fredazcpa

A client got a notice yesterday, dated May 3 2021, that there refund had been adjusted, turns out to be the EIP recovery.  They had a child born 2-2020, and what they had for amount of EIP rec'd.  plug infor return they are due another EIP for the new child, I hope this is not a sign of things to come as I have a number of cilents with new children in 2020.  return was filed late Feb.  tow things, I think the client had the wrong amt received for the 
EIP, 

Does any one know if the IRS would have picked the child up for the second EIP in January

I have also aked the ciient to go on the IRS website to track down the information for me

we will see what happens

Client was a Canadian Citizen, came to US in 2015. 

In 2018 they had to pay the Expat tax (like ours), but one of the properties (all US Rentals which they had bought before leaving Canada) that the tax was levied on was sold in 2017.,

the remaining properties that they still own  I added the tax to the basis of the properties.

for the one that was sold can I go back an Amended the 2017 for the foreign taxes paid credit\ deduction, or  amend the basis of the property sold for this tax, .

Any thoughts would be helpful

thank you

I think that is what I need, these eyes are tired and there are two weeks to go

no matter the dead line, they always just keep coming and Monday the phone calls will start and since I am the only one, guess what does not get answered and if they leave the message, just checking they will get a call when they are done, unless I need something from them

I have moved the dead line back and back next year going to march 15th

the only exception will be the clients that I can get there brokerage statements directly from my BD

I needed that today

it takes about 4 or 5 years for them to understand when they have it all, it is not ALL, they always forget something.  Some times I catch it on the intake most of the time not, because they are worried about the deductions

Clients(New) brings there information in today, has all the deduction, and they have taken the standard for the last two years, then I ask what abut income, they did not bring there social security, brokerage statements and pension statements, they will go home and look for them, and they have paid for the last two years.

What are they thinking of?????????????????????

5 hours ago, Possi said:

One of these days, the IRS will catch on, that as long as income and withholding statements are not verified BEFORE issuing refunds, there will be fraud. I don't for the life of me, understand this "pay now, ask questions later" mentality of the government. Give employers until the end of January to file W2s, give the IRS until the end of Feb to verify them, and start filing returns in March. Can you imagine the fraud that would be put to bed if they did this simple thing?

but that means that Social Security would not get the information first, then you have a big agency fight.  file with both making all W2 efile

Thank you

Tax payer bought home for $252,000 in 2006,  then turn into rental in 2009, FMV at that time was 136,000  Depreciation was based on that number.

fast forward to 2015, sells the rental for $191,000, with the improvements, etc the loss works out to $50,000.

Is this a long term Capital loss?, or does the loss remain a personal loss like you would have if you sold your personal res.

thank you in advance for your help

very bad planning and also the adm should have consulted an attorney, it might have been possiable to get the benificaries the IRA but not now, have seen it done twice in the last few years and it was all dependent upon how the trust was worded, but once the trust cashed it in, it is over, big tax bill

Or watching a client's wife come down with alzheimer disease, and them him dealing with her and then having to place her in a home.  Every time we meet and I ask, this year you could see the sadness in his eyes, very tough  But for the grace of God go I.

2 hours ago, Abby Normal said:

Clients don't want all that paper to begin with. Just something more for them to store somewhere. I rarely print more than 15 pages of any return. never print 4562, 8949, efile forms or any worksheets, and no one's ever complained. If fact, just the opposite. People have complimented me on having smaller returns,and complained about their prior tax pro giving a huge folder that they didn't need or want or would ever even look at.

Everyone gets a CD with all pages in a pdf, plus a scan of their records.

Save a tree and save yourself some time and money!

Wet to this a few years ago, clients seem to like, I scan all there information except for Medical  and I tell them they can add that information if they wish, some why not the medical, I just tell them the hourly rate to do it and they say OK, the medical stull doesn't auto feed well.  To review I just go over the comparison worksheet and have the CD with the PDF file up on the wall montor if they have questions about a form and also have hard copy of items they may question such as Sch E and C

really cuts down on the tonner and paper, 

In Arizona because of the community property laws , you are good to go

BUT you may need to educate the loan officer as to the tax treatment of a disregared eninty , the issue you will run into is the LLC name does not show up on the SchE, only the address.

lately, even being correct in your treatment, I have almost come to the conclusion to start filling partnership returns for these LLC's just for this reason, also if the partnership return is used, the all the other tax information from the 1040 does not need to be shown

not sure what state you are in, but most likely you are dealing with an underwriter that is not in a Community property state and dose not have the tax knowledge that you have

If he bank insists, ask them who is going to cover the fee to prepare, to fight with the IRS about the 4k plus penalty, or even pay the penalty.  I would show them the 1040 with the Sch E with an explantion of how the tax laws work

hope this helps

44 minutes ago, michaelmars said:

lol, just poured a coffee mug of McCallan 18

or a 21 will work even better

1 hour ago, JMovichEA said:

Single malt?

now that sounds more like, two or three fingers?

I am also thinking of changing back, have been usuing Drake, realy do not care for the iinput, Liked ATX for the "other" forms,  just wondering how is the cost and what have been the increases each year.  Last time I used ATX was 2011, so I missed the 2012 thing.

thank you

Yes it does, it means my inventory of cash is being reduced

Thank you, that was what I was thinking but could not find anything that address it, of course I am sure I did not look in the right spot

thanks again

I use Drake and in the 99R input there is a box to mark and enter the amount rolled over, the difference is added to the income and the word "rollover" is printed on that line

Since Arizona conforms to Federal on the Cancelled debt for a personal residence and it appears the CA  does not, then the credit for other state taxes on the CA schedule S will only be on the other CA income he has (not the Cancelled debt), that was also taxed in Arizona.  Is there any way you can justify part year in both states?  When did they/he leave CA? This may help with getting the returns for the state correct

is it the 19th of April yet????

yes and you get to charge them for doing the trust return

clients daughter has a 1099B with capital gain and divided income at $4k, also has a son with the same 1099B, the Uniform gift to minors accounts

my client is claiming son as depentednt, ex is claiming daughter.  both children reside with mom and the splitting of the children is my agreement between the parties.

who's income do I use for the daughter's 8615 (kiddie tax), mom as the custodial parent or the ex ?

Mom and new husband are my client, no information about the ex

thanks

yup 1041 pass out the income and the withholdings