De minimis election for taxpayers with 2106?

[jklcpa]

Does the de minimis election apply to those employees with job-related costs on the form 2106 also?  Client works as an auditor that checks the coding on medical billings, works from home and uses her own computer about 60% business use.  Also has a small amount of supplies expense.

[NECPA in NEBRASKA]

Judy, I'm going ahead with my outside salesperson and using the de minimus election. He has a lot of expenses for supplies and office equipment. I may very well be wrong, but I'm tired of trying to figure this stuff out. I saw that the AICPA has designed a new letter to have client's sign that they were informed and allowed their tax preparer to use the simplified version and not the 3115. They are worried about law suits. I can't get it yet, because I only belong to my state society, not the AICPA anymore. I'm hoping that CNA will come out with a letter so that I can see it. I am so tired of having to study my butt off just to do what used to be a fairly straight forward return.

[jklcpa]

I saw that they'd come out with a letter and can't get it either.  I had to cut expenses somewhere and dropped my membership with the AICPA and am also only a member of my state society now.  I'm hoping to find it elsewhere too.

[Margaret CPA in OH]

I am still a member of AICPA but not the Tax Section which is where this letter is available. THAT irritates me no end as I had to cut costs, too, and that extra fee was too much. I'm sure many members do tax work and need that information just as much as, maybe more than, the section members.

Yes, let's hope CNA comes through and soon!

[DANRVAN]

I can't think of any reason why the rule would not apply to your  client's situation. I don't belong to the AICPA for the same reason as Judy.

[jasdlm]

I found one on the internet that I thought was useful.  Anyone know how I can upload a .pdf to the forum?

[jklcpa]

Yes, uploading a pdf is easy and is the same way to upload a picture.  In the lower right corner click on "more reply options" and that will open up another screen. At the lower left of that screen you click on "browse" to select the pdf file to upload, then click "attach this file". After you've done that, over toward the right you should see "add to post" and that will put a link in the post to the file and will appear where your cursor is.

[jasdlm]

Final_Client Notification Letter - New Capitalization Regs De Minimis Safe Harbor Election.doc2014_FoxTax_Engagement.pdf

 

I pirated prose/format from a combination of these two documents that I found when searching the topic and was able to come up with something that I felt okay about.

 

I hope I uploaded them.

 

Thanks for the instructions, Judy!

 

 

[jasdlm]

I did add them!  I'm totally jazzed.  I needed this boost on 25 March!  How many years have I been posting to this Board without realizing I could upload information???

Edited March 25, 2015 by jasdlm

[WITAXLADY]

thank you for the info!

[Terry D EA]

How is your software handling this election? Are you attaching the statement to the return indicating the De minimis election is being made? Does it electronically file with the return? The only way I can see to do this with OneDesk is attach the election statement to the 8453 form for individuals who have rental property and my rental partnerships as well.

[jklcpa]

Drake has both the elections for de minimis and the small taxpayer for real estate under 1 million.  Check a box and they are printed out and included with the e-file.

 

I was also very pleasantly surprised that it also automatically calculates the circular formula for the SEHI when the PTC is involved.

[Terry D EA]

I will have to contact OneDesk tomorrow. I can't find anything on the De minimis rule, statements or anything relating to it. I plan on checking out Drake again this year in the off season. I have found too many areas where OneDesk falls short including some areas where calculations are not accurate such as the MFS/MFJ comparison for filers who claim intemized deductions. Also, the program incorrectly calculates estimated taxes adn gives no options of overriding. Yes, I have checked and double check all other calculations that are used in the returns I prepare. They do not have a good fixed asset manager but at least it is accurate.

 

Judy how much of a learning curve am I facing with Drake? I've used several different softwares over the years.

[jklcpa]

Terry, your question about the learning curve is hard to answer.  I didn't have much trouble at all once I figured out where the screens were and how the program doesn't require or show certain information on the screens. It had input for only what is needed and nothing more.  What helped me the most was checking the conversions and doing a few simple returns over again that I'd already done in ATX and comparing the results.  Drake offers case studies and practice returns for the users to work through too.  I didn't have time to use those, and didn't feel the need either.  

 

Some of the input screens look very similar in layout to the forms itself, such as the W-2 input screen, while others look nothing at all like the forms.  If you aren't dependent on forms-based input and having to see the live return on the screen all the time while you are working, I think you will be fine with it.  If you are the type of preparer that wants or needs the actual form to be constantly updated while you are working on it, then maybe it isn't for you.  Personally, I think that is a crutch that is best avoided. If you know what you are doing and how the item should affect the return, you will be alright using Drake.

 

Remember I switched early on during the season, and I was comfortable with it by the time the real onslaught hit me.  It seemed like an easy season, and I felt that it made my work easier and faster, especially with out-of-state credits. It handled most of those automatically without much additional input from me, and that was something that took a lot more of my time in the past with ATX because none of it was automatic when it came to the N/R DE returns for PA residents.  I also have taken advantage of their pdf print function, document manager and scan functions to go paperless.  Their manager allows for controlling the scanner from within that, remembers common names of files at the users choosing, and allows for fast duplex scanning too. All of that has saved a lot of time and resources for my little practice.

 

It does take some getting used to and learning where things are located.  If you are going to look at Drake, I'd suggest going to one of their presentations and getting the free trial version of the software to play with after the season ends.   Some love it and some hate it.

[Terry D EA]

Thanks Judy, I have gotten used to input driven programs and not forms driven. Back when I left ATX, I did have some difficulty with switching but now not so much. I think I will try it after season. I learned TaxSlayer Pro on the fly in 2012 with the TRX issues and don't want to do that again.