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I'd enter this on the balance sheet in the Other Asset section with the caption "Asset Not Yet In Service". Then in 2022, make a journal entry to debit the fixed asset account, credit the Other Asset to remove it, and put it on the depreciation schedule.

I have run into this several times before and I just debit the normal fixed asset account and enter it on the depreciation schedule when the asset goes into service. Works just fine for me.

I would explore letting the old corporation die and forming a new one. Why incur all those penalties for an inactive corporation. This would mean a liquidation of the old corp, so the question becomes, what assets are in the corp?

that means you, too, @BulldogTom and @Abby Normal, despite the short jokes.

I haven't done business returns for a while but why wouldn't the truck be on the BS as an asset? Depreciation or expensing of the asset begins when placed in service but it is still an asset currently, just not yet depreciable. I should think.

You stated that the funds were gone from the checking account. If cash was credited, where is the debit? It should be an asset, right? I'm not clear how the asset could be on a depreciation schedule only. What software is being used? Of course the depreciation is an expense debit and crediting the asset. I must be missing something here as it seems basic accounting, you know, T squares (I'm old school ).

@Max WCan you create an LLC using the same name? "Sentimental Corp" becomes "Sentimental LLC"? Not sure if it would fly, but if there is no one to object it might go through. Just a thought. It would save a ton of tax, penalties and tax prep fees for them. Tom Longview, TX

If any of you ever make it up this way, let me know and I'll make sure there is cake for you. No more apple cake till fall, but I can still make pear cake 'cuz I canned the pears.

Most states will allow the same name, once the old one is surrendered, and the state has likely already done that. MD says you can't have similar names but I see almost identical names all the time.

Yes, it's the same partnership. And, it's my son and DIL's partnership, so a freebie. I can't believe I haven't had this situation before, but as I said in my other post, I prepare only about four business returns. Partnership bought a food truck in 2021, but placed it in service this summer 2022. I know not to depreciate an asset not yet placed in service. But, again, the BS is my weak point. The money is out of the bank account, but I don't put the truck on the return yet, right? How do I balance the BS? (I was doing well with this partnership for years, because I started when they started, with all zeros to open, and had good detail from the partners. Now, I get a problematic list, bank closing balance, and two new items for my limited experience!) Thank you to all who can help me get unstuck on this 1065.

I use Drake's Depreciation module which is part of their tax software, so I can either set it up with the placed in service date blank or under depreciation Method I can select "Not Depreciable" then either enter the placed in service date the next year or change the depreciation method.

I just try to pull a transcript from eservices.

Hi Lion, What I did is: I posted all in liability first then based on 12.31.2021 reported, move it to TAX EXEMPT RRF GRANTS (Other Income). Then, the balance of NOT SPENT yet, will remain in balance sheet till 12.31.2022 when you file the RRF reporting again. Thank you! Kate

I was looking at the Other assets (attach statement). It's going into service now, so I know I can make the adjustments to move it on the 2022 return. (This is my son and DIL. It's always the freebies that take me the most time and anguish!!) Thanks so much, Margaret and Judy.

I uploaded a 2848 and received a confirming letter in about a week and checked on line and it had been posted. If you call PPL and fax it to them, always request that the 2848 be forwarded to the CAF Unit. All they have to do is click a button.

He had fun with his toy, that's for sure!

https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022

I thought maybe they were making butter, or ice cream, and the sheep was doing the churning for them.

Several years ago, when the price of gas spiked like this, the IRS made a mid year adjustment to the mileage rate. Wonder if they will do it again? I wonder if we will get to $1 per mile soon on the mileage rate. Tom Longview, TX

I was hoping it was moonshine

It looks like a rubber buoy converted to a punching ... err, butting bag.

Announced today: https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022 The revised standard mileage rates are: (1) Business 62.5 cents per mile (2) Medical and moving 22 cents per mile The revised rates apply to mileage on or after July 1, 2022.

There is a fence down to the right, so I think it must be domestic Abby

That was a good workout! Is that a wild sheep?

If parents are receiving rent, then yes income. Are they paying fmv rent? Otherwise deductions are limited.

That's what tax preparation feels like...

No way to answer these questions without more information. Basically, it will come down to how the deed was worded (wording depends on the state) and if the home was sold before or after the parent(s) passed away.

1120S filed for full year. 2 K-1’s issued, one to deceased for the period 1/1-DOD, 2nd to estate for the rest of the year.

Have you tried Tax Advocate? but that takes 4 weeks to process the 911 form (someone had a sense of humour! ) Or even better - have the client call them direct - they do not have to send a form in.. One called and was told their refund was held up in the Check Mailing Dept! Seems they are short staffed there.. It was for retention credit. We try to get them to do direct deposit but some insist on checks.. and now that is broke as well - short staffed - she said.

super job! looks great - My landscaping is still in the pots as I still have too many taxes to do yet! d

The 1120 should be filed with income/expenses until the date of death. After that, it's a 1041 because the estate is now running the business. The estate can adopt a fiscal year, which in your case will end June 30 2022 if that helps.

It's a slow moving train wreck headed downhill.

Interesting situation. Even if it goes thru probate, isn't an executor appointed and doesn't someone end up inheriting the stock?

UPDATE: Issue resolved. Taxpayer got her refund yesterday. No notice or letter from IRS as to why the delay, just sent the money to her account. Tom Longview, TX

I've heard from one of my professional groups that the IRS is considering a mid-year mileage adjustment. That will be so much fun breaking out mileage (that clients pull out of the air anyway) into the before rate and the after rate. I use MileIQ, so I have the my dates, and urge my clients to use it or a similar app or notes on their calendar (paper or electronic) or a paper log, but we all know which ones will not follow our directions.