BulldogTom

Thanks. I will double check my material. I probably read it incorrectly. Appreciate you! Tom Longview, TX

@Abby Normal Is half year appropriate? My understanding was you get the full year (20% of total costs) each year. Am I wrong? Thanks for the appropriate classification. Tom Longview, TX

Asking now before I start this return - before the board goes dark and I go into withdrawal symptoms..... Have any of you done the amortization of R&D costs on an 1120 return yet? I have one in my extended pile that I have been holding waiting for the Senate to act on the bill that is stalled. I have not even started the return yet, but I am curious if there are any issues with entering in ATX. I know it is a 5 year asset (but which one). I think it should be SL, but how do I keep ATX from taking mid-year? I am getting to this return in a couple of weeks and would appreciate any advice on how to enter in ATX Fixed Assets. Thanks - this is my first return with R&D costs. Tom Longview, TX

Been there, done that. Also known as IRS purgatory. IRS knows they have it but they don't know anything else. Tom Longview, TX

So I had an issue with a client that I needed to talk with IRS about. Called the PPL expecting a 20-30 minute wait. I was shocked at how quick it was. The agent was on the line before I had my paperwork out of the file. Issue resolved in 10 minutes. I need to get a lottery ticket tonight. Tom Longview, TX

@Catherine @Abby Normal @G2R The three of you should get together and put on a seminar. "What the hell happened, how the law tax law applies, and how to enter the damn thing in ATX". I would attend if it qualified for CPE. If you held it in my hometown I would put on a BBQ dinner for you at no charge. Tom Longview, TX

It is common for an HOA to take out a loan in the name of the HOA for a capital project and pay the loan with the special assessments from the homeowners (normally the special assessment is pledged to the lender and restricted to be used only for the loan servicing). The payment should be treated in the same manner as any other HOA fee unless there is a direct correlation to capital improvements to the homeowner's unit. Tom Longview, TX

It seems like ATX has a strategy to bug us during the last 2 weeks of the tax season. Tom Longview, TX

Form 3115 is the correct way to do it.....but I would just add the capital improvements in 2023, sell the rental and be done with it. I know that is not how it "should" be done, but the gain remains the same. What changes is the amount of depreciation recaptured, but since it was not deducted against ordinary income there is no harm, so no foul. If audited, the IRS should recognize immediately that there is no tax to be harvested. But if you want a higher fee, do it via the 3115. Tom Longview, TX

I just had this conversation with a client yesterday. I question if they understand the MLPs they are in and what a 1256 Straddle is and why that needs a separate form and yes, I do have to charge you for each K-1 and yes the K-1 shows a loss as well as the 1099B. I have been with this client for a long time. They at the beginning of their retirement and really scared that they will not have enough in the retirement piggy bank to live out the rest of their lives. It is the first time I have spoken out about the investments they are in - it used to be a lot simpler (4-5 mutual funds and a couple of stocks). This year the broker churned their investments to the tune of 44 trades and 2 K-1s for MLPs that were held for less than 60 days. I could not hold my tongue this time. Tom Longview, TX

That was my thought. Never done a Solo 401K so watching this thread to see how to record it in ATX. I have my popcorn out ..... Tom Longview, TX

Same Boat. I am still in good shape on my desktop running Win10. Still can open 2 years of ATX if I am only looking at one return and working on the other. But I have had this desktop for about 5 years and it has served its purpose. Time to get my next 5 year investment. Anyone in Texas who builds computers? Otherwise I think I am going to do Dell again, but I hate all the extra programs that Dell loads on their machines. Tom Longview, TX

So we can use the school estimate for living expenses as opposed to actual costs when looking at a distribution from a 529 plan to see if it was used for living expenses when at school (like a safe harbor) ? I had not heard that. Tom Longview, TX

Bloomberg article today about the status of the bill. Still very iffy to pass or even come to a vote. https://www.msn.com/en-us/news/politics/bipartisan-78-billion-tax-deal-hits-gop-roadblock-in-us-senate/ar-BB1l5LVE?ocid=hpmsn&cvid=4aec1985a28f47e68dda2a10d5257964&ei=41 You can search it on MSN if you don't want to click the link. Tom Longview, TX

I think that the amount on the form 3922 will be the basis if/when the client sells the stock. It is probably restricted stock or not publicly traded so they may only have limited opportunities to sell. I have a client who did not keep that form, and it was a long conversation with her trying to figure out when she acquired the stock and what the basis was. Tom Longview, TX