Have a partnership I completed back in September -- or so I thought. Husband and wife partners, Form 1065; they do their own personal return on Turbo Tax. Wife has been calling me all month with questions (how does she enter her SIMPLE in TT, etc.?) I admit that I'm losing patience, especially now that I'm a bit sleep deprived waiting for last two clients to OK for signatures and completing my own. Need a reality check. Partnership needs to be on same calendar year and tax basis as partners, right? Calendar year and cash basis for partnership, too. Wife says they defer income from late in the year to following year since it's for an annual even held each March. However, I used all the income that showed on their P&L in QB as provided to me. She wants a new K-1 at this late date! I offered to amend in November but probably shouldn't have even mentioned that since I don't think I can move income received in 2008 to 2009. Or, can I? I'm too tired, not to mentioned frustrated with all her calls, to think straight any more. Oh, and she didn't call my home office; she called me on my cell during church! Thanks for letting me vent. Please direct me re income received is income taxed -- or not.
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Taxed -- or not.
That's taxed -- or not. Not, direct me -- or not. Please direct me. I don't even have any entities on accrual, and accounting and balance sheets are my weakness. But, this is a tax question, not accounting. I don't think I'm going to satisfy this client. But, trying to avoid her badmouthing me in this very small town. -
Hi Lion - sounds like a constructive receipt question (and answer). Cash Basis reporting has its benefits and also its limitations. Sounds like your client wants it both ways.
Perhaps supplying them with Pub. 538 will help get them to back off from their idea. Or give them the idea to get off your back
I vote to recognize the income in the year constructively received for this cash basis taxpayer.
I'm looking at Pg. 8-21 in TTB and Pub. 538.Comment
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Thank you
I think I might pepper them with a government Pub or two!Comment
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