imjulier

Hey- I am just winding up my practice and have 3 returns to file this year. I see that Drake has a pretty good pay per return option at $300 for 15 returns. Turbo tax seems like it will be about $70/return including state. Does anyone have some other options? ATX is $509 which is crazy. Maybe I will offer to file free returns for a few friends if they pay for the software. Thanks for any input, Julie

I think they are trying to fabricate a loss. Purchased inventory for $150K but it is worth $40K. Sounds fishy to me. Follow rfasset's advice and make them document the loans.

I'm just guessing becasue I'm not at my desk but maybe check that 1099R has a 0 in the taxable box.

Tony- I am a CPA and just closed my practice as of 12/31/14. As such, I looked up the PTIN requirements. You only need the PTIN if you will be compensated for your work. I will be doing a few retruns to wrap up some situations for people this year and will file only family members after that. So, I decided to do the few I do this year not being compensated and did not renew my PTIN. I fully disclosed this to the people whose returns I will do this year and of course they had no problem with it. I stated that I would not be signing it as the paid preparer since they won't be paying me and they said OK. The EFIN is needed to be able to e-file and I will keep that since it costs nothing and doesn't require annual renewal. Like easy tax said, cookies, cakes, smiles, and hugs don't count as compensation. This is how I'm handling it anyway. Julie

Thanks to all for your responses. Confirms what I was thinking but Jack was right, I was over-thinking it.

Hey- Just a quick question. Client will inherit stock from mother that she inherited from her husband when he died. There was estate tax paid at the time. Mother is now below the threshold for estate tax. Does son still get step up in basis for the inherited stock? I think yes but if anyone knows any different, please let me know. Thanks, Julie

I went with Win 8 on a stand-alone desktop. Converted some time in summer 2013 and ran this past tax season on it. No issues. I do about 10 Scorps and about 70 individuals on ATX. Not big, but still, No problems. I was happy. No problems with payroll either but I only do quarterly payroll for single owners of s corps.

Reasonableness prevails!

I've used "the taxpayer intended to be an S corp but did not understand the requirements for filing. Therefore, the request is being made now."

Yes, 351 election is how you do this. Its not a sale/purchase because its a tax-free transfer of assets....which is not a sale. I'd convert to personal use on the Sch C and put in the S corp at book value. When I did this years ago, it required an explanation be attached to both returns.

Thanks Joan and Max for your responses. As it ends up, I had this backward in my head, no NQ use if it went from personal to rental and the requirements for the exclusion are met. All except depreciation will be excluded. Instructions say to put it on the 4797 so that is what I will do and tweak it so I get the right bottom line. This definitely is not working as it should in ATX but everything can't be perfect. Yeah, one problem down.

Yes, the only way I can see to make this work is just to override and make it manual.

Hey- I wanted all my big issues to be done after tax season but then I find out a client sold a rental (was primarily primary residence) at a considerable gain. So, its been a rental for a year after she lived in it for about 3-4 years (I still have to get the details). I do know she will qualify for the section 121 exclusion except for the non-qualified use during the rental period. I believe I am just asking a "how do you do this in ATX" question. So, calculate gain on form 4797 part 3 as $60K. Sec 121 exclusion on line 2 is -$250K (just like the instructions so far). Passing thru to line 14 of the 1040 the remaining part of the exclusion of -$190K. Can't change the exclusion to be just amount used on line 2 of 4797 or in the detail tab. How do I do that? Do I need 8949 or Sch D? Also, I will have to calculate the gain that can be excluded due to non-qualified use, this appears to be a manual calculation but would I just adjust the -250K in form 4797 as appropriate? So far, I have just done a bulk disposition and marked it as personal residence. Appreciate any help....I know what the bottom line should be, just can't get there in ATX. Thanks, Julie

Hmmm....hope I don't offend anyone but I would take my boobs off each day if I could as well.

Gail- I did the same as Yardley. However, I wish I had attached the explanation as a pdf when I e-filed the retrun but I forgot this option existed. I too am now just waiting to see what the iRS does with it. If I found out about one now, and if the return was already filed for 2013, I'd file the 5329 separately with some explanation and hope for the best. Begging sometimes helps in my experience if there is no good reason.. Be sure to mention that the situation was rectified, the tp doesn't generally have to file a retrun even with the RMD since income is below the filing threshhold, and maybe just say that she is old and therefore can't remember to do everything she is supposed to. Probably not a valid reason but it is at least reasonable. How are old people supposed to remember to do their RMD anyway? I'm pretty sure I will have that same problem some time in the future. Julie

Rita-My right hand thanks you.

My experience is that clients can forgive mistakes easily....even the embarrassing ones. They've all made mistakes too...we're all human after all. What really matters is accepting repsonsibility and offering a solution, even if it means that you need their help to get it done. I offer the same respect/compassion to professionals that perform services for me because thats how I want to be treated when it is my turn.

I know, we all have war stories but I just need to rant about this one for a minute. 80 years old, always had a interior design s corp, doesn't understand any question I ask her. Can't be bothered to answer any questions once I get her stuff. She generally just tells me her whole schedule and why she can't get me anything else because she is so busy. Still skis (at 80, which I admire) but doesn't have time for anything else. Then asks why her taxes aren't done. I'm sure she has done this for years with other preparers but I've had her now for about 7 years. I think she is overpaying in taxes but if I don't get answers, I take the conservative approach. I hate to inconvenience my clients so by asking for information.

Argh, yes, they are a pain. How about explaining a $200 change in in refund to someone who's income is going up so more taxed at a higher rate. Very logical but somehow they think I am lying. Oh brother.

I know what you mean. I am starting to see the light as my piles get smaller.

Taxpayer forgot to take RMD but it is corrected now because funds were issued in 2014. I know form 5329 can be used to request relief of penalty. Instructions for form say to pay the tax and ask submit explanation for abatement. ATX removes the tax when working in the 5329. Should I just over-ride? Also, how do I submit explanation for electronically filed return? Thanks, Julie

I'll be sending a check after tax season. I find this board invaluable but that won't keep me from making a donation.

Ah, that does sound easy. Thanks.

Figures-just days after the e-file deadline I have to issue 2 new 1099s and one corrected 1099 for the same company. I already e-filed the original 1099s. I see from previous threads that I can make changes to the original file and mark as corrected and then create the 1099C e-file. Does a 1096 go with this correction? Also, for the 2 new 1099s, what should I do.... a new 1099Misc file with the 1099s and 1096 in it and e-file both? Does it matter how many files are remitted for one company? Thanks for any help. Julie

Fixed assets are specifically set up by the return preparer and are unique to each return. Sch SE, while different for each return, is not unique to each return in the same way the fixed assets are. Sch SE is populated from other forms in the return. Fixed assets is the base form to feed into other forms. Afraid you'll have to start over with fixed assets once you delete it. I'd be surprised if you had to do the whole return over again though.