mcb39

It won't hurt him as his only income will be his share of the Partnership loss, which will create a NOL. He knows what a sacrifice she made for him to make his dream of owning his own Semi come true. Also, they live together but are not married which is why I feel the need to protect her. She will still owe plenty.

My Partners are not married. However, have spoken to both of them personally and they do have an agreement with each other; they claim written. They are going to do whatever I tell them to do so have to be really careful with this one. To begin with, I told them they had to file a Partnership return in order to protect both of them, but primarily her who has a major financial investment here. Not to mention penalties for early withdrawal. Then onward to the personal returns. She is the big loser. Of course, first year Partnership, they have a reasonable loss. That is the only income (loss) he will have. She takes the brunt of it with the $110,000 IRS withdrawal. They both understand that NOW, but I have no clue what they were thinking when they did it. He is a long-time client of mine, this is my first year with her. I wish they would have asked. I am going to give her the UPE for the home office as it is solely her home and she is definitely in charge of all of the financials and the bookkeeping.

I was wondering about that UPE deduction myself in the case of a Partnership that I am doing wherein one partner is on the road driving a Semi and the other Partner who invested all of her money in the enterprise; has an office in her home and does all of the bookwork. Because she drew the money out of her IRA (prematurely) she really needs every deduction she can get. I know it is a stretch, but am glad to see that someone (Michael) is thinking along the same line.

I have been transmitting and receiving acks all day. No issues. Perhaps that is my reward for having my DSL down for five days. Sure as can be, my next one will flop.

When filling out the 8829, you put those expenses in the "Direct Expenses" column for the home office. Leave the furnace in the "Indirect" so it gets automatically proportioned. Any improvements or repairs that are for the office alone go in the "Direct".

I go there nearly every day. Have them in my favorites and bypass the logging in.

Crank said an interesting thing about the client who "knew" his income would not be as high this year. Seems that several of these Sch C SE filers have that same crystal ball. Many folks are financially strapped and, of course, they don't want to pay those high estimates. I like the electronic Estimates, but those can be as dangerous as a flex plan that doesn't get used. If they don't have the money in their accounts, they will be in even more trouble. However, after so many years, you kind of know who will pay their estimates and who won't. All we can do is thell them, we can't lead them to water and make them drink. In the meantime, I am setting up the vouchers and envelopes for some and doing E estimates for others.

I would!

Had a guy call on Wed who said he would try to get his stuff together that afternoon and would drop it off on Thursday. He Did! It is in the box. Am having a friend come in next week just to file, assemble and generally clear the clutter. Oh, Glory Be! She also knows how to answer the phone. It will be heaven.

No Kidding! Phone calls from everywhere this AM. Returns coming in faster than going out and had to have a little weepy moment. Now am ready to go again. Guy called from Ala and said that he is leaving for Japan tonight and will be back on the 16th.....and I am in WI. Good thing we set up automatic estimates. My stomach is so tied in knots that I couldn't eat a bonbon if I tried. Someday soon........we'll be laughing.........someday soon.

Here is one for all of you. I have a new client who cashed out a $110,000 IRA to invest the money in her boyfriend's trucking business. Does anyone see any deductions here as per the penalty, etc. The only thing I could figure out to do was create a Partnership Return for them so that she can at least take half of the loss. He has been a client of mine for many years but this is his first year of driving his own rig OTR. I told her that since she consulted me, I have to do whatever I can to protect her interests. They have good faith agreements, supposedly in writing. They will both agree to whatever I advise. I prepared an amortization schedule, but where do I deduct the interest? I am thinking on the Partnership, but then she should have to claim it as income and with an $11,000 premature penalty, she has too much income already. She is 50; cannot find any exception to the penalty for her. Guess Love really is Blind!

No charge here for extensions. Both Feb and March were extremely steady and busy and lots of them are still missing, though trickling in. I started telling them last week that they would be going on extension as I have 40 to complete before I get to any late comers. Extensions benefit me more than them,; expecially after having my DSL down for over a week now. I agree that it has been an extremely strange year.

I have several domestic partners who do the split in order to share the SS credit, as Jainen says; and, in WI, we have a Married Couple Credit so both of them have to have income to get the credit which comes off of the tax they owe. Because we are a CC property state, we are still allowed to split the income on two Sch C, although there are a few who choose to file the Partnership return. If it still says "applied for" on the EIN, it was either never applied for or it was never changed on the form once they got it. Getting an EIN is one of the easiest things to do these days and it is free.

Thanks....One of my clients' minor children received a K-1 with income from a Trust and I had no clue what to do with it. Is that the same situation.? , trust set up by Grandparents.

I swear my office is haunted. DSL has been down since last Wed. Tried plugging in modem again today and it is working, so far. Have new provider coming to install a different service in the AM. I was still able to create returns but sure had a pile to file and took advantage while it was on. Also, this AM went to try and access my e-mail on mobile tablet. Mobile service would not work; only WiFi (which, of course, I no longer had). Called support and after an hour of trouble shooting they discovered that the company had shipped the wrong simm card with the device. A trip to town for a new card. Now everything is working for the moment, but am afraid to turn my back or shut anything off. On the other hand, WI forms are printing in the order that they should.

No end of the tunnel here. My DSL has been down for five days. Lots of files created, but unable to file. That's what happens when you live in the "sticks". That "Donate" button still works as I used not all that long ago.

Come on, Jainen. Don't be so negative for a change. We don't all live in California and we do all know that they aren't making any more land. However, an empty or trashed duplex on a city lot in the Midwest has little value because there are no buyers. Some of my clients have spent thousands this year on repairs, unpaid utility bills, etc on abandoned and/or empty rentals. I am putting a 192 sf addition onto my office, not because it is economically wise at the moment, but because I can and will use the space. That does not necessarily mean that our property is going to be worth more at this time. We own more property than would be possible for the average man to own in CA. That doesn't change the fact that the economy and morale of this country is severely depressed. I see it every day in the time well spent with my clients.

It is almost like an epidemic this year. Have only had a few clients with full and happy rentals. The morale of this country is in the dumps.

And they want us to take a test and swear to due diligence? OMG

Sincere prayers from here and a good strong hug for you. Take care of KC

I always have my SE clients contribute to a SEP because if they are employed full-time somewhere and max out their 401 K; a SEP contr is not affected.

I don't think that a Simple plan is allowed in this case, but a SEP, based on SE income is allowed to exceed the maximum.

I finally got a chance to get back to this. What you need to do is bunny hop from Line 7 on the 1040 to a worksheet where the first item is fellowships and grants not reported on a W2. Enter the amount there. It is not SE income.

I can answer this tomorrow when I get home and pull a file. I have one at the U of Alabama who does not even get a 1099; just sends me his quarterly income and pays in quarterly estimates. It is not self-employment, but am not sure how I reported it last year. He just e-mailed me his numbers last night.

I feel pretty much the same, Tom. Have been trying to do the best job possible for well over 30 years and it could all be gone by the will of someone who doesn't even know all the answers that I do or that I am willing to look up.