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What a nightmare! Today we went through the list of completed returns and flagged those that could be affected by this change. Someone will have to go through each one (not until May) to determine if it is worthwhile amending, and we have to determine if/how much to charge for those paper returns. As for incoming returns, and the deluge is just starting, we will have to put hundreds on hold to await software updates and approval. We had only efiled about 80 returns as of 9AM today, with another dozen or so complete but not yet signed for, so the task will be daunting but not nearly as great as those big practices and chains that are at "peak" and have already filed zillions of returns. I remember years when congress passed tax law changes after Christmas and IRS miraculously managed to get the most common items reprogrammed in no time. One year we had to wait until mid Feb for education credits and a bit later for AMT. But NEVER do I recall congress changing the rules when tax season was already underway. Do those fools know what they did? Do they even know what was in the bill or what "tax extender" means?? I guess the POTUS, who "knows more about taxes than any CPA" (his words, not mine), didn't read it either because any no-nothing CPA would have said "don't do it." Not being political here, I am disgusted with all of them, administration, congress, red, blue alike. As I was moaning about the extra work and delays this is going to cause us, I got a message from IRS that made my heart go out to them. It said that they were reviewing the task ahead and will give us some guidance as soon as possible. Thinking about it, they have to reprogram their computers, accept software companies' tests, rewrite forms and instructions and zillions of linked pages and FAQs on their website, all while in the height of tax filing season.

I will do all amendments starting on May 1. If client complains, I tell them to call their Senator and Congressman. They caused this pile of male bovine scat, not me.

My preferred term (at state or federal lever) is legis-vermin. The few state l-v's who have heard this from me got a real kick out of it, too.

WHERE ARE THE HANDCUFFS?!?! If any of us had a data breach and hid the evidence while doing nothing to stop the carnage, we would be in orange jumpsuits right now. So should the Equifax "executives" who did just that.

If the mother's estate left the account to your client upon her death with an informal understanding that it was to be used to provide care for the client's brother, then the basis would be mothers DOD. If, howeveer, the fund was left to the client's brother for his care (or even in trust for the care of your client's brother), then I believe your client has another step up in basis as of his brother's DOD. With regard to tax bracket change, since the sale would result in LTCG, the gain would be taxed at capital gain rates, at lease on the Federal side. Depending on the state of residency, the amount of gain could affect the State tax bracket. Just my thoughts on the matter.

I think some of these state will get a tax increase without having to ask for it due the different items and the way they calculate tax.

Maybe we should map the point that results in the shortest distance for most of us and see if any of us are near that point. Going to Dollywood is not really my thing, although with this group of wackos, it could be a very memorable experience!

I'm not a pro at partnerships, but I did handle this situation for a partnership with 8 partners, who kept dying off until only one original was left and the rest were inheriting spouses/estates, and one trust with 15 beneficiaries. The distinction between outside and inside basis is just that--the partnership maintains its original basis in its assets (inside), and the new partners get a different basis that is calculated off (outside) the partnership's books. The partnership should have made the 754 election when the first partner died. It is too late for that one, but you can do it for the most recent one if the dates are right. The election doesn't affect the partner's basis in their partnership interest--the first one gets stepped-up basis at the time of inheritance, the new ones will get a different stepped-up basis. The election allows them to claim more depreciation since their basis in the assets is greater than that on the partnership books--typically reported in Box 13 code w. In my master's in tax program the professor told us about how much $ can be made maintaining these separate off-books depreciation schedules for incoming partners. There are a lot of caveats in case property (not cash) is distributed, built-in losses, etc. The basics of the election are explained here https://www.forbes.com/sites/anthonynitti/2014/03/11/tax-geek-tuesday-tackling-the-dreaded-section-754-adjustment/2/#7ee2e40442c7 What do do about a missed election: https://www.thetaxadviser.com/issues/2015/may/tax-clinic-07.html

Even with the bill passed, we have to wait for the IRS AND also for the software people to submit new forms (corrected to add extenders) to the IRS and then have them approved too. Probably NOT a QUICK turn-around.

It is possible to have basis in the IRA for state purposes that differs from federal basis, if any, because some states' laws don't allow for the same rules for deducting the IRA contribution, and there are states that have specific rules to account for this difference. I believe MA is one, and NJ might be another. Obviously, PA doesn't tax at the time of distribution as long as it isn't early. I don't know if NY has any provision, and maybe someone else here from NY will answer, but if not, I'd research whether or not NY will recognize the basis your client has in the IRA made while a PA resident.

I love HP printers, hate their computers, had to return one some years ago. I have 4 HP Laser printers, the oldest must be at least15 years old still works fine. The newest being about 4 years old is an MP1212, does everything, black and white, very satisfied. Since toner can be expensive I use LD Products for re conditioned toner for 1/3 the price, only one defective in many years of purchasing.

My newest is not all that new: HP LaserJet P2055dn. Oldest is starting to misbehave, but I no longer use it to print tax returns: HP color LaserJet 2050n. Used as a fax, scanner, copier, and not often as a printer: HP OfficeJet Pro L7780 All-in-One no longer communicates with my computer but works as a stand-alone receiving and copying. A client gave me his old HP OfficeJet 8500 Premier to replace my fax. Hubby still has my old HP 5610 and a PCL4 or something like that HP printer. Love all my HP printers. Prices drop all the time. But, you'll have it for years, so get what you want that fits your budget.

It is the trap that the New England states use to keep people from moving away. Double taxation is correct. Tax it going in and tax it coming out, no matter where you live. Nowhere to take credit for the taxes paid previously.

I want to see Rita B's back 40....

HP LaserJet P1606dn. Very low end but it works for me.

I've been using it and it's been working well. At least, I think it has...this time next year will be it's test. I use only the first two columns, in this case the 2017 current and the 2018 future. I place zeros in the 2019 fields which zero's out the rest of the columns.

I have the HP laserjet 2300. When it starts to act up I buy refurbished ones for under $200. I've been able to use nonHP toner cartridges, at $25 each without any issues.

I use the HP Laser Jet 4050. I love it. It is also old but is a work horse and the toner is not over priced.

Oregon is very similar to Delaware except that it does increase the standard deduction, although it is still very low. I often do Oregon returns for the high school children of clients who didn't make enough to file a federal return.

It's been suggested in the official forum multiple times to let us choose the number of columns. If you have a PDF editor and patience you can delete the unwanted columns. I've done it twice in years past but I'm just spending the toner and printing it all this year, because everyone is getting one.

I still will have kids in school in May. I really did not think we would get this far when I suggested it. I agree maybe a couple dates and a central spot would be great for all of us that are interested. Travel may be a problem for some. Number of days required may be the other one. Just my 2 cents worth.

It almost sounds like the money was left in your client's name rather than in an estate or trust. If that's the case, there would be gift tax implications to just give the entire $35K to each son this year. It might be best to give the money out over a couple of years to avoid the need for gift tax returns. He does not say how old the sons are. If they are adults, my advice would be to confer with the sons and see what they want - cash or stock. As long as each gets what he wants, and everyone knows the choices presented and what was made by each, there *should* not (ah, note use of the conditional!) be hard feelings down the line if one takes all cash and the other gets higher (or lower) value stock.

Wow, I never even considered the impact on the state returns. I have military clients, lots of different state returns to do. Hmmmmmmm

I did one last year for a family partnership that owned a large farm, that was sold after both parents died. A trust was created when dad died, and an estate when mom died, and the trust dissolved on mom's death and was split to the kids... yeah, I likely screwed this up but the end result looked reasonable?

I talked to my spouse and she is in as well, but wants to know if they have Tri-Tip way over there in the paw-paw patch? Tom Modesto, CA

This is no fun. The inside/outside basis rules drive me nuts. I have no idea how I got through the partnership portion of the EA exam. What Sara is saying is correct, from what I remember. Tom Modesto, CA

My first choice was professional basketball player. But when I got cut from the freshmen basketball team, I went for my 2nd choice, rock star. But then I found out I had to learn to play the guitar. That didn't work out.

We have had clients receive CP2000 concerning 1099-K. The IRS IS checking them now.

Put it on a tablet and leave it in the john.

Many of these problems are also caused by people not READING what's on the screen. They just click away. And then they never LOOK at the completed return to see if it makes sense. I had one this season where the parents efiled the child's return and never realized they allowed her to claim herself. Couldn't even blame the kid in this case. I told them there's a reason we only charge $50 for dependents' returns--so this kind of mess doesn't happen. Now they can wait 3 months for their refund from their paper return, and they had to pay me to amend the child's and re-do their returns. Bet they don't try that again.

Anyone else experiencing the program closing while in Fixed Assets? Specifically the disposition tab.

According to the Wall Street Journal, Equifax is still in a CYA mode: "However, Atlanta-based Equifax Inc. recently disclosed in a document submitted to the Senate Banking Committee, that a forensic investigation found criminals accessed other information from company records. According to the document, provided to The Associated Press by Sen. Elizabeth Warren's office, that included tax identification numbers, email addresses and phone numbers. Finer details, such as the expiration dates for credit cards or issuing states for driver's licenses, were also included in the list.