BulldogTom

OMG, I am laughing so hard and I don't know why. Thank you @Catherine Tom Longview, TX

Long time client of mine, 2 daughters in college, I remember when they were first going to grammar school. I e-filed the return and got a reject for one of the SS# used on another return. I call the client thinking one of the kids filed for themselves for a part time job. Nope. Neither one filed a tax return this year. Crap. ID theft.... Can someone walk me through how to walk my client through the process? I seem to remember there is an ID theft checklist from the IRS and a couple forms to fill out and send in with the paper filed return. I have not had to do this before, only heard about it in update classes. This is a really good client and I need to help them get through this. Tom Longview, TX

I think it is the first domino to fall. The politicians are going to go to their districts to campaign and they are going to hear about this "overreach" of government, and now a federal judge has given them some cover to back up a bit and take a look at another approach. Just my opinion, but I know a lot of business owners are pretty ticked about the BOI, at least in my neck of the woods. I am hoping that we will see something more targeted and less intrusive for mom and pop companies. One can hope. Tom Longview, TX

We need a clapping hands emoji. Tom Longview, TX

Sounds like acquisition costs to me. Amortized. If you are saying it is not "fully deductible as an expense in year 1" then I agree with you. In QB, debit loan fees (LT asset) and credit Loan Payable (if part of the loan) or cash if paid upfront. Tom Longview, TX

5498 - then you ask if they want to make an IRA contribution and they ask if they can put in more than they already have...arghh! Tom Longview, TX

I think you need to look at what the AMT NOLs have been over the years to see if they are available to be used against current year income. I would need to do some refreshing of my own since it has been a while since I have never done a farm NOL and I am speaking from my faulty memory. Don't take this as gospel, just a thought. Tom Longview, TX

But if you don't know what it is, why would you assume it is of that character at the detriment of your client? Not saying you are wrong, but the state gave the estate cash, correct? Cash if inherited is tax free. Unless the IRS knows or has reason to know that there is some prior transaction where those funds escaped taxation, I think a distribution of lost cash is the base case unless your investigation turns up something to the contrary. Tom Longview, TX

I had the same thought. But right now, I just hope they get it under control and the people up in the panhandle can get back to their property and start rebuilding. Tom Longview, TX

@Catherine Q1 - Do you have my retainer check? Q2 - can you give me a call when you have my retainer check? Seriously, I don't know where to start. Any paperwork at all? My first thought is not income, because if I lost something and someone returns it to me, I don't have a taxable event unless I took a deduction at some point for the loss. The state is saying "Hey, this belongs to you, we found it and are giving it to you". Not a gift, property that the state says you already own. Tom Longview, TX

Unless you have clients in San Diego....another emergency extension until June 17th. Tom Longview, TX

He is retired. Gets to contribute as a spousal IRA from his wife's sch C earnings. They will not be able to contribute in 2024 because she closed her real estate business in 2023 and will only have retirement income and no wages or SE income to qualify. Tom Longview, CA

Yes, MFJ. I took a look at that, but when I put in a hypothetical 7,500 traditional contribution, MAGI does not change on the Roth worksheet. Tom Longview, TX

Taxpayer is over the limit by about 9K this year (first time over the limit). Put 7K in a Roth. Only 820 is allowed. I have heard about this situation, but I have not dealt with it with a client before. If he withdraws before the due date (including earnings) can we avoid the penalty? Can he recharacterize? They have room to make it traditional and deductible. Help please. Tom Longview, TX

Capital Planning Advisors is the firm. Larry Hansen is who she will want to ask for. Office Phone: (916) 286-7650. Tom Longview, TX

Low Cost or Cadillac? If you need a Cadillac I know a guy in Sacramento CA who is the smartest financial guy I have ever met. But not cheap. Not even close to cheap. Tom Longview, CA

I just sent a trust return with a 1116 and it rejected. Figured out that I had not made the entries on the AMT section of the form. There is a carryover for AMT purposes and I did not enter the amount. Just got the ack from IRS. Tom Longview, TX

I am not saying it is wrong, I am just saying that I normally see about 50-75% qualified dividends in a normal portfolio of mostly domestic stock funds. Tom Longview, TX

I just finished entering a Schwab consolidated form. There are very few Qualified Dividends (800 non- qualified, 27 qualified). Looking at the supplemental schedule the funds are mostly US based and it just looks a little funky. The return is going to be on hold for a little bit while the client gets some more documents. HMMMMM..... Tom Longview, TX

Which one? I want to watch out for them. Thanks Tom Longview, TX

Did you select the correct category of income? (Passive). I got that error this year, changed the 1116 to type Passive and it went away. I think I had to actually attach a pdf copy of the Sch B last year to make the error go away, which was about the stupidest thing I think a software ever made me do (print the form from our software to pdf and attach it to the return you are efiling from our software). Tom Longview, TX

John, you are good. I did not think about that. I lost a client (owned a maintenance business) a few years ago whose new bride insisted they could use their IRAs to buy her home to have as a rental owned by the IRA and the IRA could pay him to do the property management. They acted like the words "Prohibited" and "Transaction" never appeared in the dictionaries they owned. Tom Longview, TX

I would file the return for the child. IRS is not good at picking up cost basis on stock sales. I think we have all seen the letter from the IRS with gross proceeds and no basis added to a return when a client "forgot" to tell us about stock trades that produced no income or a loss. IMHO, you will be doing the clients a favor by filing the return. You may be dealing with a letter in a year or so if you don't. And it may come back as a letter to the parents on why they did not include the gross income as kiddie tax on the parents return. I would also only charge a very minimal fee for filing the return and add it to the parents invoice. But that is just me. Tom Longview, TX

Are you all waiting on the business returns or are you filing and then amend? Bonus depreciation is what I am running into most. I can't hold out forever, I need to earn a living as well and I don't get paid until the returns are done. I am extending the one that has R&D costs. Tom Longview, TX

Inherited IRA Rules.pdf Here is the section of the seminar (now that I am in my office I can actually look stuff up). I don't think Spidell will sue me for putting this out here. Hope this helps Tom Longview, TX