A funny thing happened on the way to the tax deadline

Your Guide to State, Local, Federal, Estate + International Taxation

During tax season interactions, there are things that are just funny you cannot do anything but laugh about. They may be funny only to us, but we find them funny at a stressful time and it keeps us going.

Thanks to the tax department for getting us through another round of tax returns with new laws, software that does not always accommodate what we are trying to do and “waiting” on that last K-1!

Don’t miss: The window tax through the ages

Here’s a sample of what had us chuckling leading up to our fall deadlines for 2022.

We initiated a new program to assist with internal CPE. I was teaching the very first session and handling the in person check-in while a co-worker moderated the online attendees. She texted me to let me know when to log in and I told her I had started the meeting. As we were going through our latest issue, she told me to look at the text I had sent; Autocorrect changed “I started the meeting” to “I farted the meeting”.

A client had some questions and came to talk to me about six weeks after his wife died. He told me he had gone to the bank two weeks after she died to remove her name from the account. The bank told him he had to wait 30 days. “Why?”, he asked. “She isn’t going to be trying to cash any more checks.”

“Wait, just to clarify, I do not get to deduct the utility expenses the company paid on my father’s house?”

“Can I take as a deduction the amount of rent I did not receive?”

“None of those words are the ones that come to mind. But I don’t want to be vulgar.”

Pro tip: Its always better to sell the farm than to be the one who bought the farm. Even better: Better to sell the farm after you “bought the farm”.

“Any other expenses related to the rental?” Client responded “Just HOA, Insurance, property taxes, DO YOU NEED THAT INFORMATION?”  Oh and my new wife has a rental, here is the income. Client did not provide the expenses to the other rental nor the purchase document.

I am not fond of any of the “BIs” right now; QBI, SBI. I guess the FBI is okay.

And on that note, the tax preparer community is saying goodbye to the Arizona Small Business Income (SBI) tax, as it will no longer be relevant after October 17, 2022. I do not believe we will miss it.

As always, we are here to answer any of your tax and accounting questions. Please feel free to reach out to us.

Donna Harmon Laubscher, CPA

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