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About michaelmars

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    ATX Guru
  • Birthday 03/01/1959

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    Partner in 15 person firm, specialties are Real Estate and Jewelry. Uses Lacerte.

    Maintains prior practice outside of partnership, uses proseries.

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  1. Estate - Sale of Home

    when did the title change to the beneficiaries? They might have to amend their returns and claim the depreciation. If you don't then the basis still has to be lowered by the depreciation that should have been taken. Sounds like the estate accountant really messed up. Was the house left to the beneficiaries or to a Trust for the benefit of the beneficiaries? there are a lot of questions to be answered before you jump on this return.
  2. Partnership step-up basis

    The preparer of the partnership does not determine the 754 step up, that comes from the preparer of the 706. It is the executor's responsibility to inform the partnership of the election amount. Remember a 754 can go up or down and also if real estate part of the step up needs to be allocated to land. I haven't used ATX since the 2012 issues but i recall at that time it sucked at keeping track of the step up and getting the program to just allocate that depreciation to the applicable partners. I strongly suggest an excel spreadsheet, especially if there are multiple 754's.
  3. Records Release Form

    Actually this is pretty basic and has been required for a number of years now. There is a separate release for individuals and businesses.
  4. Back to back IRS audit

    did you receive a "no change"? if so you can get them stopped (usually)
  5. NCCPAP is fighting this too and expects changes very soon.
  6. Investor or Flipper

    sounds like a flipper and therefor the income is ordinary. Property is inventory as are the improvements
  7. Minimal Depreciation

    I just went through an audit and the agent actually told me that it was selected because of 3 years of losses. This client went into the business of selling high end homes 3 million and up on average. 2013-no income just expenses, 2014-small income since she was apprenticing and only got a small percentage of commission. Expenses exceeded income. 2015 was more income but still showed a net loss. What saved us from having to argue the hobby rule with the agent is, a] she understood the business and knows the local market and b] 2016 had nice commissions and 2017 had a few large ones too.
  8. Minimal Depreciation

    Why do you want to minimize depreciation, what is wrong with NOL's. If eventually he sells or has income the nol will go against his income at income tax rates. He will recapture the depr at capital gain rates. He is ahead by the spread. As many of you know, my practice has a lot or real estate professionals and many have negative income [which is probably why Trump doesn't want his returns released]. In fact, if not already done, when a client tells me he is selling a building or in contract I immediately have then get a cost seg study done. Often I filed the 3115 claiming extra depreciation in the same year as sale. The savings is basically 10% of the extra depreciation.
  9. Please tell me this is fake news - you can't make this up

    WITH all the POS systems at restaurants I am sure people will be tipping less.
  10. Reminder 10/1/2017

    Don't forget that this is the new due date for 1041's. [actually 10/2 this year.
  11. Federal tax deposit (sale of investment property)

    Never heard of this, how would a title company know the gain? They don't have basis info and aren't accountants. I know NYS will withhold at the closing for NON-residents a flat percentage but I have never heard of an IRS payment withheld.
  12. Death of Spouse - Rental Property

    and my favorite comment, don't forget to allocate part of the step up to land!!!
  13. LLC for Liability Protection

    actually I have a gun ffl store as a client and there are no employees, its a 1 man shop, mostly by appointment only. Very small inventory and he mostly does transfers or helps locate hard to find weapons. another that I frequently go to near my house is also a 1 man shop. he does gunsmithing, transfers and only sells older rifles.
  14. LLC for Liability Protection

    the best reason is NO Payroll filings if you don't have employees. No quarterlies, no disability, no unemployment, no workers comp.
  15. Non profit tax return woes

    I don't let anyone use short forms in my office just for this sort of thing.