The Barefoot Accountant Welcomes All Accounting, QuickBooks, and Tax Comments and Questions Right Here Under “Comments”.

William Brighenti and Carole Romatis of Accountants CPA Hartford, LLC

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The Barefoot Accountant

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, Connecticut, LLC

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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77 Responses to The Barefoot Accountant Welcomes All Accounting, QuickBooks, and Tax Comments and Questions Right Here Under “Comments”.

  1. Amy 47 says:

    In the Percent of Completion Method of accounting a WIP Schedule is
    generated each month. If a specific revenue account is set up for
    the over/under billing, would the exact number from the WIP Schedule
    be reflected in this account on the income statement or would it be
    a number reflective of the change in over/under billings from last
    month to this month?

    • Hi, Amy.

      Thank you for your excellent question on the substance of an article that I wrote, Percentage-of-Completion Method of Construction Accounting (please click link to be directed to the article). I also wrote an article on how to calculate over/under billings on a WIP Schedule: “How to Prepare a Work-in-Process (WIP) Schedule“.

      The amounts calculated for over/under billings on a WIP schedule refer to the amount(s) that should be reflected on the balance sheet. Consequently, the total amount included on the income statement would be the net adjustments required to reflect those over and under billings on the balance sheet.

      William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor
      Accountants CPA Hartford, LLC

      • Bill,

        Thank you for responding so quickly. It is so nice to have an expert to seek knowledge from especially when you can never get a hold of an IRS agent.

        Your article on Taxation of Construction Contractors Tax Accounting Methods for Contractors was exactly what I was looking for.

        I have a client that has work in progress. This is his first year in business so I won’t have to fill out the form 3115 change of accounting method.

        He received a 1099 for the payment already but the job isn’t completed yet.

        From your article I can see that I can enter other methods of accounting on my clients Schedule C. I would mark line F number 3) Other and enter Completed Contract Method.

        Then I would enter the 1099 income received on line 1. And then make an adjustment on line 2 Returns and allowances to adjust for the portion of income that is work in progress.

        Should I just notate in the notes Work in Progress 2012.

        Please let me know if I am going in the right direction.

        Then the following year when he receives the income should I then include the income on line 1 and notate Work In Progress from 2012.

        Thank you,
        Orlando Javien Jr,
        The Man of Many Hats

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  3. Joshua Herzlinger says:

    Hi, I am a practicing dentist. Last July, I took a cruise ship which departed from Italy to take a continuing education course which accounted for 16 hours. This dental course was approved and certified by both the
    American Dental Association and the Academy of General Dentistry. Can I take deductions for the cost of the cruise ship, traveling expenses, and the tuition cost of the course as a deduction. If so, what are the limitations?
    Dr. Joshua Herzlinger

    • Hi Joshua,

      Below is the IRS’s position on seminars taken on cruise ships:

      “You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. All ships that sail are considered cruise ships.

      You can deduct these expenses only if all of the following requirements are met.

      1. The convention, seminar, or meeting is directly related to your trade or business.

      2. The cruise ship is a vessel registered in the United States.

      3. All of the cruise ship’s ports of call are in the United States or in possessions of the United States.

      4. You attach to your return a written statement signed by you that includes information about:

      a. The total days of the trip (not including the days of transportation to and from the cruise ship port),
      b. The number of hours each day that you devoted to scheduled business activities, and
      c. A program of the scheduled business activities of the meeting.

      5. You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes:

      a. A schedule of the business activities of each day of the meeting, and
      b. The number of hours you attended the scheduled business activities.”

      I wrote an article about taxable deductions of cruises: please see Cruising for Tax Deductions? Your next Caribbean cruise can be tax deductible, if you have not read it already.

      William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor
      Accountants CPA Hartford, LLC

  4. Joshua Herzlinger says:

    Hi again, There is only one cruise ship which has a American flag and that one is in Hawaii. All the other cruise ships are of a foreign flag which sail out of many American ports. Therefore, is the tax regulation outdated? Is there another way to take any tax deduction for a foreign crusie? For example: The tution fee for taking continuing education course? The cost of lodging and meals to take the course even though it may be on a cruise ship because you are away from home? You do need a place to sleep and eat when the course is at least 2 days long and to far for to return to your home. In additon, the course will make one more proficient at their profession making the case that is necessitate the need in order to justify taking the deductions. Dr. Herzlinger

  5. Zak says:

    for god sake help me i just bought the quickbooks software and i’ve studied % of completion method and it is the same is in your article , but how can i apply this in quickbooks when i iuse invoice window to add inventory item to specific wip ( other asset account ) what happens is that dr. to accounts recievable and credit to the income account <<<< how on earth can i dr. wip account and credit inventory asset account pleaseeeeeeeeeeeeeeeee tell me

  6. richard murstein says:

    Two Questions:
    1.On tax return for completed contract method (s corp) is bad debts a deduction on page one or is it a (m) adjustment
    2.we made entry to close out cash surrender value of life insurance
    dr csv
    cr life insurance income( how treated on tax return?
    Please e-mail back the answer

  7. Avalara says:

    Thanks for everything that you cover here. Your blog is a great mix of accounting, legislative news and QuickBooks tips.

  8. Spyware Protection says:

    *;’ I am very thankful to this topic because it really gives up to date information “~~

  9. Michelle says:

    When should over under billings be booked according to GAAP? We have always done it, along with our CSR, at fiscal year end. Our CPA now wants it done quarterly, at extra expense, after we have done it yearly for 35 years. (with the same CPA). When is a proper time to book these according to GAAP?

    • Hi Michelle,

      Good question. And the answer is contingent upon your needs.

      If your banks or insurance carriers require quarterly financial statements from your company, then you would ordinarily be expected to compile a WIP schedule. Interim financials are to be reported in accordance with GAAP.

      Otherwise, if your company only issues year-end financials to outside users, then there is no need to compile monthly financials in accordance with GAAP, unless upper management desires such.

      If you need a CPA with experience in construction accounting, please give me a call.

      The Barefoot Accountant

  10. Alyx says:

    If you have a wife and husband S corp, how can you write off an 8 day Carribean cruise as a business expense for an annual meeting? Is it true that if you have the meeting on one of the ports of call you can use the cruise ship as a means of transportation to and from the destination in which you hold your annual meeting? Can a husband and wife S-corp hold an annual meeting either on a crusie ship or at one of its ports and properly write off the costs?

  11. Ben says:

    Hi Bill,
    I’m a CPA in public practice auditing a construction client of mine. I came across your article on the gain/fade analysis ( via a Google search and I found it extremely helpful. I did have a few questions that I was hoping you might be able to offer me your advice on:

    1) If you were constructing a gain/fade analysis based on actual GP, would you include any WIP adjustments for over/underbillings in these amounts or would you simply use the unadjusted billings less costs?
    2) For a contractor that might estimate total costs on a job and therefore profitability in total but not by year, does this make an gain/fade schedule based on estimated amounts impossible to construct?
    3) As an audit tool, would you say the primary purpose of the schedule is to isolate the year of completion to determine the overall timing of gross profit recognition?
    4) Any other tips on using this schedule in practice?


    • Hi,

      1. You would use the total estimated/actual gross profits per contract as of that point in time.
      2. No. You are dealing with totals here.
      3. No. Its primary purpose is to detect deficiencies in the estimation, job costing, and project management systems at construction firms.
      4. Sure. Hire me and I’ll be glad to show you…lol.

  12. Rick Barclay says:

    We are a corporation and we’re doing our 2010 tax return (FY ending 03/31/2011). According to Form 8941, we’re entitled to a tax credit of $6,220. We’re instructed to plug that figure into Form 3800 (General Business Credit), 29h, which is included in a total on line 30. Line 31 says “Enter the smaller of line 28 or 30.” However, we’re not entitled to any other credits, so line 28 is zero. Therefore, the credit allowed for the year is zero. So it looks like our health care credit has vanished. Are we missing something?

    • Without examining your tax return in detail, I suspect that you could not use the health care credit in 2010 because of the tax liability limit as calculated on Form 3800; however, you may be eligible to carryback the unused credit and file an amended tax return or an application for tentative refund.

      Is your tax accountant a certified public accountant?

      The Barefoot Accountant

      • Rick Barclay says:

        Hi Bill,

        Thanks for your reply. I understand what’s going on now. Yes, my accountant is a CPA and I now have a clearer picture of what he was dealing with and considering… I guess I was the one scratching my head… Thanks again

  13. Bill Spearman says:

    Mr. Brighenti,

    I am currently employed by a U.S. Corporation, residing overseas. I am authorized to claim the FEI exclusion and am a bona fide permanent resident of Japan (I have a resident’s card). My corporation is a contractor for the Department of the Navy and as such has occasion to send employees from Japan to other locations in the Far East, including Guam.

    My question is this: If I am traveling under Military Orders, assigned Temporary Additional Duties (or TAD in Navy parliance) in Guam, do the days I spend in Guam count against the physical presence test?

    Appreciate any information you can provide.

    • If you are a bona fide resident of Japan, they may indeed not jeopardize your foreign earned income exclusion, depending upon all other criteria.

      When you are dealing with the foreign earned income exclusion and the severe tax ramifications from not properly anticipating its application, I urge you to engage a qualified Certified Public Accountant in advance before it is too late. If you do not have a tax accountant, please contact me. I’ll do a tax projection and won’t charge you extra for that, as long as I do your final tax return.

      The Barefoot Accountant

  14. James tonelli says:

    which package would you say is better
    Master builder or quickbooks

    • It depends on the size and needs of the client. Sage Master Builder has a more sophisticated job costing feature, enabling the user to print work-in-process without undergoing Houdini machinations, unlike QuickBooks. However, Sage Master Builder is much more expensive, including its hefty annual maintenance fee.

      If your client has revenues of over $5 million annually, it might need a more robust construction accounting package like Sage Master Builder. But if its revenues are less than a couple of million per year, I would stick with QuickBooks. It’s cheaper and easier to work with.

      Incidentally, I provide consulting services for users of Sage Master Builder as well as QuickBooks Contractor Edition. Please keep me in mind.

      The Barefoot Accountant

  15. Marlene Patterson says:

    Morning Bill,

    I began working outside of my permanent home (Las Vegas) on June 2 and will be ending my stint here in Wash DC at the end of May in order to be here under a year and take advantage of the tax benefits of being a temporary worker.

    My question is: Should there still be no work in Las Vegas, when or how can I “re-start” my new tax year (so-to-speak) as a temporary worker? Is it as simple as changing employers? Do I have to return to Vegas for a specified time?


    • There are too many unspecified details preventing a definitive answer. I suggest you engage a competent CPA to consult with. Of course, you may engage me if you wish.

      In general, if the temporary assignment is contracted for one year or less, then it constitutes temporary work; consequently, your travel expenses would be deductible as such. However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year.

  16. Wayne A. Sparrow, CPA says:

    Writeoff of Sec 197 Intangible Goodwill ( Customer Lists)

    My client bought a business about three years ago for $ 1.3M which except for a small amount allocated to equipment and covenant not to compete, has been allocated to goodwill ( customer lists). We have been amortizing the goodwill and covenant not to compete over 15 years.

    Now, after a recent review of the customer lists, we have found about 25% of the customers have been loss.

    According to the tax code, you have to allocate any decrease in value to another intangible asset. In my case, the unamortized portion of the loss customers equals about $ 240K. The original amount of covenant not to compete was $ 100,000. I think that the amount allocated to covenant not to compete is fixed and cannot be increased.

    Therefore, I think my only real choice is to expense the portion allocated to loss customers.

    I would appreciate any advise from other tax professionals on my position.

  17. Alex Smyth says:

    Do you know a good way to handle Notes Receivable in Quickbooks (e.g. mortgages)? Can you use Loan Manager ‘in reverse’ ?

    • Hi Alex,

      That’s an interesting question. Unfortunately, you cannot use Loan Manager in reverse per se since it is designed to process payments to lenders and not to receive payments from borrowers.

      I do know, however, a way to use Loan Manager in conjunction with other features in QuickBooks to process receipts from borrowers; however, that is the subject of a future article, which will be published sometime this year.

      Stay tuned.

      The Barefoot Accountant

  18. John says:

    I am currently looking to either get QuickBooks Pro or Peachtree. I am starting a very small finance company where I plan to buy inheritances at a discount; do factoring (i.e., buying invoices at a discount); and make limited small commercial/consumer loans.

    Between QuickBooks and Peachtree, which product would (1) allow me to prepare financial statements and footnote disclosures in accordance with Generally Accepted Accounting Principles, (2) be best suited for my type of business, and (3) allow me to prepare reports that would be accepted by banks and investors for getting financing?

    • Hi John,

      Unfortunately QuickBooks nor Peachtree will automatically prepare financial statements and footnote disclosures in accordance with Generally Accepted Accounting Principles (GAAP). Intuit has a Statement Writer; Peachtree has a Financial Statement Editor. Plus Crystal Reports is included with Peachtree Premium, allowing greater flexibility in creating financial reports.

      But before preparing financial statements and footnotes you need to understand GAAP and the required disclosures. No program will provide that knowledge for you.

      Whatever program in which you are most comfortable working perhaps might be your choice of software. And if you need official financial statements, unless you are a trained accountant, I humbly suggest you always engage a good CPA. I learned long ago that when it comes to doing something ordinarily requiring years of study, hire a professional and save headaches and money.

      The Barefoot Accountant

      • John says:

        Thanks for your response. Do you also have any idea between Quickbooks and Peachtree, which product be (1) best suited for my type of business and (2) allow me to prepare reports that would be accepted by banks and investors for getting financing?

        I don’t own either product so I am in the market to purchase one. Again, my business is a very small finance company where I plan to buy inheritances at a discount; do factoring (i.e., buying invoices at a discount); and make limited small commercial/consumer loans.

  19. Mike Peters says:

    Thank You for your web page describing Quickbooks Loan Manager. I was able to set up my loan quickly and correctly. Before finding your site I was confused and ready to give up on using the loan manager. The only “iffy” section is where you say “Next record the loan in quickbooks, crediting the total dollar amount to the Note Payable account” I got it, but I wasn’t sure I was doing it right until it all worked out. I just felt uncomfortable since the earlier commentary was step by step, and this segment skipped quickly past that.

    Kudo’s for a great Help site.

  20. Removed says:

    I bought, Jan 2011, an S corporation. The corporation is a home health care agency. The purchase price was 2,ooo,ooo.oo (two million) dollars. I paid 1.7 million up front and have a long-term loan for the remaining 300,000.00 at eight per cent.
    I live in Jerusalem, Israel and the s corporation is in Florida. I am not taking a salary.
    1) How do I figure my “basis” for the first year?
    2) My distribution for the first year is 20K per month with 11K going to pay the long term loan, so what is my tax liability.
    3) What is your fee for filing my tax returns for this first year?

    • [We removed name and email address to protect the confidentiality of the individual]

      Basis is typically based on what you have invested and re-invested in any investment. So it appears that you have sufficient basis to deduct any losses, particularly in the first year. Your Certified Public Accountant normally computes and updates your basis each year, since the calculation is a function of a number of items, including contributions and distributions and income.

      Your tax liability is based on the S Corporation’s income and other pass through items. Is the $20k/month distribution a salary?

      My fee is typically one-third of my competitors in the area.

      The Barefoot Accountant
      Accountants CPA Hartford, Connecticut, LLC

  21. Sridhar Vemuri says:

    Hi ,

    I have an interesting question – there might not be a Right or Wrong answer – but I was faced with this situation in one of my companies – If you can give your thought and advise what you think is more correct – appreciate your answer –

    Academic question –

    Valuation of WIP in Airline Maintenance & Repair & Overhaul organizations ( MROs’ ).


    Generally work is undertaken in the MRO’s after the repair work is identified and costs agreed to complete the job. Work starts only after the repair rates are agreed upon between the two parties – the owner and the service provider


    For WIP valuation, should one use the costs or the selling rate.

    As a conservative practice, we value the closing stock or the WIP at cost or realisable value , whichever is lower. The reason is simple – the sale has not taken place and these goods are to be sold at a later date – so the axiom of conservativeness applies –

    However if, as in the MRO business, the sale of the service is already done, and the maintenance is in progress, should not the value be expressed at the selling price instead of at cost? The rationale being that the sale has already taken place and there are no more selling expenses needed to complete the sale. By this method there is fairness and also the profits are being recognized proportionately..

    In my opinion, the conservative thinking of valueing at cost price was the right thing to do – but the Company had a Global Policy to value WIP at selling price – The Big 4 accepted this policy – may be because of the above reasoning – I did not question the policy – could not – but tried to reason out the thinking !! How would you look at this —-

    Kind regards

    Sridhar Vemuri

    Chartered Accountant

  22. Donna L. Loeffler, CPA says:

    I have a very small practice. I am just starting out and I am in southeastern MN. A new client came in to my office and asked me to prepare his 2011 taxes. He had started his electrical contracting business in 2010 and filed his own taxes on Turbo Tax. He selected accrual accounting method because he maintained an inventory of parts that he billed to his clients.

    I spent many hours researching the Rev Procs for the 3115 form. It was daunting. I went out to and the IRS website. But, when I came across your article, all the pieces of the puzzle seemed to fall into place. I still have a few pieces of the puzzle to wrap up, but the task seems much more manageable after reading your article. I thank you very much for sharing. Words just can’t express…

    Donna L. Loeffler, CPA
    936 Church Avenue
    St. Charles, MN 55972

  23. Brenda says:


    I am having a terrible time with Lacerte and read your blog. Any advice on how to get my money back? I want to switch back right now. Please help if you have any advice. I want to go back to ProFx. They refused to cancel my contract and threatened to let it go to collections. I cannot afford to buy both programs this year.


    • Hi Brenda,

      I am sorry to hear about your unfortunate experience with Lacerte; however, since it is a product of Intuit, I cannot say that I am not surprised.

      You may wish to contact Brad Smith, the President of Intuit. Here is the address for the Office of the President.

      Intuit, Inc.
      OOP (Office of the President)
      P.O. Box 28867
      Tucson, AZ 85726-8857


      Good luck.
      The Barefoot Accountant

      • Brenda says:


        I called that office and they were no help what so ever! The woman who I spoke to said too much time had gone by and they will not reduce the price or issue a refund at this point. I’m in so much trouble now I have purchased 2 tax software packages that I cannot afford. I’ll let you know if I make any headway.


        • Brenda,

          So sorry to hear about your experience. All I can say is, wow.

          Imagine not standing behind one’s product. Whatever happened to the phrase, the customer is always right?

          If I were you, I would not keep silent about your experience.

          Please keep me informed.

          Kindest regards,
          The Barefoot Accountant

  24. Wendy says:

    Our banker has decided that he wants all of our loan information broken down into short term/long term/interest/principal etc so I found your article on the loan manager, which I really like and now use, however, I ran into the problem that was stated about the most common error is not posting the payment through the loan manager. I back started it for January 1st 2012 and of course we have already made 4 payments this year so then when I tried to go through the loan manager to show the payments were made, they are all double posted. Help!! Thanks, Wendy

  25. Will says:


    I have a rental property that is managed by a professional real estate management company. I receive a 1099 at the end of the year for the income I receive.

    The property is owned by a trust and I am the owner and manager of the trust.

    My question is about receipts for repairs. Since I am not managing the properties, do I need to keep a copy of all repair receipts in case of an audit or would this be something that only the management company would keep for their records?

    Thanks so much!

    • I would keep a copy of all receipts involving that trust and property. First, the management copy is not liable for any tax liabilities involving that trust. Secondly, you may decide to change property managers someday. Try getting copies of receipts years later during an audit after you discharged a property management company. And what if that company goes out of business before an audit? Save the receipts.

      Who is the CPA involved with that trust? Why didn’t you ask that CPA?

      The Barefoot Accountant

  26. Lisa Strother says:

    I had come across your link to ‘Cash Basis Problems with Quickbooks’. Every year I find myself having a balance in the AR & AP accounts on a cash basis. Your information was very helpful on how to find which transactions are causing the problem.

    After re-doing all transactions, making sure bills are created and credits are applied correctly. I am still have this issue in my AP account. And still having the issue in my AR account even though I am applying customer payment correctly and customer retainers by a GJ enrtry from the liability account to AR and then applying the customer’s credit. Am I missing something. I have tried everywhich way. All of my transactions are handled the same way, yet some are still showing up in the cash basis totals. PLEASE HELP. I am beginning to think that there is something that is wrong with the actual software.


    Lisa Strother

    • Hi Lisa,

      QuickBooks is limited in its ability to convert accrual to cash basis reports completely: that was the point of my article.

      I would have to review your QuickBooks file in detail to understand precisely what is causing these negative balances in AR and AP since you already have re-done the entries in QuickBooks of the transactions affecting those accounts.

      If you have a Certified Public Accountant servicing your company, that firm should be able to assist you on this matter. If not, I would be pleased to do so as your CPA.

      Sorry, but if you have followed my recommendations in my article and still are seeing negative balances, I would really need to review your QuickBooks file.

      Kindest regards,
      The Barefoot Accountant

  27. Cindy Sorensen says:

    Your article How to Use Quickbooks Loan Manager was very informative and something I did not know that Quickbooks had the capability to do. I have referenced numerous sources and none of them seem to be aware that this exists within Quickbooks. Your website is something I stumbled upon when doing an internet search and it has loads of information. I have a few questions in regard to Loan Manager and hoping you can help me out. Thanks so much for your time. Looking forward to your response.

    1) If the payment is late the interest rates changes from 8% to 10%. Is there a way to incorporate this?

    2) Our Note Payable is for invoices for job materials that we received and just fell behind on so ended up doing a Note Payable. What should I do with the invoices that are out in BILL PAY that the Note Applies to?

    3) Additionally, they have been sending checks received from clients directly to the vendor (Notes Payable) as they accept them. I have been receiving the payments, so the customer invoice will be marked PAID, and posting to a flow through acct. Is this correct? Is there a way to receive the payments and get them to the Note Payable?

    • QuickBooks Loan Manager is set up to work for a fixed interest rate and equal installment payments. Given the circumstances you described above, QuickBooks Loan Manager is not appropriate.

      • cindy says:

        Thanks for your reply. Assuming we use a fixed rate, we can set it up as you describe. What do I do with the bills in BILL PAY pay that are applicable to this loan?

        and if you can also help with portion it would really help me out…
        sending checks received from clients directly to the vendor (Notes Payable) as they accept them. I have been receiving the payments, so the customer invoice will be marked PAID, and posting to a flow through acct. Is there a way to receive the payments and get them to the Note Payable.
        Again, thanks for your time and help.

  28. chris hurst says:

    Let’s say I was on a temporary work assignment (live in MD and assignment is in TN) and the assignment was indeed to last less than one year. But toward the end of that year, another employer (different EIN, etc. ) took over a contract and again assigned me for a term to last less than one year. The question is whether I still have deductibility of those expenses of temporarily living in TN or is TN now my tax home? Does the fact that the second assignment was not really an extension by the original employer matter?

    • Up to the time you realistically expected to be again assigned would be considered temporary. After that point in time, I would not, as a tax preparer, report that time away from home as temporary.

  29. Riz Momin says:


    I own a small company and using Quickbooks for accounting and bookkeeping.
    I am using company credit card to make online purchases and make billing payment.
    The problem I am facing is when I download the credit card transaction into Quickbooks.

    Below is one of the scenario I run into:

    I am buying lots of office supplies from say Office Depot, Staples, etc.
    When I download the transaction, they would appear as

    Office Depot #1898
    Office Depot #2888
    Office Depot #1823
    Office Depot #5689
    Office Depot #896

    And similar to Staples and other vendors.

    Quickbooks treat each of the above as a unique Vendor and hence we end up with lots of vendors list.
    I want to see if there is a way to avoid this kind of situation so that all entries can go into “Office Depot” as one vendor.

    #xxxx is referring to Store # I think.

    This is true for many other vendors.
    You have a lunch at one McDonald and Dinner at another McDonald, then there will be 2 different vendors…basically in this case I just need to go under McDonald.

    Please see if you can help.

    Riz Momin

    • QuickBooks is a $200 program, and has limitations. QuickBooks treats each store of the vendor differently because they are electronically identified differently as you observed.

      But why don’t you do what everyone else does when prompted to enter a new vendor: just select the generic vendor already set up.

      Sorry, I cannot be of further help to you but a $200 program customarily cannot spit wooden nickels.

  30. Jerry Boyd, CPA says:

    Just wanted to compliment you on your web site and all the information you provide. I have looked at several topics and in my opinion it is well written, accurate and very informative. Thanks for a job well done.

  31. Ben says:

    I read a well written article on “Renting your home” and as a landlord I had a question.
    Does one have to look at the FMV of the property every year to claim depreciation or can one claim it every year irrespective of the market value set by county appraisers.
    My rental property value has risen from $170k to $206 K per county assesment (for tax assesment).Do I still get to claim depreciation?

  32. Jeanne says:

    Can you tell me the tax implications of purchasing a home for cash that I want to move to in another city while still trying to sell primary residence ? In other words can I pay homestead on both in Michigan?

  33. Jeff says:

    Is there any commentary on the subject of a small family business that has an established SEP-IRA and wishes to elect to file as qualified joint venture / sole proprietorship?

    As husband and wife, we think we qualify for QJV. Our business is profitable, paying taxes and the rest pays tuition for our kids (that’s about its size). We are happy to have a 3rd and 4th job. :)

    But the SEP is complicated because we contributed and rolled the funds accumulated over to an annuity that is truly locked. We are both annuitants with right of survivorship -its really a family pension and the IRS enjoys a lifetime of taxes…

    The challenge is this years’ contribution is well below the limit as a whole business, but exceeds the limit if we half the income as one does on a QJV. And then every single published example states a SEP must be offered to employees. We only made one contribution to one spouse; I am not splitting the IRA income because little parts don’t add up when it comes to annuities.

    What should I do to reconcile a potential excess contribution?

    If this unravels into true IRS Halloween (some of these forms and instructions are ridiculous), can I re-file and characterize my business without QJV? We are just not big enough ….


    • Please don’t tell me you file your own tax returns; use Turbo Tax; go to H&R Block, Jackson Hewitt, Liberty Tax; or use a tax preparer who is not a CPA. Given that you have your own business, and your issues are complex, are you determined not to use the services of a CPA? If you were diagnosed with cancer, would you not seek the services of an oncologist? Or would you treat yourself?

  34. Hi Bill,

    I have a question regarding filing taxes for a construction company that has work in progress. Lets say I have a client that has $100,000 income. Of the $100,000, $50,000 is work in progress that at the end of the year is not completed. They would get a 1099 for the entire $100,000.

    On the Schedule C line F would I select other accounting method and specify Completed Contract Method.

    Then I would enter the $100,000 on line 1 Gross Receipts. Would I then enter $50,000 in line 2 Returns and allowances and notate Work in Progress. The following year would I then record the income on line 1 as Gross Receipts.

    Bill please let me know if I am going in the right direction.

    Many Thanks,
    Orlando Javien Jr.
    have a client that reports income when the job is completed. He received a 1099 so I know I have to report that on line one of the Schedule C. Do I deduct the work in progress income on line 2 Returns and allowances. Also What method should be en

  35. Ms Gardener says:

    If the circumstances are these:

    Union welder by trade;

    Provided with W2s at the end of the year not from the union but from the companies that the union contracts with, (so still considered an employee);

    Due to the nature of the work and lack of work in the local area, has no regular place of business therefore making his tax home the same as his residence;

    Not specifically required by the employers but owns and maintains an exclusively and regularly used office space set up in part of the home where on-site created and maintained business records such as expense logs and scanned receipts that are required to be kept by the IRS are stored and where supplies are ordered and received and where jobs are searched for via networking with union halls, union websites and other union welders both in person and by phone, and where that home office is also used for strategizing, both alone and with other union welders, which jobs to accept and setting up appointments and making travel arrangements for jobs such as lodging and plotting travel routes to those jobs as well as for storing supplies that necessarily have to be kept warm and dry like welding rods and other tools and supplies that are susceptible to weather conditions; no other office space is available;

    No employer provides office space to perform the management and administrative activities involved in pursuit of the trade;

    Works only temporary jobs in several states for several different employers lasting 3 days to 3 months and thereby making his home office his principal place of business.

    And where the IRS has accepted as legitimate business travel expenses, such things as lodging, meals and union dues and tax preparation expenses:

    Then the questions are these:

    is the “for the convenience of the employer” requirement considered met?

    Also, is the mileage between the motel and the restaurant and the bank and the laundry service at the temporary work location considered a legitimate business expense?

  36. Dale Johnson says:

    My son and I bought a house for him to live in in 2008 in Mobile, AL. In 2013 he accepted a job in GA and bought a home there as his primary residence. We listed the Mobile home for sale starting in 3/2013. It sat on the market and we finally got a contract on it in November 2013. However, this contract fell through when the buyer had an accident and felt she could not maneuver the stairs. In January 2014 we started renting the property. We did so until it finally sold in May 2014. There was a sizeable loss on the this property, using the contract price of November 2013 as the Market Value on the date of turning it into rental. My question is: Can my son claim the loss on his income tax return for 2014? If so, what is the IRS regulation that allows this? Thanks, Dale Johnson

  37. Gary Neff says:

    Hi Bill,

    My son’s company assigned him to a job that required him to be away from his tax home for 16-18 months. It was specifically a temporary assignment with the understanding that he would be returning home to resume his previous responsibilities after that assignment was up. He owns a home in his tax home and has been a resident there for a number of years.

    I have read IRS publication 463 and also your review of the circumstances for claiming lodging and other business expense deductions in this kind of situation.

    His circumstance fits all the criteria to claim this deduction except the definition of “temporary”, which is an assignment of one year or less. My question is, Is ‘one year or less’ a strict definition of temporary? His assignment was, in every sense of the word, temporary. He specifically took the assignment with the understanding from his company that he would be returning to his previous position after the “temporary” assignment was completed.

    I’d greatly appreciate your interpretation of this since it could mean a great deal of tax savings for him.

    Thanks for your help in advance.

  38. Shericalyn Hill says:


    Two years ago I gained weight quickly, and had to buy an all new wardrobe. This year I’ve lost over 70lbs, and I am donating my entire “big girl” closet from this time frame to charity. So far, I’ve counted over 500 pieces (new/slightly used only), using fair market value I’m over 5 K in this category already. Since these aren’t antique clothes I have no way of finding an appraiser. What should I do in when including this information on my taxes?

  39. My completed contract method construction client bought a truck Over 6,000lbs). We allocate his vehicle expense between cogs and ending inventory. We took 100% section 179 on the purchase. We allocated 53% to ending inventory and 47% to cogs. CT is adding back 100% to 2019 income. We only took 47%. What is the correct way to account for this? Should we override CT anf take the rest as we expenses it in future years?

    thank you

  40. Kim Pont says:

    I have a QB client that is cash basis accounting, and the previous CPA set up a monthly AJE to remove sales that have been recorded but not paid. The AJE debits sales and credits an “AR Flow” account, which creates a major eyesore on the balance sheet due to it being a negative asset account. Is there a better way to do this?

    Thank you.

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