JohnH

Seems like it ought to be the other way around. If I'm handing cash over to a teller I don't know, expecting it to be placed in my bank account, I should be the one with the right to ask the TELLER for some ID. Interesting conversation about the banks and credit unions. I was going to move my business accounts over to my credit union long ago, but credit unions can't have business accounts in NC. It's possible to circumvent that, but then there's the risk that the NCSUIF coverage might not be valid because the account is being operated under false pretenses.

Speaking of wierd client interactions, a very elegant lady just walked into my office to inquire if I would be wiling to consult with her on her tax return because she did a "simple 1031 exchange" last year and isn't sure how to handle THAT PART of her return. Ignoring the fact that I won't prepare PART OF a return, I explained that I looked into doing some dedicated work on 1031 exchanges several years ago, and after becoming aware of all the pitfalls I decided to avoid them altogether. SO I'm not the person she needs to be speaking with. Naturally, it didn't end there. So we talked about 15 minutes about other rental properties she owns (more red flags for me), and something a little unusual about this "simple" 1031 exchange she failed to mention at the outset (something which might in fact blow the whole deal for her if it's ever examined). I wished her well, and as she was leaving she mentioned that maybe I should "read up on 1031 exchanges so I could help out if someone came in with the same questions in the future". "Thanks for the advice, ma'am, but that particular train left the station long before you came in my door - did you miss the part where I said I DECIDED years ago not to do that very thing?". It's obvious once again that people frequently only hear what they want to hear. Fortunately there are no papers to return in this case since I never accepted any from her. Didn't even ask her name. And best of all, I had not given her a business card. I've learned not to be so quick to hand out that card until I know a little more about the situation. (It would have been awkward asking her to return the business card as she left my office).

Oh, pardon me. I guess it's becoming obvious that one of us can't read very well. I did look it up, and apparently Pub 587 is in error in calling it an "exception" "Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. You use part of your home for the storage of inventory or product samples (discussed next). You use part of your home as a daycare facility, discussed later under Daycare Facility ." But I guess I should follow your wording rather than the Publication you suggested that I read, so I'll withdraw the use of the word "exception" if it bothers you.

Isn't storage of inventory or product samples one of the exceptions to the exclusive use and separate space rules? (provided of course that the other qualifications are met).

Judy explained it well. Most macros are written in such a way that they will perform an automated or repetitive task from anywhere within the program, although you can write them to begin their work while you are in a particular form. It's a little difficult to explain if you aren't familiar with them. But if you will go through the steps to write one or two simple ones, you will quickly appreciate their potential. There are several places on the Drake Forum where Macros are discussed in detail, and a number of users have shared their Macros there.

I stand corrected. Just changed my mind on this, in spite of IRS instructions. (I have been known to throw the bull around , but never completely out of the corral)

I'd be inclined to leave this one off the return and deal with the CP2000 when or IF one appears. No sense waving a red flag in front of the bull at the outset. If IRS has questions, they know how to get in touch.

Keep track of time expended and charge an hourly rate. Some clients give you everything ready to go and you can crank out 20-30 in a short period of time, including cross checking and submitting the IRS copies. Others could take hours for the same task if their records are sloppy.

Have to hand it to those people at Apple Computer. They know how to create loyalty by providing a great product and super service. The MacBook arrived today - a day earlier than projected. (always smart to under-promise and over-deliver). Took the computer out of the box, read the note that the battery is already fully charged, and took about 20 minutes to set it up. After making the internet connection, I was reading email and am now posting to this forum on it. The quality is obvious in the construction and in the performance. I think this changeover is going to be fun.

It is a great article, but as the author pointed out, it is difficult to get people to see the wisdom of Rothifying when applicable. No matte how you run the numbers and how valid it looks, they will usually still hold out. Just can't bring themselves to turn loose of the money now. I did it a couple of years ago for part of some IRA money I had, and intended to do some more in 2013. But kept putting it off until it was too late.

The 50% reduction for business meals does not apply to volunteer meals. This is from Pub 526, page 6: "Deductible travel expenses. These in­clude: Air, rail, and bus transportation, Out­of­pocket expenses for your car, Taxi fares or other costs of transportation between the airport or station and your ho­tel, Lodging costs, and the cost of meals. Because these travel expenses are not busi­ness­ related, they are not subject to the same limits as business related expenses. For infor­ mation on business travel expenses, see Travelin Publication 463, "

See page 5 of Publication 526 for your answers. Mr Pencil has also provided very good additional information on this matter. Not every charitable contribution requires a receipt from the organization involved (regardless of whether it is Scounts, a church, or other legitimate charity) . A canceled check or other suitable documentation is often sufficient, especially if the $250 threshhold is not exceeded. Are you unreasonably denying this type of deduction for your clients when they qualify for it, simply because you misunderstand the rules?

Got to "Tools", "File Maintenance", and "Backup" when you want to back up your files. Then follow the screen prompts to select your location, choose file types, and start the process. Like almost everything else in Drake, it is fast, efficient, and seamless. Can't help you with the "Export" and "Import" functions. Maybe someone else can help with more details there, but I did see that they are also accessed through the "tools" heading.

I agree with Mike. There are often many deductible out-of-pocket expenses which volunteers incur in situations such as this. They are considered cash contributions to the qualified charitable organization - no different than a check written to the organization. The volunteer should, of course, keep good records. If you ask her some more questions, you may find that she incurred other deductible expenses in the trip that she isn't thinking to tell you about. Did she pay her own lodging, for example? Here is a good summary of the tax implications for certain expenses incurred by scouting leaders. It is about as comprehensive as any you will find, and it is factually accurate insofar as the tax laws are concerned . Might be a good resource to send or print out and give to anyone serving as an adult leader for any youth-related tax deductible organization. http://www.scoutingweb.com/scoutingweb/subpages/TaxesGirlScouts.htm

Good to know - thanks for replying. I think you and Kea will be able to provide some relevant answers to some real questions after I get the Mac out of the box next week.

Feel free to correct my numbers, if you wish. But don't waster your time or mine with nickels and dimes. Are you suggesting that my 33% premium for a comparable product is grossly inaccurate?

Not sure I follow the math. It would be foolish to compare the cost of a desktop to a laptop - that would skew the data. My research showed I would pay about 1/3 more between a PC and a Mac when comparing apples to apples. This laptop cost me about $2,400 delivered, with taxes paid. A comparable PC laptop seemed to be about $1,900 delivered & taxes paid, which fits the pattern. I haven't run the numbers on the desktops yet, but I'm betting the ratio is the same. As for software, my tax prep software, Excel/Word, and Quickbooks make up anout 75% of what I do. My other big application is a toss-up between Keynote and Power Point, but I have a strong preference tor Keynote, so the Mac was way ahead of the game in that department already. The majority of my other software consists of iPad apps. Each of us has different needs, but for me the premium for the Mac seems to be shrinking. Especially since I won't have to be spending all that extra money and wasted time on virus protection.

I usually ask them to hand me the rest of their stack so I can go through it quickly. If there's some boilerplate stuff in there (brokerage statements, etc), I quickly shove it into the paper shredder. Love to see the expression on their faces as that thing grinds away.

Time is money. Are you saving a lot of that?

Maybe this illustrates the difference between "snow" and "snow job."

Sounds like at least a $2,000 deduction, maybe more if those VHS tapes are collectors items (which they almost certainly are). Truckloads of clothes don't come cheap, you know. And I'll bet most of them were hardly worn.

Thanks Kea. This is exactly why I posted. This is a MacBook Pro with retina display, 16GB RAM, 256 GB PCIe-Based Flash storage. I will remember the second backup. As soon as I get comfortable with the MacBook, desktop will be next, hopefully during early March. Im still trying to decide whether to go with the mini-Mac for the initial desktop unit. I will be asking you questions after it arrives next week.

Thanks Judy. I hadn't seen that. Will be following up on that bit of info soon. Maybe another transition is in the cards.

There are windows emulators for Mac, but I'm so new to this arena that I don't know if it would be efficient or reliable to use one for tax prep. The tax software question will definitely be on the agenda for next year. A cloud-based program might be the answer, while still keeping a PC in the office as backup for times if internet is down. I'm really not sure how this is all going to play out. But I do know that all my other stuff (Word, Excel, etc) runs fine or even better on the Mac, so it appears that the tax prep side of the equation is the only major issue with will have to be resolved by next tax season. In any event, I'm looking forward to less vulnerability to viruses and less hassle overall that what is happening with the PC's. A computer is nothing more than a tool, and the same is true for software. They are a means to an end, not the end itself. Sometimes it's easy to forget that trying to be a technology expert is at the end of the day a useless distraction from our main focus as accountants & tax preparers.

No, not back to ATX from Drake. After lots of pressure from friends and acquaintances who are dedicated Mac users, I make the plunge into the Mac world. Guess it was inevitable since I love the iPad and iPhone so much. Ordered a MacBook Pro with retina display and all the trimmings. Any Mac users on this forum who want to give me any advice before I jump in with both feet? I expect my office will be all Mac by the time Win XP phases out in April, unless I have to keep one PC dedicated to tax prep. Still not sure about how all that will work, but the PC tap dance is getting a little tiresome to me.