mcb39

Yes.....I wonder what I will find because his 1099 is for a little over $2000; but, of course, he will have expenses and mileage. When I mentioned SE tax, they had never heard of it. Actually, I felt sorry for them because they are obviously the most honest of people. I just have to get through this year first. Their CG is going to be huge as well as the ordinary income from the add-back for depreciation. They are prepared to pay. When I explained to the the adding back of the depreciation because they had taken it as a deduction all of those years; they DID understand, just had no idea. I am just thankful that they asked around and didn't go to HRB. I have the huge advantage of all of you to help me if I get stuck on this one.

They don't know anything about NOLs, but it wouldn't affect them anyway. They are both now retired and on SS. The rental income will now be gone, but the grass mowing is ongoing and minimal, but he DOES get a 1099. I am pretty sure they have no tax liability for the years they didn't file, but the requirement is still there. When things settle down, I will be inputting the years they didn't file just to make sure and let them file them if the IRS doesn't get there first. It just goes to show that sometimes there is a "need" for our profession.

New client comes in on Monday. Very nice and sincere couple. However, they need help because they sold a cabin property that was converted to rental in 1984. She has all the proper (?) depreciation, etc done in pencil for the original cabin and the addition and the garage and all of the updates over the years. I'm not worried about that because I used to do depreciation that way myself. However, in the course of speaking to them, she said that "We didn't file for the past three years because we didn't owe and everyone told us that if you don't owe you don't have to file." The kicker here is that they have a Sch E and a Sch C for a small grass mowing business which he receives a 1099 for. Am I not correct that as long as you have an E or a C, you have to file forever until you discontinue both? They have always prepared their own taxes and, believe me, she has a car full of paper to prove it. She has saved everything! I am actually excited about finding the time to dive into this one. What a challenge. They said I came highly recommended so I cannot let them down.

The one thing that I noticed different today is that the line for the DCN is now totally blank until you actually create the e-file. Then it populates with the DCN #.

My vote goes for "very smart"! Good Luck with that. Not all of us are that brave.

Not without taking the telephone along.

Actually, that's turning out to be the beauty of holding state returns. I had another gal come in with an additional 1099 and state hadn't been filed yet so could amend Fed and send State. Second one so far.

No......e-file them all from the same computer. Today is the first time that this is happening.

That is not the case here. These came back "Duplicated", not "Rejected". I recreated the e-file on both of them. One came back accepted; the other duplicated again. Looking through the list of my ackd e-files, they were indeed given DCNs that had already been used. Something has to be causing this.

yes, the Standard Deduction would be zero. However, can't he itemize if he has anything to deduct such as State Income tax withheld, contributions, any property tax, etc.? He may not be able to have enough to come up to what the standard deduction would have been; but whatever he might have would help him. This is, of course, in the event that she itemizes.

I agree with your analysis. However, there will always be someone who will not take ANY expenses for Business Use of the Home unless you leave the depreciation off. In those cases, I bow to their wishes and leave it off knowing that most of the time they are not going to sell the place anyway and the depreciation per year on an office in home is pretty minimal anyway.

The headache is gone; the rest of it is not. Thanks for asking, Catherine. Hubby and I had six month checkup this AM and it appears that physically, at least, we are doing OK.

That is just NUTS! I have 99,888 to go before I run out of DCNs. I recreated them and refiled. Like we have time for this!

I will be, but don't they have to be either insolvent or bankrupt in order for the 982 to apply?

I did check the E-file forum first. This AM I received two acks that say "return duplicated". Anyone have any idea what that means as I have never seen it before and have 120 accepted e-files so far this year.? I have faith that it will resolve itself eventually, but am curious. TIA

I have not used the WI website to e-file for years. However, when e-filing through ATX, WI does not require me to send in anything other than a very limited number of copies of property taxes, rent receipts and such. The W2 and the OS are part of the ATX e-file. Wish I could help you, but have never heard of this before.

Come on, folks, it's still only February. We shouldn't start ragging on our clients for at least another month.

WOW! Must be having a really bad day. Not exactly a picnic here, either.

I had one of these years ago and ended up calling SS. They couldn't really give me the info, but the lady I talked to allowed me to use the process of elimination to find the error. The child was named Anna Maria Gloria Fernandes A.......! That would not fit on the SS card. It narrowed down to be Gloria A.........! AND...that is what the parents call her. Go figure.

That's the best idea I heard so far. I have always had to play with pencil and paper and the M-1; probably for many years. Most of my clients aren't even required to fill that page out, but lately I like to do it because I think that is the reason that I have gotten rusty. Like I said in a previous post, I often wonder if anyone even looks at these for small or family-owned partnerships.

Since we aren't piggyback this year, I hold the state until I get the Fed ack. Turned out to be a good thing for one return so far. Already had filed Fed and waiting for ack; client sends me another 1099. By having held state, that limits me to one amendment instead of two.

I brought in a bunch of acks this AM; probably about 11:00 Central. Have tried several times for more, but that appears to be it for today. However, no problem with connection.

Are the work weeks really only seven days? Back to the books for me. I thought I understood that the recaptured depreciation was treated as ordinary income and the rest of the profit was treated as CG. I realize that it might be totally depreciated, however, I have not met with this lady yet and she told me on the phone that they had done extensive improvements to the house. I don't know if that was right away or several years down the road when they turned it into a rental. Hey, I love a challenge and they made a substantial profit so I know there is something in this for me. I was recommended to them by two people when she didn't have a clue where to go and it sounds as though she kept meticulous records, whether correct or not. Since they are retired, the gain may not even be such a terrible issue for them unless it kicks SS into being taxable.

Isn't it amazing how many clients say they will give you cash with that little half wink. I give them the same answer you do.

I sometimes wonder if anyone ever looks at these anyway. I know I messed up some in the early days. I agree with Old Jack. Fix it and move on. The bottom line is what matters. When you mention depreciation in the 70's it reminded me that I have a new client coming in who bought a property in 1974 and proceeded to rent it out. They sold it this year at a profit (huge). I am curious to see how she did the depreciation by hand for all of these years. I know the depreciation addback is ordinary income. Should be fun.