Lion EA

Common problem for NY/CT and other states. Laws are state by state, so report the income in each state per the law of that state. If you are lucky, client will qualify for a credit in their resident state. I've suggested clients stop telecommuting when they are taxed on the same income in two states.

A friend who uses CCH's Axcess thinks it was a malware attack. Also, thinks they are going to be down a long time!

Me, too!

If it was a gift from the parents, then parents' basis is the brothers' basis. ($1 was not an arm's length sale.) If the parents retained an implied life estate under the laws of their state and the house was included in their estate, then the brothers do get a step-up or step-down in basis. It is my understanding, but I haven't needed to look it up for years, that common ownership for a rental does not require a formal partnership. Hopefully, someone with a lot more rentals in their practice will jump in. Oh, oh, Lynn did jump in! What Lynn said.

I always included it, but behind the current year summary. This year it goes on top! I have ProSystem fx which includes the state(s). No help for my clients who move around alot (I have one going back and forth between OH and CT for the last several years), but great when they stay in the same state(s), such as my CT residents commuting to NY.

I own farmland in IL, but mailed in an extension with monies and haven't filed yet. Let us know what you discover.

Great info. My Dell is old and was going to replace it last November or so, but replaced my hip instead. I've had issues with this Dell which Dell sent to replace an earlier Dell that had huge issues. I might go with HP this time. One of my techies likes HP. But, I'm not in a rush to replace, still lots of extended returns to prepare. Please, all of you continue to post your research, prices, decisions, etc., for me and any other tech-challenged preparers to learn from during the off season.

I've been having clients sign the Direct Deposit/Debit Report my software prints out. I think that glazed-eyes condition prevents them from paying much attention to the numbers, though. But, at least, I have their signatures covering MY butt.

And, sometimes the "result" is NOT present but then gets added/subtracted/exported to yet another schedule. Takes SO much time to explain to someone and prove I really did include their unemployment or whatever. A time suck when client is here and I can point & highlight; a larger time suck on the telephone; and a huge time suck trying to type it out in an email (I refuse to answer via text; I just text them to check their email). I think the "postcard" should have built-in color coding to track the flow.

Returns took longer to prepare and longer to proofread and a lot longer to explain. So, I have more unhappy clients on extension than in the past. My two-year comparison was a great tool for proofreading, but I still had to know the flow of the new forms to answer client questions. You know that phone call you get three days later asking where's unemployment or something? And, I tried to use the comparison in working with clients, but they wanted to see things on the actual forms. I put the comparison first in their folders. I really did not increase my prices enough. I need to work on that as I prepare extensions and get it in place for next season. Usually I'm back to work full-time by 1 May or earlier and not out of town until July for Appalachia Service Project and August for hubby's family reunion. But, this year, two grandbabies are due in CT in June and PA in July and baby showers in both states, so I'll be out of town earlier and getting more calls asking when returns will be ready. I'm not enjoying work as much this year! Drop-offs were about a month earlier this year, so I was backlogged and staring at that stack of folders for a month longer than usual. I did get a stomach bug that was going around and then back spasms that had me on heavy-duty muscle relaxants for nearly a week and not fit to work. And, our shower door warped or something and refused to close, so had to deal with shopping and measuring and workmen. At least I had my hip replaced 5 November to give me plenty of time to heal up enough to sit for long hours, but I'm still driving to a neighboring town for physical therapy, helpful but a big use of time. The SALT cap is huge in expensive Fairfield County, CT, so lots of complaints from clients WHO WERE EXPECTING IT. And, CT changed laws for passthrough entities during 2018 for 2018, so clients were NOT expecting my calls for their PEs to make ES payments last June. Not my favorite tax season.

I just received CO and NJ late last night and yesterday afternoon. That's the end of them. Or, at least until I catch up on sleep and laundry and doctor appointments and...and get back to work preparing and e-filing all that I extended.

Your client can set up multiple ES payments via Direct Pay. You state may have something similar for him.

Yep, do like Medicare and base it on the prior year's tax return, or two years ago, or whatever it takes to have the returns in the system and be a known income instead of predicting next year. That girl with the wealthy boyfriend, she can't just drop marketplace insurance during the year when she weds. Has to drop it at the end of the year before the wedding to avoid paying back her APTC.

The AMT exemption amounts went up some, but the AMT thresholds went up dramatically. I don't think I had any yet, but my really high earners come in later in the year. And, some of the triggers, such as unreimbursed employee expenses, are gone.

I just sent a return that was on extension but is short and easy and I wasn't as tired as I thought so did one more. I have a ton of extensions accepted. But, I have some new CA clients that I don't know their info to e-file CA extensions, and at least one of them has owed CA the last couple years. Trying to reach them and prior, retired preparer who "gave" them to me. Hubby is out mailing our IL extension with a check (IL won't let NR do either of those electronically). Might throw in a load of laundry or might do very little after I work out the CA situation. I need to package up a bunch of folders to mail to remote clients; I let them stack up for the last week or so. Then it's a bunch of doctor appointments I postpone until after tax season and weekly PT for my replaced hip and payroll taxes and I'm a liturgical assistant on Easter so have readings to prepare. Maybe even get out to see my toddler granddaughter. But, back to work on those extensions, because sometime from Memorial Day to very early July we have two new grandbabies arriving, one in CT and one in PA; so obviously I'll take time off then. I hope to get most of the clients that are griping about being on extension prepared before the babies arrive.

I'm the Spouse and the Paid Preparer. Hubby gives me lots of dark chocolate to get me through tax season.

I'm thinking you get a lower interest rate if direct debit, but that's not really what you asked. Sorry, don't know your answer.

Remember that conversation we had about extensions? No? Well, I'll upload copies of your extensions next week to jog your memory.

I once had a client who was a broker with over 4400 trades, most of them wash sales. I charged him a bundle to create a spreadsheet to "move" each unallowed loss to the adjusted basis of the next purchase. After a couple years, his wife quit funding his trading. His only income was his own commissions, because he spent all his time on his own account.

He should ask his broker.

You add the unallowed loss on the sale of the stock to the basis of the stock purchased. You're kicking the can down the road.

I've used the Simplified Method when clients tell me they're going to sell the house soon. And, for my clients who can't track their home expenses, of course! But, mostly, Actual.

I've used it when states flow from the federal. I haven't used Sales Tax with states like NY and CA that decoupled. I have a high-income couple I'm working on where they get the same Schedule A with Sales Tax, so going with that on this one with only federal and CT returns and a huge charitable donation.

Yes, that 8453 goes via mail with a short list of documents you might send by mail. If everything is transmitted electronically, including attached .pdfs, then only the 8879.