I woke up to the normal nightmares and tried to feign sleep so the dogs would stay put. I was so good at it that I gained 15 more minutes sleep. Up and at 'em, I fed everyone and jumped on the rowing machine. Surprisingly, there have been no OMG moments where I couldn't move, but that's another story.
My goal for the day, which sometimes is pretty small, was to drive to the UPS store and pick up my mail. I knew my tax returns would be forthcoming and Monday is the deadline. Since even TAX offices don't work Saturdays, the papers allowing on-line filing needed to be signed and returned.
I got the biggest shock of my life when I opened the folder. It caused such distress that I froze in my tracks. Even the girls in the store asked if I was okay. #@!%$#!&%#$&#!! I owe THAT much??? That's enough to purchase the newest, fanciest 4-wheel drive 3/4 ton high-in-the-sky truck and pay CASH!!! That's more than I make in an entire year!!! I called my accountant.
Here's the thing ..... in laymen's terms. You know that little bit of depreciation you get to write off each year when you have a rental? All of that comes back to bite you in the butt when you sell it. Basically, you now have to pay tax on every bit of that and MORE at a much higher rate than normal!! It's the BIG ONE Elizabeth!!
Unfortunately I stayed upright and now faced the worst task imaginable for me ... I had to write those lousy checks to IRS and Franchise Tax Board. You just can't imagine the bad words going through my head at that point!!
I might as well write out the checks and get them in the mail while I'm here and save a trip to the post office. The girls felt sorry for me and gave me the stamps free, as well as faxing the paperwork for free. Everything done, I headed home.
It was THEN that I discovered just how distraught I really was. Can you guess? I wrote the checks out of the wrong account, and since I watched the mail lady pick up the bag from the UPS store, I knew there was no going back.
Could it get any worse??? I finally calmed down enough to figure out a way around this mess I just put myself in. I drove all the way back to town to the bank that had the money ... got a cashier's check made out to me, then drove clear across town to the second bank that the checks were from. Usually, they won't credit the money to your account immediately ... not until the check (even a cashier's check) clears the bank.
Lucky for me, they took pity on my plight and credited it immediately. WHEW!!! Disaster averted!! I just should have stayed in bed today!!
In an effort to distract myself and maybe make me feel a little better about the whole deal, I decided to bake a cake and eat all of it in one sitting!! I'm sure you all know what this is ... my favorite cast iron skillet ... and it's upside down!!
While scrounging around in my cabinets, I discovered a large can of pineapple that I'm sure I would never use .... except for pineapple upside down cake. This time I drug out my grandmother's cookbook. With no cherries in sight, I substituted pecans from Arizona. I didn't quite eat the entire thing .... a quarter of it however, went straight into my mouth and it's all IRS's fault!!!
The only good point of the entire day, aside from the cake, was my renewal of mail services with the UPS store. After the first year, you get a discount!! The only ray of sunshine in an otherwise horrible, cloudy, hailing, thunder and lighting day!! An entire year for $86.00. How cool is THAT?
Yup, some days it just doesn't pay to get out of bed!! Now instead of 30 minutes on the rowing machine, I'll have to spend 60 to pay for the cake!!
That tax is so wrong. We have a rental,didn't know about that.
ReplyDeleteIt's pretty ugly, to say the least. Ask an accountant how it works. I was pretty shocked to see how much it came out to.
DeleteFeel your pain. We just went through the same thing with a rental. I think I was in a state of shock and tears when we left accountant.
ReplyDeleteExactly!!! All those years of planning on paying off MY mortgage went up in smoke!!
DeleteNancy, I didn't get to read yesterday's post. I was working on people's taxes. Here is the scoop on the April 18th date. Sometime ago Washington DC passed a law to officially celebrate Emancipation Day on April 16th, the anniversary of Lincoln's Emancipation Declaration on April 16, 1862. It is a work holiday in DC, which of course is where the IRS is. The law states that if April 16th falls on a Saturday, employees must have a holiday on the Friday before. IRS rules say that if any due date falls on a weekend or holiday that the due date is the next workday. Monday April 18th. This happened a few years back which is when I researched it. So the deadline is April 18th except in Massachusetts and Maine. They celebrate Patriots' Day on the Monday after April 15th to commemorate the battles of Lexington and Concord, that began the Revolutionary War. So people with an address in Mass or Maine have until the 19th. By the way, you have until April 18th to file the tax return. You do not have until April 18th to put the check in the mail box. The IRS considers it your responsibility to get them your money on or before the due date. They reserve the right to charge you interest and penalties for checks arriving after the 18th. Even most tax preparers don't know that one. Oh and this tax office is open on Saturday, this week anyways. Now back to taxes. Jim M
ReplyDeleteMy condolences Jim that you have to do tax work .... I hate it more than anything in the world! And I'm sorry you have to work on Saturday!! Only by luck did I mail my checks on Friday (I didn't know that little known fact). I bet they get a LOT of penalties and interest on THAT one!!
DeleteI would love to see that the statue where that states that you have to pay. On all before the 15th My company accountant CPA would like to dispute your claim IRS state you have until midnight the 18th which means United States post office stamp Mark and or a E electronic ticket
DeleteReason for the extended days are the holiday in Washington
Which is fortunate to give other people three more days
That is why we kept the condo, which once was a rental. After we live in it as a primary residence for a few years, we don't need to worry about the depreciation. Also, condo is a bit upside down so no use in trying to sell it anyway.
ReplyDeleteI paid our quarterly the other day...wrote out four checks back in March and attached to four envelopes. THANK GOODNESS I looked at the check, had not written out the "hundreds" part on all four of them. I only write four checks per year, and one would think I could get them right...
I don't write many checks either. They will probably disappear from the face of the earth in another couple of years. My problem is having four bank accounts!!!
DeleteSorry to hear about your pligh I think the IRS sent me $155 of that from your portion I haven't cashed the check as yet if you want I'll email it to you if it'll cheer you up
ReplyDeleteAwww that is VERY nice of you to offer, but you should take that out and celebrate like you're 21!! If it was part of mine, I'd feel better that it went to a good cause!!
DeleteSounds like you need a better tax accountant doesn't sound like you were probably advised for the following year
ReplyDeleteIf all your ducks are lined up for 2016 you should really know what you're going to pay out into taxes for 2016 Unless you get a large Wynfall or you have a large loss
Unfortunately, it doesn't matter which tax accountant you get, you still have to pay the tax upon sale of the property. The only way around would be to live in the rental for a year or maybe two, then sell it. I wish that had been an option for me. I could have saved a bundle!!
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