Alex

Hello everyone! I found my way back here again after a year or so of hibernating. I trust everyone is doing well. I was wondering if anyone knows where to find or how to generate the supporting statements that need to be filed with Form 5227. I am using Drake, but it only generates the 5227. On the 5227 instructions, it says "Attach a statement describing each of these investments held at the end of the year. Show the book value for each and indicate whether the investment is listed at cost or end-of-year market value". Is that statement something that could just be typed in Word perhaps? And is it okay to switch between cost and market value every year? Previous accountant used cost although the statement that accompanied the form says market value. Appreciate any help I can get on this matter. Thank you!

We got this! Just a few more days and we can get some rest. Looking forward to sleeping regular hours. Hang in there, everyone :}

You guys are so cool and awesome. Wish I could meet all of you sometime in the future!

We've all made mistakes. And I'm sure the sucky parts are few and far between.

Waiting for this one too!

Thank you, Catherine. Will try to look for some guidance on the FTB site. I don't see any adjustments I can make on the CA side on Drake. Back to researching!

Hello! I'm hoping I can get this question answered here. Lacerte is having the taxpayer repay the CA subsidies while Drake is giving her a refund. I believe the issue is the SEHI. If I enter the SEHI amount, then Drake gives her the refund. If I don't, then it becomes a balance due. The federal refund doesn't change whether I enter SEHI or not. SEHI is $9800 although it's limited to $243. I am entering the full SEHI amount on the Sch C screen under Family Health Coverage and letting Drake calculate it. Taxpayer only has Schedule C income and the 1095A & CA 3895. AGI is either 0 (with SEHI) or $243 without. 1095 A has $9800 (A), $8052(B), $5472 (C) and the only difference in the CA portion is column C at $52. I called Drake and they said CA approved the version. I imagine Lacerte did the same. Not sure which is calculating correctly. With the SEHI, Lacerte shows a balance due of $37 (because of CA EIC of $15) while Drake shows $15. Is there a box I'm supposed to check or uncheck? Thank you in advance for your help.

Ah - sorry if I wasn't clear, I meant the basis of the new property if it was a 1031 exchange and not a straight out sale. My mind's a bit scrambled this week!

Thanks @Richcpaman! I elected out (did the Election under section 1.168-6) and indicated that the property was disposed of in 2018, freeing up the losses. Follow up question on basis: Would the basis of the new property be the purchase price minus the deferred gain plus exchange expenses? $400k - $130k = $270,000 + $25,000 = $295k (basis of replacement) Here is what I have (approximations) Cost of Property Given Up: $450,000 Depreciation Taken: $150,000 Adjusted Basis: $300,000 FMV of Property Given UP: $430,000 Cost of Property Received: $400,000 Exchange Expenses: $25,000

Client did at 1031 exchange thru a qualified intermediary. Deferred gain is so small, she would have paid less taxes if it was just a sale and not an exchange. Is it possible to report it as a sale? That way we could free up the suspended losses and client does not end up with a huge tax liability. Not sure if that's a red flag (is that legal to do?) or if it will bite us later?

Hello lovely tax experts! Client has short term losses on crytocurrency sale - I was wondering if it's all right to group them all together (Bitcoin, Ethereum, etc.) and report the losses that way, or should I be reporting it per type of coin? Or (I hope not), per transaction? Thank you! Hope no one's pulling their hair out yet.

Thanks, Judy! Been looking for more info everywhere. The brochure helps!

Client donated a vehicle valued at $4k and also contributed to its repair (service/improvement valued at $1k+). I have all that stated in a letter from the non-profit she donated it to. However, I do not have a 1098-C from the non-profit. The charity didn't sell or give the vehicle away (they will be using it). I don't think the charity furnished a 1098-C to the IRS. In Pub 526, it says "you must get Form 1098-C (or other statement)" within 30 days of your donation. Will the letter provided by the charity suffice as "other statement"?

Whew! At least the client is willing to do things the right way. Better to pay the late penalties now than risk being sitting ducks in the event of an audit. Talked to them last night and they agreed to work on their books. Thanks for lending an ear (or an eye? eyes? this being a forum and all? ). The day's certainly better because of you people.

And yes - he ended up taking 100%.