your clients will appreciate the attention to detail.
by ed mendlowitz
tax season opportunity guide
many professionals fail to systematically ask clients some basic and important questions. here’s my top 10 list of key questions to ask this year. what would you add?
more on tax season: try this clean slate exercise | offer your tax clients other services | can your tax reviewers answer these 10 questions? | the top 12 mistakes in tax return preparation | six types of person: which are you? | answer these two questions first | help your tax clients, help yourself | what’s your value to your tax clients? | are you excited about tax season?
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1. foreign bank accounts: make certain you ask every client if they have a foreign account and if they do, report the income and file the proper forms. the penalties are too great if it is wrong.
2. incorrect 1099s: enter it as income and then subtract separately the amount that is not right to make it come out to the correct net amount.
3. seps and iras can still be opened for 2023. let clients know where applicable. you can also suggest that clients make their 2024 payments now rather than waiting until next year.
4. spouses who are partners in a two-person partnership do not have to file a 1065. they can report their portions on separate schedule cs. note that this does not apply to llc ownership.
5. deeds in lieu of foreclosure or foreclosures reported on 1099-a are treated as a sale. the unpaid recourse mortgage portion is not treated as income until actually forgiven, at which time a 1099-c will be issued. income will be recognized when debt is actually canceled.
6. taxpayers who have cancellation of debt income reported on 1099-c and who are insolvent can exclude part or all of the income, reporting the exclusion on form 982.
7. roth ira conversions in 2021 not reported in 2021: pick up half in 2022 and the balance in 2023.
8. unreimbursed partnership expenses required by the partnership agreement are deducted on a separate line on schedule e.
9. self-employed taxpayers can deduct medicare premiums along with other self-employed health insurance premiums.
10. nols cannot be carried forward unless an election was previously made to do so, or to the extent they weren’t absorbed when previously first carried back. also, if a client has a 2022 nol, discuss with client whether to carry back or elect to carry forward.