mcbreck

As a broker / financial advisor, they are required to issue the 1099 to the individual, they are prohibited from sending income to the LLC (regardless of IRS rules it's also a regulator rule). For mine, I do a Schedule C and declare I've paid the full amount to the c-corp (which I do) and then the C-corp reports the income and pays me via a W2. The only reason we do it that way is to pay our flat firm fees (rent, phones / internet, quote fees, research and so forth that we all share as a percentage of revenue...).

100% agree with this.

How do you know what the business is? They could be dog groomers, hairdresser, art / pottery classes. You are making lots of assumptions.

This. If someone needs to make a few payments to get paid up for the year and don't want to do an official payment plan, I give them a few blank 1040-V forms and they mail them in with payment. The IRS will eventually bill them for interest owed. It's never been a problem.

Have one today who wants me to file an extension and the only contact we've ever had was 9 months ago a meeting about whether I could do their tax return. Haven't heard from them before today and she obviously doesn't comprehend what an extension means. She's wondering if it means she gets a 6 month extension on making estimated tax payments.

All those water lines being replaced is similar to having all the wiring replaced in a home - capitalized. I'm willing to go out on the line and say that if you asked the plumber (or whoever) if they improved the quality of the system so that it could handle greater water flow or pressure in the future (new / bigger pump) - they would say yes. That's an improvement and capitalized. But on the other hand if you expense it as a repair - I doubt it will get flagged by anyone as it would take a real investigation to prove it is false. (In my area, if you don't have water then you aren't getting an occupancy permit. They aren't running a business out of the home without water.) Back in the early 80's my dad's sales company was audited. The only thing they found was that the work done to a printer should have been capitalized instead of calling it a repair because it increased the quality of the printer. Nobody could say how it was increased (it was a high speed dot matrix printer) but the IRS deemed it to be so.

If they are able to take their phone call about a 20 year old tax return - he's in hell.

When you see someone's name pop up on caller ID and your heart drops, fire them. Life's too short to be miserable.

Had a client today who "lost" $1.5m. Not that he lost $1.5 million in the stock market drop, he couldn't remember where it was invested to get me a 1099. When I asked if he still had healthcare through the marketplace he responded with a "you need that form every year?". Had a lady call a few weeks ago and said she was ready to get her taxes done and I could pick up the docs on the way home. I get there, we meet in the lobby of her building and I ask "do you have some forms for me?" Her answer was No and thought I could figure something out. Son of a client has learned from his secretary that his father's nursing home expenses were deductible, he declares we weren't claiming those and he wanted me to file amended returns as soon as possible for the last several years and I'd be doing it for free as I had failed to do my job. His sister (on the email chain) responds "We've been doing that for the last 10 years but thanks for getting involved now." That was a fun day. Had a couple three weeks ago who had a household income of $350k and owed $3,700 on their federal and the husband didn't know how they were going to pay it. He wanted to know about how to set up a payment plan and the wife was steaming mad. When I mentioned they'd be getting about $2,000 back from the state and would almost certainly have the refund before April 15th, he still wasn't 100% sure they'd have the funds and wanted information on making payments.

I can't even imagine a world where my clients could download their tax returns without me printing it. Even people who I think it should be a no-brainer get hung up on it and almost always it's because their corporate networks won't allow them to download. Um, use your personal computer at home? A brokerage firm sent me their 1099s via a portal and the broker said more than 50% of their clients couldn't figure it out. All you had to do was put in your email address and last name. Have a guy who I sent everything through the portal 2x and he asked for it a third time to be sent via email. Finally his business partner texted me and confided he knew the guy was scared of the portal. I knew he hadn't downloaded the items but at least try?

What I like about Brother is that you can buy refilled cartridges on Amazon for a very cheap amount. Some of the makers have utilized tech to try and prevent that. It also will hit 100k pages by the end of next week. I'm thinking about moving my color printer to the side and using a mono / black only printer for general usage when I don't need color. I'd like to limp this color print along until retirement.

ohhhh - claim number is different. I'll bet you are correct. Thank you very much.

Yes - this is important.

Client receives her normal SSA 1099. Let's say box 5 says $33,000 (says checks received is $30k which she believes to be correct). She gets a second one that says it is an updated benefit that includes any repayments in December and replaces any previous statement. This says Box 3 $10k, repaid $10k and box 5 is $0. She knows nothing of repaying the IRS (she is self employed and 68 years old but the profit is only $2k every year). You'd think she'd know but she doesn't and isn't checking. Who wouldn't know they repaid $10k? How am I supposed to enter that?

I always looked at it that if you rent long term, it's schedule E unless you provide services. If you rent for less than 7 days at a time, it's Schedule C regardless of whether extensive services are performed. The IRS rule for rental activity states: Exceptions. For purposes of this paragraph (e)(3), an activity involving the use of tangible property is not a rental activity for a taxable year if for such taxable year—(A)The average period of customer use for such property is seven days or less The second exception is (B) The average period of customer use for such property is 30 days or less, and significant personal services (within the meaning of paragraph (e)(3)(iv) of this section) are provided by or on behalf of the owner of the property in connection with making the property available for use by customers The first exception literally says nothing about services being performed and is solely a time exception. I can't imagine very many WANT to put their rentals on Schedule C as it subjects them to SE tax. It is an exception which requires it.