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I'll send 'em to you! I have found that they always want them yesterday, and want them for free. Neither of which is acceptable to me.

NOT the mamma! NOT the mamma! and AGAIN! lol.

I have gotten a very similar letter if they payment was made after 8:00 p.m. ET on the day before the payment was due. In other words, if payment was due on 4/17, and I made the payment after 8:00 on 4/16 they send a letter saying that they are going to waive the penalty but I screwed up. I ignore it as long as they keep waiving the penalty.

David, it is possible have a fractional interest of an undivided interest in a property as the replacement held as tenants-in-common and still be a valid 1031 exchange. IRS ruled on this with Rev Proc 2002-22 that allows it if the property isn't held as a business, must be as the individual, and other requirements. How the property is titled, managed, run, controlled, etc. is paramount for this to work, and I'd suggest that you not venture into giving legal advice but suggest that the client hire an attorney that is well versed in tax and real estate laws, and specifically the intricacies of sec 1031, and have a well-qualified intermediary too. Here are some links to help you: Rev Proc 2002-22 - lays out the requirements Article from The Tax Advisor - " Fractional Interests in Property" - specifically discusses your question Another article from CIRE magazine (Commercial Investment Real Estate) discussing tenancy in common in 1031 exchanges written by a practitioner specializing in these exchanges

In reality my state is pretty stingy on alimony deals so they can be rather rare. Modifications are exceptionally rare and almost always involve one of the exes being physically disabled. I would think this rule is going to make modifications even more rare. After overcoming the tax increase and the attorney fees, the modification is going to have to be VERY substantial.

As a Certified Divorce Financial Analyst I LOVE those!!!!

I like Gail's answer, but will only add to watch for required state filings (LLC annual report, for example, is due in MA).

BAD taxpayer! NO early payments! NO cookie! We let you off penalty THIS time....grrrr.

An LLC is created at the state level. The only thing the IRS has is the application for an EIN. In my opinion, the fact that someone applied for an EIN and never filed a tax return is not that unusual,. They might have planned to start a business and changed their minds. They may have filled out the EIN application that it was only for banking purposes. I would not say the LLC does not exist, but as a disregarded entity it might not be required to file a tax return. I would report capital gains from installment sales on the 6252, interest on the Schedule B, and get with it.

In my experience, the use of the phrase "failure to deposit correctly" is only used when a deposit which should have been made via EFTPS or other electronic means was made by check or cash. Your letter may actually be due to a IRS computer glitch.

I do not position myself against those who choose to go to the extra lengths to report correctly. For Gail and Pacun, this is every bit as admirable as it deserves. I simply open the door to expediency as an alternative when the difference is harmless. I can't tell you how many times I've been different by two cents when balancing a spreadsheet, and forced the difference into a nonessential line item to save time. The key word is "nonessential" since some line items cannot be compromised. Especially when I'm billing the customer for my time.

Lawyers beware! Under the current language, the modifications follow the old law if the modification agreement SPECIFICALLY references the same and says it shall be followed; otherwise, as SaraEA says, subject to the new law.

Excellent advice, in a complex situation like this, there so many ways the exchange could be blown.

This proposed new Form 1040 is a joke much like a lot of things that go on in Washington and in the media. Why all of a sudden is the IRS wanting to change a simple form into a summary postcard that will require a lot of extra schedules in order to file a complete tax return. This is especially cumbersome when a client has K-1s from S-Corp. or partnerships, and rental income required to be reported on Sched. E. Next they will be wanting to send refunds via coupons that can only be used at your local Wal-mart. It is a joke to continually wanting to change something that is working and has worked for at least the fifty years that I have been preparing taxes. I am strongly against this new proposed Form 1040 for this year or any year in the future. It is not a way to cut costs. It is a way for the nation to have to cut more trees to accommodate the extra paperwork that it will necessitate. BAD IDEA!! Paul L. McClure, CPA

Every time there's a change in law or forms, I see it as job security. Of course, I'm of the mindset that the IRS should be funding US since we have become the official gatekeepers with all the due diligence rules and threats of fines.

The complaint argues that those who drafted the Sixteenth Amendment understood that "the SALT deduction is essential to prevent the federal tax power from interfering with the States’ sovereign authority —authority that is guaranteed by the Tenth Amendment and foundational principles of federalism." https://www.forbes.com/sites/kellyphillipserb/2018/07/17/states-sue-irs-treasury-to-strike-down-salt-cap-under-new-tax-law/#4bedf2915303

Are any of you experts in QB Enterprise and have active construction clients on QB. I am in a little bit of a pickle. I have a lot of experience with ERP's for Construction Accounting, and I have a lot of experience with small companies using QB Pro, but I am now working for a larger contractor that is using QB. Don't ask why, it is a long story, and I don't intend to keep them on this software forever. But while I start working on the conversion to another software, I need some help on trying to get owned equipment costing set up and charged to the jobs. If you know some tricks in QB for equipment costing and are willing to teach, I am willing to pay. PM me if you want to do some consulting. Thanks in advance. Tom Modesto, CA

Welcome back, @BulldogTom, you've been missed! I hope someone can help you out, because while I've used QB for construction, they were all tiny companies. You're out of my league there.

I go with Jack on this one. The 16th amendment authorized the federal government to "collect taxes on incomes, from whatever source derived, without apportionment..." (apportionment was required under Article I of the Constitution, so had to be specifically addressed). This amendment affects only the FEDERAL government. For the states speciously to claim this affects them points only to desperation and grasping at straws. (NOT political; speaking truth about Constitutional issues as that is my other full-time job. Please note the lack of smart-aleck comments about state spending. But I thought them!)

I am certainly NOT going to mind doing multiple scenarios (requested by the lawyers of divorcing clients) on the tax affects of alimony X, Y, Z, P, Q, and R. I hate those.

A CPA I worked with years ago disregarded any discrepancy (for his corporate clients) under $10K as being not worth his time (and the client's money) for him to track down. Journal entry, it goes poof! and on we go with life.

LLC is disregarded by the IRS. If you have an LLC, the defaults are Sole Proprietor, if a single owner (This fits the situation being discussed), and a partnership, if more than one owner. These defaults are exactly the same as if NO LLC EXISTED. This is being WAY OVERTHOUGHT. IRS does not care, at all, about an LLC. The person, in this scenario, will file as a sole proprietor. He can use the EIN, if he chooses, but is not required to. The EIN was assigned to the taxpayer, not the LLC. Way too much overthinking on this one.

There seems to be a consensus that an LLC does not necessarily invoke a Sch C, and I can understand that the design of a Sch E can easily accommodate reporting. However, the logistics of the current situation fall into confusion, as neither Sch C nor Sch E accommodate an LLC with no other income than installment sales (capital gains) and interest on loans. It is easy to apply the consensus and say that the reporting can be done on Form 6252, Sch D, and Sch B. I would love to do this and be done with it. However the LLC has a Federal ID #, and the gubbermint is expecting some kind of tax return to be identified. Reporting on Sch B and 6252 does not identify the LLC as anything. Judy was headed to a perilous revelation: namely that an LLC should be some sort of business, and if the IRS were to wrap its arm around the situation, they could determine that the practice of making loans is an operational pursuit and not an investment. If this happens, [poof!!] there goes preferential capital gain treatment down the toilet, and all such income becomes SE taxable. For the record, there is no question that these loans are an investment, because both spouses are employed full-time, and the portfolio of loans has been slowly building over several years.

I'm with Bhoffman and Abby Normal on this issue.

I had not thought of that aspect. Thank You for bringing it to our attention.

How is this a State issue? The law affects Federal income tax, and not the amounts of State income tax? Sounds like there are some well funded lobbyists affecting the actions of State legislatures. I hope the judge throws it out, for the reasons I just stated.

Simple answer: YES. The return must be paper filed. I have dealt with a dozen or so of these.

Also this one from CS Thomson Reuters:

Googled and found this:

Yes, Paul, welcome! We hope you'll feel at home here. If you haven't taken time to look at other topics, we have 2 other current topics on this same issue.

Paul, Welcome, you have until 7/29 to email your comments to IRS at: [email protected]. Let 'em have it, you make some good points. Bill

Last time I ordered QB Enterprise for a client, it was going for $4,500, about 9 years ago. Have you looked into other software that intregates with QB? A former trucking client wanted a all-in-one program to help them streamline their operations, the software cost them around $25K and they only used it for two year because the person who knew how to use it left the company :(

Welcome to the forum, Paul! I agree with your post wholeheartedly.

Yep, I have been working at my new job. Tried to log in from work at lunchtime yesterday but I don't remember my password. So my account got locked. Tom Modesto, CA

EXCEPT if the alimony agreement is modified after 12/31/18. Then it is subject to the new law.

I loved that show! My son was a baby about then, and the little dinosaur - "Gotta love me!" just seemed so perfect!

If a client calls the insurance agent for changes in coverage that change the total premiums on a policy, I do take those into account for accrual basis taxpayers, but for prior year worker's comp audit additional premiums or refunds, like rfassett described, I run those through expense in the current year. I don't ever go back and amend the prior year return or make a prior period adjustment on financials for them. @Terry D, you asked for a ppd ins worksheet, so I took a snippet from one of my excel files and simplified it. This is for a fiscal year client, but easily adjusted. I've changed the fields to blue where I'd make an entry so you can more easily see how it works. The # of days keys off the date at the top of that column and are then used in calculating the expense since it is working off the expired portion of the terms of only the current year policies; the rest is simple addition and subtraction. Book1.xlsx ETA - sorry, I thought it would show a preview. W/S looks like this:

LLCs do not default to Sch C. I have plenty on Sch E. They are simply disregarded for tax purposes.

....Very..Very..Safe......