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However, if you don't file the 3115, you still would have to recapture the depreciation that should have been deducted.

I blame the tax law and those who passed it, especially the f-up with the withholding tables. Haven't had a client complain yet. But I also did projections for everyone last year, with the caveat 'if your withholding is the same as last year'.

if not done in advance, i always get a cost seg in year of sale just to gain this rate spread.

I WOULD split it and do the 3115, they come out ahead assuming max bracket. depr is deducted at ordinary rates and recaptured at cap gain rates.

I just prepared a return for a client for whom I had a note in the file that last year she got a check because I forgot to click the Direct Deposit box before filing. You know how some people say at pick up, "Oh, yeah, I want that to go to my bank account," and you smile and say, "Oh, sure, no problem," (even though it really is a little bit of a pita), and you enter the numbers but forget to click the &*^% box? Maybe that happened.

I hear you Lion. I just finished a NJ part year, NY part year and change of NYC residence 360.1 form where I had to do manual calculations due to the "decoupling." It also took me awhile to figure out there is no NJ part year form because I'm so used to NY's and MA's PYs. I should have sent Yardley a PM, would have saved me some time and frustration.

I think you will need to set up a separate depreciation schedule and input manually. I use ATX , but for most clients, I use the depreciation module of Easy-ACCT so it makes it easier to keep a separate schedule for 754.

I would report. After all the essence of the situation is that an active rental exists. It's only due to timing that there is no reportable income/expenses. Wouldn't you still have a small depreciation deduction?

See if your software lets you include a return note or return list so you can label it Paternity Leave. I use ProSystem fx, and I can open a list that would have only one item in this case - Paternity Leave and the # - which would populate the Other line with the # but also get transmitted with the return.

...work outside of New York for the convenience of the employER. Working from home for the taxpayER's convenience does NOT count as "outside" NY. And, NONworking days are NOT working days outside NY. NONworking days end up on other lines, such as weekends, Holidays, Sick leave, Vacation, and Other nonworking days. Go through IT-203-B line by line. I just haven't had a paternity leave to account for on the form yet. I guess Other, unless it's part of the employer's Sick & family leave policy; really won't change your ratio, no matter which line. And, yes, NY starts with Federal wages. Your issue, if your client is working from NJ for a NY employER's convenience, will be getting your client's calendar of work days vs. NONworking days, especially during his paternity leave.

Here is a link for the IRS Interactive Tax Assistant for this credit: https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

from form 2441 instructions To qualify for the credit, you must have one or more qualifying persons. You should show the expenses for each child in column (c) of line 2. However, it is possible a qualifying child could have no expenses and a second child could have expenses exceeding $3,000. You should list -0- for the one child and the actual amount for the second child. The $6,000 limit would still be used to compute your credit unless you have already excluded or deducted, in Part III, certain dependent care benefits paid to you (or on your behalf) by your employer.

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

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

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

In some cases, I have prepared both the 1065 and 706. In other cases there was no 706 to file. In any case, the preparer needs to ensure that the estate is informed of the election and how it works. In regards to the depreciation aspect, I would never trust ATX. I use a separate depreciation program and input back into tax program.

Sometimes that's the best we can do. On another forum, a long-time practitioner said something about always trying to present the "most-defensible" tax return he could. There are times when that is all we can come up with, when the situation is convoluted and especially when prior (well-intentioned but in over their heads) practitioners have made a hash of returns and supporting documentation - or supplied NO supporting documentation, so we've no idea where the numbers came from.

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'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