mcb39

All of your replies are so interesting. Now I know that I don't have to plead the fifth or give up tax prep for at least another year. I've done other stupid things too; but this one was probably the worst. Thanks to Julie and John for also sharing.

You're OK with the IRS. No penalty for late filing if there's a refund. Of course if he later gets audited and it turns out that he owed at the filing date, there would be a penalty assessed at that time. I don't know about WI.

There is probably little or no danger of him owing at any future date. Both of his refunds are decent and it is a clean return. Thanks for your reply, John.......

Client left message Mon that he is still waiting for his refund. I did a check on IRS and WI sites. No info available. I suddenly remembered that I was waiting to find out if he wanted DD or paper check as he is an OTR driver. He picked up his papers, paid me and I just totally never remembered to send the e-file. Filed it yesterday and received ACK today. I told him that the lady told me to refile it. Of course, I was the lady who told me that, but he bought it and thanked me for the help. Does this mean I should hang it up or should I finish the extensions that are still piled on my floor.

Can we expect a penalty for late filing? Of course, I would pay it if there is one. If I plead "stimulus insanity"; will they forgive it? Just remember, I didn't have to tell this story.

>>Am I being too strict?<<

Yes. "Necessary" does not mean the business would fail without it, just that it is an appropriate expense that contributes to the business operations. In this case, providing four-season access for the tenant probably is required anyway. Assuming the cost is reasonable in proportion to the income, you would reduce the basis to the percent of business use. Land improvements have 15-year recovery. Although this is what the client has asked for, it could affect the Section 121 exclusion if he sells his home.

I stand corrected;;;;MACRS is 15 years recovery. Next question...what happens to allowed or allowable if he sells the property and has not taken the deduction.?

Taxpayer is giving me a hard time. He lives on the farm that he rents out. In 2007, he put in a blacktop driveway. He thinks this should be at least partially deductible because it is the same lane that is used by the farm tenant.

I don't think a blacktop drive falls qualifies as an "ordinary and necessary" expense. Am I being too strict?

What say you??

I would allow it as a depreciable land improvement; depreciated for 20 years at 50% usage as a deduction against the rental. Cite: Page J-1 Quickfinders for Small Businesses; Asset Class 00.3

Good for you John. You didn't HAVE to tell that story, since you are not a huge fan of ATX. But, good news for the rest of us who back up in a variety of ways but never know for sure if the backups are going to work. Without that, the ending to your story could have been totally different; and your candor is admirable.

>>I wouldn't exactly call it EARLY retirement<<

I can identify with you on that point. The term is redundant--in my world, ANY retirement would be early.

In my world, also; unless my brain stops working....

I sent it to my daughter-in-law who works for General Mills. She sent it on to her boss. Very Cute!!!!!

Good for you....and from what we know of you; she is a lucky woman. Wed is our 48th Anniversary. Doesn't seem possible. I still feel younger than that (some of the time). Bless both of you and keep us posted.

What a surprise. Intuit doing something that benefits only them!

I have been sour on Intuit ever since they murdered Parsons Tech; and that is a LONG time. Just spent the third hour in two months on the phone with our Telephone Co trying to get our bill straightened out. The first time we were overcharged$288.96; the second time $179; and now I am told that in six to eight weeks I will receive a refund check. HUH? Watch them try to slip that one through the cracks.

Not so far...........

I agree with KC and John......

It's where you leave your MUDdy boots when you come in from plowing the north 40.

I am at my NORTH 40 which is where we go to get away. We plant flower gardens, pick berries (in season) and built a new "lodge" here 2 years ago. And, yes, we had a Mud Room. This 40 is mostly wooded so no plowing though the neighbor is coming tomorrow to rototill a spot for a larger garden. This house is nicer than the one I live in. If I would leave my laptop home, clients wouldn't be able to contact me with "Stupid Stimulus Questions".

Back home on Monday and tax season starts again with filing of extended returns which are still coming in as well as amendments from both last year and this (self-prepared) returns. Good Night All! :rolleyes:

And my 499th post was a real opinion.

and this one is a thank you to my online community for lending support throughout the year.

And I too wonder how JB is doing????

Congratulations Joan.....and, yes, it is strange that we have not heard from JB. When we do; I sincerely hope the news is good.

Have seen a few post about TaxSlayer and although I have never used nor reviewed the software I know 2 accountants that had. One used it in his practice for years and liked it, but when he sold his practice to the 2nd accountant I am referring to she told me that she thought the program was very limited and difficult to work with. Her first act was to transfer every tax return to ATX.

Just since I posted the message about the discount, I received a call from Taxslayer. They are definitely recruiting. I will take a look at it for future reference; but am wondering how he knew that I used ATX this year.

Just received an e-mail from Taxslayer Pro offering a $200 discount on complete program. However, as Joel said, I,also, always intended to stay with ATX if they stayed with us.

You can choose to take the insurance soley on schedule A instead. But I agree with mchampine, I find it hard to believe it is a better result on schedule A.

Also, note that many States, such as IL, would then not get the benefit of reducing the State Income.

Wisconsin, as well....

That is if you are SE and have SE health insurance? The question comes up because I have a new client that fell on hard times and took an early IRA distribution. because all of his tax is SE and the penalty on early withdrawal, it is actually more beneficial to put all of his health insurance on Sch A as a medical expense rather than take a portion as SE health (the SE health deduction is limited by the SE income, so part goes to Sch A anyways) because the allowable medical expenses on Sch A reduce the penalty for early w/d. So is taking the SE health mandatory if it is allowable, or can I put it all on Sch A? The only state tax he is paying is the CA penalty for early w/d, so every dollar of medical expenses gives him $2 of tax reduction.

Quickfinders page 6-6 (under strategy) says "Do not include any amount deducted on line 29 of Form 1040 in figuring the medical expense deduction on Schedule A."

Pub 17 on page 142 says "See chapter 6 of Pub 535, Business Expenses for more information."

This was a very good question though I have never had an instance when it wasn't more beneficial to take it on line 29; generally because of the 7.5% limit on Schedule A.

Good luck Julie.

Most growth involves some risk, but I'm betting you will do fine.

I'm betting that if anyone can do it, Julie CAN.....she has been a longtime supporter of her husband's art career and appears to be extremely knowledgeable in her field. Working together, they should do well. (Incidentally, I have a California artist as a tax client, but, of course, it is not Julie's husband).

I renewed Max today. I knew all along that I would renew if it was offered. However, because I respect the opinions and comments of KC and others on this board; I feel much better and more optimistic about it now. TRX called me again today about 5 minutes after I had renewed. Samantha said, "Since we see that you downloaded the program.....etc." The thing is that I never downloaded the program as I never had DSL until two weeks ago. Samantha promised to send me a disk so I could take a look at it. The other thing is that Kathy promised to send me a disk over a month ago and it never arrived. If Samantha delivers, it will go on the pile with the rest for future reference. I feel confident that ATX is everything that I need and more. If they continue, I will be happy as generally the only support that I need is this forum and my research materials. If ATX goes down, I will probably retire. Just thought I would come forward as I have not revealed my intentions to the board; but have been very carefully reading all of the comments that the rest of you have made.

I think you would be surprised at how much your market would bear, Marilyn. And I bet if you look at your fees for 10 years ago, and compare them to now, you will find that they have not increased as much as inflation. At least, that is the fact for a lot of us.

You should never feel bad to about passing along your legitimate costs. The truth is, tax code has gotten so complex, that the service we provide is, IMHO, more valuable than ever.

You are probably right KC; on all counts. Perhaps it is just getting old (along with me). I did increase rates pretty much across the board this year. Like John, some were with the hopes of getting rid of certain clients. I had a few that had to come in and pick up their unfinished work because they were not willing to pay until they got their refunds. DUH! I found collections to be a big deal this year. I did consider not continuing for 2008 at all until ATX announced the renewal and a lot of my faithful encouraged me. Now, the economic stimulus calls are "off the wall"! I am pleased with the Income that I generated this year; but I also know that I earned every penny of it and will either have to cut back; turn down or get some help.

Actually, I often use those "horrible" vertical input columns for W2 entry. Habit or preference, I am not sure. In all cases, I agree with all of you as to the improvement of the quality over the years. I now have 9 years on my hard drive. And, yes, the price increase has not been out of line with the added quality. However, some of us small home office sole preparers have to say "enough already". How much more can our small market bear? (And, I always did like that roar of the tiger on startup.)

I am staying here, not much discussion over there. I really like the discussions, questions, and answers that I find here. I feel this is my cyberspace family.

Absolutely! I am staying here. I go over there to check from time to time but as others have said; nothing changes much. Leaving this board for that one is similar to going from High School to Grade School. I would be willing to help them out, but very few of the questions there have been nothing more than basic. Eric saved us when our ship went down. Why would we abandon now.

It was $20 per year from the old ATX. Last year CCH changed that to $100 but that amount included multiple years if you wanted them. So it was not a bad deal. If I had to order one, I'd ask for multiple years, given that deal, just for backup. Thankfully, I do have my disks.

I have all of my disks as well as floppies from Parsons. Remember those couple of years when some of us ATXers were sending copies of disks all over the country to anyone who asked for one?. This was with the blessing of "The Company" before they started offering the $20 back year disks.

Yes, first thing this morning, I have an e-mail: I'm only getting back $300, why is that?"

Extensions: are they not just horrible? Some are not, and I'm actually glad to be working on tax returns now,

but the ones that do this year after year after year! Why can't they get it together? I don't mind if they come October 1 - just write those mileage figures on something before you get here...

Maybe I could use some Prozac, too.

Yes, isnt it strange how many working people are only getting $300 (myself included). Also, people on extension who are getting refunds are in absolutely no hurry to get their information in. I find it hard to understand and wouldn't you think that they would be worried that the government might run out of $300 and $600 stimulus checks?