Denne

I am working on a return today. The gal is paying all of the expenses for a house that her deceased mother owned. There is no income to the estate and she lives in the home herself. Since she is paying all of the expenses she would like to deduct the mortgage interest and property taxes ahe has been paying for several years on her taxes. When the house is finally sold the proceeds will go to her and her three sisters equally. In my view she does pay the mortgage and interest that will not be reimbursed in any way. I am thinking about listing the interest as being paid to the estate...any reason not to do that? Not sure yet what I am going to do with the property taxes. It is her homestead until the house is sold. Other suggestions??

I returned from the hospital just a little while ago. Barbara is not doing very well. The infection that caused the issue to begin with is apparently not clearing up. The infection is feared to have gone to her heart and she still has the pneumonia. I told her tonight about all of the prayers you are saying for her ans she was very delighted. They now have her back on oxygen....this time with a mask so it is difficult to communicate with her. I wish I didn't already have several apointments tomorrow so I could just head up there for the day. I guess I will end up being there after the appointments are finished. Thanks for your continued prayes. We need all of them at this moment. They aren't giving her much chance to survive.

Thanks to all of you for you beautiful and much needed prayers. You guys are the best!

Thank you so much for your prayers. So far Barbara is breathing on her own with the breathing tube removed. They said the next 24 hours will be the roughest. I truly believe prayer is making all the difference ;~) I will keep you posted as thing progress.....

I just received a call that my best friend is going to be removed from her breathing tube in about two hours. She has had many struggles with her health and is certainly in need of prayer. They are giving her a chance to make it without the breathing tube, but she has been on it for nine days. I am praying that the Lord will give her strength to survive. She has had in infection that has gone into her blood stream and she is just coming out of that. She sure needs prayer.... Thank you for taking just a quick minute to say a little prayer for Barbara ;~)

Thanks Jack..... You are seeing it the same way as I am. I see no reason there can't be more than one beneficiary to begin with, but still see no reason they would need to pay income taxes just because they are a Corporation, even if the Corporation is the primary beneficiary. Thanks again ;~)

I am still trying to figure out whether there is a difference in the handling of a Life Insurance policy between a Sub S and and LLC. The members are interested in changing from an LLC to a Sub S for the SE savings. They currently have a life insurance policy that would pay a percentage upon the death of either member to the business and the remainder of the policy to the spouse. The agent told them that a corporation would be required to pay the insurance benefit to the spouses by way of wages or a taxable distribution. Is there a reason that the policy can't just state they are the beneficiary and pay them directly. I am not sure why the agent feels that the handling would be different between an LLC and a Corporation.....am I missing something? I appreciaty your assistance on this matter........

I have a partnership client that is considering moving from a PLLC to an S Corp. They have an insurance policy that was just written that will pay the PLLC upon the death of either partner. They have it written up that the company will get a portion to keep the company going and the spouse of the partner that passes will get the remainder. The insurance agent just told them they the policy would pay to the company only. He said the wife would need to receive a distribution from the company....he said in the form of a payroll check. I am not sure if he is looking at it as a corporation or a PLLC really. I have no idea why the spouse can't recenve the payment directly from the insurance company for their portion...a stated dollar amount and the company receive the other portion. Am I just not seeing the situation there correctly? Any advise on the best way to write this policy or whether they should actually request the S Corp change? Thanks for your opinions ;~)

For those of you that helped me through last week and gave much such good advise...I thank you! Unfortunately this former client will not stop calling and demanding. Last week it was copies of all of his payroll taxes. I finally caved in and faxed them to him after his threat and nasty phone calls. I still had not been paid, but sent them since he said he was aware that he owed me and was going to send a check. A week later I am still unpaid and the phone calls demanding copies of Personal Property Taxes and Depreciation Schedules have now started. I re-faxed my letter telling him what his prior balance was and billed him for my time for last week getting his items faxed and his more than 50 phone calls. I said in the fax that I would be happy to fax those other items to him after his account was paid. Today I got a nasty fax telling me he wanted all of "His" files by the end of next week.....no mention of payment being made to me. He told me he wished I would quit playing games and trying to make things more difficult for him??? I don't have his files. I have my files and working papers here. I thought depreciation was my worksheets. I am willing to send them to him, but just asked to be paid first. What the heck did I do wrong???? I have never been playing games with him and was so relieved to just have the phone calls stop last week after I sent what he wanted. I feel I have gone over and above what I should have done already. I just want to be paid for what he already has received...... So upset and frustrated with being stalked by this guy..... Thanks for listening again!

Thanks so much Ken.....I always have problems finding that darn little chart every year. Good information thanks to you!

Thanks for all of your excellent ideas on how to handle someone that was competely harassing me and then eventually today threatening me. He called a minimum of ten times today. He left a message when I was on the other line that said he was either going to get everything he needed today or he would be in my office until he did! Not sure how he was going to get thru the locked door, but did trust that he was getting even more hostile. I as advised by others to call the police and report what was going on. While I was preparing some notes to call them I got another call in between and you guessed it....he called again! In those 10 or 15 minutes, I think may have received my letter in the mail. He called back to say he was going to get a check in the mail if I would fax him a bill. I faxed my letter....just in case he hadn't gotten his mail...the bill and the payroll taxes only. I put a cover sheet on the fax and told him he had the information he needed for his BS on his last years corporate return. I hope and pray he pays me....not really trusting it...but figured my safety was more important that he owed me at that point. I have no protection here and who knows how long the police would take to get here....... Our city has had lots of budget cuts with includes the police department. I also hope I NEVER hear from again. I think he has lost his mind and will most likely loose his business if he doesn't change his ways. I know he has lost my business, since I used his services too........ Thanks again for your advise and support. You guys are really such support....I can't even tell you how much it means to me.

I totally agree....that is precisely what I did today even before reading your message.....

I agree. I have been nothing but courteous as well as very professional..... Really don't want his business at this point, but I hold myself above reacting to his horrible behavior over the last four days.

Have youself a Merry little Birthday Charley!

Have a very Happy Birthday and a blessed year ahead!

Have a good one Zeke!!! Be blessed today and throughout the year too ;~)

You have a point there. I expect he will call several times needing various things.....

So, would you also charge him for the additional copies I will need to make then....any my time? I really think he is going to go through the roof about paying first either way....cash is a good idea too! Thanks...

You guys have been so great offering me good advise. Need to ask for some ideas on this same issue however. I sent the letter and billing statement to the client. He called several times today and left messages while I was on the phone or with clients. I have to confess.....I also dodged the call twice too. I thought six calls in one day was excessive. I want him to read the letter I sent and then act like a real human being instead of a bulldozer.....might not happen however. I didn't call him back after his six calls today so he not only showed up at my office, while I was with a client, but did not knock....just walked into my home....where my office is. He said he wasn't getting results what the phone and needed copies of his payroll taxes for the year and wanted me to prepare a balance sheet for him. I had a client and her little girl in my office. I wonder what she thought about the whole incident. Anyway, I told him, truthfully that I had been exceptionally busy and had had time to even think about getting anything ready for him. Of course he didn't offer any payement either.....no surprise there. As he walked out the door he said he would expect me to fax him what he needed by tomorrow morning. I have a feeling he will be back here tomorrow afternoon if he doesn't get what he wants in the morning. I have appointments here so I am sure he will just walk in again. Do you feel I HAVE to give him anything? I consider these my working papers and want to keep them in my file. Who knows what this PITA will do next..... I included in my letter that any future requests for service will be in writing so I have proof to justify my fees for future services. Isn't this future service??? He had the original payroll taxes in his hands every quarter and could have made copies for himself at any time. For 18 years he has never wantted a copy of the taxes and most clients don't seem to know what to do with the copies anyway. I figured I fired him yesterday when I wrote the letter. A very professional letter. I wonder if he would also expect a fired employee to leave without a last paycheck and come back to work if he wanted him????? I have a feeling he is going to tell me he won't pay me until I provide everything he wants. I am taking the position that I will not provide anything else until he pays for what he has received already. I really don't want to end up in court, but I have no reason to believe he will pay me. He has been dishonest with me the last two months...after I look back....as he was preparing to stop doing business with me....and asking me to do all sorts of extra things during the past two months. Very deceptive really. Need some suggestions as to how to handle this matter....it may come to a head tomorrow. Thank you in advance! Hope I don't have to call the police in, but may come to that ;~(

I agree with you. It has been some very hard times here in Michigan and like other Accountants in our area we are trying to hold onto what business we do have. When I was ready to raise the fees for this client a year or so ago this guy was going through a separation with is partner. I have a letter ready for an incease ready for him for 2010, but of course not going to happen. I am very kind to my clientele. Need to be kinder to myself however and raise fees little by little. I do make up at tax time on the low fees and charge extra there. Still need to do better on the monthly fees......

May you have a very blessed birthday that lasts all year!!!

So what happened and what did I do? Yesterday, my husband delivered the paperwork back to this client for the month of November along with his depository coupon books and Sales Tax voucher for December. When he got back he said that he did not receive a check for what he dropped off......I sure do wish I was doing like some of you and collecting in advance. Well, I got steamed....not to normal for me really ;~) I decided that since he had used lots of my time in December for figuring the payroll tax deposit, sales taxes, picking up and numerous phone calls that I would also bill him for December. Today the former client called asking for copies of all payroll taxes for the last year along with some additional copies of various items. Well.....lots of nerve in my book after not paying....like he normally does every month as paperwork is delivered. I sat down and composed a letter telling him I appreciated working with his company for 20 years and sorry the business relationship ended to abruptly. I also explained why he was also being billed for December and that I would overlook the phone calls, delivery back to him and taking care of a notice he had for received when he made out his check in payment of Sales taxes incorrectly....he called in a panic over the notice that said he owed $2600.....hummmmm who will take care of those notices from now on? I also included in the letter that his fees based on a monthly retainer were now ended and that he would be billed for any future serves at an hourly fee of $45.00 per hour or any portion of an hour. Now....I am thinking about blocking his telephone number for the next couple of days. After all....he didn't need me, right? As you can tell....this client is Fired!! AND....all new clients will pay in advance for anything I do and I will work on getting the older clients converted to the same... Thanks for that tip and your other comments that got me fired up.

Thank you everyone. I worked real hard at it!

Excellent idea about becoming a QB Advisor. It is inferior software to what I use for Accounting, but may need to be an option anyway. I would also find it very difficult that he will be able to do his own accounting for less thatn $90 a month......his monthly fee. I make up substancial income on the taxes....not sure he will be back for that either. He seemed to think he could import into tax software to do his own taxes with the assistance of his QB Advisor he has already hired.......

I have a great custom Software for doing Accounting. A great and complete program with personal contact from the programmers themselves. Lucked out to have them available.