Lion EA

Helpful links, KC. I'm grabbing a couple of the paragraphs. Need to give a couple clients something in writing to open a conversation, let them air their objections, start them thinking this year. Then I'll follow up after tax season.

Well, since I AM the administrative staff, I do prefer e-filing to lighten my load and let me get to preparing the next return faster.

I like Mike's system. I don't get much in the way of tips. Had one guy who always brought something from a bakery. And, flowers one time and personalized post-it notes this year from two different women. Have a colleague who gets lots of bottles. Maybe, it's a male thing. But, I do get all the referrals I can handle, so that's the best tip.

I have no intention of pushing an opt-out if available. I may just tell them e-file is all I do (it is all I want to do and might be all that is legal to do) and let them return to do-it-yourself in one case. The other case has never done it herself, and was sent to me by our mutual broker who sends me most of my new clients; so I don't want to lose the broker recommendations. Or, add the $100 or more paper fee, which might make them leave, also. However, money is not a problem for either of my holdouts. And, even though an extra fee received would make it less painful for me, it might not make it legal if there is no opt-out. The ones that would return to DIY are a bank president who has seen what can go wrong and will not e-file nor DD (he's the one who calls in his own payroll, and he uses only his own bank's accounts and credit cards so he can track transactions with a phone call to his contacts and never has to go online) and his wife who's a real worrier, an older couple. The other holdout is an elderly widow. I might convert her if I take the plunge and start e-filing trusts, since she has two trusts as well as her personal return. CT has some bizarre system that is totally unlike how they receive personal returns, so I just haven't taken the time but should this off-season to get ready.

I e-file almost everyone, but have a couple of hold-outs. Thanks for the help.

I tried searching on my favorite boards and the IRS site. Does anyone have a link to a short and sweet announcement re mandatory e-filing for the next tax season? I have a couple of clients I haven't been able to convert yet, and want to give them a one-pager to get them considering e-filing ahead of the implementation. I thought the IRS had one of their Quick Alerts or Tax Tips or whatever they call those short topics. Thanks for any leads.

A very :bday:

Oh, how I miss See's chocolates from my decade in CA.

My sister had a huge infection following a surgery. She was very sick, but the intravenous antibiotics eventually did the trick. She's home and trying to build up strength to have the next surgery. Not at all gun shy. Hope Barbara's situation clears up even faster. She (and you) remain in our prayers. Tonight when it's late and you're lying awake worrying, record some poetry, rfasset's prayer, etc., and take to Barbara on your next trip. Then, she can listen to your voice and positive thoughts even when you're busy with clients. Take good care of yourself, so you can be strong for Barbara.

I've put small amounts like that on D for ST as easier to track all the pieces and explain to the client where it is, and the bottom line tax comes out the same from ST gain as from interest or other income. I had one myself that was actually my IRA, but my broker and hence my IRA had moved, meaning I needed to send the check back to the fund to be rewritten. It was less than $10, so I put it in my personal checking account. Obviously, I will not receive a 1099-R. I think I'll put it on line 21. Make sense?

Does the debt precede the marriage? Would injured spouse apply? Is that the right form? You know what I mean. That would allow them to keep the MFJ if it's a tax savings. Has he looked into consolidating his loans at a lower interest rate. Could he at least catch up so no refund is applied to loans. Why doesn't he want to pay them off, by refund or other means, now that they have income and a tenured job?

Amen!

The greatest invention was venetian blinds, because without them it'd be curtains for all of us. That was actually on a sociology exam I had in high school.

In CT, you cannot receive unemployment unless you are physically available for full-time work. That eliminates most traditional students from collecting unemployment benefits. Thank goodness your student gets to eliminate her first $2,400 of unemployment from her taxable income. A full-time worker going to school part-time, on the other hand, could earn enough (plus student loans, maybe) to provide over half her own support and not be responsible for kiddie tax.

Research whether Sch E page 2 would be appropriate for expenses to close out the business of the S.

I just received a brochure from the MA SEA for their annual conference at the Resort & Conference Center at Hyannis on June 12 for 8 CPEs plus a dinner the Friday night before. It ends with "dancing to the music of the Anytime Band" after the final banquet. Cape Cod is usually lovely in June if that's not too late for you.

Although the tax benefits go with a given child as a "package" except in divorce, you do have to work through the qualifications for each benefit separately. For instance, the person who paid over half the cost to keep a home for a qualifying child may file as HoH. That might or might not be the highest income person in the household. It's the person who actually paid over half and has a qualifying child.

Are you sure she didn't retain the right to use the house without the ownership changing until they both sold the house? Was he still an owner, just without the right to live there? Don't you hate it when lawyers try to write down things that affect taxes?

If this house is being divided as part of a property settlement in a divorce, would not his basis be the same as half (or his percentage) of their basis immediately before the settlement? And, his percentage of the sale price. And, the usual reporting of a rental of a personal residence with depreciation. It would remain his personal residence if he moved out incident to a divorce and ex continued using it as her personal residence, but since she moved out, do double check all the dates. When I divorced, I had the right to remain in the house for a couple of years as long as I paid all expenses. By a certain date I had to either buy out my ex or split the proceeds of a sale with him (I got 60% of house by giving up his retirement plan) with an elaborate formula re averaging three appraisals (his appraiser, mine, and don't remember how we were to choose the third) for FMV at the time of my buyout or to price the house for sale. Luckily for me, as the time neared, he was in some legal difficulties and needed cash badly, so made me an offer to sign over the house for a specific dollar amount. I quickly hired an appraiser and found his offer was to my favor, managed to refinance in my name only with enough cash out to meet his offer, and got the house in my name totally without all the dates and formulae to deal with.

I really like your idea of prophylactic support calls, so that by the time I have a question, tech support might be close to answering my call. That would save a lot of time! I could just call in every morning and put it on speaker while I work...

I'm sorry Neil. It's never a good time to deal with illness or a loss, but tax season is stressful enough in the best of times. Take a deep breath, hug your wife, do what you have to do for family, and don't hesitate to tell your clients. Our prayers are with your family.

A very :bday:

I'd treat it as if he had two buildings. One depreciation entry would be for the rental unit in the two-family house. The other unit in the two-family house would be his primary residence. If he rents out space in his primary residence, that would generate a second depreciation entry. (Well, multiple entries if he has appliances or renovations or whatever to depreciate, but you know all that.) Picture it as a purchase of two different buildings, one a residential rental and the other his primary residence. Then, if he has business use of his primary residence, OIH or renting out a bedroom, treat that as you usually would.

Thanks, all. Returned from the MA funeral tonight and even napped a bit in the car coming home while hubby drove. Tomorrow after church we go get me a replacement cell as a Valentine's Day present. That doesn't seem quite fair, but money being tight, well.... I'm waiting on PINs for a couple of replacement cards, so I can use them. I seemed to be able to run payroll yesterday out of my new account (for my very part-time assistant) but still need a PIN from EFTPS before I'll be able to do quarterly taxes. The car is still without a window. One of the downsides to a new car, so new that replacement parts aren't around and have to be shipped from the manufacturer with delays due to the snowstorms. I'm going to try for more than three hours of sleep tonight, so that should improve my mood. Happy Valentine's Day to everyone!

My kiddie tax families haven't come in yet, so it's not fresh on my mind. But, isn't it only portfolio income that gets taxed at the parents' rate and not earned income? Don't the amounts on W-2s, 1099-Rs, 1099-SSA, etc., get computed in the normal way with only interest, dividends, and capital gains pulled out and calculated as if they'd been on the parents' return? Unearned income over $1,900?