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I was remote supporting a client for QuickBooks this morning, and after I deleted his duplicate transaction, he asks, 'can you check my backup to make sure my QuickBooks data file is being backed up?' First I looked in QB and it was not prompting for a backup every time you close, so I set that up to back up to his documents folder. When you upgrade QB, your backup settings and some print settings (like check font) do not rollover with your data file. Who knows where Intuit even stores that info. QB should walk you through the backup options the first time you close any new or rolled over data file. The I looked at his CrashPlanPro backup settings and it defaulted to backing up only his user profile. Well, QB uses the Public user profile to store the data file so his QB data file was not even being backed up. He had gone an entire year with zero backups of his QB data! Why, after 40+ years of computer use, software companies haven't agreed upon a single location where all data and user configuration settings are stored so backups can be easily done is a testament to our stupidity. I have several programs that store data in the user folders. Some (like ATX) store it in a hidden system folder (Brilliant!) and others store data and/or settings in the program folder. I'm lucky to have been involved with computers since the mid-70s, but the average user shouldn't have to be a detective to find out where their data and settings are stored and then make sure those locations are included in the backups!

Reading this thread drives home the point that I am a total luddite. I was proud of myself this year for simply scanning documents in to dropbox as they came in. ***Sigh***

I don't understand the loss portion of it. Let's put names to the items: On the real property, you have an old tractor, a combine and a plow. The scrap company says: If you bring these items to my lot, I will pay $300 for the Tractor, $200 for the combine and $100 for the plow. Since the company comes to your field and grabs these items, you will receive only $300 as full payment for all three items. To me this is the FMV of the items unless you can find someone else who pays more. It will be nice if you would say if your client received these items 10 years ago when their FMV at the time of death was $10,000, which will create a loss. But since I can only assume that the inheritance took place not long ago, you will have a break even transaction since the selling price will be the FMV of the items and in turn it will be the basis of your client.

Additional information on the K-1s will be required due to the definition of what constitutes Qualified Business Income, more than what was required for the DPAD.

Also, the QCD must be done AFTER the person reaches 70.5. Simply making it in the year the person reached 70.5 would meet the RMD requirement, but to qualify as a QCD it must be done after the birthdate.

Wouldn’t the hard part be on taxpayer (or us) whether or not K1 income or the taxpayer qualifies for the deduction?

I think Terry is trying to say the loss is equal to the hauler's fee of 50% of value that's being held back in exchange for removing the items.

The category that the equipment falls into in the heir's hands will determine if the losses are deductible or not. Losses on dispositions of personal property aren't deductible, only those attributable to investment property or income-producing property. If you decide that this is personal property and you are still reporting the transaction that results in a loss, there is a code on Sch D to indicate that it is nondeductible.

On another board there was a thread similar to this. One guy over there suggested sending a letter to the client stating if they did not pay they would contact the IRS and ask to be removed as paid preparer. They also pointed out that that would cause the IRS to take their return out of the usual processing routine and could possible cause their return to be reviewed more closely.