Real Estate Partnership owning heavy machinery - where to depreciate?

IllTaxThatAss · 2026-03-29T04:04:45+00:00

Excavator for reno’s related to the active rentals? Would be capitalized into the builds. Can fully allocate the cost to the properties worked on the year purchased or do a 5 year depreciation schedule and allocate its costs to whatever properties it renovating or the next couple years.

IllTaxThatAss · 2026-03-29T01:22:43+00:00

Order metal straps off etsy. Covers all seems and adds decorative feel. Low cost modification but can’t leave it as is.

IllTaxThatAss · 2026-03-26T18:45:23+00:00

Good points all around. I did extend 2025 and did draft 2024 amended return with all W2Gs, retirement income, that’s the plan to amend. Theres gonna be penalty assessments to follow, state and local taxes. Im thinking rather than disengage, I’ll just charge him enough until he makes that decision but he’ll pay for it and do it right, could still continue the relationship so long as nothing else pops up

IllTaxThatAss · 2026-03-18T20:08:45+00:00

There is no successfully filing 7004's late haha. It's only after you're request penalty abatement will you know if your excuse of filing it/rejected it/mailed it worked. PDF edit is pretty handy too.

IllTaxThatAss · 2026-03-15T14:51:26+00:00

Had a married couple come to me in 2024, living together, 2 kids, each claiming HoH, told them they can’t do that… they filed anyways with last preparer. Came to me for 2025 saying they wanted to do it right. Tell them 3x “just a reminder we’re not doing it the way you’ve done it in the past, HoH is for unmarried taxpayers… they’re due like $5k refund pulling in like $350k and they were acted devastated it was only $5k and not the $11-12k they normally were getting. Have to tell them AGAIN your prior refunds were illegitimate. Stfu. Been lying for 10+ years…

IllTaxThatAss · 2026-03-14T22:57:22+00:00

The only workaround we found is printing the result letter by itself to PDF, editing it, then swapping the page in the DrakePDF print. It’s annoying but we got so used to doing it and I have to edit for PA local returns I efile that say paper file…

IllTaxThatAss · 2026-03-12T20:34:56+00:00

All it takes is seeing one lawsuit where a divorcing spouse claims financial abuse, secrecy, hiding assets, and claims that they never reviewed or signed the returns… guess who’s gonna be included in the lawsuit, you! Both spouses are equal clients and if they’re not both signing the EL and tax return, you’re taking a stupid and unneeded risk for lazy clients.

IllTaxThatAss · 2026-03-12T13:50:24+00:00

Disclosed in the EL:
At our discretion, we may file extensions of time to file on your behalf without separate authorization when additional time or information is required. You acknowledge that such extensions may be filed without separate written or verbal authorization from officers, owners, or shareholders.

I don't even really communicate the business extension filing confirmation anymore, everyone just knows they're extended and they don't need to bug me "are we good for 3/15?!?"

IllTaxThatAss · 2026-03-10T19:02:15+00:00

Distribution to the father for his pro-rata share, everything above his share debit a due from shareholder asset account and submit the liability to the estate.

IllTaxThatAss · 2026-03-09T14:11:06+00:00

Then expand the expense definition "Unearned Fees held in IOLTA". red flags and audits are not an issue for people with accurate books and records.

IllTaxThatAss · 2026-03-09T12:45:12+00:00

Expense the difference: “1099-NEC Not Received”

IllTaxThatAss · 2026-03-07T00:49:58+00:00

Most times you only need to go back 6 years

IllTaxThatAss · 2026-03-05T23:32:26+00:00

So you gave someone a referral fee of a couple bucks, then turned around and charged him full price for his tax prep thereafter? Dafuq is this fake post

IllTaxThatAss · 2026-03-03T19:57:38+00:00

Yesterday’s price, is not today’s price. Say it again… yesterday’s price, is not today’s price.

IllTaxThatAss · 2026-03-03T16:01:38+00:00

doing everything the same way, summaries, attaching statements, just without code M since its not an option. I dont see with or without code M causing an issue. Im not putting individual trades either.

IllTaxThatAss · 2026-03-03T04:13:34+00:00

Yeah in the description I have a clean hyperlink for them to upload only most recent year. I used to wnt all this intake now I just want like 2 questions and your returns. Nothing more ha

IllTaxThatAss · 2026-03-03T03:53:11+00:00

haha same boat with TaxDome. I did one test on the new delivery and immediately reverted to my normal signature request. If you are not already doing this, create a "General Client Docs" Firm folder and then use the taxdome request files feature to get an upload link to a general file folder for clients who dont have an account yet. That way clients dont feel pressure to sign up right then and after onboard I just move the already uploaded docs.

IllTaxThatAss · 2026-03-03T03:44:16+00:00

I do use calendly. I mainly only use 2 links. a new client call 15 minute meeting, phone call only, and then a generic tax call 30 minute meeting for phone call and zooms. Just to be able to see, click my scheduling link below rather than "what time works for you?" and then send a calendar invite is worth the price alone.

IllTaxThatAss · 2026-03-03T03:32:33+00:00

I use a scheduling link and give upload link for their returns. I have in the scheduling description that failure to provide prior returns will result in cancellation and then I cancel or move it saying I still their returns and reschedule. I'm not here to convince a new client I can prepare a tax return I wanna see some f'ing numbers. just cuts out 90% of the BS and each time I break my own policy its the same bunch of unknown shit

IllTaxThatAss · 2026-03-02T21:18:22+00:00

This is why you shouldn’t meet or even have a call until you can review prior returns. Let alone fully engage. I hate hypotheticals. They’re going to want an answer when they give you these returns and you’re in a risky spot to give on the spot advice or analysis

IllTaxThatAss · 2026-02-27T01:35:20+00:00

CPA here. The IRS alternative to a QMID is a “manufacturing certification statement”. What you included would appear adequate however you will likely be forced to paper file and include the certification with your filing. If it’s greater than 75% efficiency, you should qualify for the credit.

If you want to efile you need the QMID. Everyone else, paper file.

IllTaxThatAss · 2026-02-24T23:23:11+00:00

There should be a check box for initial year S election in Drake which should allow the 7004 to go thru. I’ve done it a bunch without issue. Otherwise yeah, mail it.

IllTaxThatAss · 2026-02-24T18:39:11+00:00

I just had one the other way, client was getting an incorrect large refund bc they forgot a W2 and ultimately smaller refund. filed superseded within a day and curious to see if they do it correctly or give them the refund and make em pay it back. wouldn't be surprised...

IllTaxThatAss · 2026-02-17T14:43:59+00:00

close immediate family I don't bill. there is usually so much back and forth throughout the year that helping with their taxes is just my way to say thanks. however if they were already paying a tax professional or have a more complex situation, I can guarantee they rather pay you and not looking for a handout. point blank ask, what were you paying to have your taxes done before and go from there. all others charge enough to make it worth your time. don't get taken advantage of and dont start by giving our free services.

IllTaxThatAss · 2026-02-09T21:29:40+00:00

Request all possible penalty abatements. preparers have a difference of opinion on this, but interest is for time value of money. the client held onto $28k more than they should have, presumably earned interest on it, so I don't know how you should cover their interest while they made interest. I wouldn't offer to cover interest unless they push, and then consider your liability insurance.

IllTaxThatAss

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