Lion EA

Kiddie Tax on taxable scholarships or no?

I think each school is required to provide the information based on whatever, % of their cost, geographical area, I don't know how formula is created, but I've seen such info on college websites back when our kids were students.

https://www.glassjacobson.com/blog/529-off-campus-housing/

Even when no one else fits in the vehicle, the driver might stop to pick up the dry cleaning or a gallon of milk on his/her way home or attend his kid's game after school or go to the dentist during the work day or...

The state where the house is located will want their taxes, too!

Awww. That's a letdown!

Yep, hadn't thought to look there at first, because I'm giving the now-former client away and NOT preparing a tax return for her. I do get my biz ELs from TTB, so I should've gone there first.

Thanks, everyone!

No, I'm firing clients, telling them to pick up their folders if they don't want extensions!

(I do have a local guy with availability who'll pay me for clients, if I'm in a mood to make a referral.)

The worst I've had is cigarette smoke. But I did have one year where the envelope the client dropped off included one of those perfume samples that are small, porous cards attached inside magazines. Really strong after being enclosed.

Thank you, that's what I was remembering, but the only thing I found in my searches was trade publications and not IRS. Going to save that release.

And that same executor just wrote to me this morning that 2021 is due in two weeks, and now has me second guessing myself. Let me write it out for my sanity: 2021, due 2022, so +3 = 2025. Is my mind still working? And, that was the July deadline in 2021?

And, what if deceased client filed an extension, let's say 2021 (she filed extensions every year and then actually filed a couple or three or more years at once!) but did NOT end up filing 2021 yet, because she died in 2023. Do we get 3 years from October 2021?

Executor told me lawyer filed 2023 returns. I had her confirm that yesterday, and he told her he filed only Form 706. Client died January 2023, so did we miss that due date/extension possibility?! I am so tired of this client. I'm so tired. I have an S-corp shareholder still questioning me for the last two weeks (again this afternoon) on individual lines from his 3-page P&L, but he has his own bookkeeper who created the P&L.

Thank you for letting me vent !!! My daughter sent me an You Got This gift box, so I'm going to light the candle and eat chocolate and get some work done!

Did anyone here find out when the last day we can file for a 2020 refund is, straight from the IRS? Is it 15 April 2024 or 15 May or...? What if client had a 2020 extension, is it then 15 October 2024? I really tried finding the answer on irs.gov. And, searched here, too.

(Have a client who passed away a year ago, and her sister-in-law is trying to gather information for this late filer who ran about 3 years behind all the time.)

If there are bunches, or bleepity-bleep bunches, then do a profit for each month and a loss for each month. In your case of 6 months, you'd have no more than 12 lines, fewer if not all months had both gains and losses. It's almost April, and I do less typing as it gets closer to the deadline. Not right, but it's practical. The more lines I have to type, the longer it takes me to proofread. Don't tell the IRS. Or, my clients!

Constructive Receipt.

5 hours ago, Jim Oh Bkkr said:

Ain't that the truth!  I used to say, (%'s that have always held true), "50% of all self-prepared returns, I have ever seen, are wrong.  And 90% of them were wrong in the IRS's favor."

I've also seen 50% wrong. But I've seen 90% in the client's favor. The woman who baked and took her entire country kitchen as OIH, saying it's 25% of her house; and then using .25 as the depreciation factor instead of 0.0256 or whatever it is, depreciating in 4 years instead of 39 years, but continuing to depreciate on her DIY return. The man that drove 90,000 biz miles in prior years, meaning he drove 360 miles a day and had no time to actually work (CT's small with old roads, long rush hours, and slow speeds during prime drive times). Those that claim their parents who probably make too much to qualify as dependents, because CT homes in Fairfield County are pricey with high property taxes and large oil heat bills, so don't get me started. Those that failed to start with Federal AGI on nonresident state returns, so their tax bracket was too low. Huge "cash" donations that were actually in-kind and likely not FMV, as well as needing to be on 8283 with details, such as the guy who gave away $10,000 of computers EVERY year. At least I'm not seeing those huge unreimbursed employee expenses on DIY returns now.

I'd ask the trust lawyer who set it up, if available, or a trust lawyer. The "hold AND administer" wording sounds different than what you're saying the trustee could do. I don't think 

6 hours ago, artp said:

he could have pulled the farm ground out any time he wanted

is the same as HOLD and administer. It's not hold OR administer. Let the lawyer answer to your client.

Father didn't own the land in 2002, so father's death didn't step up land basis.

But my brain is fried, so keep researching!

I charge no less for prior years than current year. When I'm running late, I charge the same. When the client was late, I charge a bite more, making sure I take into account my time dealing with past info/forms/etc. (and, of course, more for additional forms/issues/etc. in those prior years).

A new client with multiple years, probably the same price, but based on what's in each year. But I'm not taking new clients except good referrals!

Schirallicpa charge them royally for your brain power and angst to go all the way back to the beginning of Covid.

Does anyone have a Disclosure Form that I can use to have a current client sign giving me permission to disclose info to a new preparer for 3 years?

I'm selling a few clients to a nearby preparer with the band width to take on new clients. We don't use the same software, and all clients DO have paper copies of their prior returns. But there will be questions. The new preparer is paying me over 3 years, but I think 1 year would be adequate for answering questions.

Any forms you've used. Anything else you want to tell me?!

That's from memory. Check on it if it's a big enough number!!

Do you know the IRS Liaison Joe McCarthy. His wife, also with the IRS, may be one of their experts on ROBS. If not, either Joe or his wife would know who is.

[email protected]

203.415.1015

How long ago did ROBS come about? I wonder how may are getting inherited each year now with our aging baby boomer population. We're expecting your ROBS webinar this fall to teach us everything you learn!

If you choose to use Form 1116, you can carryover. If you use either of the other two FTC methods, there's no carryover.

ROBS. Or, are ROBS only within IRAs? Too complex and scary for me. If you make one misstep, you disallow the entire retirement account. And, now inherited. Wow! I think you have a big, hopefully very profitable, summer project.

Check with your professional organizations for group rates. I use the E&O + Cyber group insurance plan via NAEA.

$3,000 net capital loss allowable per year. I have clients who won't live long enough to use all their capital losses! 

https://support.cch.com/kb/solution/e-file-rejection-x0000-005-the-xml-data-has-failed-schema-validation-in-a-return-using-atx-or-taxwise