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If there is no reduction in the COD income, it goes on Line 21 of the 1040. If you are going to exclude all or part of it, the COD income goes on the 982. Then you do the math and if any of it remains taxable, the taxable amount goes to Line 21.

I invited you. For those looking for him, he's listed as Thomas Carlson Controller at The G B Group, Inc

You have to dispose of the property. Form 4797. This is NOT forgiven debt. That is form 1099-C. The selling price is the amount of debt forgiven. Basis is calculated as normal. Depreciation is recaptured as well. Box 4 has no relevance. There may be taxable gain by disposing of the property.

Just put the estate on a fiscal year. You do that by filing its first tax return with the FY May 10, 2013 to April 30 2014. Due date of the return is August 15. This is best for the beneficiaries, who likely already filed their 2013 returns, because they won't have to go back and amend. Whatever the K-1 shows will go on their 2014 returns because that is when the FY ends. The sale of the land will go on the next return, FY May 1 2014-April 30 2015, so they'll have plenty of time to do tax planning as the profits will go on their 2015 returns (filed in 2016). This won't work for the beneficiaries if the estate had a lot of income between May 2013 and April 2014 and didn't make any distributions. The estate will pay taxes on that income at a far higher rate than the beneficiaries likely will. Farmland might get special treatment under the tax code. Better do some research on that point.

Washington, D.C. (June 19, 2014) By Roger Russell The Supreme Court has held that a taxpayer has a right to conduct an examination of Internal Revenue Service officials regarding their reasons for issuing a summons when he points to specific facts or circumstances plausibly raising an inference of bad faith. In a brief filed with the court on March 17, Michael Clarke and his partners in Dynamo Holdings, LP argued that they are entitled to a limited evidentiary hearing to show that summonses were issued improperly by the IRS as retribution for their refusal to extend a statute of limitations. The Eleventh Circuit earlier ruled in Clarke’s favor, and the IRS appealed to the Supreme Court (see Supreme Court Hears Case on IRS Summonses). In his brief, Clarke argued, “Under United States v. Powell, 379 U.S. 48 (1964), an individual or entity that receives an IRS summons is entitled to the opportunity to show, at an adversary hearing, that the summons should be quashed because judicial enforcement of the summons would constitute an abuse of the court‘s processes—including, for example, if the summons was issued by the IRS for an improper purpose.” The government argued in its brief that the Eleventh Circuit decision “erroneously reduced to zero the amount of evidence that is required” to rebut the IRS showing of good faith. In its decision, the Supreme Court vacated the judgment of the Eleventh Circuit and remanded the case to the Eleventh Circuit for further proceedings. Justice Kagan, writing for a unanimous court, said that the Eleventh Circuit applied a categorical rule demanding the examination of IRS agents without assessing the plausibility of the respondents’ (Clarke’s and Dynamo’s) submissions. On remand, the Court of Appeals must consider the submissions in light of that standard. “It’s not as if you get an unlimited right to inquire into the motive of the IRS just because you say there is misconduct,” said tax litigation attorney Barbara Kaplan, a shareholder at Greenberg Traurig LLC and chair of the firm’s New York tax practice. “The court held that a taxpayer is entitled to examine the IRS agent when he can point to specific facts and circumstances that plausibly raise the inference of bad faith,” she added. “Making allegations of improper purpose are not enough. The taxpayer must show some credible evidence that gives rise to a plausible inference of improper motive. The taxpayer doesn’t have a blanket right to do that or conduct a fishing expedition and automatically get the right to a hearing.” Nevertheless, “it’s a taxpayer victory,” she said. “Although its breadth may be limited by the requirement that the taxpayer contesting the summons must first put forth credible evidence to support allegations of an improper IRS purpose, in the past, evidentiary hearings were rarely granted, even if such evidence was presented, and now the burden will be on the IRS to show the background for issuance of the summons from its files.”

A cowboy named Bud was overseeing his herd in a remote pasture in Texas when suddenly a brand-new BMW advanced toward him out of a cloud of dust. The driver, a young man in a Brioni® suit, Gucci® shoes, RayBan® sunglasses and YSL® tie, leaned out the window and asked the cowboy, "If I tell you exactly how many cows and calves you have in your herd, Will you give me a calf?" Bud looks at the man, obviously a yuppie, then looks at his peacefully grazing herd and calmly answers, "Sure, Why not?" The yuppie parks his car, whips out his Dell® netbook computer, connects it to his Apple iPhone4S®, and surfs to a NASA page on the Internet, where he calls up a GPS satellite to get an exact fix on his location which he then feeds to another NASA satellite that scans the area in an ultra-high-resolution photo. The young man then opens the digital photo in Adobe Photoshop® and exports it to an image processing facility in Hamburg, Germany. Within seconds, he receives an email on his Palm Pilot® that the image has been processed and the data stored. He then accesses an MS-SQL® database through an ODBC connected Excel® spreadsheet with email on his Blackberry® and, after a few minutes, receives a response. Finally, he prints out a full-color, 15-page report on his hi-tech, miniaturized HP LaserJet® printer, turns to the cowboy and says, "You have exactly 1,586 cows and calves." "That's right. Well, I guess you can take one of 'em," says Bud. He watches the young man select one of the animals and looks on with amusement as the young man stuffs it into the trunk of his car. Then Bud says to the young man, "Hey, if I can tell you exactly what your business is, will you give me back my animal?" The young man thinks about it for a second and then says, “Okay, why not?" "You're a U.S. Congressman," says Bud. "Wow! That's correct," says the yuppie, "but how did you guess that?" "No guessing required." answered the cowboy. "You showed up here even though nobody called you; you want to get paid for an answer I already knew, to a question I never asked. You used millions of dollars worth of equipment trying to show me how much smarter than me you are; and you don't know a thing about how working people make a living - or about cattle, for that matter. This is a herd of sheep."

A TOUGH OLD CATTLEMAN FROM ALBERTA COUNSELED HIS GRANDDAUGHTER THAT IF SHE WANTED TO LIVE A LONG LIFE, THE SECRET WAS TO SPRINKLE A PINCH OF GUN POWDER ON HER OATMEAL EVERY MORNING. THE GRANDDAUGHTER DID THIS RELIGIOUSLY UNTIL THE AGE OF 103, WHEN SHE DIED. SHE LEFT BEHIND 14 CHILDREN, 30 GRANDCHILDREN, 45 GREAT-GRANDCHILDREN, 25 GREAT-GREAT-GRANDCHILDREN, AND A 40-FOOT HOLE WHERE THE CREMATORIUM USED TO BE!

Who remembers when this happened?

A psychologist walked around a room while teaching stress management to an audience. As she raised a glass of water, everyone expected they'd be asked the "half empty or half full" question. Instead, with a smile on her face, she enquired: "How heavy is this glass of water?" Answers called out ranged from 8 oz. to 20 oz. She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, it's not a problem. If I hold it for an hour, I'll have an ache in my arm. If I hold it for a day, my arm will feel numb and paralyzed. In each case, the weight of the glass doesn't change, but the longer I hold it, the heavier it becomes." She continued, "The stresses and worries in life are like that glass of water. Think about them for a while and nothing happens. Think about them a bit longer and they begin to hurt. And if you think about them all day long, you will feel paralyzed – incapable of doing anything." Remember to put the glass down.