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Act like a very "high brow" accountant, have your assistant do the data entry, and then "charge them to the nines". If the IRS questions the donations on their return, "charge them to the nines" again for your defense. Tom Modesto, CA

Tell them it's not reasonable and send them this link: https://satruck.org/Home/DonationValueGuide They can use the high column if they feel it's appropriate. I had to do the same thing last year, and my guys have been doing this for years, before they came to me. I told them I was trying to protect them from being audited. But at least they gave me an itemized list. I did a spreadsheet and came up with a % to reduce their numbers by. It doesn't matter that it was expensive to begin with. Thrift store value is market price.

That's what Jesus would do.

Actually, do what Abby says. I was just trying to be funny. Tom Modesto, CA

Maybe in addition to the codes for thrift sale price, or consignment shop price, we need one for overstatement of value by taxpayer against advice of preparer. That wouldn't throw up any red flags, I'm sure. And then IRS could develop an algorithm for how high it has to be before they decide to audit. JK.

ACTUALLY, I already DID that part! My assistant is the one who flagged it! LOL LOL My next course of action is to do what Abby said. I won't file it like it is.

We almost always take mileage the first year to keep our options open. This requires you to use SL in any years of actual. One thing really nice that ATX does is calculate the depreciation component of standard mileage. So at disposition, you have the correct depreciation, even if you used actual some years and mileage in other years. Mileage doesn't decrease when the vehicle is fully depreciated, so on a cheaper vehicle that you keep a long time, you can get something for nothing.

Remember, that actual Expenses might produce a larger tax deduction one year, and the Standard Mileage might produce a larger deduction the next. If you want to use the standard mileage rate method, you must do so in the first year you use your car for business.

^ Yes, what Abby said. With multiple accounts, I have individual line items on the 8949 for each short or long grouping that ties back to each account, and I use a simple description something like "S/T - basis reported". The description is redundant since it shows in that section of the 8949 already.

I've generally used 25% for our donations. 25% of what WE paid; not what it would cost today.

Love it! I'll use that one for my guy who listed windows for $850 donated to a Restore type of place. Original price $1,200. "They were new never used" And $350 for a bike! UGH!

I have always used 1/3 on the 8283 - maybe I need to go to 25%!! D

I've rarely done this in the past, but I've already done this twice this year. But if they also have any other codes, or multiple brokerage accounts, I put them ALL on 8949 so I can match totals on the Detail tab.

Yes, as long as basis is reported to IRS, and there are no codes and dollar amounts for adjustments, then totals can be used. I've had some with all basis reported and with tiny amounts for wash sales that I still reported using only totals and never heard from IRS. If they ever ask, I'll send that page of the broker summary. Gain was correctly reported.

There are a few more restrictions, mostly related to depreciation, beyond using the mileage method the first year that may disallow using mileage in future years. Tax Topic 510 gives an overview: https://www.irs.gov/taxtopics/tc510

Each car stands alone. Each year can stand alone, if you use standard the first year.

The "sale" for below FMV was a gift, but an incomplete gift IF mom still lived there, paid the bills, acted like the owner. Incomplete gift goes into her estate at death and gets step up/down in value.

Bingo; that's the crucial part. Yes, good suits will run that $850. Custom three piece, double that price. But the thrift stores don't care, and won't charge more for a "bespoke" suit than for an off-the-rack Sears special.

I tend to 1/5 or 1/4 depending on how quickly an item might wear out (winter boots - fast, jewelry - slow). If a client uses something like that, I'm good. Otherwise, I hand it back to them with a valuation list from Goodwill or Salvation Army or tell them to get one from the charity they used and revise their list. I have a LOT of trouble getting clients to give me their ORIGINAL prices, though. They give me lists with the used prices. If the used prices seem reasonable, I use my 1/5 or 1/4 to gross up to the purchase prices.

That is not an unreasonable price to pay for a good suit. Even a cheap suit will run 200-300 at JC Penny. A good silk sportcoat will go for $300-$500 at a good retailer. I would not be surprised that someone who dresses well would pay nearly $1K for a nice suit. But then I am in CA, so maybe that makes a difference. On the other hand, Goodwill will charge about $50-$100 for that same $1,000 suit. Tom Modesto, CA

That was the big shock.... she listed what she paid for each item. And she paid even dollar amounts. One men's suit, $850. It is laughable, really.THREE. PAGES.

But, might file a federal 706 for "portability." So, we do need to know what should be reported on a 706 and what does not have to be reported on a 706. Good topic.

The SE income question would depend on what the other income was for. I've seen 1099's where box 7 is used when it really should have been in box 3 and and not subject to SE tax. If this for one time activity and they are not regularly, frequently or continuously engaged in the activity they were paid for, no SE. I would file even if there was no SE to avoid a love letter form the IRS down the road.

I think the losses stay in the estate or trust until the final year, but I'm not sure. Just saying, you'll want to research if your clients are anxious to use the loss. Also, do trusts follow the new rules about no CB, just carry forward? Not any help, I know, but I move it back to the top for you!

Rita and Gail are correct. If mom lived in the home, paid the bills, etc., there was an implied life estate. IRC Section 2036 states that such "paper only" transfers are subject to estate taxation. Property included in an estate is assessed at fmv on date of death, which is what the heirs inherit as their basis.

If you are talking about different tax years. Yes, you can change from mileage to actual expenses. I assume your client wants to do this due to the depreciation that can be claimed on the new vehicle. Always run it both ways to see which method is best.

1099-misc could be other income but still tequired to file

If it was a completed gift, the children's basis is the parent's basis the day before the gift. If the "gift" included a life estate, written or implied, the children's basis is the DOD FMV. If a 1099 arrived, report it.

If mom remained in the home, I think you have an implied life estate, but others know a lot more than I do about that.

When my daddy died 19 years ago, he left each of 5 children $2000. The first $1000 came right away, the second a year later. I took the first $1000 and bought a printer and a laptop, and made a spirit promise to my daddy that I would one day earn enough money to support myself. I started with less than 50 clients. I have over 500 today. I don't know what I would do if I had parents who gave me a house. I'd probably be homeless by now. Thanks, Daddy. I know you're proud of your "Possi." (The nickname he gave me)

No - you add the amounts from BOTH 1095A forms to arrive at the figures to put in columns A & F of Form 8962. Both 1095 A forms should have the same amount in Column B so you use that amount (don't add the two forms) for column B of 8962. Be sure you actually have two different 1095A forms and not 2 copies of the same form.

(Column A - add amounts from all forms 1095-A and enter the total; Column B - all 1095-A forms should show the same amount for the SLCSP premium so enter the amount from column B of only one Form 1095-A; Column F - Add the amounts from all 1095-A forms together and enter in column F) FROM THE INSTRUCTIONS FOR FORM 8962: "Column (a). Enter the annual enrollment premiums from Form 1095-A, line 33, column A. If you have more than one Form 1095-A, add the amounts together and enter the total on Form 8962, line 11, column (a). This amount is the total of your enrollment premiums for the year, including the portion paid by APTC. If you or a member of your tax family was enrolled in a stand-alone dental plan that provided pediatric benefits, the portion of the dental plan premiums for the pediatric benefits will be included in the amount in column A on the Form 1095-A that reports the coverage in your primary health plan. If your plan covered benefits that are not essential health benefits, such as adult dental or vision benefits, the amount in this column will be reduced by the premiums for the non-essential benefits. Column (b). Enter the annual applicable SLCSP premium from Form 1095-A, line 33, column B. If you have more than one Form 1095-A, enter the amount as follows. • If individuals in your coverage family enrolled in more than one policy in the same state, you will receive a Form 1095-A for each policy. The Marketplace should have entered the same SLCSP premium, which applies to all members of your coverage family, on each Form 1095-A. Enter the amount from column B of only one Form 1095-A—do not add the amounts from each form. However, if you got married in December of 2019 and you and your spouse, or individuals in your and your spouse's tax family, were enrolled in separate qualified health plans, add the amounts from Form 1095-A, column B, for each plan (or plans) and enter the total. If you got married in a month other than December, your applicable SLCSP premium may not be the same for every month. If it is not the same for every month, you cannot use line 11. • For individuals enrolled in qualified health plans in different states, add together the amounts from column B of the Forms 1095-A from each state and enter the total on Form 8962, line 11, column (b). Column (f). Enter the APTC amount from Form 1095-A, line 33, column C. If you have more than one Form 1095-A, add the amounts together and enter the total on Form 8962, line 11, column (f)."