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About BulldogTom

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    ATX Supreme Guru

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  1. BulldogTom

    CA CRTPs

    Here is the email from the California Tax Education Council opposing this measure. NEW LEGISLATION WOULD DISCRIMINATE AGAINST CALIFORNIA REGISTERED TAX PREPARERS (CRTPs) Dear CTEC Registrant: A bill is currently in the California legislature that would significantly increase your obligations as a CTEC Registered Tax Preparer (CRTP). This bill, AB1140 (authored by Assembly Member Mark Stone), would apply to CRTPs only. It would not apply to a much larger portion of the tax preparation community that includes: Certified Public Accounts (CPAs); Enrolled Agents (EAs); and attorneys. This bill, if passed in its current form, would require CRTPs to provide clients and potential clients with two disclosures, one before preparing the tax return and one after preparing the tax return. Notice Before: A written notice would be required before preparing a potential client’s return that includes all of the following information: A standardized disclosure statement informing a potential client with income below sixty-six thousand dollars ($66,000) that they may be eligible for free online tax preparation services, and that an individual with income below fifty-six thousand dollars ($56,000) may be eligible for free in-person tax preparation services through the IRS’s Volunteer Income Tax Assistance (VITA) program. The statement shall also identify the IRS’s internet websites where an individual may find additional information on each program and the Franchise Tax Board’s CalFile internet website. A list of costs and fees charged by the CRTP for usual and customary tax preparation services, including, but not limited to, California Form 3514 and federal Schedule EIC (Form 1040). The CRTP’s federal PTIN number. Notice After: After completing a tax return, a CRTP would be required to provide a written disclosure signed and dated by the CRTP including: The total cost charged by the tax preparer. The CRTP’s contact information and federal preparer number (PTIN). Whether others were involved in preparing the return, their names, contact information and PTINs. Both statements must be signed and dated by the client and retained by the CRTP for a minimum period of three years. A CRTP who violates these provisions more than once will be subject to a $750 penalty issued by the California Franchise Tax Board. The full text of the bill can be found here ---> AB-1140 Tax Preparers - Disclosures If you have concerns about this legislation, please contact your local representative and let your voice be heard.
  2. One of my clients has been getting advice from the internet. He set up a Delaware LLC without telling me. Now he wants me to file the returns for him. As far as I can tell, he did no business in the LLC in 2019, just set it up to get it ready for business in 2020. He is a CA resident, and all the business will be in CA for the foreseeable future from what I understand. I have no problems with the Fed return or the CA returns. I just don't know what I need to do for DE. Can someone give me a quick primer on DE LLC's with references on where I should go to get educated in a hurry? Websites, publications, etc. Thanks in advance. Tom Modesto, CA
  3. Why would I want rentals that are throwing a loss to be qualified? Tom Modesto, CA
  4. No clue. Seriously, I never really looked. I just have always included the A in the federal return so that my info shows up on the 540CA and let it fly to the EFC. I will check the next time I send one. Tom Modesto, CA
  5. BulldogTom

    CA CRTPs

    Probably a lot. Have you seen the commercials where they are bragging about their up-front pricing model? Sounds like CA just thought that was a good idea and wrote the commercial into the law. Wonder if they will go after CPA's and make them follow the same rules, since the state licenses them as well as CRTP's. Probably the AICPA would pay enough bribes (oh - I mean lobby enough) to stop that from ever happening. Tom Modesto, CA
  6. CA does not have its own Sch A. Never has that I can remember in the 20 years I have been practicing. They use form 540CA (CA stands for California Adjustments) and they add or subtract income and deductions on that schedule. They did introduce a new worksheet that you use to add in deductions that were eliminated in the new tax law that CA did not conform to (Employee business expenses is the big one). Tom Modesto, CA
  7. Interesting. I just leave the A in the federal return when I take the standard deduction on the federal side and Itemized on the CA return. It seems to be working and the Federal return shows the std ded. Am I doing something wrong? Or is there something different about DE that makes you go through that process? Tom Modesto, CA
  8. Time for me to brag. Both my sons - Age 27 and 24 - itemized this year. They still tithe even after going out on their own. Nice to see that some life lessons we taught them stuck. Tom Modesto, CA
  9. Is it just with the Sch E, or is it when both a Sch C and a Sch E are in the return? I got that error when I was checking a return with only a Sch E, and of course I deleted the 8995 because there was no QBI for that return. But one of my best clients who is coming in soon has a both a C and E on his return. Would appreciate if you would expand on exactly what is causing the problem. Thanks Tom Modesto, CA
  10. He is a resident of the state and CA taxes worldwide income of its residents. No workaround for last year. Still has time to move this year though. Tom Modesto, CA
  11. I did one this weekend and it flowed perfectly. Just hit the boxes on the Schedule C and it was all on the 8995. No issues like you describe. Tom Modesto, CA
  12. I just did one this weekend. I put it on the other deductions line and explained it on the 1040X. Hope it does not get rejected for the wrong line, but I needed it to go somewhere. And I am not waiting for the software company to catch up. Tom Modesto, CA
  13. Early but here it is. Tom Modesto, CA
  14. @jklcpa It may be that I am the only person who did not know this feature was available on the support site. But if not, It might be more useful for this post to go to the tips and tricks on the general chat forum so more people see it. Your call, just a suggestion. I am blown away that this has always been there and I just found out in my 20th year of using the software. Tom Modesto, CA
  15. That is really cool. I never knew it was there. I don't get a lot of rejects. Thank you so much Jack. Tom Modesto, CA
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