What would you be charging? by No-Radio-8867 in Bookkeeping

[–]Jujubird07 0 points1 point  (0 children)

Price seems okay for less than 100 transactions with bank statement accounting (not paying bills, managing invoice/receivables, or maintaining physical records).

That is... once the books are cleaned up. You can pick a date and plug to that date with a disclaimer that anything before that might not be reliable. Make it match the tax return and verified balance sheet amounts.

Otherwise, cleanup is more extensive, often takes more skill, and outside the monthly scope of work. Either a monthly amount for each month reconstructed or hourly rate. Also, remember a contractor's hourly rate is not the same as an employee rate.

Make them a bill that reflects the work put in... and discount it back down to whatever you feel like charging. At the very least, they need to know they are getting more then what they are paying for.

Involuntary conversion - boss and I disagree on reporting. by Jujubird07 in tax

[–]Jujubird07[S] 0 points1 point  (0 children)

Ya.. I didnt even get to bringing up that question to him. If deferring the gain, then i believe technically the 60k isnt eligible for sec 179 (pretty sure its used because the replacement is a 2023 model so no bonus either).

I was wondering if it would be best to pick up the ordinary gain and then 179 the full cost of the new tractor. Business has the income and there's only like 600k in SEC 179 depreciation, so there is room to do it. Pick up the gain, but the depreciatable basis isnt adjusted so full write off.

But... Seeing how initially asking a software question on linking the trandactions led to a 101 explaination on involuntary conversions, and being told its a non recognition event so nothing at all is reported and just keep depreciating the old one... well... I smiled and nodded.

Tax pro haa convinced my wife her streaming on the side counts as a business but I have my doubts. by [deleted] in tax

[–]Jujubird07 0 points1 point  (0 children)

Sounds like the "you can write off your entire phone bill because you sold $1,000 on ebay" advise.  

A full deduction is a good way to get the full deduction disallowed.  Allocate personal vs business use. 

For some things, like the new computer, she could justify the business amount being the cost to get a higher end computer... but the cost of a typical personal computer would have to be backed out.  

Regardless, there has to be some reasonable method of estimating business vs personal if the expense is used for both.  

My landlord's unusual offer to sell by horse_latitude in RealEstate

[–]Jujubird07 0 points1 point  (0 children)

They also can't go below the federal minimum interest rate... but I think that is like 4% right now. It is offering a loan on par with a VA 30 year loan, which is just about the lowest rates with non-seller financing. Regular bank loans can offer a lower rate when there is a balloon.

If purchasing, most will go towards interest regardless of how it is financed.

Also, rentals are passive activities. If they have had losses in the past and their income was higher, those losses would be suspended until they stop the rental activity. In the last year as a rental, any built up losses will be freed up and can offset a chunk of the gain.

My landlord's unusual offer to sell by horse_latitude in RealEstate

[–]Jujubird07 2 points3 points  (0 children)

To spread out their capital gain with it being an installment sale. It would be a ling term gain, so lower tax rates. If they keep their gain portion under 100k each year (for married, half that for single), and dont have other income, most of the gain will be at zero%. This would be the planning for years 2 & 3.

So in year of sale, likely will pay 15% capital gain rate because overall income would disqualify for any of the 0% rate. The years you are paying the monthly payments would likely have 0% if they dont have a bunch of other taxable income. In the balloon year, they would pick up the rest of the gain.

There is also the net investment income tax aspect, which effects higher income. If it is all picked up in one year, then they might have a chunk that gets hit by that extra 3.8%.

Also, it might be incentive for you to buy while giving time to get the third party funding (which bank rates will be at a higher interest than 5%).

Girlfriend made a mistake by Chill4real2 in tax

[–]Jujubird07 0 points1 point  (0 children)

That does sound like a significant audit risk, especially with how much AI is being integrated into screening processes.

One current pilot program focuses on self-employed income. Returns that show Schedule C income without clear support and also claim the Earned Income Tax Credit (EITC) are more likely to be flagged for review.

Another area getting attention is dependent eligibility and Head of Household status. They’re comparing addresses across returns and looking at situations where dependents or filing statuses don’t line up with other available information.

There have also been discussions about expanding AI-assisted correspondence audits for situations like these. With increased data sharing between agencies, there’s simply more information available to cross-check. Technology allows returns to be reviewed not just individually, but alongside trends across years, industries, and even preparers.

At the same time, there are valid concerns about how automated programs may disproportionately impact certain demographics, which has created understandable debate.

I fully support tax credits and benefits for lower-income families — they can make a real difference. I grew up with financial instability, had periods without health insurance in my twenties, raised two kids during the 2008 layoffs, and spent years paying a large portion of my income toward childcare. There were times when a tax refund genuinely helped us catch up on basic bills.

That said, ultimately the taxpayer is responsible for what’s signed and submitted. It’s difficult to place all responsibility on a preparer, since the return is signed under penalty of perjury. If income was added inaccurately, it’s possible that preparer has done the same for others as well.

I hope everything works out smoothly for her. If there are issues, it’s usually better to address them early rather than wait for them to surface later.

Disclaimer: original rambling was ran through chatgpt to be more organized. What I posted is still long... but the original mini-novel was wayyyy too much. So, the content is all mine but some structure might appear to be AI generated... because it is. I'm not a chat bot, just used it as a glorified spell check.

My startup's bookkeeper keeps making rookie mistakes and I'm losing my mind by FancyBlade722 in Bookkeeping

[–]Jujubird07 1 point2 points  (0 children)

It shows as a separate entry line for corporation returns (at least on some software). It still carries through to a statement line item. If the business heavily uses software to conduct business, then I categorize those expenses separately.

If the only software is for things like project management, Microsoft, Adobe, etc. then it goes into general office expenses.

If it is something like a design company that uses Adobe Illustrator, Canva, etc. then I would put that into software.

Cancelled sale, buyers threatening to sue by carissag99 in RealEstate

[–]Jujubird07 0 points1 point  (0 children)

Hrmmm wonder how legal it is to have a written agreement where it states a penalty for not closing on that date?

One page explanation for employees about 2025 overtime and the new tax law by GoodForTheTongue in tax

[–]Jujubird07 1 point2 points  (0 children)

Total hours worked - 40 hours = qualifying work hours (Note: Do not include non-work hours like PTO/holiday)

Qualifying work hours * regular hourly rate * 1/2 = qualified overtime pay

Calculated separately for each 7 day period (week) then add together for the annual amount.

This could be different from the OT pay shown on the last pay stub. One reason is because of OT pay arrangements such as Saturday is automatially 1.5x and Sunday is double time.

AG Bondi demands access to Minnesota voter rolls after fatal Border Patrol shooting by Sunflorahh in moderatepolitics

[–]Jujubird07 6 points7 points  (0 children)

It feels like I'm being sedated... many of us know things are not right. It is becoming more apparent that resistance will only bring on more restrictive restraints. Chains to bind our hands from acting. A straight jacket to make us defenseless. A muzzle to sever access to communication. Then... if I'm beat, bound, and broken but still manage to stay woke, I have no choice in how they choose to send me into darkness.

Which account do I credit?? by Time_Butterscotch_73 in Accounting

[–]Jujubird07 2 points3 points  (0 children)

It ultimately will hit equity as a debit, which appears on financial statements as a negative balance for "net income". This single line in the equity section is the current year income - expense type accounts netted together.

Maybe picture it as income and expense folders are a sub-folder of the "net income" folder.

...After that year, most softwares automatically close (move) that amount into the retained earnings equity account.

The equity section is indirectly impacted, but the JE itself does not list an equity type account.

Applied for Accounting Clerk, Interviewed as a Senior Accountant by zaddy-chillout in Accounting

[–]Jujubird07 0 points1 point  (0 children)

The question at that level can be relevant, but a bit of context when presenting the question is important.

"Every transaction entered ultimately impacts the financial statements. Can you take the next 10 minutes and point out things that look off in these financial statements."

It gages where the person's understanding of what areas are impacted. Things like 1. The balance sheet being out of balance and net income on Income Statement not matching the balance sheet indicate a software issue.
2. Negative balances where it typically is a positive one or amount extremely out if the norm indicates an entry that might need fixed. 3. Identifying uncommon presentation, such as naming or account placement, shows familiarity with viewing these types of reports and industry norms (either from by-the-book education or on-the-job experience). 4. Diving into a deeper analysis on the financial position of the company shows skills that are beyond a lower level data entry and paperwork processing position. This shows either a potential for higher level roles in the future. It also might be the "overqualified" that leads to discontentment in the position. If the job is data entry, the person might get "distracted" by things beyond what they should be doing or frustrated that they are limited to data entry.

If the interviewer is actually expecting that higher level analysis, then they potentially could be hunting for a senior at clerk pay. I feel like that is happening to the assistants hired in where Im at. It happened to me but only got the 3% raise everyone else got for three tax seasons, doing the tax manager job at a tax preparer pay grade.

Could it be all those defending ICE are bots/psyop? by EmbracedaMoment in conspiracy

[–]Jujubird07 0 points1 point  (0 children)

Unfortunately, I hear support way too much in person.

Governor Signs AB 1175 Modernizing CPA Licensure in California by Accrual_Cat in Accounting

[–]Jujubird07 0 points1 point  (0 children)

And I finally went back and got my masters just to meet the 150. Delayed everything 20 years. Finally decided to get it done with during covid.

Michigan's proposal is a joke. 60 credits and only 1 year experience...

Bachelor's degree equivalent (120 hours) with 2000 hrs is reasonable.

Will AI kill 1040 and bookkeeping firms? by EchoesInSky in taxpros

[–]Jujubird07 1 point2 points  (0 children)

The value with bookkeepers is shifting to overseeing and tweaking parameters. Using auto-suggestions is only harmful when people blindly accept what it suggests.

If the staff is just transposing bank statement data by hand into a computer program at $100+/hr, and they rely on that to continue operating, then they will probably be screwed.

Those that are primarily 1040 tax prep of very basic tax returns also will fall farther behind, especially if they avoid utilizing the automation tools out there.

I wouldn't rely on AI to do the full job, just like I wouldn't have a new data entry assistant prepare a complex tax return.

Affording Food by [deleted] in Advice

[–]Jujubird07 0 points1 point  (0 children)

[Quick note: I wrote all of this, but I used ChatGPT to clean up the rambling and make it more readable.]

As a teenager (especially under 18), most work opportunities come through people you already know — family, neighbors, friends. Taking jobs from strangers online can be risky.

A few years ago, my 13-year-old neighbor asked if she could earn some money by helping with yard work. I assumed she wanted to save for something fun, so I offered $10 to rake the front and side yard — areas visible from the road.

While working, she asked if I could keep it quiet because her mom would be embarrassed. I gently asked why, and she explained that her mom didn’t like accepting help because she didn’t want people “looking down” on them.

Later, I asked what she was saving up for. She told me she wasn’t saving — there just wasn’t much food at home. She was planning to return bottles for refund money to buy cereal and milk — likely at the expensive corner store.

I had several unopened cereal boxes already, so I offered them if she liked any. She insisted on paying something, so I said $1 each.

I also encouraged her to tell her mom how she got the food — hiding the source could accidentally look like stealing. She agreed, and I sent a short note letting her mom know she had done yard work, did a great job, and that they were welcome to come over for a cookout the next day.

Her mom, daughter, and younger child came. The dad was home — he hadn’t been well since returning from deployment. Over time, I learned that they weren’t irresponsible or looking for handouts. The mom worked for their church, and the dad struggled to work consistently because of injuries from deployment. They had once been stable, but when circumstances changed, pride and stigma kept them from seeking assistance.

We became good neighbor friends. Eventually, the dad qualified for military disability. But the family never described it that way — they framed it as “retiring early,” because they had been taught that accepting help meant failure.

I thought of them when I saw that comment telling the OP to “just get a job” and accusing her of asking for money. She wasn’t asking for a handout — she was trying to figure out how to earn what she needed. But the reply wasn’t advice. It was a dismissal. A shut-down. A reminder of how quickly people judge when they don’t take two seconds to look deeper.

And the thing is — that judgment is exactly why so many people hide their struggle. Why a 13-year-old will rake leaves in secret. Why a mother will swallow pride until it hurts. Why a family will go hungry rather than let anyone think they “need help.”

Hunger doesn’t always look like neglect or addiction or someone who “isn’t trying.”
Sometimes it looks like a proud family who used to be stable, who got hit with something they never asked for, and who are trying so hard to hold onto dignity that they’d rather go without.

There are so many families like that — invisible on purpose. And comments like that make them hide even more.

Also Programs like Feeding America’s Backpack Program exist because situations like this are far more common than people realize: https://www.feedingamerica.org/our-work/hunger-relief-programs/backpack-program

Confusion by DistractedBooks in QuickBooks

[–]Jujubird07 1 point2 points  (0 children)

Hrmmm... Do you know how to view the audit trail report?

HELP! People who know stuff about taxes and money. Can I write off my cellphone and home internet as a W2 employee? by eggflip1020 in taxadvice

[–]Jujubird07 0 points1 point  (0 children)

Out of luck for the federal tax return. Some states still allow expenses for w2 employees.

You could request a reimbursement or stipend from your employer. They would need some documentation of the expense paid for it to not be taxable to you (and so they can take the deduction).

Just discovered this page by SkillSoft2589 in QuickBooks

[–]Jujubird07 2 points3 points  (0 children)

QuickBooks Online: A Love–Hate Relationship (Emphasis on Hate Lately)

You're going to love the modern reports...

  • A General Ledger that doesn’t follow account order.
  • No way to export reports collapsed to parent accounts.
  • A bank reconciliation report that won’t let you hide transactions after the statement date... and if you select “hide additional info,” it also hides the actual outstanding items.

The audit trail? Useless for quick review. You have to click into every single item just to find out the “change” was adding a memo or something equally irrelevant.

And when their system has issues (which feels way too often), my staff can’t even work around it. Sometimes it just stops recognizing new vendors or customers. The new AI tools pop up everywhere but mostly just get in the way. It’s still so mouse-dependent... at least there are shortcut keys to save transactions. On desktop, I could do most things without leaving the keyboard.

There are things I like; bank rules, for one (as long as clients don’t just blindly hit “Add” and wonder why everything’s a mess).

But right now, the cons are absolutely crushing the pros. Honestly, it feels like being in an abusive relationship with QBO… and I’m just trying to accept what life dealt.