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II I really admire whoever baked this one.

Real Estate Property Foreclosure and Cancellation of Debt ATG Publication Date - February 2015 NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. Table of Contents Chapter 1: Overview Purpose Brief History Exceptions Definitions Key Tax Issues Chapter 2: Type of Debt Nonrecourse and Recourse Debt Gain and Loss Computation and Cancellation of Debt Income Chapter 3: Income from Discharge of Indebtedness Bankruptcy Insolvency Qualified Farm Indebtedness Qualified Real Property Business Indebtedness Qualified Principal Residence Indebtedness Audit Techniques Chapter 4: Tax Attribute Reduction Reduction of Tax Attributes Depreciation Recapture Reductions Summary of Tax Attribute Reduction Rules Bankruptcy, Insolvency, and Farm – Attributes Reduction Qualified Real Property Business Indebtedness–Attributes Reduction Qualified Principal Residence Indebtedness - Attribute Reduction Chapter 5: Rental Real Estate Property Introduction Qualifying Dispositions under IRC §469(g) Non-qualifying Dispositions under IRC §469(g) Depreciation Recapture Character of Property at Disposition Lease with Option to Buy Property Rental Audit Strategies Chapter 6: Tax Consequences of Abandonments Chapter 7: Form 1099-A and Form 1099-C Background Examination Considerations Inaccurate or Questionable Forms 1099-A and 1099-C Chapter 8: Community and Common Law Property Community and Common Law Property Systems Community Property Chapter 9: Audit Strategies Summary of Real Estate Property Audit Strategies Case File Documentation Standard Paragraphs and Explanation of Adjustments Job Aids Resources for Real Estate Foreclosures and Cancellation of Debt Income Chapter 10: Rehabilitation Credit and IRC §469 Background Audit Hints Chapter 11: Low Income Housing Credit Low-Income Housing Credit $25,000 Offset Disposition of Passive Activity

One of my restaurant clients for whom we do EVERYTHING picks up his payroll every two weeks. With no rhyme or reason, every now and again he will come in carrying one of his pizzas. And he always seems to know the exact right time to do that. Nothing like food to change the tone of the day. I don't know why i did not think about the cookie angle before Because if there is one thing I like more than pie, it is a good cookie. In fact, the girl scouts were on the side of the road today selling cookies and I almost ran them over because I saw them too late and got all excited and started my turn too late. I never pass up a girl scout selling cookies. So I bought a case of the do-se-do things. Should last me a little while. Of course, that is in addition to the five cases (mostly thin mints) that we bought last week. But getting my clients to make me cookies - I have got to develop a plan for that. I send out a weekly email to my clients. Next week I am going to put in a blurb about how much I like cookies and how stressed I am right now and see if anybody is listening. It is worth a shot. And I have never been above begging.

If my clients have sales without basis, I tell them that their broker is lazy and they need to find a new broker.

I want pie really bad. But I am being good and just ate a bunch of those cutie mandarins instead.

Getting TO tech support is the issue. All the "customer service" people that take the calls think they can look up the answer and fix it. Last call I made, over a month ago, took 45 minutes of talking to get transferred to the tech department. Took tech department 8 minutes to fix the problem. CCH does not yet get it.

I have some really nice elderly clients with very low income who refuse to not pay me. We have arrived at a deal - $25 plus a dozen home made chocolate chip cookies. The latter are worth so much more than they can imagine.

Janitor Bob, your assumptions are correct. Only amounts exceeding the distributions are eligible for those various deductions and credits. I always report on a Line 21 worksheet and then back it off on a second. As Rita B said (I think it was her) in another thread, even though the worksheets don't transmit it gives *you* a memory trail of what you decided and why. Plus you can always print the worksheet for the client. We all have clients that want to know "where did you put this?" and you can point to the worksheet as proof that you didn't forget something crucial.

I am in a horrible mood. I have been working on the same tax return since 10:00 this morning. (I skipped Church to get something done - that's a joke.) My assets have all gone missing, and I HATE charitable organizations that send clients a letter saying "Thank you for your in-kind donation valued at $3,000 . . . Please keep this letter as proof of your tax deductible donation". Clients do NOT like what I have to say about that. Aaargh!

I have one client who has a CRUT and has changed brokers at least twice since I have been completing his returns. Each broker has not tracked the cost basis from the earlier one. However, this guy is the ultimate dream client. He has kept every statement and transaction detail since the inception of the trust (1994 to be exact). This enabled me to create a spreadsheet with all purchases and cost basis without the broker doing so. This also enabled us to avoid a 50,000 penalty that resulted from his previous preparer using the wrong form which he/she did not know it was incorrect. At the time it should have been form 1041-A and 5227 not form 1041. Pay dirt was the original SS4 form with instructions from the IRS to use form 1041. Without the records this guy would have been nailed with the nastiest penalty ever.

It is never inappropriate to talk about pie.

I did a return last week that I had quoted a low price on because the person is the 94 year old mother of one of my very,very nice clients. Well, when I finished the return, I realized there was an opportunity here. So I billed her $50 and one pie. The next day she sent her son-in-law in with an apple pie made with snow apples. Oh wait............we are talking about the other kind of pi. Never mind!

Honest to God - I am not timid in the least sense. But I always try to give folks the benefit of the doubt. And I always try to put pressure on the folks where it most belongs. And Momma always said, if you can't say something nice, shut up! (Momma had some of that tough love thing of her own, even before the book was written.) That said - Rita, could you swing your tough love club on tech support for me? ............................................I will still love you if you say no.

You're talking to the least obnoxious person on earth, you know. Might as well tell me to not be a smart ass.

The corrected forms are beginning to be available by the taxpayer logging in to the Marketplace and checking the "messages" section.

I just re-entered them. I felt it would be quicker than waiting on tech support. I hope they don't somehow duplicate themselves (both show up) in the efile. Eeegads.

You already are. You are just not paid! You belong to the Government Insurance Law Enforcement Division.

"Someone" is always full of free advice that is worth what they paid for it.

And every municipal/state retirement system I've ever seen is significantly BETTER than SS.

It is an excuse. Translation - "We do not want to take the time to do it."

Thanks, Carolbeck! I am now set on 5 minute auto-saves!

He could tell her that the last 2 years of returns might need to be amended to reverse the erroneous deduction claimed. And maybe she should consult her tax preparer or a tax attorney. That might convince her to leave him alone.

Ignore. Problem solved.

I annotate *everything* because no matter how crystal clear it is now, it will be dense mud next year. Heck, it will be dense mud next *month* for that matter.

Enter the positive amount on the appropriate line of the Line 21 worksheet, then enter a description on one of the blue lines down there on the worksheet and enter the negative amount. Print the worksheet, cause if you're like me, you'll forget what happened.

Hahaha the emoticon says it all, there, jasdlm. And, crap, if I had known pictures of the inside of my mouth would substantiate dental expense, I coulda got past the 10% shave. Also, don't let me forget to run down to the landfill and take pictures of my donations for 2015.

I would put it in on Line 21...and take it out on Line 21.

A client this year included photos from his dental exam (I guess). 8 photos of his teeth and the inside of his mouth from several different angles. Fascinating.

And hopefully the pictures are not of seven black garbage bags.

It's a personality thing....not an age thing.

Yes, I'm 70 and I have days like that. Sure it's irritating, but I agree his 'about $___' is probably as good as the amounts on many a client's neatly printed page of data.

Yeah...I see that in ATX now as well....easier and safer than mailing.

Ever since the IRS made the brokers give cost basis...and summarize everything in a few short lines...life is so nice.

Dear Caller-Never-To-Be-A-Client-Maybe: Called yesterday, left VM: "I called a few days ago wanting to know if you could do my return. (strike #1-lies...or alzheimer's?) I need it done as soon as possible as I'm going away for a month. (strike #2-not my problem) I live [insert local address here]." Me: rolls eyes. He's never called before according to caller ID. Other than a couple of telemarketers, I've had no calls that I did not recognize. I didn't have time to call him back until after dinner, and I decided that after 8:30pm was too late to start calling anyone that wasn't an existing client. Called early this morning before I'm out of bed (strike #3-are you serious?!), another VM: "I see you tried to call me back yesterday and I couldn't get to the phone" (strike #4-must be a liar). Uh, not unless I'm sleep walking and returning calls in the middle of the night!

I've been clicking on that "x," too, cause dang it, I need to work more than the program needs to close.