Lion EA

That's more detailed than I was finding on their website. However, even the website said any OR-sourced income, and the rental was profitable this year. (I urge my clients to file in loss years also, so they have the suspended losses to release when they have income or sell the property or...) I have NO idea of the history of this partnership/rental. Prior years reported losses on Line 1 and not Line 2, and never included any state-specific information. Even this year's K-1 doesn't have an OR version of a K-1. I saw "Residential Rental Texas" and "Commercial Rental Oregon" on Statement A--QBI Pass-through Entity Reporting. Her dad's been hand-preparing and then mailing to my client, because he doesn't know how to convert to a .pdf to send electronically (she has a portal on her website). I don't think that bodes well for his ability to accurately prepare his partnership income tax returns! But, he's not my client. My client talked about "investments" that her dad put in partnerships to then gradually increase the % to each child over time. She never mentioned two rentals. This K-1 is from X. X. XXX Investments, LTD, and now shows the TX and the OR rentals. The other is XXX Holdings, LTD, but has only financial investments. What's in a name?! Yes, an OR NR return. I don't think I can charge enough for this set of returns, but I'm going to try! Thanx, CBSLEE, for those details.

PS On the same K-1 is detail for TX property disposed of with a Rental loss of -1,359 and Section 1231 gain of 9,775. But TX doesn't have an individual income tax, right? So, no filing in TX. Just OR with all else falling on resident state of CT. I think the TX building was sold in 2021. The OR building is being sold now. I really have no confidence in this K-1 or the other K-1 from her dad's other partnership.

My CT resident client has a K-1 from her dad's 1065 with Box 2 Net rental of about $4,700 that includes a loss on a TX residential rental and a gain of just over $6,000 on an OR commercial rental. I don't see any minimum amount of OR-sourced income to avoid filing a NR OR return. In addition, partnership sold the building, so 1250/1231 gain. And, no capital account or basis information. Dad gave each grown kid 15% of partnership the prior year. I do NOT file the partnership returns nor dad's returns. This is the return that never ends: Fulbright son in Tajikistan, SE income before leaving, college daughter with 529 and multiple states, donated husband's car/Form 1098-C due to Alzheimer's, drug trial income, wife did Zoom classes for two out-of-state colleges, 5 K-1s with more than one revision including hand-written copies, etc. I may never finish this family; just from my end, a partnership, joint returns, and two grown kids with complexities no 19-year-olds should have! Anyway, I DO have to prepare an OR NR return, right?

I'm so sorry. Take a deep breath. We love you. Some of us (not me) know a bit about trusts and can help you, even if it's just the best questions to ask the lawyer or whatever support. So painful when family doesn't support each other. (I have a trust client where the trustee is picked on by her siblings for every decision but none provide help. She's forced to get legal help to sell the one commercial (but vacant) property to "divorce" herself from her siblings fighting her.) Hang in there. You can always vent here.

Cash basis trust? If so, then what was paid, was paid.

After applying for ERC and amending Forms 941, you amend the original income tax returns to reduce payroll expense, increase profit, including amending Forms K-1. Then you amend the original individual income tax returns that receive the amended K-1s. Labor intensive, so charge enough for your time and knowledge.

Form 1116 is for foreign tax paid. If he paid no tax to Mexico, you probably don't need Form 1116. I'm not familiar with business entities in Mexico, but you talk about a corporation. Are you sure you would report on a Schedule C? Are you preparing the corporate income tax returns or the personal income tax returns? There are preparers on this forum who handle more foreign income issues, so wait for someone more expert to jump on this thread.

I have a couple in my small practice that are selling properties in various ways. Spouse's dad has a partnership that sold a building, so my client's K-1 will reflect that. That kind of thing. And, they all need ES calculated. I'm still preparing 2021 returns and don't have enough hours in the day to recalculate 3Q and 4Q 2022 ES, especially when their % of ownership in that partnership that sold the building changed as dad gives more to his grown kids each year. Even more time-consuming if they became my clients without basis info for dad's 1065 and 1120S K-1s, and I'm waiting on all their prior returns/K-1s to compute basis, too! I am seriously going to fire some clients in October.

Charge your clients at least double what the ERC mills charged them to amend their Forms 941, and upfront, also!

This is one year, and not much you can do once the settlement is "settled"/legally designated. Use a good investment strategy to stretch his income out over his lifetime, using a mix of taxable and LTCG and tax-exempt investments appropriate to his age and place in his life cycle. Work with a well-recommended, experienced financial advisor.

I told her to contact the marketplace, and copied her on the page on AccessHealthCT that says the same thing. It's her broker who told her NOT to contact them. She received $130,000 from one PT entity and is expecting in excess of another $195,000 from sale of a building in another PT. Her dad is Seattle runs the two PTs. We're in CT. Her hubby's on SS, so will have that taxable this year. Oh, and they're getting a life insurance policy payout in November in excess of $50 that her broker says will be taxed as ordinary income. One of their two dependents graduated in 2020, so is no longer a dependent. He's on their AccessHealthCT policy and earned about $50,000. I don't think their payback will be capped !!

Subaru Outback or Crosstrek drive like cars. The Forester drives like a truck. Crosstrek is the smallest if you're driving narrow, winding roads. After a Subaru DL wagon in the 80s, we're on our fourth Outback now. All our former cars are still on the road with other owners.

And, I've spent the last two days dealing with a client who thinks Obamacare provisions are unfair. I went so far as to call up the the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act at 974 pages, and told her to call her insurance agent. I told her it's a Health and Human Services issue and not the IRS. She got a distribution from a family partnership and will get another from their family's S-corp; at least one is due to selling buildings. She's on AccessHealthCT (CT's exchange) and qualified for APTC. So, I told her to contact AccessHealthCT with her new guesstimate for 2022 income. Her broker's insurance agent told her NOT to and wait until next April when she files taxes. I don't have time to learn about insurance, Medicaid, Social Security, etc., as well as taxes!

Yuk! Thanx for the heads up.

Then have him establish an account or call or pay you to call or paper file so he can wait while the IRS verifies his identity.

I've heard he can find it online, but I have no experience with that. Worth researching if it can avoid phoning. https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

Thanx. That gives me questions to ask these clients.

New client has a foster child placed with them by CT's Dept. of Children & Families since 2019. The CT letter says, "This letter is to confirm that XXX has been residing in the foster home of Mr. & Mrs. YYY since July 23, 2019." Child for all purposes? Child Tax Credit? Child Care Credit? Dependency? Everything? The foster parents are in the process of adopting XXX.

Yeah, I should've used the sarcasm font...

Welcome back to reality!

I tend to tell them to stop about $1,000 short for those same reasons. And, then mom comes in and shows me her canceled check for $15,000 and brags about buying him over $3,000 in ski gear for Christmas!

I too have had bad luck hiring preparers, and even bookkeepers and clerical help. Plus if I do hire someone, I'll be left with no work the second half of the year unless I market for MORE clients. I'm 75 and don't want more clients, even if half are prepared by an employee. I WANT to work all year. I just need to manage client expectations better. Each year I think I'm communicating better, but there's always one who calls way too much. This year it's a middle-aged woman who keeps calling about her boyfriend's return; I remind her I can only talk to her about her own return, which was already e-filed. Now the USPS keeps sending her folder away from her local distribution center, so she's calling me to have her return delivered before it gets stolen. Since 7 July I've talked to 6 USPS employees in 4 locations to try to get her package the last six miles to her house -- on the same street as her local postmaster! I have a short list of those I'm firing this fall, and she and her boyfriend are on it. Hers is a really easy return, but she's a very needy woman. I really do tell clients, when they're the 22nd client that uploaded their documents in the same week, when to expect me to be working on their returns. They call in a few days, anyway. Do that too much, and you get on my short/getting longer list.

My EA certificate is dated 2005, meaning I would've taken the test and filled out the application the fall of 2004. I don't remember getting fingerprinted. I might have gotten fingerprinted in the early 1970's when I applied for a job at a public school. I'm not sure, but I do remember that I had to go to the county courthouse for something to do with a background check. I didn't have a driver's license back then (rode a bicycle and took busses), so maybe I just had to show up in person to be interviewed.

I don't have a lot of returns, but they aren't simple returns. And, for some reason, almost ALL of them drop off/upload/mail/deliver in some manner during one week in February. Hubby thinks it coincides with a holiday weekend when everyone gets their stuff together and them drops off the next week. So, by 12 February or 22 February at the latest, I'm officially and hopelessly behind. I have all the tax returns I can prepare from February through mid-October. It depresses me. And, it infuriates my clients that dropped off five months ago. But if they were the last person that dropped off that February week, their return is going to be prepared in October. I like extensions. I can earn more money in ten months than in three. I can work with people, help them plan or start that new business or finance college or... And, I think I've convinced most, or at least many, of my clients that extensions are good so their returns aren't prepared by a sleep-deprived preparer. But my clients are not happy about the long turn-around times. I read someplace about a preparer who schedules his drop offs just like he schedules his appointments. He schedules each client so he can have a short turn-around time. I wonder if I could convince my clients to do that? Probably not. I work in Fairfield County, CT, home of type-A personalities.

I never remember getting fingerprinted.