Happy Sunday. A day of work for me. Cousin D & Friend Al get their taxes done.
A brief update.
Yesterday and today at Mom's. Last week Thursday night at Mom's but not overnight just there until the caregiver got there. Friday a very nice dinner with my friend Nancie. Next week nothing on the agenda but work and more work.
Had an interesting experience at work last week. We have a client that had two farms this year and inherited a third. All of the farms are in another state besides Oregon. That state has an income tax. Because of the additional farm this year the income was higher than previous years. My boss, M, thought we needed to file an Illinois return not only for this year but for the three previous years. Her take was we will probably lose the client but we have to do the right thing. I started looking into and adding a second state return to his return ended up saving the dude thirteen grand. The deal is one of the farm's was in his wife's name. None of us really knew that until this year when I did my digging. These farms were profitable and subject to self-employment tax. When you separated out the farms and put one of them in his wife's name all the self-employment tax went away. The reason? Three-fold. All of the profit was in her farm. She had already paid the maximum in social security tax on her W-2 form. And she didn't do anything active to produce the farm income. She was here, the farm was in another state. You are only dinged for self-employment tax if you do anything active. So I transferred her farm to form 4835, which is a farm rental schedule. The client is extremely happy. He couldn't believe it, he kept saying you mean I save three thousand, and it took me about ten minutes to convince him he saved thirteen grand. And whatever tax they paid to the other state came back to him on the Oregon return as a credit for taxes paid to another state. Oregon has a kicker in the law that doesn't allow a taxpayer to pay tax to two states on the same income. Of course the boss is extremely happy also, told the story all over the office. Used it as an example of how we should always do the right thing. And of course I am happy. We went from probably losing a client to having a client for life. I give credit to my boss. I like her honesty. She gives me credit, which of course I like.
That's it for today. I would love to hear the update on your life. How all of you and your friends are doing health wise and life wise. Would love to hear about events attended or coming up. And I would to love to hear your stories of when you did the right thing and instead of coming back to haunt you, it turned out amazingly well.
You can also post anything you damn well please. The blog is now yours.