BulldogTom

HMMM....I have it on 2 computers, but I used 2 phones. Same app on each phone. Which authenticator are you using? Tom Longview, TX

Clients - CA MFJ currently CA residents. Exchanged 1 rental property in CA for 2 rental properties in ID in 2021. Have rented and reported rents every year on ID properties. They now want to move from CA to ID and convert one of the properties to a primary residence. California conforms to the §1031 provisions, with a clawback provision and reporting requirements for exchanges out of the state. I understand all those provisions. Rev. Proc 2008-16 generally provides a safe harbor of 2 years rental on exchanged properties converted to primary residence or personal use. Does CA conform to this safe harbor? My clients are good with the timeline for IRS purposes as they have over 3 years rental on the ID properties and it will be over 4 years of rental period if they make this move. Reason for the move: Irrelevant unless audited, but they have been taking care of their mother in CA and are no longer able to do so. The mother will be moving into assisted living which terminates the need for my clients to continue to live in CA. I am not worried about the IRS, but I cannot find anything that says CA will abide by the Safe Harbor provided in Rev Proc 2008-16. Total deferred gain is over 400K, so I don't want to screw this up. Thanks for your comments in advance. Tom Longview, TX

^^^^^^ ??????? Tom Longview, TX

I had a client several years ago who works overseas. I last filed his 2019 return. He contacted me this week asking if I could get him caught up. I don't have the bandwidth right now to get to the unfiled prior year returns (I assume most of you don't either). He lives abroad. Lucrative client, just something I can't get to in January. DM me if you are interested in a referral. Looking for a good home for this client. Tom Longview, TX

I don't know why you made your decision, but if you do come back, I will welcome you. I have enjoyed your company on this board. Tom Longview, TX

chump change

Don't hold back Judy, tell it like it is..... Tom Longview, TX

I know this is a stupid question, but since we went to 2FA, will ATX stop making us change the Password every 90 days? Seems redundant. Tom Longview, TX

I have nothing of substance to add to this post. I just want to say thanks for posting. I learned something. Tom Longview, TX

There is a time and place for Roths in a financial plan. There is a time and a place to do conversions (very low income years). Conversions are not the solution to all financial and tax plans. Tom Longview, TX

I hear you. If you are in the 10-12% bracket and you think you will be in the 28% bracket in a couple years, it makes sense. I don't see it happening for my retired clients either. Tom Longview, TX

surrender penalty is up to client to decide on. I just want to make sure it is tax & penalty free because it is in the IRA. Thanks for confirming my thought. Tom Longview, TX

Client does not want to keep his annuity that is held in his IRA. Wants to surrender and invest in something else. Since the surrender value will still be in the IRA, there is no tax or penalties, correct? Tom Longview, TX

As a practical matter, I file the delinquent returns as they would have been had they been filed within the statute, knowing that the credits should be disallowed. However, I have found that the IRS processes and only denies the refundable portion in most cases. It has been a while so don't rely on this.... Tom Longview, TX

That is incorrect. Exactly the opposite. I don't have the sites right now, but you must take RMDs for an inherited IRA unless you are a spouse or a special exception. Tom Longview, TX

You go I follow. We need you here. Tom Longview, TX

Nothing has changed. If you are not a CA resident, you only pay tax on the wages you earn while working in the state. CA is a stickler on the proof that you are working outside the state. Example, my spouse is my employee. I do a lot of CA tax returns from TX. All my CA clients are CA sourced income to my business. I file a NR tax return an pay taxes on the profits from those clients. However, my spouse works exclusively out of my TX home office on CA client returns. None of her W2 income is taxed by CA. Tom Longview, TX

Reasonable method. If no good records, then CA may assert all CA income. Facts and circumstances. Tom Longview, TX

I should say also that if the corp is not registered to do business in any other state, all income is CA sourced. Tom Longview, TX

California taxes the location of the benefit of the work to the business. The employee location determines who taxes the wages. Where does the income for the Scorp come from? If the client or the work is in CA, then your K1 income to each shareholder is CA sourced and taxable to CA. If only a portion of the work is in CA or for CA clients, then the Scorp should apportion the K1. Where did the business employees work? If they worked in both CA and OK, then they apportion their wages on the W2 and pay accordingly. If they exclusively worked in 1 state, the W2 should reflect that. Shareholder 1. Some or all K-1 Income is CA sourced. Some or all of the W2 income is CA sourced depending on how much work is done in CA. Need to apportion on the W2. Shareholder 2. Some or all K-1 income is CA sourced. All W2 income is OK sourced. Shareholder 3. Some or all K-1 income is CA sourced. Hope this helps. Tom Longview, TX

^^^^^^ Yep. I can see a lot of calls coming regarding the additional payment everyone is getting and when will mine come..... Tom Longview, TX

What could go wrong with this plan????? Tom Longview, TX

I don't believe you are a tax preparer with a desk that clean!!!!!!!!!!!!! Mine has not been that clean since the day I put the desk in the office. Tom Longview, TX

Abby is my hero. I am looking to do something similar next year. Tom Longview, TX

If IRS keeps this crap up, there will be 100% of preparers not subject to circular 230. We can all just hang a shingle and forget professional certification. Buy a copy of turdo tax and off we go. Tom Longview, TX