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@jklcpa I think we need to ask Eric for a section in the site that allows for these questions to be answered for a fee. When these non-professionals come to the site, they could be required to put up a credit card, and then we could generate revenue for the site by answering questions. We could do bids to see who will do it for the least amount. Nice way to fund the site? What do you think? Oh, unodish, in about 20 minutes the moderator is going to post the terms of the site you agreed to and lock the thread. We are not a free advice service. This is a site for professionals who help each other, not the general public. You need a tax professional to answer your question. Tom Modesto, CA

Sometimes the client closes the account . That will generate a check, too.

We know you're special...

Here is a link to the actual text of the 43 page bill: https://www.finance.senate.gov/imo/media/doc/116.S.xxx - Tax Extender and Disaster Relief Act of 2019 - MCG19154.pdf Here is a link to the text of a 5 page summary of the bill: https://www.finance.senate.gov/imo/media/doc/Tax Extender and Disaster Relief Act of 2019 Summary.pdf

I always have a few in the racks waiting for that last piece of info. I will harass them until they get off their butts and shake a leg. It's funny, I always say I won't start a return until I have everything, but that never works as I feel a need to keep moving. Too bad clients don't feel that way.

It's the worst, having to touch a return more than once. If they only knew how much more likely we are to mess up when they dribble in information or change their mind about something after we think we're done...

Yeah, I had to do one of these last year. Sent in the 5498 from 2018 and the 1099R from 2017. Wrote a letter giving the date of the withdrawal and the date of the deposit into the new account. No change letter showed up about 3 months later. Even though the "Rollover" was on the tax return we still got the CP 2000. Tom Modesto, CA

Yes, it does covers both of those, but my mistake was so special I was on my own. I had bank numbers entered and "mail a check" checked.

I use it for a lot of clients, especially for any kind of life changes. I have a lot of clients retiring/buying a house/etc. Every client got one last year. Even for 2019, the standard deduction is increasing; I just used it to check a client that had a tiny refund this year to make sure next year won't have any surprises.

Code 7 doesn't matter. It would't be a G because it wasn't done as a trustee-to-trustee transfer. The software should print ROLLOVER to the left of the IRA/Pension line, but I've seen where that didn't stop the CP2000.

Yeah, I don't start one if I know something is missing, but it seems like every other one I pick up, something is missing. Today: Me: Your Composite Statement from LPL Financial is missing. Lady who actually tried to get me to put a value on empty peanut butter jars she donated to Bible School project: Are you sure? I thought I put that in there. Every. Single. Time.

I have done that very same thing. they always change their mind after everything is printed and done. Yes do forget too as we are interrupted so very often.

Please give notice if this actually passes. I have a ton of returns that need to be amended. UGH!

If they sell the rest of the property within, I believe, 2 years, the entire amount will qualify for the exclusion. I researched this quite a bit when thinking of doing the same with a property I owned.

For all those PMIs we will amend, I will happily do them after April 15 and charge for the amendments. Very few of mine will change because of the increased standard, though.

ATX has a red error message if you forget to check either direct deposit or one of the other methods to get the refund. And one if you check DD but forget to put in the bank info.

AW hell!!!! 7.5% medical is already in the TCJA for 2018 but not for years beyond. The PMI is the big PITA here. AGAIN.

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.

A bipartisan bill combining the usual tax extenders with a disaster relief bill which would be retroactive to Jan 1st, 2018 thru December 31st 2019 is on the move in the Senate cosponsored by senior members of both parties. The bill extends 26 provisions that expired at the end of 2017 and 3 provisions that expired at the end of 2018, including: 1. Tuition Fees deduction reducing AGI 2. 7.5 % Floor Medical Deduction 3. Itemized deduction of PMI as qualifying mortgage interest. 4. The usual Business Energy Tax Credits 5. A grab bag of Disaster Relief Tax Benefits. Unfortunately, there is no mention of any TCJA Technical Corrections.

March 1st. Time to check the closet and extract my collection of spiffy, if somewhat threadbare, ties. The heavy-duty, industrial-strength cases that start drifting in 'bout now expect a little klass for their kale. So, I am in compliance with professional social norms (I've really got to get these dang things dry-cleaned someday - several years of gravy-stain show through here and there). I've been doin' this so long that most clients have stopped asking "Is there a funeral today?" Casual, but with shoes (my usual dress code), is fine too, but this is the one time of year I feel legitimately entitled to pomp it up a bit. Cheers. _____________________________________________________________ To make a fine gentleman, several trades are required, but chiefly a barber. ---- Goldsmith

Under the uniform of basis rules, you will teat the property the same whether from a trust or estate. Your client's basis is the adjusted basis on the final depreciation schedule for the 1041. In regards to you first question, I don't see the point in claiming depreciation for a 2 week period if allowable or not.

Case closed.

Joan is correct. Here is the NOLO site that explains that rule: https://www.nolo.com/legal-encyclopedia/tax-exclusion-vacant-land-around-home.html

Interesting thought. Thanks for mentioning it, Joan. Since the sale of the 6 acres took place in 2018, I have to deal with it as a stand-alone transaction right now. But if you're suggesting we could revisit it and amend the 2018 if the remainder is sold to another buyer within 2 years, that would be very useful info. At $12K in taxes, Probably not enough tax savings to drastically alter their plans, but if they were otherwise ready to sell within 2 years, it might affect their willingness to accept an offer if it could close quickly.

At least CA never conformed to allowing a deduction for PMI, so all of my state-only itemizers are off the hook.

Could it be that the rental half was already fully depreciated? If not, then the ONLY thing to do is recap all the depreciation and file the 3115 so you get the corresponding deduction in the same year. I've done lots of these. And you have to split it. One part is personal and qualifies for gain exclusion and part is rental ie. business property.

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

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

Haven't had this issue. Had a client contact me because they hadn't received their state refund yet...but the Federal hit their bank. So, as far as I know, all my DD's are being DD'd.

A capital improvement is any addition or alteration to real property that meets all three of the following conditions: It substantially adds to the value of the real property, or appreciably prolongs the useful life of the real property. It becomes part of the real property or is permanently affixed to the real property so that removal would cause material damage to the property or article itself. It is intended to become a permanent installation. JMO but a pond is a capital improvement. If you remove a pond it's a capital improvement. If you install and remove a pond because it is faulty - it is a capital improvement. If you install and remove based upon personal preference I have a hard time thinking it's a capital improvement.

My question is whether you can support the position that will yield the greatest tax benefit. Are there other water sources on the remaining acres? If it had been successful, would the pond added a proportionate benefit to the remaining acres? Also look at the other side of it. If he had sold the remaining acres and kept the 6, is there a reasonable position to allocate a portion of the cost to the basis of those acres? The only fact given was that a portion of land was sold that had a direct cost of development and demolition upon it.

Agreed...it is a PITA. But if you['re a non-resident you can allocate your wages, on form IT-203b, based on the number of days you work "Outside" of New York.

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'.

The preparer of the partnership does not determine the 754 step up, that comes from the preparer of the 706. It is the executor's responsibility to inform the partnership of the election amount. Remember a 754 can go up or down and also if real estate part of the step up needs to be allocated to land. I haven't used ATX since the 2012 issues but i recall at that time it sucked at keeping track of the step up and getting the program to just allocate that depreciation to the applicable partners. I strongly suggest an excel spreadsheet, especially if there are multiple 754's.