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What is the downside of assuming that 1099S was issued and reporting it on 8949 with exclusion code? That's what I do. Better than client getting a letter in a couple of years. ( and then me having to deal with it then)

Exactly, and I don't like to report anything to IRS that isn't required or necessary. Since I'm unsure, it will be reported. The post was as much as rant as anything else. Part of my annoyance is that this person comes to me every few years and does her returns by hand in other years. She makes little mistakes here and there, and she carries out the results to include the cents. I'm just really fed up with people in general right now.

I always report them, regardless of 1099-S. Then no chance of a notice later.

I put it on the return. Quick and easy.

I am seeing most lawyers around here include a substitute form 1099S in the closing packet. Then the client tells me they never got a tax form, and even if they look through the packet they will most likely overlook it because it doesn't really look like a tax form. I usually just put it on the return figuring what can it hurt?

I would amend the 1065.

This sounds like a client that deserves a significant fee increase !

Wage & Income transcripts are not available until the end of May and the issuer, being a lawyer probably wouldn't have reported it to the IRS, anyway.

She's a NR for MA. If you are not required to file (I don't know), there still might be enough state tax withholding to file and get that back. It's just a consideration. If NJ taxes all income, including MA, there's probably a tax credit for taxes paid to MA.

I would agree. But I am not an expert.

In my opinion, these were legally contingent expenses at the time of closing , however the $ amount was unknown. In accrual accounting these expenses are estimated , for example, warranty expenses. In this case, if the installment sale is still on going, it would be an adjustment to the gross profit calculation. If the installment sale has been completed then the final year of the installment sale should be amended.

Sch B. 1099-INT.

Depends. Appearances on: Milian - produces smiles, other income, line 21. Judy - the judge should get a 1099 for your emotional distress. Springer - no 1099 should be issued since your physical injury is not taxable.

No worries, jasdim. Most of us, me especially, have made similar mistakes. Our brains fart and, well, sh*& happens! But we are so lucky to have this great group to set us straight - with love, yet! And we can't be all knowing all the time - well, there are a couple on here that come mighty close, though.

Thanks, Joan! So for the moment I will assume that $17 is included in the 2018 W-2 wages and keep track as basis for such time as she sells the restricted stock?

Thanks, DANRVAN. There was always the intent to rent the first floor apartment and client has identified specific costs for walls, flooring, radiators, painting, etc. which I can isolate as improvements at 27.5 yrs but believe I still have to depreciate the allocated rest of the building for the common costs of new roof, gutters, plumbing, etc. The appraisal does have a note that says something to the effect of about $30K in recent improvements which would have been the first floor apartment costs. So I will look at the balance of the incurred costs to Jan. 2018. I will look at the section you referenced, too. They are coming in soon to review all this. And in 2019 are adding on a porch which is also accessible by private door from the apartment. I think that should be an allocated improvement for 2019. Thanks again to all for input.

I wouldn't file. But, I would make a note in each client's file. Who knows when a divorce might make one of the "kids" want the money from parents back and you'll need to remember that they were legal gifts!

It depends. If the intent from the beginning was to rent a portion of the building then I would say use cost basis. Otherwise, if the intent was to use it as personal and later decided to rent it out, then the conversion rule of reg 1.168(i)-4 might apply. But in this case where the rental portion was never used for personal purposes I would use cost basis regardless of the appraisal. Reg 1.168(i)-4 only apples when there is a change in use.

It's not the dividends, it's the spread between FMV & cost. They only get dividends once they own the stock and that's reported on the brokerage report. The box 14 is basis because it's been reported as wages.

That’s where it’s going. Overthinking, and they are going to owe around $2k due to underwithholding. Ugly.

Ding Ding Ding Ding! We have a winner!! Now I have plenty of time to work through them. They are usually the most messed up of the season!

She is a teacher in her day job, and she does this every year for the same company. She gets paid; she's not volunteering her time.

It seemed obvious to me as well but the fact that she isn’t actively pursuing this as bonafide business and Catherine’s comment about an appearance fee got me overthinking the thing.

Schedule C. Or line 21 WITH SE.

Still 50/50 owners, 50/50 per operating agreement, 2019 board minutes for 2018 okay the change, approved my board members change in profit %. Based on the research I have done, i am getting conflicting information.

But, you also have the ownership of capital percentage. Is that still 50%/50% or did one partner buy out the other's capital ownership? The profit percentage does not have to be the same as the capital percentage.

But, please don't tell that to my grown kids!

August 12th at the earliest.

I put then as 'other allowable insurance'. Created an itemized list.

We enter all medicare premiums directly on Sch A and label them as such to avoid confusion on the organizer next year.

6252 for reporting gain.