When your CPA screws up?

[California]

You mean she and her fellow PATRIOTS.

How is it patriotic to kill the Vice President?

 

[LouNY]

How is it patriotic to kill the Vice President?

I'm going to not respond to your post as if it continues this thread will likely get shut down and you are not worth it.

 

[California]

I'm going to not respond to your post as if it continues this thread will likely get shut down and you are not worth it.

Plus, you can shoot anyone and get a medal of commendation! Just like on 1/6!!!

Lou, tell that to Hay Dude.

 

[ultrarunner]

Wow. Just sell your interest in that REIT! That's no way to live, buried in complexity that you have no control over.

An audit by any one of those states could drag you through misery for years.

So what if you lose a little money or the potential to earn a little more. Buying your freedom will benefit you more. A calm life is a worthwhile goal!

It’s a private REIT so only can be sold to another inside and the tax implications outside of an inherited position would be huge…

The REIT performs well and weathered the pandemic…

I’m way out of my league…

However if it does go public cashing out would be simple.

 

[ultrarunner]

I composed and gathered cancelled checks I had requested from the partnership and K1 and submitted the package via the fax number last night…

Now I pray I have provided enough for someone to match up the payments to my return.

The money paid had to go somewhere… so where is it?

It’s clear it’s not being credited to me.

PTE is short for pass through entity.

Also clear as day by admission my CPA missed it and why within 24 hours an amended return was filed and this is the fallout.

 

[ultrarunner]

For anyone interested…

34 Latest States with a Pass-Through Entity Tax - CrossLink

A total of 34 states have enacted legislation that creates a pass-through entity tax as a workaround to the $10,000 cap on the state and local taxes (SALT)

www.crosslinktax.com

The pass-through entity (PTE) tax strategy came about due to the limitation on the State and Local tax (SALT) deduction created by the Tax Cuts and Jobs Act (TCJA).

Prior to the TCJA, individuals could deduct, subject to alternative minimum tax and overall itemized deduction limits, state and local taxes on their personal returns. However, beginning with the 2018 tax year, the TCJA limited the SALT deduction to $10,000.

Many taxpayers across the country, especially in high tax states were hit hard.

Since that time, the PTE strategy has been implemented by 34 states across the fruited plain.

It’s paying taxes owed at the source before any distribution…

 

[California]

... It’s clear as day by admission the CPA missed it ...

If that's so complex that a professional CPA missed it, then at least for me I would get out of that investment.

Selling to a co-investor may not get what you know your share is worth but as I said, this may be what it costs to buy peace of mind. Living surrounded by stress-inducers isn't fun. Reduce stress where you can.

 

[5030]

Here is the actual job description. Note that it's not for your typical IRS clerk;

across the fruited plain.

Irregardless, it appears to me that the 'fruited plain (plan) is dying on the vine....

Tip toeing around the content of the thread, I'd say that Washington is so far removed from reality today that none of them really have a clue about reality and don't care either.

All about the pound of flesh and nothing more. I sure am thankful tax time only comes around once per year.

 

[ultrarunner]

If that's so complex that a professional CPA missed it, then at least for me I would get out of that investment.

Selling to a co-investor may not get what you know your share is worth but as I said, this may be what it costs to buy peace of mind. Living surrounded by stress-inducers isn't fun. Reduce stress where you can.

Sage advice to be sure… I’m at a point where I very much want to declutter my mind.

Having to become conversant on the tax law of Pass Through Entities was not even on the horizon.

It’s not unique as 34 states now are on board…

I often think of my grandparents dairy operation… they never owned a car or had a checking account… worked 7 days a week and the happiest most content people I know.

Grandpa did buy a tractor in 1948 and he had a motorcycle.

That tractor was still in daily service 35 years later with sickle bar mower.

Sold milk through the farmers coop and paid bills in cash… all with a simple ledger and fountain pen entires.

Grandpa said finances are simple as long as cash and carry…

 

[ultrarunner]

Irregardless, it appears to me that the 'fruited plain (plan) is dying on the vine....

Tip toeing around the content of the thread, I'd say that Washington is so far removed from reality today that none of them really have a clue about reality and don't care either.

All about the pound of flesh and nothing more. I sure am thankful tax time only comes around once per year.

Ever look at a 1913 tax return?

About as simple as can be and it didn’t even apply to the masses…

Not to worry… I’ve heard politicians say we have to pass bills to find out what’s in them…

It begs the question of how much is science vs art?

Accounting is numbers but bring a situation to a dozen tax lawyers and just as likely to get dozen nuanced strategies...

Still recall my first meeting with a tax CPA and I was asked my philosophy at 22???

He went on to say there is the aggressive approach as well as grey or unsettled areas in tax law... he had a few letter rulings to his credit.

I replied... I want to pay what I owe and sleep at night... rental property isn't that complicated... he said understood....

 

[Molalla1]

Lou... All distills down to the 'pound of flesh' philosophy. Because our return is pretty complex and we have all the pertinent inputs up to date, all the time. for us, filing as early as possible makes it less painful.

The IRS, like every government alphabet agency is screwed up anyway.

Besides, the government would prefer to not refund anything and that includes state agencies as well.

We would never attempt to file any return without a competent CPA's intervention. Way too complex for my brain anyway. We certainly don't mind paying a CPA to do the paperwork, just like we keep an attorney on retainer, just in case.

If I (we) were individual filers, maybe, but that isn't the case here. Very complex so out of my (our realm) to do and do correctly.

Same here 5030, I have always felt that the IRS are less likely to do an audit, also like yours is complicated also, and my CPA's pencil is a lot sharper than mine.

 

[ultrarunner]

Saga Continues...

Received call from senior auditor who just reviewed my tax return and amended return and bottom line is both returns have CPA errors and to correct I need to file amended amended based on the supporting documents I sent in which include front and back of cancelled checks etc.

$1400 to CPA for 2022 tax and this is the last thing I would have expected...

So instead of owing 23k and counting once the amended amended processed I will actually show overpayment and will be due 1k refund on tax year 2022.

This PTE (Pass Through Entity) stuff is number one issue coming up as far as reporting.

Have not heard back from CPA from reaching out and visiting the office last Thursday

 

[California]

Wow sell that PTE. Accept that it didn't live up to expectations, and get back to enjoying life. It's not worth the mental energy it's sapping out of you.

 

[ultrarunner]

Wow sell that PTE. Accept that it didn't live up to expectations, and get back to enjoying life. It's not worth the mental energy it's sapping out of you.

PTE is actually a tool California and 35 other higher costs states make available to pay taxes at the source level so as to not be limited to the 10k SALT deduction cap.

For me it's not so much as a thing but a tool states created to get full federal credit for monies paid for State and Local Taxes.

Residents in high tax states that itemize have the most to gain.

Of the group I'm the only individual experiencing problems and it lies solely on the shoulders of my CPA... been with the firm 40 years but the skill of keeping up with all the new laws isn't there.

I'm certain others on TBN report taxes paid using PTE...

Tax Alerts

Assembly Bill 150 PTE tax providing qualified pass-through entity owners a workaround of the federal $10,000 limit on state and local taxes deductions.

www.hcvt.com

PTE refresher and important information for companies and individuals

What hospitality and consumer organizations need to know about the pass-through entity (PTE) tax. Learn more.

www.cohnreznick.com

 

[Torvy]

We need to completely eliminate deductions for state taxes on federal taxes. Violates equal protection. It is effectively shifting your state tax burden onto the rest of us. You want high state taxes, pay them yourself.

Of course, income taxes themselves are the root of the problem. Better to have taxes on sales as everyone pays something.

 

[MoKelly]

We need to completely eliminate deductions for state taxes on federal taxes. Violates equal protection. It is effectively shifting your state tax burden onto the rest of us. You want high state taxes, pay them yourself.

Of course, income taxes themselves are the root of the problem. Better to have taxes on sales as everyone pays something.

We have taxes on income, sales (state and local), personal property, real estate, interest, dividends (which have already been taxed once), capital gains, gas, beer, etc etc etc.

Once a tax is there - it never ever goes away.

 

[plowhog]

That's no way to live, buried in complexity that you have no control over. ... Buying your freedom will benefit you more. A calm life is a worthwhile goal!

Exactly why I stopped doing business in the State of CA and moved away.

The MBE/WBE program was the final straw. State mandated, unconstitutional discrimination against me on gender and race, as I was not a minority nor a female. If we were hiring 100 workers to dig a ditch, adjusting to XX percent women or minorities would not be difficult even if discriminatory. But it was impossible for my technology company to reasonably farm out 15% of a software and technology job-- that's not how software works. (You can't hire a 2nd woman provide 15% of the effort to produce a baby. Well maybe 100% ha ha.)

We tried it on one job-- hiring a minority qualified firm to do the network cabling work while we did the networking and software. Cabling was probably 5% of that job so a MBE getting 15% of the contract total was a nice windfall for them. By State law, we had no control how a subcontractor performed its work. So when they screwed up and installed cheap non-plenum cabling (not fire resistant,) we had no knowledge about it until it was already pulled through the building. The MBE didn't have the resources to purchase the correct cable, pay for labor, and fix the job. So 100% of our entire contract was put at risk. We bit the bullet, paid them in full, and said goodbye. Then pulled out all their work, threw away their cheap cabling, and re-did it ourselves with fire rated cable. Last MBE contract ever.

Another company I am familiar with "partnered" with a 15% MBE sub-contractor to get a large contract. After receiving the bid award, the MBE sub-contractor said they wanted their 15% of the total job payment and would not be doing *any* work. My associate said: "what?" The sub-contractor said "you don't get paid unless we sign off, and you lose the contract without our "participation." So-- just what are you going to do?"

Life is simpler now!

 

[ultrarunner]

Quite a few businesses from janitorial to rental yards are in the name of the wife...

One of my friends married a wonderful woman born in Mexico...

The construction firm is in her name and they are able to bid on lots of work because woman owned minority enterprise.

Another friend rents out a small office space with attached 20x60 warehouse space.

He says tenant is an excellent renter... Black Female and her business is public works procurement...

Firms doing public works projects use her for materials from wadding to rebar to copper wire... she sells cost plus and almost nothing ever comes to the warehouse and often the contractors already have everything sourced and just need to have it run through her business...

She is good at what she does and had been audited and why she needs to have an actual yard with warehouse...

 

[Torvy]

In today's world, you just need to ID yourself as such. No need to jump through so many hoops.

MOKelly, there have been states that eliminated income Taxes. Used to be only 4 or 5 states. Now we're up to 7 or 8. For the Feds it will take an amendment.

 

[ultrarunner]

The procurement lady started when the preferences began... her mother worked for s Bay Area city and saw the way the wind was blowing.

You do make an interesting point in the era of self identifiers...

Identify as you see fit...