BulldogTom

Thanks Tom Longview, TX

So help me understand this. If I pay a vendor for a business expense with a credit card, and it is over $600 but less than $10,000, I have no reporting requirements (because it was paid by CC) and the CC company will not report (because it is under their threshold). Next year, the same scenario but as long as the transactions total less than $5,000 the transactions don't get reported to the IRS. Conversely, if a business client pays me on a credit card more than $600 but less than $10,000 in 2023, I will not get a 1099NEC from the client, nor will I get a 1099K from my CC processor. In 2024 same but under $5,000 fee. Do I have this right? You think anyone is going to set their fee at $4,999 in 2024? (not like anyone would game the system to avoid income being reported). Tom Longview, TX

I have a new favorite emoji. I found it on my phone but I don't see it here. It is an angry face like JohnH posted, but it explodes into about 20 little heads. I wish I knew how to get it from my phone to here. Best emoji ever. Tom Longview, TX

I have been working with our banks at my day job to create some new accounts. I was surprised to see the BOI form on their new account application. Looks like the banks are collecting so the FinCen folks can cross reference to the reporting by the company. Interesting twist. Tom Longview, TX

I don't think I will be doing tax returns in 2923.... Tom Longview, TX

@Lee B Does that include Cyber coverage? How is the customer service? Can you talk to a live person? Tom Longview, TX

Is the gain substantial and have you calculated the tax on the gain? Is it worth it to do the exchange and take on the risk of trying to fit the transaction into the like-kind shoe? What is the economic reality of the situation going sale vs exchange? Tom Longview, TX

I am currently using BiBERK. E&O plus Cyber is about $450. Online application is pretty simple. Not very good customer service. Hard to get in touch with. I needed something when I moved to Texas and I grabbed them in a pinch. I am looking to change. Not because of price, but because of service. Tom Longview, TX

I keep E&O, Cyber and GL insurance for my company. The E&O and Cyber stayed pretty much the same, but my GL went from $275 to $426. 55%! Anyone else seeing increases like that? Tom Longview, TX

I did the Auburn University's tax seminar in person a couple weeks ago. I was impressed, and the price was great. Printing a 650 page book was a workout for my printer, but it was cheaper than buying the book. Tom Longview, TX

Going to be interesting if CA storm victims file on the 16th and get rejected. Cutting it real close. Tom Longview, TX

Setting up a new company and QBO gave me about 150 accounts in the COA. I only need about 75. I can't figure out how to delete all the extra accounts. I know QBO requires some that you can't delete, but I really don't need 5 long term liability accounts. I also know I can make accounts inactive, but I would prefer to delete. Can anyone tell me how to do this? I know I can do it in desktop as long as there are no transactions posted. Tom Longview, TX

I am with Judy on this. You have a wet signature from the client. That seems good enough for me. Tom Longview, TX

They are not asking me....the owner has his reasons. Thanks for confirming that there is no Hot Asset issue. Appreciate you. Tom Longview, TX

Company X (SMLLC taxed as S Corp) is re-organizing and will be selling inventory to newly created SMLLC Y & Z(taxed as S Corp). All three entities have the same ownership. I don't think §751 applies since it is not a partnership. Can anyone confirm? Tom Longview, TX

What do they ask you for to set up the Account at Login.gov? Tom Longview, TX

Assuming the mutual fund is not covered because it was purchased before the brokerage holding the fund was required to track and report on the 1099B - I have the client get the records from the mutual fund company. If they can't (won't) then I get the client to tell me the date they think they made the first purchase, look up the price on that date and use it as basis. Client loses some basis, but that is the cost of bad record keeping. However, when it comes to mutual funds, I have never run into this issue. It is always with inherited stock that I have this problem. Tom Longview, TX

When does IRS go down for MeF updates? Don't they usually do that like the middle of Nov? Is this extension going to run into it? Tom Longview, TX

The never ending tax season keeps on going... IRS extended and CA complies with the extended due date of Nov 16th for taxpayers in 55 of the state's 58 counties affected by the 2022-2023 winter storms. You know, my post about my poor client? They just got a small lifeline. Today I am not mad about the IRS changing the rules at the last minute (even though it is stupid as hell to wait for the last day of an already extended tax season to announce the change). Tom Longview, TX

Judy is going to delete this, but I can't help myself..... So you don't need anything to prove who you are to vote, but you need to authenticate with ID.me to pay your taxes? Doesn't requiring people to prove who they are before they exercise their right to pay taxes somehow make the taxpayers disenfranchised? How screwed up is this? Tom Longview, TX

I agree with cbslee. However, if the client is a PITA....extra fee for amending the personal. Tom Longview, TX

@mircpa You are probably correct. This is what I found. (I was not going to do anymore research for the next 2 weeks, and here I go looking up CA R&T code sections). The attachment to the business sited in CA seems to change the general rule that Capital Gains from the sale of stock are not taxable to non-residents. Since an S corp distribution in excess of basis is a return of capital, the Cap Gain would be a CA sourced item of income. Bolding below is mine. Tom Longview, CA Cal. Code Regs. Tit. 18, § 17952 - * Income from Intangible Personal Property State Regulations Compare (a) Income of nonresidents from rentals or royalties for the use of, or for the privilege of using in this State, patents, copyrights, secret processes and formulas, good will, trade-marks, trade brands, franchises, and other like property is taxable, if such intangible property has a business situs in this State within the meaning of (c) below. (b) Income of nonresidents from intangible personal property such as shares of stock in corporations, bonds, notes, bank deposits and other indebtedness is taxable as income from sources within this State only if the property has a situs for taxation in this State, except that if a nonresident buys or sells stock, bonds, and other such property in California, or places orders with brokers in California to buy or sell such property, so regularly, systematically and continuously as to constitute doing business in this State, the profit or gain derived from such activity is taxable as income from a business carried on here, irrespective of the situs of the property for taxation. (c) Intangible personal property has a business situs in this State if it is employed as capital in this State or the possession and control of the property has been localized in connection with a business, trade or profession in this State so that its substantial use and value attach to and become an asset of the business, trade or profession in this State. For example, if a nonresident pledges stocks, bonds or other intangible personal property in California as security for the payment of indebtedness, taxes, etc., incurred in connection with a business in this State, the property has a business situs here. Again, if a nonresident maintains a branch office here and a bank account on which the agent in charge of the branch office may draw for the payment of expenses in connection with the activities in this State, the bank account has a business situs here. If intangible personal property of a nonresident has acquired a business situs here, the entire income from the property including gains from the sale thereof, regardless of where the sale is consummated, is income from sources within this State, taxable to the nonresident.

I hope you are right. That was the website I was thinking of when I posted my comment. Tom Longview, TX

because the government is running it...their track record on putting up websites that work is not great. Tom Longview, TX

The client is a couple. He had a stroke 5 years ago. She had to stay at home to care for him. They have been living off savings and government support. The amount they have been living on is very little. She had to take money from her retirement account early to cover living expenses as her last resort. He is recovering but she is struggling to find work after a 5 year layoff from the workforce. These are not people who have made bad decisions, they have hit hard times. I know when I see clients feeding me BS about their spending habits. This couple is not that. I have known them for nearly 2 decades. Poverty sucks, especially when you live in a very high cost state. Tom Longview, TX