Corduroy Frog

Judy, is there any more information available for the low-cost Delaware seminar discussed earlier? I've been on their website and can't find any more specifics. Thank you in advance -

Wish I could be there Catherine. You are such a force for good, and I'm sure you'll do a great job.

DAN, be straight forward all you care to. I would much rather deal with honest people than a smiley face with no substance. I am often criticized.

Either way, he will get the benefit of what has been spent. However, if it is an investment, he will have Capital Gains (LT or ST, original post does not tell which) If it is rental, the losses will accumulate and it should be an ordinary income loss reportable on Sch E.

I put the original post 2 hours ago. During that time I have counted 9 (yes nine) robocalls. I can't help but thinking something recent has turned these loose on the world. Or maybe just me.

Maybe i'm the only one, maybe not. Until recently, RoboCalls were on the decline, either because the Federal Trade Commission was effectively winning, or possibly because they were increasingly ineffective, I dunno which. Those days are over. I have to have my landline for business reasons, and for the last week or so I've been getting 25-30 calls per day. In fact, so many that there have been occasions when one of them can't get through because another was trying to get me to answer. I used to answer and ask which office in which state they were calling from. [[click]] They can mask their phone number and make it look like someone in your home town is calling you. I've absolutely quit answering because if I answer they know that they have reached a valid number. Has something drastically changed in the last week or so (Maybe a victory in court for these cretins)? Or am I just back to whining?

Thanks to all. The 3 original partners from 1962 had 11 children who ultimately became partners. The first of the original partners died in 2012 and the last one's spouse died in 2014. I didn't apply the 743 for this partnership until 2014. Technically, the spouse that survived the original partner should have received stepped-up treatment when her husband died. She was not joint member of the partnership, but became so when she inherited his share. Mercifully, all property in the partnership was sold, and final distribution of $$ occurred in 2022.

Thank you DanRVan. You are good to respond to questions with helpful knowledge.

All 11 partners were part of the estates of the 3 deceased original partners.

Truth is, ALL of us have had new customers with difficult circumstances. I believe if we back away simply because of difficulty, we are beguiling our calling as tax professionals. There are most likely some of us who fear the possible liability, and that is a business decision incumbent on each of us. Having said that, there are some situations I won't engage. Potential customers who are obviously lying, customers who switch preparers because they haven't paid last year's bill, etc. But for difficulty? I won't back away if there is any way to make the client well going forward. Our blonde colleague from Florida definitely has a train wreck. I agree with CBS, establish a balance sheet that will enable future compliance. And explain that it will require extra work, and don't go too deep without getting paid.

Huntsville AL has a substantial number of NASA employees. During space missions, most of these employees work horrific overtime hours. Even salaried employees who are "exempt" for USDept of Labor purposes are paid, or else they will quit. I would estimate that a majority of these people work overtime at straight time pay (1X) but possible some of them are getting overtime premium (1.5X). If I understand this correctly, any overtime pay of any sort over 40 hours will be tax exempt. This reeks of lobbying somewhere in the state capitol.

Asked on another forum with no answer, other than a possible implication that I didn't know the difference between inside and outside basis. Also have researched 743 in TTB, with lots of information but no straight answer. So I'll bring the question and thanks in advance for reading. A partnership was formed in 1962, and after lo these many years, beneficiaries are now the partners (11 of them). When the last of original partners died, the partnership revalued everything at stepped-up values. Question: Do the 11 partners get a positive uptick to their basis as a result of the revaluation? The revaluation is not really "income", certainly not taxable income or tax exempt income either. If one of the remaining 11 partners sell, and cannot increase his(her) basis, there will be a capital gain out of proportion to reality. I've seen a number of worksheets designed to calculate a partners' basis but nothing which address section 743.

My average is half the national average discussed, might be why I have repeat customers. I also live in a low-cost small town, and have little overhead. My wife's daughter helps me with the paperwork, and that is the extent of my massive staff. I also have write-up work for CPAs steady work in the off-season. Also Tennessee has no State income tax to prepare. However, being long and narrow, we are never far from another of our eight contiguous states, all of which have a state income tax. For me, if I have to prepare a state return, it takes me quite awhile, except for Alabama, where I have several customers. The format of the various states is fascinating - they're all different.

Make a clear demarcation of what your responsibility is. They have issues outside of your tax practice. If the workers can get a SS# or ITIN and they get it from Fast Eddie's printing press, then where they get it is not your problem as long as you are not aware of that. Their insurance is not your problem as a tax preparer, nor is the baby forthcoming. Prepare the return (a 1065 probably) if you can. Send them to social services with everything else. If these factors prevent you from filing the return and answering the questions concomitant with the return, then yes, run. I perceive that you are a very caring person and are concerned for their welfare outside the scope of your service. That's a credible thing. But remember there are people who can make a better living suing people than they can on their own merits.

Thank you Catherine for the heads up. Limited time employees are not subject to tax, but the employer will need to withhold taxes anyway - is that correct, or is there a way around that? And then it may be hardly worth the trouble for employees to get refunds. At least we know somewhat of what to expect. Thanks.

A Client of mine is considering accepting a contract opportunity in Washington DC. This is not the beltline, MD, or VA, it is DC proper. I would like to ask this group what to expect in the area of difficulty. Applies to taxing authorities, regulators, enforcement, etc. There is a cost of compliance involved, and the cost can vary greatly from state to state. Example: Louisiana low cost, California high cost. Comments are welcome from those who have experience there.

Thank you Brewmaster. The Tax Book mentions a threshhold of $27 million, but I feared there were further restrictions. I believe if there are, they would be confirmed on Form 8990.

An accrual-based BUSINESS taxpayer has accrued or prepaid interest at year-end. Are the rules different for interest than for other expenses, even though taxpayer is accrual-based? Seems like I remember a difference, but would like to know the latest. IRS might have a publication 250 pages long, but I would like to beg out on having to read their stilted language. Thanks in advance -

I think so. We should have enough insight to judge whether a self-appointed salary is out-of-kilter under the circumstances. And I believe there should be a long rope in judgement before penalizing a preparer. I also believe IRS personnel should be held to applying the same standards for C Corps as for S Corps. The effects and audit objectives are vastly different but the standards should be the same.

Two friendly faces are more than I deserve, but there is a matter of distance for CT for 4 hrs credit. I said I don't mind driving but at some point I do have to be practical. Would love to see those two faces elsewhere. I am quite interested in the Delaware thing but the linked information is premature at this point. I'll be checking back. Thanks for the response.

All states have "escheat" laws, primarily directing the dormant funds not accessed for years be given to the state. I hope your client can recover thru the Unclaimed Property vehicle, but I wouldn't guarantee it.

Yes, the U of Illinois has enjoined several writers to produce an instructive document to be presented in seminars in land-grant colleges in every state. I am already registered for 16 hours in such a seminar at Auburn, AL. In the past I've been to this in Tennessee, Mississippi, South Carolina, NCarolina, and Kentucky. It is very reasonably priced, only $17 per CPE, and it is good material. Last year some 600 pages. Univ of Illinois was the original author of the material, dating back to the 1950s.

Thanks to the group. Judy's $50 deal is incredible and I wouldn't mind the drive - could I justify 6 hours credit when I really need 16. The Oklahoma State farm course is the same syllabus offered to all land-grant colleges. I will be taking this course in Alabama sponsored by Auburn Univ. Is Bob Jennings still doing seminars? He has a website, but is being taught by proteges at Little Rock & Louisville among other places. Doesn't show the price. Reference made to Oregon's $50 per CPE. That would be $800 for me. Even worse than the Sunny South. Thanks to everyone for sending information. I'll need to choose soon.

Need one more seminar to satisfy CPE requirements. I'm finding the prices for live seminars are horrendous. The only one I've found to be reasonable is the annual Illinois Farm Seminar which has been around forever and is taught at all the land-grant colleges in almost every state. It is good reference material and is reasonably priced. In the past I've been to NCPE, Back-to-Basics, NATP Georgia, and NATP Kentucky. Their cost is nearly double what they were 3-4 years ago. Any other suggestions? I prefer the live seminars, and although I live in TN, I don't mind driving. I've been as far as Minnesota.

Aside from the abundant issues discussed, please remember that a truck driver is allowed a different percentage of meals than other taxpayers. Historically most taxpayers have had to live with 50% deductibility. I say "historically" because in the COVID years, there were different percentages. Presuming no further contortions for 2023, Truck Drivers may be entitled to 80% for overnighters, as opposed to only 50% for the rest of us. To re-iterate conversations above, Mom and Son should sit down to a "Come to Jesus" meeting with a knowledgeable advisor. They are teetering on Humpty Dumpty's edge-of-the-wall.