kcjenkins

What it boils down too is that often tax returns, to the clients, are more than just tax returns, they are battlegrounds for "fairness", or "equality" or even a chance for "one-upmanship". That's true even for married couples, divorce just brings it out more into the open.You all know the spouse who makes almost as much, but has their withholding way lower than it should be, so that 'take-home pay' is equal, or higher, for just one example. I might throw out a suggestion or two, for what the possible options are, but I never, ever, ever, tell them "what it should be". Let them, and/or their lawyers, fight that one out.

http://chicksontheright.com/posts/item/24654-best-instructional-video-you-will-ever-see-ever Don't be turned off by the still picture. WATCH THIS. You're about to fall in love.

Well, if it's "something that in some universe could possibly be a deduction", I would not, because I live in this universe, and as I said, I do not want them to go around telling their friends "my tax preparer said it was deductible". Which, by putting it on that Sch A, you in fact did do. I never wanted my reputation marred by that sort of thing. And I never, so far as I know, ever lost a client by telling them "You came to me for my best professional advice, and I am giving you that when I tell you that the tax law does not allow you to take that deduction". I think, based on her follow-up post, that Tabby agrees with me, actually, on this.

Tabby, the problem with doing as you suggest is not that the client goes away happy, it's that the client goes away believing that the item WAS deductible, when you should have educated him/her on why it was not. Not only for future, but also so they don't go around telling their friends "my tax preparer said it was deductible". Which, by putting it on that Sch A, you in fact did do. I'm not talking about something that IS deductible, like our fees, work boots, or union dues. Sure, we all do that, if we are smart, just so the client sees we did take them into consideration. I'm only talking about the temptation to put on something that IS NOT deductble.

Yes, he's spotted one of the times, [i am sure there are others we just don't know about] when some bureaucrats have made an unlawful change in how they carry out their legal responsibility. I hope he's successful in the lawsuit.

IRS Approves Post-Death Annuity Exchange Washington, D.C. (August 20, 2013) By Donald Jay Korn Financial Planning Clients who inherit an annuity may now have a few more options thanks to a recent private letter ruling from the IRS. Rather than being bound by the terms of the decedent's contract, beneficiaries may be able to exchange inherited contracts for newer, higher paying contracts, according to PLR 201330016. Such an annuity might have lower costs, come from a stronger company, offer better investment options, or have desirable features. “Advisors with clients in this situation should work with their firm’s people who are knowledgeable about annuities so that all the options can be considered,” Scott Stolz, president of Raymond James Insurance Group, the insurance general agency for the Raymond James, said. Previously, clients would generally either elect to annuitize the contract within 12 months, or take all the money out within five years and pay tax on any deferred gains, Stolz said. In this case, the PLR was written in response to a taxpayer whose mother had died, naming her as the beneficiary of several annuities that had not been annuitized. These annuities were non-qualified, so they were not held in a tax-advantaged retirement account. The daughter elected to receive the payout over her life expectancy, but she discovered that she could get a new annuity from Company C with a higher payout than she’d receive from Companies A or B, the issuers of the inherited annuities. “That’s not unusual,” said Stolz. “A client who shops around might find a better income rate than the annuitization rates offered on inherited annuities.” Today, with interest rates expected to head higher, waiting for up to 12 months to decide might deliver more cash flow from a replacement annuity. In this PLR, the daughter arranged for an annuity from Company C; the money from the original annuities is to be sent directly to Company C by Companies A and B. The taxpayer requested that the process would be treated as a tax-free exchange, under Section 1035 of the tax code, the provision commonly used for swaps of annuities and life insurance policies. The IRS consented, provided all the requirements of a 1035 exchange are observed. A PLR is non-binding and only applies to the taxpayer who made the request, but it also shows how the IRS regards a certain issue. Thus, an exchange for a higher-paying annuity may be a realistic option for beneficiaries. The challenge may lie in finding an insurance company willing to issue an annuity that will conform to the rules while not imposing steep costs, Stolz explained. The PLR is so recent that it’s too early to know how insurers will react. Nevertheless, it’s not too soon for advisors to have conversations with clients who inherit annuities, revealing that trading up is now a viable strategy, he said. Stolz also raised another possibility, one that is not addressed in the PLR. As mentioned, non-spouse beneficiaries also have the option of waiting for up to five years, then liquidating the contract. (Spouses also can re-register the contract in his or her own name, for ongoing tax deferral.) “A beneficiary who wants the money but is willing to wait may be able to do a 1035 exchange for an annuity that could be held for five years,” Stolz said.

Absolutely, Judy. My first thought too.

So you went along with the scam? And how did that make it 'your' money? '

http://www.journalofaccountancy.com/Issues/2003/Feb/ThePaddingThatHurts#!

http://www.wimp.com/bulldogbutterfly/

What in the world did you do all day?! A man came home from work and found his 5 children outside, still in their pajamas, playing in the mud, with empty food boxes and wrappers strewn around garden, The door of his wife’s car was open, as was the front door to the house and no sign of the dog, walking in the door, he found …an even bigger mess. A lamp had been knocked over, the throw rug was against one wall, In the front room the TV was on loudly with the cartoon channel, the family room was strewn with toys and various items of clothing. In the kitchen, dishes filled the sink, breakfast food was spilled on the counter, the fridge door was open wide, dog food was spilled on the floor, a broken glass lay under the table, and a small pile of sand was spread by the back door. He quickly headed up the stairs, stepping over toys and more piles of clothes, looking for his wife. He was worried she might be ill, or that something serious had happened. He was met with a small trickle of water as it made its way out the bathroom door. As he peered inside he found wet towels, scummy soap and more toys strewn over the floor. Miles of toilet paper lay in a heap and toothpaste had been smeared over the mirror and walls. As he rushed to the bedroom, he found his wife still curled up in the bed in her pajamas, reading a novel… She looked up at him, smiled and asked how his day went. He looked at her bewildered and asked, ‘What happened here today?’ She again smiled and answered, ‘You know every day when you come home from work and you ask me what in the world do I do all day?… ”Yes,” was his incredulous reply.. She answered, ‘Well, today I didn’t do it.

A husband and wife came for counseling after 15 years of marriage. When asked what the problem was, the wife went into a passionate, painful tirade listing every problem they had ever had in the 15 years they had been married. She went on and on and on: neglect, lack of intimacy, emptiness, loneliness, feeling unloved and unlovable, an entire laundry list of un-met needs she had endured over the course of their marriage. Finally, after allowing this to go on for a sufficient length of time, the therapist got up, walked around the desk and, after asking the wife to stand, embraced and kissed her passionately. The woman shut up and quietly sat down as though in a daze. The therapist turned to the husband and said, "This is what your wife needs at least three times a week Can you do this?" The husband thought for a moment and replied,.. "Well, I can drop her off here on Mondays and Wednesdays, but on Friday's, I fish!

Isn't it nice that only conservative groups are "using statistics to support their cause"?

http://online.wsj.com/article/SB10001424127887323639704579013040148683248.html?mod=djemBestOfTheWeb_h Washington finally declared a truce on the death tax this year, with estates now taxed at 40% with an exemption of $5 million. President Obama insisted on preserving this tax to spread the wealth, though it raises less than 2% of federal revenue and discourages lifetime savings, as even a 1981 study by Mr. Obama's former chief economist Larry Summers showed. Now the death-tax debate has shifted to state capitals, with mixed results depending on which party runs the state. Prior to 2001, states could impose an estate tax of up to 16% with no extra burden on their residents because a federal tax credit offset state estate taxes. That policy has ended and now state death levies are paid out of the assets of the deceased. Four states—Indiana, North Carolina, Ohio and Tennessee—have reacted wisely by eliminating or phasing out their estate taxes. This leaves 18 states plus the District of Columbia that still impose a gift or estate levy. (See the nearby list.) Most of them still apply a 16% rate—as if federal rules haven't changed. The grand prize for self-abuse goes to Minnesota, which this year enacted a new 10% gift tax with a $1 million exemption. A gift tax is a levy on money given away while still alive. This tax is in addition to Minnesota's 16% estate tax. The new law is all the more punitive because it applies the 16% estate tax (6% on top of the earlier 10% gift tax) to any gift within three years of death. This is essentially a clawback tax, or more taxation without respiration. Democratic Governor Mark Dayton, who signed the law, is the heir to a department store fortune and knows a lot about inheriting wealth but not much about creating it. Studies by Mr. Summers and many others conclude that successful people who have built up wealth continue to invest in the enterprise and save money in their later years in order to leave a legacy to their heirs. This accounts for the trillions of dollars of wealth passed from one generation to the next. The higher the tax rate the more this incentive for wealth creation is reduced. The combined federal and state death tax rate now approaches 50% in many states (after accounting for deductions). This explains why estate tax planning and avoidance is a booming industry. State death taxes are especially futile because residents subject to the tax can avoid it by fleeing before they die. No less an ardent liberal than the late Senator Howard Metzenbaum moved to Florida from Ohio to avoid estate taxes after he retired from politics. A successful New York business owner with, say, $50 million of lifetime savings can move his family and company to Florida, Georgia, Texas or 29 other states and cut his death-tax liability by up to $8 million. Thousands of Minnesota snow birds move to Florida during the winter months already, and so the new tax adds an extra financial incentive not to return. The Center for the American Experiment, a Minnesota research group, found that $3 billion of income has been lost to the state since 1995 after Minnesotans relocated to Florida and Arizona. The think tank's conclusion should be required reading for policy makers in every state still imposing a death tax: "If enough people move away and stop paying Minnesota taxes, then Minnesota will experience a net revenue loss due to the estate and gift tax." This will mean that people making less than $1 million a year will be left paying the tab. So much for spreading the wealth.

The biggest reason I've heard from my IRS contacts is that so many experienced people are taking retirement. And the new hires are just not ready to be given free rein, yet, but are being thrown into the fire anyway.

Beautiful. Very serene. I love it.

I combine them by printing them to my pdfFactory printer.

Just one more little hidden tax increase. Note that the 38% of the refund is 'reduced', not 'delayed' or 'suspended'.

Good luck on that, Tabby! My position on this type of client is, as long as I get all the income, I'll just go with the expenses they provide me. As to whether I have all the income, at least most professional performers, in my experience, keep a diary of their dates on stage, if nothing else. So I'd look at that, and match what 1099s I had to that, then ask about the missing ones. And, of course, the responsibility is always the client's, not mine, if I don't have it. [Yes, I did occassionally add a thousand or five for 'cash payments', when my 'spider sense' told me the numbers were too low, Never had a client object, either.] Hopefully you can get something from the IRS.

Tabby, there is always at least one like that, but as long as you get paid well and in advance, they can be worth it. Have you thought of giving her some cards to hand over each time she gets a gig, showing her "business address" as c/o and your address? that way, all her stuff would come to you during the year, and you would be able to complete her return in a timely manner but still at the higher rate, since you are providing the extra service of keeping up with her data. I did that once with a musican client, and it worked well for both of us. Just a thought......

LOL

Sure you can, no problems at all.

A woman from the deepest, most southern part of Alabama goes into the local newspaper office to see that the obituary for her recently deceased husband is written. The obit editor informs her that the fee for the obituary is 50 cents a word. She pauses, reflects and then says, "Well, then, let it read,'Billy Bob died'." Amused at the woman's thrift, the editor says, "Sorry ma'am, there is a 7 word minimum on all obituaries." Only a little flustered, she thinks things over and in a few seconds says... "In that case, let it read, "Billy Bob died - 1938 Pickup for sale."

THE PERKS OF BEING 60+ 1. Kidnappers are not very interested in you. 2. In a hostage situation you are likely to be released first. 3. No one expects you to run - anywhere. 4. People call at 9 PM and ask, "Did I wake you?" 5. People no longer view you as a hypochondriac. 6. There is nothing left to learn the hard way. 7. Things you buy now won't wear out. 8. You can eat dinner at 4 P.M. 9. You enjoy hearing about other peoples' operations. 10. You get into heated arguments about pension plans. 11. You have a party and the neighbors don't even realize it. 12. You no longer think of speed limits as a challenge. 13. You quit trying to hold your stomach in, no matter who walks into the room. 14. You sing along with elevator music. 15. Your eyes won't get much worse. 16. Your investment in health insurance is finally beginning to pay off. 17. Your joints are more accurate meteorologists than the national weather service. 18. Your secrets are safe with your friends, because they can't remember them either. 19. Your supply of brain cells is finally down to manageable size. 20. You can't remember who sent you this list.

Exclusive is the problem word. I wish they would change it to, say, "at least 85% [or 90%] business use". After all, those who have a business office at some other location probably play computer games from time to time, on their office computer, or watch the game on the "business" TV in their lobby, etc. Just because someone has his washer and dryer down there, or park their exercise equipment, or even where their kids do their homework and use the printer, or where they spend their weekends watching streaming video or playing internet games does not make it not a "real" office, if that is where they regularly work to generate their taxable income. When my kids were in school they often used my office to print their school projects, etc. But merely because it was a separate office I rented and operated out of, I did not have to measure that use. I bought 'personal use' paper as needed, but otherwise nothing.