ILLMAS

My extra cash went out the door with my 2011 extension and 1st quarter estimated tax payments but I do have a few clients that still owe me.

The best thing you can do is to contact a tax professional in your area.

Not a vacation but off tomorrow and monday, I will not be returning calls or emails until the 17th in the afternoon.

Hopefully I am not the only one that this has happened to before, but I have TP that comes in every couple of years with various years, last time I prepared a tax return was back in 2010, I gave him a discount because I did like 3 years for him. Well it took him about 7-9 months to pay me, three weeks ago TP calls me and tell me he had a visit from an IRS agent and was given 30 days to submit the missing years, he calls me and I tell him I would need a retainer or to be paid in full before any works is done and client agrees. Fast forward to yesterday, he drops off the documents but no payment and now I don't feel motivated to prepare them even if he pays me when they are finished. Little things like that can ruin someone day. MAS

Can't transmit extensions :(

Add me to the list :(

Does anyone have any tips on how to save some time with the extensions, I dislike having to open one by one and efiling the extension. MAS

Or you can request a portable backup, no restriction like the accountant copy. Portable backups are compressed file that can be emailed without a problem, after you have posted your adjusting entries, just pirnt them out and send them to your client, most likely they won't post them anyway, so next year start off by checking your retain earnings. I go through this every year :)

First sorry to hear about that awful word cancer, it seems the financing seller whats the payments to go to the Cancer Society as a donations? I don't think the Cancer Society would like to get involved in real estate deals, but I might be wrong. In case they don't, I would see it very difficult for the buyer deducting the interest, the seller might hand over the title to the buyer and in good faith have the buyer donate to the Cancer Society.

I think figured it out myself, I had to increase the basis of the property to the amount of forgiveness to be wash.

TP went through bankruptcy, TP had a 2 unit house, TP lived in one apartment (sale being reported on Sch D and qualifies for the exclusion), the 2nd floor (sale being reported on 4797), Form is 4797 is showing a gain, filled out Form 982 to exclude from gross income, but I am skipping a step, becuase the gain on 4797 is showing up on the 1040 and a tax is due. Any quick help on this would be greatly appreciated. Thanks MAS

I think I should be a detective instead of an accountant, I had to do some digging around with the TP because this 1099-A didn't make sense, well it turns out there was more I wasn't told originally. TP had a line of credit on the investment property she lost to foreclosure, and she also had a loan. So here is what happened, Fannie Mae basically bought the loan (209K) and the remaining debt of the line of credit, the $85 was the only thing they didn't pay for, pretty good right? So at the end, the TP has a sales contract of 209K (Fannie Mae the buyer), the house was bought for more then the FMV, now here is a little problem, TP bought house for 134K, the adjusted basis is 110K, so would be safe to say she will have a gain if the house was sold for 209K-111K=98K, there was no bankruptcy, 100% investment property, rents were collected up the day the house was foreclosed. I had asked the TP to find out if the bank was going to issue a 1099-A for the loan, but the more I think about it, it sounds like if it was a sale between TP and Fannie Mae, your thoughts? Thanks MAS

TP brought in the oddest 1099-A I have ever seen: Box 1 has date of abandonment Box 2 Show balance of principal outstanding (client owed more then 200K, but only $85 appears) Box 5 Borrower was not personally liable for the repayment of the debt And thats all, no FMV is show. What to do?

So for example, if you are going to prepare a simple 1040 and you are going to charge your client $50, you prepare an engagement letter? And for every year they come back? I know the orignal post was for a business and I know times have changed from when things were done with a hand shake, but don't get me wrong, an engagment letter pretty much puts in writing what is and whats not going to be done and what will be the fees, but some of us have clients that are old fashioned. I think in my case I will lose some clients if I have them sign an engagement letter, but I think it's a good a idea to have one in place for new business clients.

It's back to work for me, looking at it in a positive way, at least I won't have troubles money brings .

No body here does business on a hand shake any longer?

Add one more chance of winning for me, a client of mine gave me the winning lottery ticket today :)

I would get permission on behalf of the TP and you call the other accountant directly, maybe there are other things the TP is not telling, for example there was missing information to prepare the return or they owe a balance that was not taken care of. Sometimes they forget to tell you important things like that.

Incase I hit the jackpot tonight, I will be looking tax accountant, anyone? Really whom I'm I kidding, the odds of winning are not in my favor :(

The employer is not going to deduct the expense as a mortgage or real estate expense, instead he will reported as wages, therefore it's like if the employer paid the employee and employee paid the mortgage. Worst for example if the employer paid 10K towards the employee mortage, employer reports 10K as additional wages and no federal and state deduction, employee will be on the hook for taxes on 10K basically. Perfect if the employer paid 10k for the employees mortgage, however he reported 13K in additional wages, but 3K is being used to cover the taxes on the 10K.

If he/she was getting paid wages, and the wages were being used to pay the mortgage, it sounds the same to me, definetly a Yes from me.

How is your stress level?

I still remember when folks became millionaires from day to night by buying and selling real estate, hey I still remember banker, real estate agents, mortgage broker made their money too.

Make sure to select Clergy, under special type, you'll find this in the W-2 data entry form, right above Box 1.

It sound like an honest mistake, I would just amend it for her and have her pay the refund she was not entitled to and penalties and interest. The best outcome out of this, is you will now have a new client, someone that no longer does her own tax return :)