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My wonderful wife has finished my new quilt. It is on a King Size bed in the picture. My wife is the bomb. Tom Modesto, CA

"Because the gross rental income test is “for the taxable year”, the 80% test needs to be calculated annually. The difference in depreciation rates for residential rental property vs. nonresidential real property can be considerable. If a change in use results in a shorter recovery period and/or a depreciation method that is more accelerated than the method used before the change in use, the taxpayer has two options: The taxpayer can compute the depreciation allowance using the shorter and/or more accelerated depreciation method in the year the change in use occurred, or The taxpayer may elect to continue determining the depreciation allowance as though the change in use had not occurred. These options provide a planning opportunity to suit a taxpayer’s need for larger or smaller depreciation deductions. For example, a taxpayer with excess net operating loss carryovers might not be able to use the maximum depreciation deductions permitted and may want to use the longer, less accelerated depreciation method. On the other hand, if a change in use results in a longer recovery period and/or less accelerated depreciation method than before the change in use, the taxpayer must compute the depreciation allowance using the longer and/or less accelerated depreciation method in the year the change in use occurred. A change in computing the depreciation allowance in the year of change for property subject to Regs. Sec. 1.168(i)-4 is not a change in method of accounting under Sec. 446(e). A taxpayer needs only to complete Form 4562, Depreciation and Amortization, in the year of change. However, the regulations under Secs. 446(e) and 481 apply if the taxpayer does not account for the depreciation allowance in the manner set forth by Regs. Sec. 1.168(i)-4 or revokes the election to disregard the change in use. If Secs. 446(e) and 481 do apply, the taxpayer should file a Form 3115, Application for Change in Account Method, to request an automatic change. Property affected by the change-in-use regulations is not eligible for bonus depreciation deductions in the year of change, Sec. 179 depreciation (which allows you to expense certain depreciable business assets and is generally not applicable to residential and nonresidential property), or Sec. 1400L (tax benefits for New York Liberty Zone property). Additionally, for purposes of determining whether the mid-quarter convention applies to other MACRS property placed in service during the year, the change-in-use property is not taken into account."

Thanks! Retirement is wonderful....I don't pay attention to what's happening in the world of taxes. As for my issue....I have a feeling that the original and the amended crossed. I told my son I'm perfect, I don't make mistakes!!!! Happy July 4th everyone..............

New penalty content landing page on IRS.gov: In an effort to provide you with additional penalty guidance to share with your clients, the IRS has redesigned and expanded the penalty guidance content available on IRS.gov. Visit the Penalties web page for information related to many common penalties. https://www.irs.gov/payments/penalties

Look at the core strength, too - holding those little legs way out in front above the couch. How many of us could do that? (Or laugh that freely and joyously at wonderful silly things like ripping paper.)

That’s funny, I react the same way when using my shredder