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Anyone else not looking forward to tax season?


SaraEA

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At this time I'm usually psyched up for tax season, but not this year.  I've done hours and hours of training and reading, but what's weighing me down is that I don't feel competent in the new tax law. Now when a client calls with a question (can I still claim my kid, should I pay my RE taxes in Dec instead of Jan, should I add up my medical expenses), I used to be able to blurt out the answer and sound like a real professional.  Now there are so many moving parts I'm uneasy about delivering a quick, simple response.  I panicked the other day when I entered some data into the 2018 UT software and went to view the form.  I of course saw the new form and thought "where are my numbers?"  After I enter tax docs, I view the form and check the totals with the originals (add up all the W2s, withholding, bank interest, etc.).  That's how I double check my data entry.  Very fortunately, UT has a new selection to view the first two pages of the 1040 like they used to be, where all the totals are in one place.  I also review the final return with each client.  Right now I don't know where anything is so I'd better practice so I don't seem as confused as they are.

My second biggest fear is that clients won't be getting the refunds they are used to getting.  A bunch gave me their paystubs after the new withholding tables went into effect so I could do projections (who knows how accurate they were since the specs have changed), but most have probably been enjoying their larger paychecks without realizing that now that they are losing their three kids as dependents they may be in trouble.  And I don't want to think about the business owners who believe they won't have to pay tax on 20% of their profits.

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As far as tax season goes, the key issue that I am concerned about is which of my clients that have different kinds of rental properties will qualify for the 20 % PTE deduction 

which clients won't qualify?  Second, due to the partial government shutdown,  Congress is showing no concern or movement toward a TCJA Technical Corrections/Tax Extenders Bill.

Is Qualified Improvement Property 15 years or 39 years ? 🤔 

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I agree with a comment above regarding needing to lean on each other for help and guidance.  I'm a solo practitioner, so being able to bounce ideas off you folks and get my questions answered in a timely manner has provided tremendous value to me over the years.  

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Sara could have been reading my mind when she wrote her post.  My reply is "all of the above".  In 40 years I have never felt so inadequate and unprofessional.  Confusion is rampant.  I don't feel ready even though I, too, have been studying and attending classes.  I have many printouts, but it appears that some of the issues we need to address this year have not even been fully enacted.  Even the instructors are unable to instruct.  Let's hope that we can get through this together and with each others help.

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22 hours ago, Roberts said:

I've gone through multiple webinars but they just confused me more

Form 8275 is our very good friend this year.  If we take positions not supported by final regs (which is a boatload of the new law), that disclosure statement showing why we are taking whatever position we are taking will at least save us from preparer penalties.  "Most closely in alliance as this office could determine with tentative/proposed regulations as of the date of filing" basically means "hey, we did our best considering you dweebs had given us nothing better to go on" only said in a polite fashion.

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1 hour ago, Catherine said:

Form 8275 is our very good friend this year.  If we take positions not supported by final regs (which is a boatload of the new law), that disclosure statement showing why we are taking whatever position we are taking will at least save us from preparer penalties.  "Most closely in alliance as this office could determine with tentative/proposed regulations as of the date of filing" basically means "hey, we did our best considering you dweebs had given us nothing better to go on" only said in a polite fashion.

So do we attach an 8275 to every return with rental property because there is not definition under 162 of trade or business?  Whichever way we classify them may be wrong in the end when this is finally clarified (if it ever is).

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6 hours ago, Gail in Virginia said:

So do we attach an 8275 to every return with rental property because there is not definition under 162 of trade or business?  Whichever way we classify them may be wrong in the end when this is finally clarified (if it ever is).

Pretty much (assuming you want to cover your bacon - and who would want to risk bacon, after all?).  

Our state society update spent two hours (non-IRS cont ed) talking about what MA will and will NOT comply with.  Ugh.  They don't take the alimony changes.  They still accept moving expenses with caveats.... it's going to be nasty.

One huge take-away for us ALL is that we are NOT going to be able to just trust our software this year.  Yes, they will do their best.  Yes, they will ALL miss things (different things per state and per s/w package).  We all need to warn clients when they first come in, so they don't yell at us when things take longer.  Extensions will also be our friends.  Even the shutdown; it's yet another reason for the delay in getting answers and seeing state interactions.

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I took the Gear Up 6 day  Vegas seminar. Got a ton of 199A, still haven’t a clue on GILTI. Teaching a 3 hour update class since the group I’m teaching for can’t count on the IRS practitioner liaison not to be on furlough (he was going to do 2 hours). 

I am going to treat my rentals as QBI.  I think I have a profit this year; I’ll have my books done pretty soon. 

On the other hand, my own books are farther along than they’ve been in years at this point. And my W2s are already issued. 

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I found a way to put it on the invoice, if the worksheet was listed.   But it is not automatic.   You have to go into the worksheets tab on the billing manager and pick the 1040.  All the worksheets for each line should be listed.   But right now, there is nothing listed for line 9, which is where the Section 199 worksheet should go.   I assume that when they release the worksheet, it will pop in to the billing manager.  If not, I am going to have to hand type it in for each client.

I wish I could charge $500 for each client.    Just does not work with my clients.

Tom
Modesto, CA

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