mcb39

In this salon, each girl has her own phone (cell) and that is the number she gives her clients. They each have their own business cards and nobody has a credit card machine unless they want to pay for it themselves. My client always had her own cc machine until now. She just dropped it. This will all get dumped on me soon and I hope to report it correctly. In truth, these gals/guys have very few deductions other than their product and chair rental.

A long time client of mine has always rented a chair in an established salon and reported her business as SE which is proper. NOW, she has purchased the business from the lady who she rented from. She does not own the building, but has purchased all equipment and "blue sky". There are several other stylists, etc working in the same building. They will now be renting chairs from my client, who has to pay all of the overhead for the building; rent, utilities, etc. My question is: Now that she is collecting rent for the rest of the chairs, is that SE income subject to SE tax, or is it rental income for schedule E? Thanks for any guidance here. She just took over Oct 1 and we just finished changing all of her licenses, etc.

Irregardless I am tying up loose ends and PTIN renewal for 2015 was open as of today. I renewed so I have one less thing to think about. I just filed what I thought was my last return. I am actually on (vacation?) and a guy called me this AM and wants to bring his in on Monday (next). I told him he had better send it up here with my husband and hope that I have a rainy day to get working on it. Otherwise, I pretty much have myself in order. Supply of tax return covers are in my office; tuition is paid for continuing ed in Nov; reference books are ordered, etc. Am hoping to get some help lined up early as people are starting to think about going South for the winter and want Organizers to take with them. I think tomorrow I may take a day off for ME!

I received both. Oh well, better too much info than not enough.

I also received the e-mail and immediately e=mailed my sales rep. She explained to me that the letters went our prematurely. I was concerned that we would not be receiving a CD this year, but that is not the case. She e-mailed me again today as well as the one from ATX. No, those codes are not for Beta testing. I was not asked to beta test again this year either. I would have declined.

I have 2010 through 2013 on new computer and have had to use all of those. Like Joan; all others are on old XP and completely and safely backed up in several places. That complete hard drive can be restored at any given time. Also, have install disks for all years and exported files on some type of external drive.

If she is your long term client, why are you not aware whether she had any problems last year or not? Did you paper file the return. If you e-filed it, you would have known immediately that her identity was stolen. There is no priority handling of cases that I know of. They are so over-burdened that they are taking them as they come. I was able to finally get one gentleman to help me in July because the taxpayer needed the return filed in order to be able to get a transcript for FAFSA. In this case, the tax return was very small anyway. I only had one person come in with an identity pin this year and there were others from prior years that never received a pin. These persons had their 2013 returns go through just fine; which makes me think that they had caught the perpetrator on those. There is no hurrying this process. You man wait a minimum of ten to twelve weeks just to have a response to the filing of the 14039. Frustrating to say the least.

I use and like very much EaseUS Todo Free Backup program. As for the hard drive, I don't know. I generally wipe the backup software they contain as soon as I get them. Also, I have two back up drives for each computer, which I use alternately in case the hard drive or either of the backup drives would fail. EaseUS Todo has proven its worth in a recent harddrive meltdown on my oldest computer. Totally and perfectly restored everything to the date of the last backup. (I am talking about complete system backups.) I hate the programs that keep interrupting what you are doing to backup any changes. For that, I use a Jump Drive and export any change I make in a tax return to that drive as I am working. Have a separate jump drive for every program that makes frequent changes. EaseUs also allows access to any particular program or file that you might want to look at. Best backup program that I have ever used.

Are you trying to run them on WIN 7 or WIN XP? Probably not compatible with 7.

I have had a credit union director as a client for years. Yes, it is self-employment. I see no reason why the Line 29 could not be used. My client doesn't have enough income from it to qualify anyway and in any case, his wife carries their Medical Ins through work so that disqualifies him.

I also use the red pen method. As you said, old habits die hard.

Don't they HAVE to have employees to qualify?

In the case I had in 2013, the rental had already been refinanced by a bank and the land contract was paid off; so the 1099-S came from the bank.; to the seller. In prior years, my client had always received a 1099-Int from the holder of the land contract so he could deduct it on the Sch E. My client never sent a 1099-interest to the holder of the land contract. We had an amortization schedule that matched the sellers. This year, my client will not have to issue a 1099-interest as he did not sell it on a land contract to his brother. That will be up to the bank. I have another client who is buying land on a land contract. Every year, he receives a 1099-interest from the seller. In fact, one year we had to produce that 1099 for the IRS as they were questioning his home mortgage interest deduction. The land is adjacent to his home. Have no way of knowing if the seller was reporting the income or not. He made out the 1099-int, but may have never filed it. (Seller is not my client)

That is the number that I gave them. I DO have an extension # of 245; the gentleman who was very helpful to me. However, Jack is correct that the first step is and must be the filing of the Form 14039. I actually have that form saved to my desktop for easy access. The second step will include copies of the drivers license and SS card. I agree with Jack. You will get nowhere on the website.

Yes it is. I mistyped on the CG wording. The gain is usually pretty hefty too, depending on how long he has been depreciating and how much more he gets for it than he paid. However, seller does usually walk away with equity.

In my cases, it is an individual who issues a 1099 interest and claims it on his personal return as interest income. I have several parties who are paying mortgage interest to private parties and all are reported the same. I don't know what the criteria is to make it a business, other than being in the Professional Real Estate Business.

I have a client who is buying a rental house on a land contract. He had two, but had built up enough equity to get financing on the first one. He DOES receive a 1099 interest from the individual who is selling it to him. It is not a trade or business. It is a Sch E Rental of two properties. In 2013 he sold one rental to his brother. That is a CG sale of property and has its own formula. Fortunately, for me, I also have the brother as a client, so all numbers agreed. I do not have the original holder of the land contract as a client, but he does issue the 1099 to my client every year. (Client sold the property that he had already gotten financing on himself)

I just recently finished a client who took out 30,000 in 2011; no tax, no exceptions; but also no return filed for 10, 11, 12 and 13. The biggest beating he is taking on all four years is the failure to file penalty. I tell my clients that they MUST file even though they cannot pay. IRS is not happy with persons who DO NOT file when they are required to do so. He came in with transcripts from IRS that clearly showed $30,000 withdrawal from IRA. He swore that he never took out more than $10,000. More delay while he searched for proof. In the end, he "remembered" and it clearly showed the deposit in his check book. None of this pertains to D's question, but let me tell you that there was no abatement, no mercy, etc. He is crying "usury". Basically, I am telling him to pay up and not rock the boat. He would have owed much more if I had not prepared his Sch C; OIH, Sch A, etc. A few years back I had a longtime client who drove me batty; calling at all times of day, evening and weekend. Somehow, we had a mixup on her Fed payroll deposits and she demanded that I pay the penalty and interest. It was not entirely my fault as she was doing the payroll and sending me the numbers. I wrote her a letter; included a check for less than half of the whole. At the same time I informed her that this would end our professional relationship as we obviously no longer trusted each other. That was the best client that I ever fired. Since she is family of family, I still see her and still hear about her situation. She is paying big bucks now to have her business taxes prepared. Odd thing about it is that her children and sisters still come to me for tax prep.

I also had to use Flash. Had no clue, but was not connecting, so clicked on Flash and away we went. Yes, would have been nice to know in advance.

Just an update to let you know that I was able to order the laptop that I wanted. After a lot of sleuthing, searching, begging and (crying) sic., I was able to find one at a Tiger store in a different state. Took a week for someone to pull some strings, but it is now ordered and on its way. I am a happy camper. It is identical to one that I bought a year ago.

I also have the RTRP and still attend seminars, etc and gather CPE credits that are not essential to anyone but ME. I take pride in my services and ability and since I work alone (except for the guys and gals on this board) I need all the learning I can get. Have already paid my dues for a few and the costs are not going down.

Identity Theft Direct # is 1-800-908-4490. That is all that they deal with.

They are decent, but sometimes boring. You just log in as instructed. You are pre-registered. You sit in front of your computer and take notes. I really thought that this one was necessary as we know so little. Have to start somewhere.

As of the moment, they are all voluntary other than the PTIN. That is unless you are an EA, CPA or Atty. The required CPE has been put on the shelf.

Yes, indeed. Only one available is in Canada for many hundred more than I paid. Really nice machine with 17" screen.