NECPA in NEBRASKA

2 hours ago, Abby Normal said:

The program is the same whether you buy Max or Total Office. Even Advantage is the same with just some added functionality.

I meant by switching to Drake or something else. I know that I am pretty much just giving up Paperless Plus, which I didn't use anyway. I know how ATX works and like the input. I don't want to have to learn new methods at my age. 

Lynn, I have not been able to efile 2017 and I am getting very worried. I did renew and did not get a better discount than 10% from my rep. I can't remember his name and will have to look it up. I don't know how other people on FB have been getting larger discounts. My rep was not having any of my reasons, but I did drop down from Total Office to MAX and saved some money. The idea of switching programs when I am trying to count down to getting away from this much stress fills me with dread, but I am really starting to worry about what really happened at WK, since they have pretty much stopped communicating. I am very frustrated that 2017 efile is not back up when many of us still have those returns to file. I guess I would call the regular sales number and tell them that your rep is not returning your messages.

53 minutes ago, jklcpa said:

As far as security with Drake, the company has set up the multi-factor authentication (MFA) that is available but optional for this year and is supposed to be required next year.  It requires the user to set up an app on a phone or tablet and within the system, and then scan a QR barcode from the computer's screen using the camera function. 

One thing I'd like to see changed is for the log out time for inactivity to be lengthened. As it is now, I get logged out frequently during the day for things like phone calls or using other programs where I may be summarizing some of the tax data or creating a document for attachment.  When doing so, I like to leave that client's return open in Drake so that the program continues to track the accumulated time worked on that return for me. 

I don't even have a camera on my computer and don't want one. I hope that they all don't go to this for login. I don't know what I will do, because I am really trying to get ready to retire and am in no place to learn new software. This whole thing makes me sick, but it affected even their expensive programs and there are not many options besides Drake and Lacerte.

Just now, Lynn EA USTCP in Louisiana said:

I am going to Scotland in June. Staying with family in Blairgowrie 

Lynn, it was beautiful! We stayed on the northest coast in the little village of Findochty and drove out each day. It was very cold and windy, but the scenery was breathtaking! 

I'm sorry, if this is a stupid question, but I just got back from Scotland and I have been afraid to open any of my programs for fear that my computer could be infected. My computer has been shut down for 10 days, so I have just been reading reddit, FB, etc. and I just wanted to make sure that by opening the program, that nothing could come back to haunt me. I'm not even sure that it won't haunt me later if any data was received by the hackers. 

Thanks!

Bonnie

11 minutes ago, Hahn1040 said:

recharacterization of a conversion is no longer allowed

contributions can be recharacterized

Though, my first question is:  did they contribute too much to the ROTH because of income limitations or because they were over the IRA limit?

• If they contributed $6,500 to the ROTH or any IRA but they were only 40 years old, then they have an excess contribution that must be withdrawn including earnings.  Taxed on the 2019 return because that is when it was distributed.
• If they contributed $5,000 but earned income was only $3,000 then again: excess that must be withdrawn
• If they contributed too much because of income limitations, then they can recharacterize the excess plus earning. 

               It must be accomplished by the due date of the return (including extensions)

               The contribution is treated as if it had been contributed to the traditional IRA originally. 

                Report the contribution on form 8606

                Include an explanation in the notes on form 8606 :  include date, amount and reason for the recharacteization

                1099R  will be issued for 2019 with code R.  IT is NOT reported on the  2019 return.  The distribution is not reported on 2018 or 2019 line 4a or b.

 

 

They are actually both 61 and the excess contributions were due to income limitations. Thank you! 

27 minutes ago, cbslee said:

My understanding is that under the TCJA, the recharacterization of ROTH contributions is no longer allowed .

Thanks! I will keep looking. I thought that the change in 2018 was only for IRAs that had already been recharacterized to ROTHS. I know Merrill Lynch said that it was good, but they have been wrong before.

I found that clients had contributed too much to their ROTHS and they decided to recharacterize the excess contribution and any income to their traditional IRA. I extended their return so that they would have an extended due date. They emailed me last week and said that it had been done by the broker on 4/16. I filed the returns on 4/17. Today I get a phone call that it even though they had an email from their broker, it will not be final until this week. I have been researching again and it still looks as if they will be ok because the due date is not until 10/15. If that's not the case, then I get to amend federal and two states after I get back from vacation. Boo!

I just signed up for Idrive and it is slowly doing it's thing. At least I hope that I have it setup correctly. They offered to send my a drive to have them upload my data faster. I personally don't like the idea, of mailing it even thought it's encrypted by Symantec and I have a different encryption key for Idrive. Am I too paranoid? When I turn off my computer, won't the backup just start up where it stopped? My Carbonite will expire and then I will just delete it.

Thanks!

My season went well, with the exception of the vast majority of my clients coming in later than normal. I thought that I had lost a lot and then they all came pouring in. The damn brokerage statements coming so late with one or two amended ones just infuriate me. My deadline is much earlier than most of yours, but I don't know how you manage to get them out by 4/15. My February is so filled with appointments, that I only get anything done at night.  My new attitude that life is too short and to spend time with my family during tax season didn't help my workload, but I was much happier.  ATX worked well for me . QBI really slowed me down. I never felt confident that I had a handle on it, so I was continually researching.  ACA is still terrible, but I did find that when everyone else left the Nebraska market, but Medica, that the premiums went up so much that if was considered unaffordable for almost all of my uninsured clients. Most of my uninsured had paid penalties in prior years. 

I am very worried about having to upgrade from Windows 7 for next season. I am not a fan of 10 of my laptop and I have seen various reports both ways from people with running ATX 7 or 10. 

I will be here all year, because I have extensions and all of my backlog to catch up on.

Thanks to all of you and have a great summer! 

I finally got my last extension out. I finished up several returns today and actually finished more than last season on the 15th. Considering how late my clients were coming in, I'm pretty happy. I really thought that I had lost a bunch, because they were so late, but I only lost a couple of kids to free file.  Now I have to hustle to get out the quarterly taxes and some income taxes that I promised, because I'm leaving for Scotland with my son and his fiance for a few days on the 28th. Thanks to all of you that are so gracious and helpful. I could not do this job without the people on this board. All of my friends that started out with me in this field have either quit and gone to another career, retired or died. I hope that I can stick it out until I'm 70 or win the lottery. I hope that everyone has a great summer!

Bonnie

4 hours ago, ILLMAS said:

I’m hoping for it to be a quite day for me, it seems people are more excited about game of thrones then complying with their tax obligations 

I am still waiting to watch it. I have to stay away from spoilers.

4 minutes ago, bbstacker said:

Neither mean or crabby, it looks to me that you are avoiding penalties for yourself.  Learned a long time ago you can't save clients from penalties when they don't follow our advice.

The link is from a Forbes article that appears to be on point to your situation.

Topic Number 513 is from the IRS website.

 

https://www.forbes.com/sites/anthonynitti/2016/12/21/tax-geek-wednesday-deductibility-of-professional-education-expenses/#26ff2b974fc4

 

Topic Number 513 - Work-Related Education Expenses

You may be able to deduct work-related education expenses paid during the year. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) a law requires to keep your status or occupation. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.

Although the education must relate to your present work, education expenses incurred during temporary absence from your job may also be deductible. After your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.

Expenses that you can deduct include:

• Tuition, books, supplies, lab fees, and similar items
• Certain transportation and travel costs, and
• Other educational expenses, such as the cost of research and typing

 

To determine if your work-related expenses are deductible, see Are My Work-Related Education Expenses Deductible?

Self-employed individuals include education expenses on Form 1040, Schedule C.pdf, Profit or Loss From Business (Sole Proprietorship), Form 1040, Schedule C-EZ.pdf, Net Profit From Business (Sole Proprietorship) or Form 1040, Schedule F.pdf, Profit or Loss From Farming.

For more information on work-related education expenses, education tax credits, or information for specific types of employees, such as performing artists, refer to Publication 970, Tax Benefits for Education. Also, for additional information about education benefits, review Tax Benefits for Education: Information Center and Am I Eligible to Claim an Education Credit?

 

 

 

Thank you so much! I was sure that I was not crazy, because this isn't anything new. 

I think that I am right, but I'm getting push back, because everyone else says that I'm wrong. Real Estate School and the fees to get licensed are not deductible on a Sch C if this is the first time that you have ever tried are they? There has not been any income, but turned in over $4k of expenses, plus mileage, and office in home. I am tired and just want to say WTF! I had no idea that all of this was in this return from a long time client. I don't even know if anything but the licenses can/or should be amortized. I don't know why buy all of this crap if you have made no money. Rant over! 

Please just be gentle if I am wrong. I am pretty sick of this year. Thanks!

I just donated, because I don't know what I would ever do without this board. This has been a stressful, weird tax season and I just wish that I could retire and do something more enjoyable. Thank God, I love almost all of my clients, because they make it worthwhile.

The dental and vision can be self employed health insurance. Disability insurance premiums are not tax deductible as a medical expense.

Normally, rental property doesn't get a home office deduction.

It should, because it is ordinary income and that qualifies.

Thanks! I agree that the bank should not have issued anything to a dead person. I'm afraid now that other stuff might come out now that has not been handled. I just want the withholding transferred to an estate number. They are supposed to be checking for one. 

Thanks! I'm assuming that the estate would have to pay out at the higher tax rate and it was withheld in the deceased's SS#. The whole thing is totally messed up. They are depending on me to file any tax returns due. I was under the impressions until yesterday that all of the taxes had been filed in 2017.

It's $17,000 so if it's the estate. yes. They cleared out the IRA and then distributed it. I don't know if there were no beneficiaries set up on it or why the credit union issued a 1099 to a person that had been deceased over a year. There was federal and state withholding. I don't know how they have managed to get this so screwed up. The siblings are getting different information and one of them lives in another state, so the credit union has been holding that state's withholding for the last three years even though it was just a mailing address for the daughter. The mother never lived there at all and I could not get the daughter to talk to the credit union. This is the kind of crap that I don't need in April.

Taxpayer died early in 2017 and  received a 1099R complete with withholding for the wrong state and the IRS in her SS#.  Her kids say that it went to the estate and that not one person received it. I thought that the estate was closed in 2017, so I don't even know what to do with this mess. It looks like they just closed out the IRA and didn't bother telling the bank that she was deceased. Does anyone have any ideas for how I can fix this? Can I even file a 1040 for 2018 with a long gone taxpayer? I don't even know how to extend it. I did not need this on April 1 and I know that it's not a joke.

Thanks!

Taxpayer sold apartments on installment in 2016. In 2018, he paid out expenses for something that was red tagged and had to be fixed. I think that it is an investment expense and not deductible at this time, since they are not longer deductible on Sch A and he does not itemize anyway. If anyone disagrees with me, please let me know. He's sure that he can deduct it somewhere.

Thanks!

I am pretty much the same as last year. I do know of one that tried Turbo Tax, but his parents said that he would be back. I am not worried too much at this point, because a lot of my regulars are just that much more difficult.

I just want some reassurance that I am handling this correctly. New (used) business vehicle was purchased 8/10/18 and totalled on 12/21/18. The insurance check was not received until 1/7/19. They are a cash basis. I know that I should report it on the 4684 for 2018 with no insurance reimbursement. Do I just report the insurance check as income in 2019? That seems like the right way to do it to me, but I am really tired and unsure of myself.

Thanks,

Bonnie