Roberts

While drake (IMO) isn't overly intuitive in data entry, it's something I've gotten used to. I only do about 30-35 returns on it for someone else and would seriously consider it if I were to switch (which I'm not). I know nothing about the buying process of Drake but the guy who buys it for me to use shares it with another single accountant. Don't know what they are buying or the cost but I log into Drake and download it. I know at least 3 offices (each doing <50 returns) is using it.

This is going way off topic of a tax board but there is an old thought process I first heard 20+ years ago: You own very little - the government owns it. Cash = federal government and it's a crime to deface it. Land, House, Property is really just an infinite lease with rent determined by a local tax board. If you are accused of a crime you own NOTHING. The Federal government confiscated gold at one point and if you owned too much, you could go to prison.

That's what I thought. OLTPRO has a few of these auto check type things - not enough of them IMO.

I agree with Jack.

Where is this Master Form where I can customize change this setting for all returns? I'm not seeing this information.

Yeah - moving it is a taxable event regardless of whether they rolled 100%. I believe the early withdrawal penalty would still be applicable on the portion not rolled over. I seriously doubt they would withhold that much tax on a 401k ROTH withdrawal.

If the asset isn't titled under the LLC, there will be no legal protection. I hope you aren't offering legal advice without a law license. If they set up the LLC, I'd report everything through the LLC tax return. What if they change the title in 2 weeks? Now you have to change tax forms next year? Consistency.

Is that not the $33.43 on the 1099-R Dan mentioned?

You can take a withdrawal for excess contribution and avoid the 10% penalty as long as you do it (I think) by April 15th. Since you didn't claim the contribution as a tax deduction - the withdrawal isn't taxed.

I think you did the right thing Terry. Doesn't always feel that way when the client is throwing a fit and making accusations. Told friends they owed $6,400 and the wife threw a fit. The husband pointed at the 1040ES coupons I gave them and they didn't pay and said "it is what it is and it isn't his fault". Didn't make the wife feel any better. A lot of people have a disconnect that if you have a W2, somehow you should never owe taxes. When you earn $200k and only withhold 9% to taxes - that disconnect is going to be a problem.

No. In the 1065 you write a note explaining the situation and how they are electing to have the property taxed. The property should ideally be attributed to the LLC name but it doesn't have to be as long as you maintain separation. For example if you have a mortgage tied to your personal residence and then pay 100% cash for a rental property - you can still include the mortgage on the 1065 even though it's in your name and tied to different property. Just inform the IRS this is what you are doing.

Yes. If the IRS is expecting an 1120S - give them one even if it is just zeros.

I agree. I wouldn't expect a 1099 to be produced. IMO the Church would consider it a gift to the tenant.

I need readers over my contacts. ouch.

I have one client that does this and it drives me nuts. He was 100% positive he had a 1099 coming because of all his dividends. I told him they were all in IRA accounts and he argued with me until he logged in and verified. Just not comfortable with it - send me the .pdf.

Didn't even think about this. Apple computers rarely have CDs. We have multiple mini-computers in the office that don't have CD drives. I use one at home as a Plex server. CDs will be like those 3.5" floppies in a few years.

IMO if you report it on the daughters return you will likely hear from the IRS, they aren't going to throw a fit about it when you explain the problem. The kicker is the tax withholding but IMO they'll accept the explanation. Getting a corrected 1099 is going to take FOREVER.

I'd consider a P.O. Box. You are probably losing more money from this than a small P.O. Box would cost. For us a small box is $5.75 per month if you pay for the year. The larger size is $9.20 / month and it's a business expense to boot. If you lose a single bad client you've lost more than the cost. Have you talked with the person in charge of your local post office? The highest person up.

When I got into the investment business, coming up with a cost basis for the myriad of spin-offs from ATT was a days work. here is a flow chart of all the spin offs and mergers.

During your investigation of software, might I suggest you skip Trx1040 and TaxExact. (I crack myself up) Honestly if I switched I think I'd do Drake. If you renew early, it's only $1,100 and while more expense than we are paying, it's not bad in comparison and it's quality stuff. I'd also really look at their cloud version since it isn't much more than OLTPRO. Used to HATE the idea of cloud software and they can be slow at times but I use it for my back office interface so much, I can't say I hate it anymore.

Even with it being on your computer - what if it is destroyed via an update? The client and relative weren't worried about it being hacked and your password stolen, they were worried about the software being literally made unusable. I'm certainly no expert on the subject. (My cloud storage story wasn't password storage - it was his documents and programs. He didn't store anything on his computer and it was all in the cloud if at all possible.)

I'd probably have charged the fee on the 1065 and $1 for the personal return just so that it could be cleanly deducted on the 1065.

I do the envelopes like Abby except mine are all just manila - not bright colors which actually sounds interesting. I do 9x12 envelopes for easy returns just because they fit within a file drawer far easier. Printed copy for everyone. I'd estimate once I put it in the envelope, 90% don't open it again. I will review the return personally if they want it - VERY FEW want it. I personally keep everything in an envelope for my own return simply because it's so easy and clean to file it away. Nothing EVER falls out and it's upright and clean in my filing cabinet. If we need last years personal property tax receipt - I know exactly where it is located.

Catherine and I are working the same side of the street. I used to keep them in a binder but shifted about 8 years ago to an encrypted spreadsheet. Mine isn't 27 pages either but probably 5? A tech client of mine and a relative who works in Cupertino said to not use those apps / websites to keep track. The concern really isn't the app being hacked and your passwords being stolen, the problem is what if the app is hacked and destroyed? All of your log-ins are gone or at least unusable until the app is brought back up. If you aren't paying anything - that could take a while. I had a friend who used a cloud service to hold everything and was given a months notice to move it all because they were shutting down. That was fine but he was scared to death thinking what if he hadn't noticed the email telling him this?

Thank you. Upon further review and the fact that it was his idea that I release him to go elsewhere and the blatant stupid and volume of the questions and strategies - he was most likely trying to drive me nuts on purpose. I gave him a copy of the return for review, I suspect the IRS will be getting a copy from him that looks exactly like it in a few days.