artp

In the past I have used the BNA portfolio 564 which has excellent coverage on this topic and lays out the relationships in a straightforward manner...just rather expensive at $400.

Yes, they took physical possession of the currency. They did get a confirmation receipt from Sterling, though I have not seen it yet. Thanks for the reply. This was really a strange transaction.

Client purchased about $20,000 US dollars in foreign currencies in 2012 through Sterling Currency Group. Client took physical possession of the currency. For 2012 nothing was sold or traded. They are still holding the currencies that they bought. What if anything do we have to report for 2012? They do not have any foreign bank accounts. This is a new issue for me, so I really appreciate some guidance here.

Thanks, KC. Yes this could be a complicated estate as the son is disputing the will and there are other "family" issues involved with the step Mom. My main concern was the potentially large income from the grain sales should it not get a basis adjustment through the estate.

Taxpayer, cash basis farmer got married in 2012;passed away suddenly in Feb 2013 from aggressive cancer. No income taxes due till 04/15/13 (extended due to IRS exception this year)-more than 2/3 of the gross income was from farming. Taxpayer had $200,000 of grain held over from 2012 harvest that will be sold in 2013. Widow was not active in farming operations. Several questions arise: 1 Is the unsold grain considered income in respect of decedent? Or an asset in the estate that would get a step-up in basis and thus little or no gain to be reported when sold in 2013? Per my reading of TTB 21-8 the unsold grain should not be considered IRD. Assuming that the grain is included in the estate at FMV at date of death, the basis would be stepped-up to date of death value. 2 Could the 2013 return be filed and estimated tax paid under the estimated tax payment rules for farmers? ie no payments due till the return is filed 03/01/14? Since the taxpayer qualified for the estimated tax penalty exception for 2012, he would automatically qualfiy for 2013 TTB 15-4 on the MFJ return. Those are my thoughts. Anyone have offer comments or different opinions? Please respond. Thanks.

Finally, got full credit on my card yesterday after 45 days "in dispute" I had sent them numberous documents-copies of emails requesting refund from TRX, complaints to TN AG, BBB and others. Not to say that this could still get reversed, but looks good for now. Good luck to everyone else. Art

Lindkay, I left for Drake as well. Cost is steep, but the product and service have been excellent so far. I went the extra step of getting the 2011 software and converting all my files over from TRX and checking everything out before updating to the 2012 software. Took a little more time, but has really helped the learning curve and only had a few relatively minor issues. I was very pleased that all of my clients' depreciation schedules came over without a hitch! Drake's tutorials are really good. I have called support numerous times and always got a quick and knowledgeable response. I wish everyone on this board good luck. I do hope for your sakes that TRX works out for you. Have a good tax season! Art

I had the same problem that many of last years files did not come over. I finally went to Use Return Maint and clicked on ReIndex and it brought up most of the 1040 files, but no business returns. The headings for the file listing under "spouse" is taxpayers last name. I could not rename the headings or resort the columnar order. Many other problems. 1. Sec 179 depreciation does not calcuate. Depreciation input layout not well structured. 2. Not 1099 INT or DIV input forms-only 1099R is available. 3. Bus code input on Sch C gives erroneous error message. Codes are very incomplete. 4. Many erroneous error messages. Joint return SSNs inputed,but system not recognizing, requesting EIN for sole practitoner, ect. 5. None of the Libraries are available-nothing carried over. 6. None of the letters have carried over--engagement letters, privacy letters, transmittal letters-no guideance provided for setting these up 7. No online help menu. 8. No state software. 9. No tech support available till Monday. Still no support on Fridays at this time. Doug, I appreciate your previous responses to my questions. With respect to item 1 I had a very long discussion with tech yesterday going over my list above. For the depreciation issue it appears that we must start by opening the 4562 form and double clcik on line 2 to open the depreciation worksheet for the numbers to flow to the correct shedule (C, F, ect). In other words you must start from the 4562 and work backwords to get the data to flow properly. This is very counterintuitive. One would think to start with the depreciation detail worksheet where there would be a box to check to tell the system where the data should flow ie Sch C, F, ect. Also the depreciation summary page is missing column totals and has no column for either current year or prior year depreciation, both should be basic for that summary worksheet. The custom letter window functionality is very limited and the cut, paste, and alignment icons do not work. The letter products including the return transmittal form and billing form are still very rough and do not look professional. If you have more than 1 custom form ie engagement letter, privacy notice, ect you can only print one form with return print. ie there is no drop down selection for printing multiple letters when printing a return. The billing form does not pull in the client information nor the default preparer information. I also noted that any supplemental worksheet for Sch A will not total on the worksheet and will not carry to Sch A for any of the itemized deductions. Even the direct input on the line items do not total for the deduction category. If you have a state income tax balance due or 4th qtr estimated payment made in 2012 there is no worksheet to list the payments. The estimated worksheet provided is only for Federal tax payments. As soon as I have time I will put together a comprehensive 1040 sample for testing which I will offer for uploading to the programmers if they wish to use it to assist them, but I must say I am disappointed that some of these very basic things have still not be corrected. Art

Doug, Yes, the EIN data base is what I am referring to. Thanks, Art

Doug, I have not got a resolution yet to the points I raised. I assume that your team is still working on them. To clarify #5 Libraries refers to the listing of Employers for W-2 form input and Payers for 1099 form input that we could choose from a pull down list when completing those input forms in last years software. This was a terrific time saver for repeat clients. I noticed that in the 2012 software in the proforma tab there was a drop down for clients and also for employers. The employers were listed, but when you tried in input the information on the W-2 input sheet the was no mechanism to select from the list. Is this still coming? #6 Custom letters is still not working. I was able to copy the letters from last years software into the custom screen for 2012. I hit the save button, but the letter was not saved and I could not print it. I did this in the 1040 defalut return thinking that it should be available for all future returns. I have updated to versin .03. Is this still a work in progress? Thanks for your reply. Art

I had the same problem that many of last years files did not come over. I finally went to Use Return Maint and clicked on ReIndex and it brought up most of the 1040 files, but no business returns. The headings for the file listing under "spouse" is taxpayers last name. I could not rename the headings or resort the columnar order. Many other problems. 1. Sec 179 depreciation does not calcuate. Depreciation input layout not well structured. 2. Not 1099 INT or DIV input forms-only 1099R is available. 3. Bus code input on Sch C gives erroneous error message. Codes are very incomplete. 4. Many erroneous error messages. Joint return SSNs inputed,but system not recognizing, requesting EIN for sole practitoner, ect. 5. None of the Libraries are available-nothing carried over. 6. None of the letters have carried over--engagement letters, privacy letters, transmittal letters-no guideance provided for setting these up 7. No online help menu. 8. No state software. 9. No tech support available till Monday. Still no support on Fridays at this time. This product is not much of an improvement over the Demo I evaluated this summer. I sure hope they get their act together with quick fixes on the updates-and soon! Art

Has anyone received the new software yet? There is real confusion regarding the offerings this year. Apparantly those of us who renewed early are getting the TRX Premium software, but I have yet to find out who is really the developer of that product. Last year we got TRX's rebranding of TaxWorks, but that is no longer offered thru TRX. This summer they sent me a demo of TaxExact, which is supposed to be software that TRX developed themselves. The latest demo version (Nov 2012) was very incomplete. I was told that I would be getting their first release of TaxExact, but now they tell me they are sending TRX Premium. I had spend a considerable amount of time testing the TaxExact demo and was planning on reviewing the final product. It was always my understanding that we would have the choice of using whichever software was most suitable for our practice. I have another call into TRX..hoping to get this matter resolved.

Doug, I have been quite frustrated with your new product Demo version. I have called support several times, but no one seems to be up to speed on this product. Could you please give me a contact name ? I have too many questions to post them all here. Art

I think we might be premature with this statement. TRX has in the past (and apparantly again this year) not completed their contract with Red Gear until Nov per my discussion with Manager Cristina Alvarez today. I am disappointed that they can't get this done earlier. It leaves their customers in limbo far too long. I certainly do not want to consider making a switch to new software at that late date if they can not make a deal with Red Gear. In the meantime, as a fall back measure I wll take a look a their own tax offering.

Has anyone had experience with this ? I have read some reviews for these cloud based applications, but the track records appear thin. Their main pitch is that the business owner can track his income and expenses without resorting to a traditional accounting software package (QuickBooks, ect.). I would be interested in your comments. Thanks

Pacun, Thanks for the reply. I was looking at this completely wrong. Art

Taxpayer is a retired state employee currently receiving pension payments under IL govt pension program (not a 457b plan). Is there any way that he would not be considered an active participant in a qualified plan for purposes of making a deductible IRA contribution based on a part-time job as a office clerk ? Modified AGI MFJ>$110,000. My reading of TTB 13-10 says no. Anyone of a different opinion ?

Thanks for all of the replies.

The caregivers (individuals) were paid directly from the mother's checking account which the children control. The payments from the insurance company are based on the claim forms that the children file with the insurance company which show the names of the providers, address,ect and the hours they worked and the amount they are paid. The payments from the insurance company and payments to the providers will be reported on the 8853. I think that part is OK. My concern is any filing requirements and possible payroll tax issues (for the children or the mother) with respect to the amounts that are paid to the caregivers. My only experience has been where the insured is getting care at a nurshing home or assisted living facility and the payments have gone directly to the facility providing the care or the insured receives the payments from the insurance company and uses those funds to pay qualified expenses billed to the insured from the care facility.

Client’s elderly mother who still resides in her home has a chronic illness which requires 24-hr care year- round. She has a qualified LTC contract and received a 1009-LTC for $ 54,092 in 2011. The client and his sister are the appointed guardians for the mother and manage her financials affairs. The children have several individual caregivers (not related) who provide the care. The children fill out the paper work for the monthly claims to the insurance provider. The LTC checks are made payable to the mother; they do not go directly to the caregivers. The children then write checks to the caregivers from the mother’s checking account to pay them for their services. The total amount paid out to the caregivers was $ 68,024 in 2011. This arrangement has been on-going since 2009. The insurance coverage will run out in April 2012. Question: Are the caregivers considered employees of the children and would the payments to them be considered taxable wages? Are the children (or the mother) liable for FICA tax and Fed/State W/H? No 1099s or W-2s have been issued for any years. The children say no based on the following statement from the insurance company: ”Your long-term care insurance contract provides only for reimbursement of qualified long-term care expenses. All benefits paid to reimburse you for such expenses are non-taxable, whether paid to you or to a care provider on your behalf” I am very concerned about the situation both for me as preparer and for the mother and children. I was under the impression that the mother was receiving care in an assisted living facility. I was unaware of the arrangement as outlined above until he dropped off the tax information for himself and his mother last night. Art

Client purchased new home for $120,000 in Feb 2009. He elected to claim the $ 7000 credit on his 2008 return (original). In 2010 he reported the first year pay back amount. Now he wants to go back and amend 2008 to remove the original credit of $ 7000 and amend 2009 to claim the higher credit $8000 and amend 2010 to get back the amount he paid back based on the 2008 return. As far as I can tell the original election to claim the credit in 2008 should be able to be revocked, but I can not find anything positive to support this. Looked back through the many posts on FTHBC but did not find anything on point. Has anyone done this ? Appreciate your input. If this is allowable, would it be advisable to file all of the amended returns together in a single mailing asking the IRS to offset the additional tax owed on the amended 2008 with the credit for the amended 2009 ?

Terry D, Could you post how you got this to work ? Appreciate the tip.

Husband & wife have jointly owned real property (home and farm land) in which they are retaining a life estate and gifting the remainder interest to son and daughter. Wife also had 50% interest in separate farm land with her son. She will also retain a life estate and gift remainder interest in that property to her son and daughter. In additon husband and wife made cash gifts to both children totaling $70,000. All of these gifts were made in April 2011. Question: How do you report the gifts ? Normally for jointly held property (husdand & wife) they would elect to split the cash gifts to maximize the use of the annual exclusion. Since we have both cash gifts and gifts of future interest, do you file a split gift return(s) for the cash and the joinlty held real estate--that is a single client input that will split the gifts and create a gift tax return for each spouse, but filed together- and then a second separate return for the wife only gifting her 50% interest in the separately held property to her son and daughter ? I do not know of a way do file everthing under one client input so I assume this is how you need to do it? I have not filed returns for this kind of situation before so I appreicate your input.

I have had the same issue with IL. For some reason TRX is having a problem with Mef so for now the fix is to opt out...really slows done the ack time. Art

Mike, I have been waiting for a reply on this same issue..nothing to date. Now it sounds like it would be a waste of time. I had a direct contact at Red Gear last year who hooked me up on a filing program from Taxworks, but that contact is not there..so I guess it is time to punt and find a stand alone program to take care of the W-2s and 1099s. Art