JohnH

I'm not presenting this s authoritative or even correct, but it's a possible source of info: http://www.amtadvisor.com/Minimum_Tax_Credit.html I discovered it on a highly reliable investing site which includes lots of people subject to the AMT, so I saved it for future reference.

Drake's paper returns are on a single page. Seems like a no-brainer to me. I don't now why all software vendors don't do this.

Why not just file a regular extension and automatically get 6 months? Filing the extension essentially take Apr 15 (or 35 days later) off the table insofar as having any significance is concerned (aside from IRA contributions, certain elections, etc. And it isn't clear that a 35 day extension would affect any of those items anyhow).

Yep, been there Bart. Back when I opened my first tax office I had a partially disabled client who hauled cows to make some extra money. The man was as honest as could be and I still recall and admire his integrity. Always brought his tax papers in one or two of those heavy duty cardboard cigar boxes (remember those?). One year he stopped by right after a delivery and apparently he had a "souvenir" somewhere on his person. After he left, I realized the smell wouldn't go away although I employed most of the remedies you mentioned. Was on the verge of doing an exorcism since that was about the only option left. I finally realized the smell emanated from one of the cigar boxes because a couple of receipts had been handled prior to some serious hand washing. If he'd been audited that year, there would have been a few receipts missing.

Sounds like you definitely have a full plate, aside from the demands of the tax business this time of year. It's often the case that the caregiver deals with more stress than the patient, or your case the patients. Stress is an enemy to all of us.

Ditch the sleepless nights. Your clients don't appreciate martyrdom. They will praise you to the moon for getting them taken care of at the last minute, then repeat the same behavior next year. That's how they show you how little respect they have for you or your time. An intelligent, thoughtful person doesn't want a tired, sleep-deprived, frazzled tax preparer trying to rush through their return at the last minute. Common sense would tell them that's risky for them financially and seriously inconsiderate & disrespectful toward you. Lay down an extension policy that puts their feet to the fire. Then you can pick & choose whom you exempt from the policy based upon how simple the return is, how compliant they are in getting info to you, how much profit there is in the return, whether you like their attitude/hairstyle/whatever. The key is to get a firm extension policy in front of them and then do what works best for you. If you're in your office on Apr 15, you should be leisurely reviewing your extension list or surfing the internet. And you ought to be going home by dinner time that day.

I didn't realize until re-reading this thread that I'm out of style. For me, it's cargo pants with sneakers, and a casual shirt (usually one of the HABIT outdoor shirts from Sam's). I don't think a tie goes well with cargo pants & big-flap shirt pockets but what the heck - I may just try it and tell them Black Bart insisted it's time I dress up. That 1040 Tie from FDNY might just round it out nicely.

I gave it a try, but I'm not sure I entered the info correctly. I'm leaning heavily toward send them to HRB because I don't care to waste lots of time on this. Would have already done so if this were not the adult daughter of a long-time client.

Taxpayer is a single mom with a 15-year-old child, and has always filed HOH. The taxpayer got married in October 2018. Taxpayer earns $35K and received $12K in advance payment of premium tax credit. (Her premium tax credit was reduced in Nov & Dec by about $300 per month after she reported her marriage to her plan). New spouse earns $28K and was covered all year by a plan with his employer. He has the option to add taxpayer and her daughter to his plan at work, but did not do so. I'm still trying to figure out how to prepare this, but it appears to me that on the joint return they must repay the premium tax credit, but only up to a maximum of $2,600. Right now her repayment is about $2,200 if I'm doing this right. Can anyone tell me if that looks right, and assuming I'm providing all the info necessary? I'm ready to hustle them off to HRB because I don't do much with ACA. But thought I'd do a spot check here to ask if anyone can give me a quick opinion.

Yes, IRS is definitely accepting the paper return with both forms on the same page.

I'm not sure I understand. If IRS accepts it in paper form printed on a single page, what is the reason for saying the lower half is supposed to be blank? The way data feeds into the mail form is a little awkward at times, but after tracing the flow on a few returns, it becomes easier to understand.

I use Drake, and I just assumed all professional software was doing this.

A-r-r-g-h!

I've already filed some extensions. Planning to get my own handled first of the week. Everything after March 8 will automatically go on extension unless it's an obvious slam dunk on the first pass. No exceptions.

Interesting thought. Thanks for mentioning it, Joan. Since the sale of the 6 acres took place in 2018, I have to deal with it as a stand-alone transaction right now. But if you're suggesting we could revisit it and amend the 2018 if the remainder is sold to another buyer within 2 years, that would be very useful info. At $12K in taxes, Probably not enough tax savings to drastically alter their plans, but if they were otherwise ready to sell within 2 years, it might affect their willingness to accept an offer if it could close quickly.

Great questions and ongoing discussion. Thanks for all the interest, especially at this time of year. Yes, the pond was on the 6 acres sold. They paid about $8K to have the pond developed, then about 3 years later they decided it had some problems. They then paid someone about $3K to break the dam and do some grading to level out & re-landscape the area where the pond had existed. The 6 acres has lots of road frontage and the "intent" all along was to carve it out of the total acreage and sell it at some point in the future. (at least that's the client's story and they're sticking to it) The client is very likely to sell the remaining land & home in the next 2-4 years. and will probably not exceed the $250K profit on sale of primary residence. So essentially any cost basis that does not get folded into the sale of the 6 acres evaporates in terms of tax benefit.

I think we're hitting on the part that confuses me. Does basis mean only consist of the cost of land improvements that add value, or is a cost of a "failed" improvement still a part of the basis?

Hey, I like the Solomonic approach ( except instead of 1/2 we're using 6/15ths).

It's probably silly of me to ask, but that usually doesn't stop me so here goes. Client bought 15 acres 20+ years ago. They fenced it in, built a long driveway, and built a house on the property. Last year they carved out and sold 6 acres with the right to use the driveway to an unrelated party. I'm calculating cost basis as the original proportional cost of the land, plus half the proportional cost of the fencing, plus half the cost of the driveway. Here's the odd part. They built a pond on the 6 acres at one point, but had problems with it so they eventually got rid of the pond. Can the cost of the pond and its subsequent demolition be added to the cost basis of the 6 acres they sold in 2018?

Rita: I think that's the contraction for when you charge "per petute", so you had it right..

I'd change the punctuation in your title. Clients! What, are they thinking?

Sounds like your client needs to have a sit-down with someone in authority at the bank (or else just forget about the presumed Texas withholding). I'm not seeing how this is your problem other than to inform the client.

What state issued the state ID number on the 1099-R?

If I got a bill for $-0- I might be tempted to send them a check for $-0- just to see what happened. Or if the ill is for $1, I'd send them a $1 check AND a dollar bill with a note saying if they want to keep the dollar bill, please send the check back to me. But I wouldn't advise a client to do that...

Bart: I worked in a political campaign back when I was a young college student. (We lost , which was the best thing that ever happened to me). When it comes to politicians, no matter how cynical I become, I just can't seem to keep up with reality. What I thought was a contest of ideas with the best person/plan expected to come out on top turned out to be something quite different. I even remember the big party meeting the night before the election. When they were handing out rolls of bills for "gas money" to the precinct workers lined up to drive people to the polls the next day, I was naïve enough to think the money was actually for the purpose of buying gas. (I did wonder why everyone was laughing ) Silly me.