BulldogTom

1 hour ago, Randall said:

The only problem with this being an election year is that the election is in November and if one party wins all, they won't be able to do anything until January, 2025, after the due date of Jan 1, 2025.

My point is that when the idiots leave the beltway to campaign and hear that this is a problem, they may try and get something done before the election to win votes before people go to the ballot box.

Tom
Longview, TX

10 hours ago, DANRVAN said:

Box 1 should show the total distribution = amount received.

Box 2a should show the taxable amount, box 1 less basis (premiums).

If

But the box 1 & box 2 amounts are the same

Tom
Longview, TX

Client is 81 years old.   His father bought him an insurance policy when he was 12.   Has paid the $126 per year until last year when he cashed out the policy.   1099R shows distribution fully taxable.   Shouldn't the premiums paid over that 68 years be deducted from the taxable amount?   Or am I missing something.

Tom
Longview, TX

I sent my clients who were subject to the reporting the FinCen guide last fall.   I think that guide is well written and clearly explains the process.   I told my clients I was providing the guide as a courtesy but I would not be filing for them.   I have answered a couple of questions about when to file (my advice, this is an election year and some people are upset by this perceived government overreach - so wait till after the elections to see if anything changes in the law).   That is as far as I have gone with advice on the situation.

Tom
Longview, TX

Just read an article on MSN page that Drake software users are also getting those emails.   They are after us.   They know what we hold in our systems and they want it.

Tom
Longview, TX

How are you getting into the K2/K3?   It is not available in ATX yet.  I have 2 that I am waiting for the K2/K3 to download so I can finish up.

Tom
Longview, TX

On 1/22/2024 at 9:06 AM, BulldogTom said:

The 5 year amortization of R&D costs is pushed out in that bill as well.   

Wonder if Apple and some of the other giant tech companies and drug companies are lobbying hard in an election year for these changes.   

Tom
Longview, TX

A quote from a Bloomberg article this morning on MSN:

"A coalition of 250 business groups including the US Chamber of Commerce, Business Roundtable and National Association of Manufacturers has lobbied hard for the legislation authored by Ways and Means Chairman Jason Smith and Senate Finance Chairman Ron Wyden. 

Boeing Co., General Motors Co., Deere & Co., Caterpillar Inc., Amazon.com Inc., Microsoft Corp. and Apple Inc. are among the companies that stand to benefit, according to Bloomberg Intelligence.

The measure would restore expired tax breaks allowing businesses to more quickly recoup the costs of domestic research and development, interest on business loans and investment in equipment."

If you want to know what Congress is going to do....follow the money.

Tom
Longview, TX

Did you get a new computer this year?   Seems to me I had to do that same thing the last time I got a new computer.

Tom
Longview, TX

12 minutes ago, Randall said:

I thought if they got the full credit ($2000) as nonrefundable, just a deduction of their tax, this pending bill would not affect it.  Only if they got a refundable credit.

You are correct.   If there is no refundable portion of the credit, it will not be affected by the changes.   What is proposed is that the refundable portion will go up by $200 per child to $1,800.   So your lower income folks who get the refund on the credit will get more if they wait.   Or they can file now and get the difference later when IRS goes back through and fixes the refunds.

Tom
Longview, TX

https://www.guidestone.org/Updates/Ministers-Tax-Guide

This is my go-to for ministers issues.   We used to have a clergy tax expert on the board but I have not seen him in years.   I think he is the one who gave me this resource many years ago.   

Tom
Longview, TX

House is set to vote tonight at 8PM eastern.   Toss up as to if it will pass.   Senate is a toss up as well if it passes the house.

Don't forget any of your Businesses that have R&D costs are affected as well.   I am going to be sitting on one because I don't know if the R&D costs can be deducted or have to be amortized over 5 years.

Also affects bonus depreciation for your business returns.  I think that will apply to rentals as well for new business property installed in 2023 (stoves, refrigerators, etc)

So, if you have any business returns or any individual returns with dependent children or rentals, you need to consider when to file.

Tom
Longview, TX

There is one that I get regularly that comes from an email that is .corn instead of .com.   Pretty sneaky.   I think that extension allows them to use legitimate company names.   The email address will be [email protected] or something similar.   You gotta be vigilant on email.

Tom
Longview TX 

Why do people make their estates beneficiaries of their retirement accounts?   I will never understand that...

2 minutes ago, Catherine said:

From my memory, there was a large-ish 1099-R paid to her estate. 

Life would be so much easier if people named a person as their beneficiary.

Tom
Longview, TX

Who was the final beneficiary that the funds were paid to?   The estate or the son?   I think this determines where the income goes and where the deduction for the charitable contribution.   

I am pretty sure that if the son's SSN is on the paperwork as the beneficiary, he takes the funds into income via a 1099R and provided he files a Sch A and the charity gives him a receipt, there is no problem with him taking the deduction.

Did the son write the check from his personal fund?   Or did the check come from the estate of decedent?

This is a real stretch, if the funds were paid to the estate, could you argue that the paperwork showing the attempt to make the contribution was an addendum to her will?   It was clearly her intent and if she knew the trustee was going to deny her wishes, she could have amended her will.

Tom
Longview, TX

My clients are increasingly taking pictures on their phones of their documents to upload in my portal.   We discourage as much as we can since the pictures are hard to read.   The big issue is with iPhone photos.   I have no way to open them (I can open a jpeg).   Is there a tool out there that converts HEIC photos to pdf or jpeg that doesn't require me to get an apple ID and join the Apple universe?

I encourage my clients to use Genius Scan or another app that will create a pdf, but clients will be clients and I don't get a lot of cooperation.   And no....I can't fire them, I need all my clients.

Tom
Longview, TX

1 hour ago, mcb39 said:

I Never charge for active duty Military.  Never have, never will.

You are a great American!  

Tom
Longview, TX
USCG BM2 1984-1987

No problems here.   About 8 rolled over.

Tom
Longview, TX

If, BIG IF, this bill passes, looks like ERC claims will be shut down on 1/31/2024.   Statute of limitations will be extended on all ERC claims.

Tom
Longview, TX

I keep reading articles that says that Congress will "pay" for these credits and deductions by pulling money from the ERC program.   I wonder what that will entail?  Deny all claims?   Put a shut off date for claims in place?   Audit the ones already completed and try to claw back?  Something else?

Tom
Longview, TX

The 5 year amortization of R&D costs is pushed out in that bill as well.   

Wonder if Apple and some of the other giant tech companies and drug companies are lobbying hard in an election year for these changes.   

I am sure they will take this all the way to Jan 28th which for some dumb reason congress thinks is the deadline for getting these provisions into the tax code giving the IRS 1 day to update their computers and the software companies 1 day to update so e-file can start on the 29th.   Dumb and Dumber in Washington DC...

And I was so looking forward to a "normal" tax season this year.   But I guess I got it because there is no "normal" anymore so "not normal" is the new normal.

Tom
Longview, TX

Are the bonus depreciation changes retro to 2023 as well?   We were supposed to go to 80%.

Tom
Longview, TX

Just now, Medlin Software, Dennis said:

Likely no one cares. Used to have a client who would hold incoming checks for months at the end of their year.  Tens of thousands of dollars. Passed audit just fine several times. Likely the same the other way (outgoing checks/payments).

My first experience with an IRS audit was in college.   Doctor went to India for the holidays for the entire month of Dec.   Came back to a stack of checks in his mailbox.   Payers issued 1099s for the amount paid including the checks not cashed.   IRS assessed for the entire amount.   CPA I was working for claimed the checks were not received until he came back from India in January.  IRS asserted that DR had staff that could have deposited the checks, and just because he did not trust them to make the deposits, the checks were still in his possession.   Audit loss for the client.  Over $150K added to the return, with penalties and interest.   

Tom
Longview, TX

I have a "travelling" laptop that I sometimes take to client homes.   But I never e-file from it.   I do the return, export it, import it to the main office computer and efile from that machine.   I carry a small printer and a large monitor with me when I take it on the road.  I don't have a lot of issues, but I miss the second large monitor, especially if I am working off of spread sheets while entering the return.   My laptop is 17" so that helps some.

Tom
Longview, TX

25 minutes ago, mcbreck said:

 

I've seen multiple threads on here about declining customer service at the tax software firms. It's routine for Drake that people are concerned about their future. Imagine if you called customer service with a problem and the rep was all of a sudden in India. Think that might be rather disconcerting? Imagine the gall at the idea of them charging you a premium because they fired all their US employees and outsourced to India. That's basically what you are doing when you hire one of these firms.

I've seen threads on other boards where people have outsourced their data entry, they are outsourcing their problem solving and they refuse any client meetings during tax season and want everything handled remotely. I'm not sure what service they are providing clients but I'm guessing clients will soon be demanding a significant discount for such non-personalized service.

People compared this to an extended warranty on a vehicle. This isn't that. This is the Toyota dealer closing their repair shop and directing you to take your car to Joey B's Auto Shop for your warranty work and expecting you to pay a privilege for the service. If Toyota did that, I wouldn't buy another Toyota.

 

^^^^ That

Tom
Longview TX

I was doing a Spidell update seminar yesterday and the presenter said that one of his friends got hit by a cyber attack.   He went to his carrier to file the claim and the first question the carrier asked was for his WISP.   He did not have one and the claim was denied.   This is second hand, but Spidell is pretty reliable source.   Just something to think of...

Tom
Longview, TX