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About Roberts

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    ATXaholics Anonymous

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  1. I only do about 100 tax returns - mostly 1041s and rental 1065s. It was all and all a good season. Monday morning I had some pickups but I had moved onto my regular job - investments and financial planning. As was mentioned - the comparison form showing income, deductions and tax for the last few years was a freakin godsend on several clients. They paid 20% less in tax overall but owed with the return. Really made my life far easier. The only pain is the horrifically late arriving K-1s.
  2. All I have today are pickups. 2pm and two left. I've completely moved on from taxes and am back to working my normal job pretty much.
  3. Roberts

    Wash Sale

    About 2 years ago a guy freaked out that his wife had about $100 in wash sales from Fidelity. Someone it was my fault and I needed to monitor her trading. I have absolutely nothing to do with her account and he couldn't really figure out how I would monitor it. Have a new client this year who admits he has day traded for years and has a massive loss that carries over every year. $125k I think and he literally has less than that in total net worth from what I can tell.
  4. I only have a few clients who can't pay and I tell them to just make payments as quickly as they can. As long as you don't owe too much, the IRS isn't going to get all upset if you are making monthly payments on the balance owed.
  5. Client calls Sunday and asks when I'll be in the office. M-F from 7-4pm each day at minimum. Sometimes later but I routinely have appointments outside the office in the evening. He'll be in between 12-1 on Monday. Easy stuff because he's almost completely retired now. He calls on Tuesday - just couldn't make it but he'll be in tomorrow and I repeat my hours. Calls Thursday at 4:45pm and wants to know why I'm not in my office. Calls today - he can't make it today because he works from noon-6pm. I mention I was in the office at 7am but he forgot about that. What hours do I have on Sunday? It's an ultra simple return, he's going to owe about $1k because he doesn't withhold taxes on his pension, he'll be completely shocked (again) that he owes and he'll have no clue how he's going to come up with the money on such short notice. Can he make payments?
  6. I always quote a high cost in April because my guess is they are going to be a PIA to work with and they . Prices are always higher if you deliver in April. Grouchy clients are my new pet peeve. Client was waiting multiple K-1s and he brought me a gift certificate when he finally delivered yesterday because he felt bad. Next set of clients are still waiting and somehow the fact their accounting firm 3 states away are late became my fault and I needed to explain why they were late.
  7. If you write For Deposit Only on the back of a check, most tellers will let it slide (not notice) with a roughly similar name or if they had a joint account. It's exceptionally common for people to find out years later that there was a small balance somewhere. They aren't going to open an estate for $300 so they just deposit the funds into a bank account that is "similar". Had a client with one like that and he kept telling me tellers refused to deposit the funds. Turns out he felt it was important to tell the entire story to each teller before attempting to deposit the check. I mentioned it might work if he just shut up and about an hour later he calls to tell me it sailed through.
  8. Are you being paid to worry about this? The executor or personal representative from the estate needs to file the tax return if so inclined. Since you say tax was withheld, how do you know it would owe taxes?
  9. That's weird because from what I've read on Reddit - everyone is making tons of money in Bitcoin. I don't think most of the exchanges ever give tax info on the trades to the IRS because they are actually foreign based.
  10. here is one of the websites I saw. One said you must sell and liquidate in the year of death - that seems unreasonable but the value would increase from his death. https://www.fortenberrylaw.com/step-basis-death-corporation-shareholder/ Even though the S corporation’s assets do not receive a basis step-up upon a shareholder’s death, the deceased shareholder’s estate may be able to leverage the stepped-up basis of the deceased shareholder’s stock to reduce tax on the sale of the assets. To do so, the corporation must liquidate and distribute assets in the year of the deceased shareholder’s death. As discussed in Distributions from S Corporations, liquidating distribution is treated as a sale—a payment in exchange for the deceased shareholder’s stock.[1] At the corporate level, this deemed sale results in gain to the S corporation, which is passed through to the estate of the deceased shareholder.[2] When added to the basis step-up to fair market value by virtue of the deceased shareholder’s death under Code § 1014, the deemed sale increases the basis of the deceased shareholder’s stock in excess of the fair market value.[3] This gives the deceased shareholder’s estate an extra amount of basis. Because the deceased shareholder’s basis exceeds the fair market value of the stock (due to the enhanced basis increase), the estate is treated as having a capital loss. This capital loss offsets the estate’s gain from the deemed sale (a wash for capital gain purposes). The estate’s basis in property received as part of the liquidation equals the property’s fair market value.[4] This effectively gives the estate a full basis step-up in the S corporation’s underlying assets even though the deceased shareholder only owned stock (and not the underlying assets) at the time of death.
  11. I didn't realize it but I saw most of my thought process on a law firm's website.
  12. I have an 1120S which owns a parking lot with an original basis of let's say $100,000. The parking lot today is worth $600,000. It is the only asset of the 1120S. The sole owner of the 1120S has died so the new owner (a trust) has an increased cost basis of their stock as of the date of death BUT the 1120S still has a cost basis of $100,000 on that parking lot. correct? If they sell the parking lot and liquidate the company in the same year, is there a taxable capital gain realized? It seems the K-1 would show a capital gain but then they would show a capital loss for the same amount on the liquidation. Tell me how I'm nuts. edit: selling to a non-related party.
  13. I'm out of the office by 5:30 at the very latest. Any work after that is done at home. The CPA upstairs comes to work at 10am all year and goes home around 9pm three nights per week.
  14. As a broker, we have cost basis info on all trades going back to 1932. We used to get tons of calls asking for really old cost basis information and with mergers and stock splits it would become a nightmare. For ATT I came up with a spreadsheet to plug in the original cost and it spit it out. Around 2000 a bunch of firms got together and proclaimed everything has a cost basis of $2 per share because it was essentially impossible to figure it out and the major firms were purging their systems of the data so that they didn't have to look it up.
  15. I work up a return - client failed to tell me she sold one of her rentals. grrrrr Then when it is time to pick up the return hands me a stack of MLP K-1s she had never had before. Then wonders can she sign the return while she's in the office? Will it be done today?
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