron, Arthur Andersen going down, the banks and their nonsense, I just scoff at an audit report. The AICPA almost destroyed the CPA designation a few years ago by trying to move to a new designation, called Cognitor. Ha. The membership voted it down. Wow, over a hundred years of the CPA designation down the drain for a joke like moniker. I'm old and jaded now.

I'm a CPA. Most of you EAs and others do a whopping more business than me. Sometimes I think people avoid me BECAUSE of the CPA designation, thinking I'll cost them a lot more. My fees are probably lower than yours. I wonder what good it's done me to be a CPA. I pay whopping dues to the AICPA and Ky Society of CPAs and wonder why I keep doing it. Ok, my rant is over too. Back to the original post. Why couldn't an investment adviser answer the question about RMDs?

Whew. Sorry to hear these stories. Two clients recently died. Now in the middle of my busiest time, I'm having to deal with my Mom's situation.

This was in 2008. I don't know much about Ameridream myself. I just saw this on the settlement statement. I agree that with the substance over form approach. This amount wasn't paid by the client so it just essentially reduced the cost of the home.

If a person receives a grant (Ameridream program) to help purchase a home, is this part of the person's purchase price for basis purposes or does the grant have to be subtracted? I know logically it wouldn't make sense to include this, but there are some quirky benefits. Settlement statement shows total purchase cost, then the grant as part of the upfront payment.

Add me to the personal situation. Mom (87 in two weeks) fell and broke her hip last week.