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I would apportion it to the entire 15 acres, because at the time the improvement was done it benefitted the entire property.

Not the value, the cost basis.

A better example quite common in the western U S: Well is drilled intended to supply the whole property, subsequently goes dry and has to be filled in. Another deeper well is drilled which is successful. All costs added to basis.

Demolition costs or in this case, costs of land restoration is always added to basis. The bigger question for me is which part of the land was the pond related work done on resulting in : 1, Pond related costs added to remaining 9 acres? 2. Pond related costs added to the 6 acres sold? 3. Pond costs apportioned on a per acre basis ? As to the question of whether the pond related costs should be added to basis, it's no different than any other expenditure performed with the intent of increasing property values which doesn't work. Example: Property owner makes extensive flood control improvements. Next year, big flood changes river channel, rendering prior flood control improvements useless.

Hey, I like the Solomonic approach ( except instead of 1/2 we're using 6/15ths).

I’ll opine that the cost of the pond and the demolition could be added to the total original cost of the 15 acres, and then apportion that total to the 6 acres. I would not apportion the pond cost solely to the 6 acres unless those acres don’t share a boundary with the remaining nine.

Yeah, and guess how many times I've done that... so awkward. I hate the forms soooo much...

GOOD GRIEF. I have made an error. If someone can claim you as a dependent DO NOT CHECK THIS BOX. I will let y'all guess who did NOT check the box.

I wonder if he meant per-too-tee. Like in its her ass if she doesn't. Hmmm

Rita: I think that's the contraction for when you charge "per petute", so you had it right..

Charge her full return price when the letter comes: "Where's your 8962?" P. S. I can't find the definition of pertute, I'd have to charge her for that, too.

You are correct, and he is not (because he earned over 4,150), but he will not have to repay the APTC.

I agree with cbslee. But I also would also make my decision on how to allocate based on the questions he posted. Tom Modesto, CA

I think we're hitting on the part that confuses me. Does basis mean only consist of the cost of land improvements that add value, or is a cost of a "failed" improvement still a part of the basis?

Agree, my off the cuff answer is the pond didn't improve the land so I'm going with nah.

In a very simplified manner it sounds like they dug a hole, filled in the hole and now want to claim it increased the value of the land?

Wow. That sounds like a question from the EA or CPA exam! I have no clue but look forward to some of tax heroes on this board to chime in.

Forms a tax agency supplies in duplex can generally be reproduced in duplex, BUT... I also restrict the use of duplex on certain forms. The reason? We have no control over the quality of paper and printer. Forms which the scanner rejects are subject to penalties, and my approval status (as a form preparer) can be stopped because of too many rejects...

But the politicians told us it would be a postcard. The whole idea of a postcard is it is one piece of paper. Don't tell me those people in DC lied to us about the PostCard 1040. It will shatter my faith in government! (dripping with sarcasm if you could not tell). Tom Modesto, CA

Just got done with ATX support. They said the latest ATX update will happen in 2 days and it will include the program automatically flowing the QBI info from the K-1 schedule into the 199A worksheet. Fingers crossed this is true.

There are a couple of preparers here that handle DE returns, so I'm sharing this technical information memorandum that was issued today on how DE expects reporting of itemized deductions as it relates to the $5,000/$10,000 SALT limitation and the reduction on line 47. This is NOT being handled similar to the Pease limitation was in the past, and this memorandum has numerous helpful examples. This is also being sent by DE DOR to the software vendors. I couldn't find a direct link on the DE DOR website yet, so I printed to pdf and am sharing here in that format. tim_2019-1_v._3_-_itemized_deduction_limitation_of_10_000_for_salt_paid.pdf

Oregon, like Delaware, has allowed filers to itemize on the state return, while taking the standard deduction on their federal return. Since Oregon's standard deduction amounts are fairly low, itemizing only on the state return is fairly common. Oregon created a Schedule A and released it along with instructions in early January. With respect to the deduction of paid taxes, it seems to function just like Delaware.

For insurance purposes, I don't think it matter whether the child(!) is your dependent or not. I don't know why she is putting him down as a dependent for the Marketplace, but she can consider him a dependent for insurance purposes until he is 27 now. If he is making too much for marketplace insurance, can she carry him on her policy at work?

$27,500 is only 228% of the poverty rate. I think you'll be ok if you allocate the numbers on the 1095-A to the kid. I had to do it last year with a mom and a [No Longer] dependent. Well, I had to allocate 1% of the credit received to the mom and 99% to the kid because of something wonky with ATX, but I was able to allocate 100% of the other columns to kid. It was torture, and I sat here for hours reading the Instructions to 8962. There's a thread in the ACA Forum. Hope this helps. As far as mom being covered by ER, that's how my situation and yours are different, my mom had Marketplace insurance, so I may be missing something painfully obvious.

I resurrected this four year old thread because I manually figured Section 179 recapture for a client last week, and I think (hope) ATX would have done this for me if I knew how to use it better. It's done; entered at bottom of 4797 and on Line 6 of Sch C. I'm glad I know how to do this, but I don't want to do it again. I've learned all I care to the hard way. So if you know what I should have done to get ATX to handle this, please tell me. No hurry.