mcb39

Start with Form 14039.  I have had two; the same client two years in a row.  I believe that it took about ten months before he got his refund.

My brother hasn't spoken to me for over 20 years.  He was POA and I was caretaker.  Will was a clean four-way split.  I still have no clue what his problem was (is).  He was the man in charge of the assets.

In the same vein, am I allowed to take a rental loss two years in a row on an apartment that is available for rent, but landlord has not been able to find an acceptable renter.?

Clarify FBCredit.

Wisconsin only allows $500 per year.  I have a client who will never use up the Federal $3000, let alone the WI deduction., even though they have enough taxable income to take the deduction going forward.

On 2/21/2024 at 1:19 PM, Slippery Pencil said:

8606

You have to.  Otherwise it populates as income even if you put zero in box 2.

On 2/21/2024 at 9:40 AM, Lee B said:

At first glance I would agree, but aren't most client's current standard deductions larger than if they were able to itemize including the 2% misc itemized deductions.

My reference was to the loss of the form 2106 Employee Business Expenses and, no, single employees especially, are affected by the loss of this deduction.  For many OTR truckers, it equaled the value of at least one exemption under the "old" rules., particularly if they owned a home.  I am so tired of the government playing games with the tax laws.  Clients still bring in all of their itemized deductions and we still populate the Schedule A because there are cases wherein the deductions flow through to the Wisconsin returns.

Everyone needs from time to time to refresh their knowledge about the kiddie tax.  Clients have never heard of it and occasionally try to shift income to their minor children to avoid taxation.  Tough scenarios to explain and/or calculate.

I just tossed all of mine a few  weeks ago.

IMO, this is one of the saddest changes in the tax law.  With the exit of the 2106 form, many employees are shot in the foot.  I particularly notice it with OTR truckers who are employees as opposed to SE owners.  This issue of mechanics and tools is also huge.

I only give them to clients who request them.  That equals about 3 to 4 clients.  Otherwise they bring them back still in the envelope.  These days, I email Organizers to those who want them and let them print them out on their paper.

Such as clients who are starting to receive corrected 1099's with a different code or taxable amount and they have no idea what it is. (But, it was due by January 31)!  Of course, it was.

14 hours ago, Sara EA said:

The current W4 essentially asks the taxpayer to complete next year's tax return this year and is a disaster.  Does it even account for the additional Medicare tax when one spouse is over the threshold and having the extra taken out but the other isn't?  When there is glaring underwithholding, I tell clients to put Single, zero exemptions on the W4 and leave the other lines blank.  (Not many want their employer to know what their spouse earns or their other sources of income.)  Then we'll look at it at the end of the year and adjust accordingly.

I totally agree with this for at least one year.  It has been working out very well for our clients.

Yes, my Win 11 laptop does that as well.  I still prepare tax returns on Win 10, which will be updated after tax season.  My fabulous IT MAN just updated my Surface Pro, which I am planning to use more or less as a tablet, due to eye issues.  It will be interesting to see how that works out.  Have not had time to try it out as yet.

I have the exact same situation with a pastor., except that mine has a W2 as a Hospital Chaplain and is SE as a Pastor.  I don't have your problem, however, because he has a 401-K on the W2 and an IRA as a pastor.  This is probably one of the most difficult and heart wrenching returns that I prepare, but he calls me his Angel and will never leave me.  He is a citizen, born and raised in Poland, and terrified of the Government.  He has been with me since 1999 and I have to be doing something right because he has never been questioned in all these years.  I, however, question myself every year.  My solace is that he prays for me and sincerely loves me.

On 1/29/2024 at 2:45 PM, mcb39 said:

Instead of a Partnership return.  Maybe this is only allowed in Community Property States.

I am not here to rob them.  I am here to help them.  Believe it or not, this is a very small business and they came to me set up as an S-Corp., and were paying mega bucks for their tax prep.  I want to do what is best for my clients.  I could have set up a Sm Partnership, but why?  Just to get paid for filing another return?  I  charge them what I think is plenty and still don't come near to what they were paying before.  Ethics!!!!!

We are not waiting around.  We still have clients who are waiting for their last year's refund, which is still being processed.  Also, we are still not able to speak with an IRS rep even in response to a Collection Letter.  I don't have the strength to walk away from clients who need me.  Credibility???

Even if I used the $53034 for food and services, she would still qualify for the deduction.  It's been a long time since I did one of these and I just want to get it right.

1 hour ago, BrewOne said:

Will the CBRF provide a letter?  I have several clients at a full care facility that are given a breakdown, i.e. 17% for assisted living, 100% for the "memory care" unit.

I have the breakdown on a signed Wisconsin Rent Receipt.  One of the questions checked yes is: "Is the rental property a long-term care facility, CBRF, or nursing home?"

1 hour ago, Lee B said:

I question whether a CBRF meets the definition of a facility whose expenses are deductible?

Quote "You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution for your spouse, yourself or your dependents.  This includes the cost of meals and lodging in the home if the principal reason for being there is to get medical care."  She just broke her hip for the second time.

Everything that I read says that my 91 year old client can deduct medical expenses for 10.5 months in a CBRF.  She was declared chronically ill by a licensed physician.  She requires extensive assistance with more than two activities of daily living.  She paid $70,712 for her total share.  Long term care insurance paid $12,600.   I am having a difficult time convincing her son that $69,512 is a legitimate medical deduction.  It is a difference of paying in and/or getting about a $6000 refund because she had  paid in estimates.  Am I right or wrong?

We have filed several already and alerted all clients.  Until they give us some guidance, we are not letting our clients wait for legislation and then updates to software before they can file.

Mine is turned off every day.  You assume incorrectly.  His instructions are to boot up in the morning.  Then hit restart so it closes and then reopens.  I have no issues with the program shutting down during the day.  As the season progresses, we might even do a restart after lunch.

FYI:  My IT person has advised me to prevent issues like this by restarting my computer every day as soon as I turn it on.  So far, so good!

I backup every single  file to a jump drive as I am working on it and when finished.