Roberts

I believe you are 100% correct. I agree with Judy that you don't have a rental, you have a Schedule C rehabilitation business and when they started renting it out it became a Schedule E rental. The interest is capitalized on the Schedule C - it's deductible in future years on the E. Tons of people (me included) take out HELOC or cash out first mortgages to pay for rental property because you get better interest rates and you can avoid a business plan.

Did you put them in as 2% floor deductions? Previous preparer who I took over a bunch of returns for didn't, he put it under accountant fees. We had a big argument over that one. I've since had 3 different CPAs tell me they put it in under the accountant line. IRS instructions are pretty clear it's 2% floor.

I received a stack of them on Monday morning from a different firm. Turned out every one of them was "corrected" but it didn't change a single one of my entries. Most either changed info about a separate K-1 or they re categorized a qualified dividend to a (wait for it) qualified dividend.

I'm going to start including an electricity,telephone, rent and maybe even a health insurance and lunch surcharge. I hadn't seen someone include a computer fee since the 90's on anything.

New client today and she brought along with her last years bill. The bill included $50 "COMPUTER FEE". My mind is officially blown.

I remember that time I made a mistake. Should be a whistling in the wind emoticon.

Except for maybe a dozen times per year, my desk is clean when I leave at night. A cluttered office is a cluttered mind. I WILL have 4-5 boxes on the floor but they are temporary filing cabinets.

Had a new client a few years ago with two Schedule C's. In one he sold a few health insurance policies and the other he received real estate referral fees. He wanted me to split the cost of everything he purchased by their usage between the two "businesses". Printer cartridge it should be 31% and 69%. Envelopes should be $26% and 74%.... and so forth. I tried to explain the IRS didn't care. He was a one year client.

JMO but the commission should be deducted on the 706 and not the 1041. Having said that, I know people who deduct the commission as an administrative expense.

Yeah, I haven't seen where a board member is paid and it sounds like you are at that level. My sister in law worked as a youth minister - it was a 24x7 type job with kids calling and stopping by her house at all hours. People then acted like she should do it for free out of the goodness of her heart. Since she quit (her kids got old enough to no longer be involved) they've had a series of ministers quit and every year they ask her to come back as they find another replacement. It's probably like being a teacher - nobody gives them the respect they deserve for what they have to put up with.

Why wouldn't they pay? Local churches pay ground keepers, ministers and musicians - why not the bookkeeper? I have several professional musician clients and they all get paid for performing at church services.

Depreciation can be different every year as equipment or updates are put into service or taken out. There is also bonus depreciation to look at. Get the transcript if they can't find the return. I'm guessing it'll show it - otherwise how would the IRS know?

I use OLTPRO for my few clients. The estate attorney's for whom I do taxes have dictated I use Drake for their clients and now seem to be transitioning to a new business model and don't care.

Thanks - Google helped me. I'd have never found that. Over the next 2 years I'll likely be transitioning all these Drake clients to my other software. My software doesn't auto check the state but it does bring over all the 1041 data.

thank you - I'll look for that.

I don't do enough with Drake to learn macros. I do mostly 1041's with Drake and it drives me nuts that the fiduciary info didn't roll forward on 3rd party authorization and signing the return. Since I entered it last year, I shouldn't have to re-enter their name and SSN again this year.

Does any software do an automatic check box of the 3rd party approval to talk to the IRS on both the federal and state returns? Drives me nuts I have to go through steps to mark those check boxes on EVERY return when it should be a blanket check box. Does the IRS make us do that check box yearly and prevent the software company from making that an auto feature? Anyone know?

I always do 12/31 for sale dates. Various for purchase date.

When you buy a mutual fund, there are accrued capital gains earned by someone else that can be passed on to you in a few months. If buying them in a taxable account, you should probably wait until after they pay out their yearly Capital Gain distribution. In an IRA it doesn't really matter.

Is the client from NJ or is the trust from NJ? Is it flowing to a different state and you want it in NJ instead? My software has a state identifier for K-1 income (all income really). Did you identify the source when entering the K-1?

Per instructions for 8949: Stock acquired on various dates. If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one row and enter "VARIOUS” in column (b). I use Drake and OLTPRO and they both allow Various.

I run totals in a similar manner. Basically they can get a long /short and a reported / non reported. Each is entered as one set of totals. All dates are entered as Various and 12/31. How can a software not allow Various? I NEVER upload or mail a 1099 and haven't in years. Since cost basis has been reported - I don't think the IRS wants that stuff anymore.

I really have no interest in doing more than 5-6 returns in a day. Today I did two 1041s and two 1040s and will likely do another 2 1040's before leaving. If I'm doing the return in front of a client - double the expected amount of time required.

Does the client have a copy of all their trades? Does the exchange(s) they use generate an end of year gain / loss for the account? It wouldn't be printed, they would have to find it (doubtful they do)? IMO I'd use the best figures they have available to them and move forward as if they traded a stock. If they report a gain and their name shows up later in an IRS crackdown, they've done a LOT more than 99% of the people. The exchange I used for my one bitcoin purchase doesn't generate anything unless you do a transaction larger than $20k. I did a small amount to buy a laptop just so I could see how it all works.

This.