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...so... I will put down $10 for each account...


Hahn1040

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my new response when I ask for interest income and I get "those answers":

  • it's hardly anything
  • I didn't get a form
  • it is less than $10
  • the bank says I don't have to report it

of course, I have already gone through the spiel:  "If it is less than $10, then the bank does not have to report it to you; but you have to report it to the IRS.  You have to look at your year-end bank statement to get the figure".

...so, you didn't get a form... it is less than $10... so $10 per account will cover it

that has gotten a few people to look.  And yes, sometimes it is .12; and sometime $2.37 and makes no difference (but it goes on the return!) but sometimes it is $37.12 and they "didn't get a form"  because it is online and they didn't look .  As we all know..sometimes $2.37 does make a difference.  Ugh! knocked them out of Tuition deduction of $2,000 for that $2. But it has to go on the return!

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Had one today.  They did sell their house and downsized.  13 Goodwill/other receipts.  Some listings, such as oak end tables, 6 leather purses, that kind of detail, but NO dollar amounts.  (Pet stroller donated to Humane Society, letter received, used once, paid $120 !!)  I emailed her.  Same thing, wanted standard amount, $500 she asked?

"Good will , I gave them so much due to move - I say the value should be what ever the guideline is. $500?  You choose.

 The stroller was only used once I paid $ 120.00"

She's an artist, so I don't think I'll get much more out of her.  I know they downsized, so I may sit here with my Goodwill list and her lists (which are short, so I might actually do this) and give her some conservative numbers.  And, charge her a bookkeeping fee.  Otherwise, I've been doing zero or $10 per receipt or whatever my mood dictates when clients don't respond.

If they don't make any cash donations, church or whatever, I go with zero for Goodwill if they won't commit.  At least this couple did give money to a couple of organizations.

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I do that Abby, for one or two receipts.  But, for 13?  And, one of them was that pet stroller for $120 when new.  (Did any of you every stroll your pet?!)  13 X $500 X 33% bracket = $2,145.  I don't know.  They did downsize.  Then hit them hard with Rita's education next year.

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12 minutes ago, Abby Normal said:

Boy you guys and gals are harsh. If they want to deduct 500, I let 'em deduct 500. At 15% that's only $75 tax. And if they tell me what they paid for something, I give 'em 20-25% of that.

I really am, cause they can't even itemize.  But the one who wanted to deduct the used peanut butter jars she donated to Vacation Bible School?  Uh.  They were worth zero.  ZEE. ROW.

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3 minutes ago, Abby Normal said:

Oh, man. You just like giving them... gruff. Too funny!

Well, ship, don't ask me the standard amount for a donation.  Hellur?  There is no standard amount for a donation. 

Yeah, I know what they mean, but learn how to talk, you peanut butter jar donating cheapskates.

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Lion, if people give "similar" items to charity and the total FMV is over $5k, they have to have an appraisal, just like if they gave one item worth that much.  So if all those receipts contain "clothing, household, misc," that's "similar" and should have been appraised (yea, right).  I only allow maybe 15% of cost, maybe 20% if most of the stuff was new.  It boggles my mind that the IRS is so picky about having a receipt for every single cash donation but these noncash ones get a free ride.  On the other hand, I will not push clients for bank interest under $10 (I do pick it up if it's on the mortgage escrow statement).  It will hardly ever make a difference, and I waste enough time getting big numbers out of them like college financial transcripts and out of state property taxes.

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This gal does list, so lots of different things were donated, furniture, clothing, sports equipment, books, etc., and using the Goodwill calculator, the whole mess was just under $2,000.  So, no risk of a group of similar items being over $5,000.

Had a guy donate his record collection to a symphony in his home state.  They paid for the appraisal and sent him the paperwork which we efiled as a .pdf with his return.  $15,000 or so!

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26 minutes ago, Lion EA said:

This gal does list, so lots of different things were donated, furniture, clothing, sports equipment, books, etc., and using the Goodwill calculator, the whole mess was just under $2,000.  So, no risk of a group of similar items being over $5,000.

I finished one this evening that was very similar to this.  Nine trips, all to Goodwill, and I broke down by groups of similar items.  The client is very organized and had it all summarized and broken down by types of items and by date, and it was still a PITA.

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10 hours ago, jklcpa said:

I finished one this evening that was very similar to this.  Nine trips, all to Goodwill, and I broke down by groups of similar items.  The client is very organized and had it all summarized and broken down by types of items and by date, and it was still a PITA.

I wouldn't have spent more than 30 seconds on that.

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1 hour ago, Abby Normal said:

I wouldn't have spent more than 30 seconds on that.

I never said how much time I spent on it. I said it was a PITA and I should clarify that this client's entire return is the PITA, not just this. The client's giant spreadsheet of donated goods still needed "intervention", and by the end of the season I may need an intervention. 

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What happened to the concept of preparing taxes based on documents presented by the taxpayer.  How do we justify creating deductions by the paid preparer?   If preparers can create a $10 deduction can they create a $10,000 deductions even though the taxpayer says so?  Where do you draw the line?  Is it the preparer's or taxpayer's return?

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22 hours ago, Hahn1040 said:
  • it is less than $10

 

Apparently some of you believe you are being diligent in reporting miniscule amounts and the IRS will appreciate you for being a diligent preparer.

I agree that if this is your approach, you are a diligent preparer.

But in reality, the IRS couldn't care less for amounts that scarcely move the needle up or down and create additional data to process, or worse still, wasted time if the client is audited.  Remember that if the bank doesn't issue a 1099-INT for less than $10, it is because the IRS has approved the practice.

My favorite to "ignore" are brokerage statements (e.g.Morgan Stanley and others) who move temporary money into a MM account with the brokerage house before transacting another security.  Typical totals on a 1099-DIV statement is something like eleven cents, even though thousands of dividends exist, and tens of thousands of 1099-B transactions.

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9 hours ago, RitaB said:

Client:  Do I have to report that?

Me:  Yes.

 

Have you ever noticed, the answer is always yes?  Please stop telling me about income and then asking me if you have to report it. 

I want to salvage a confessional from an old church....  and put it in the corner of my office.  When the client says "Do I..." I would just say "Go over there and tell them your sins..."

LOL

 

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On 3/20/2018 at 12:15 PM, Jack from Ohio said:

Circular 230 and other oversight regulations from the IRS, with associated big penalties for us.

Honestly?  I wish IRS would take a look at some tax returns that new people are bringing me and put their money where their Circular 230 is. 

All the yay hoo preparers are not dining room table pencil whippers.  Or paid preparers abusing Turbo Tax.  Yeah, get them, too.  And every DIY return. 

OK, yeah, I am in @Catherine 's softly whimpering stage of tax season.

Edited by jklcpa
fixed the tag
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