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Ram32

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About Ram32

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  • State
    MI
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    Male
  1. Ram32

    SBA Loans

    Great discussion as usual. I too, see a value in knowing how to walk a clients thru this plus it sounds like our own businesses might benefit.
  2. Current dilemma .....My long time office manager moved to another state. Hard to find someone as accomplished and interested in taxes so thinking about a virtual receptionist for scheduling appointments only. Wondering if anyone has had experiences with such a firm and if they felt it was value added. Part of the reason not replacing the office manager position is my age and the possibility that retirement may be in the very near future. Interested to see if anyone has had experiences in this area.
  3. Taxpayer stated their prior tax preparer died in 2010 (April 15th) and he had only filed their business returns (1120S). Personal 1040 was not filed and the preparers tax office closed. All records were destroyed. Yes, I know that is not the way it is supposed to go but the deceased preparers wife was not involved in the business and took it upon herself to destroy all office records. She was distraught and very angry given the passing. The taxpayer has been carrying a balance due with the IRS since this event. Seems like the IRS created the missing personal return and failed to use all pertinent data, of course, much to my new clients dismay and confusion. I am now trying to reconstruct the 2010 return and see if the balance due is realistic. Issue is the taxpayer has no W2's etc since all were destroyed. My question is, given the year of the missing return, can I get information from the IRS to reconstruct the 2010 1040 return. Can you get transcripts back that far? Thanks for the assistance....
  4. Ram32

    Investment Fees

    This has always been a difficult topic for so many reasons. Most people do not take the time or perhaps do not fully understand the choices they make when using investment services. After preparing taxes and observing the investment activity of a recently deceased client, after thirty years of investment 'help' from a nationally known broker, my client was proud to say he had not lost any money over that time period. Wow you say! He said to me...I ended with the same amount I started with! Never lost any money over all that time. I thought to myself...how sad to hear that after thirty years you ended with the same amount. Sure he took some distributions in the later years but never made what he should have if he had not chosen that broker. The Law of 72 states that if you make 7.2% interest, your money will double in 10 years and the inverse.......if you make 10%, your money will double in 7.2 years. The broker pulled 2% of the balance every year in fees plus had him in expensive loaded (commissions) mutual funds. I always point out the advisor fees when preparing tax returns even now when they are no longer deductible. People should be aware. If you give an advisor 1% of your account every year then you have given away 30% of the account over thirty years. How do you justify that?
  5. Thanks for the tip on this. Just ordered! Anything that speeds up my day is always appreciated. Preparers supporting each other is a good thing too!
  6. Ram32

    Tax Laws

    Remember the Tax Simplification Act back in the 80's..........everyone thought the same thing! WE would be out of business if the tax system was simple.......wow that was a joke! I remember increasing my client base because folks heard about all the changes and were scared and confused.
  7. Had the same issue with the 8949 but only when putting in wash sale code and amount. Screen goes white and I have to control/alt/delete the program to restart. Happened three times each with wash sales. Only 18 more days!
  8. Did a quick Google search and located the following: The first and most important rule to remember regarding income taxes is the five-year rule. A Roth IRA must have been established for at least five years before its earnings can be withdrawn exempt from any income taxes. These earnings become tax-free starting on the first day of the fifth taxable year after the Roth IRA’s establishment. If the early withdrawal of earnings is not due to premature death, a 10% distribution penalty is levied in addition to regular income tax. If it is due the holder’s death, then the 10% distribution penalty does not apply. If the five-year requirement is satisfied, then beneficiaries can take out the Roth IRA’s earnings tax-free, without regard to the ages of the decedent or beneficiary. I know there is a lot of confusion on Roth IRA's and what is taxable or not. Hope this helps and starts your search to find solid info for your client.
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