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In the bill the senate just passed (making it likely to become law when the favorable house votes on Friday), it looks like the energy credits for EVs will be applied at the dealership--leaving tax pros and the IRS out of it. YEA!!! Of course, buyers will most likely have to provide the dealership with tax returns to verify AGI --not sure if I'd want to do that. Also, they will only be able to provide the return from the prior year, and I don't know if the bill will determine eligibility for the credits on the prior or current year AGI. Yes, we will have to learn a lot about the application of the law to explain to clients, but at least we don't have to determine if the car or buyer qualifies and calculate the credit. This is a rare social policy initiative that congress hasn't dumped on the IRS; they too must be relieved. Now if they would just get EITC out of the tax administration system and into social services where it belongs....

I'll upload a new one (possibly today) - but note that I am still using Excel 2007. Never saw a need to/reason for upgrading past that.

Not quite! They have to meet the MAGI limit for both the prior and current year. And they just added a claw-back provision so that if a TP gets the dealer rebate, but don't meet the MAGI limit in the current year, they must pay back the rebate as an additional tax. Of course, everything could still change, and the rebate provision doesn't start until 2024.

Hi Schiralli, You know NYS Sales Tax collection is very rough. They wont listen that who is actually running business at all. It is very hard to prove your client did not involve the business, and there is no filing of change responsible person. They will only look at who is the responsible personal registered. I think he cannot get away from that. Hope he can recover from that 'real owner'. If he cannot pay, may be do a OIC? Thank you! Kate

The posts with political undertones have been hidden. Please stick to the proposed law as it applies to taxes and affects your clients or practices. Thanks.

But she got the money.... I could see if she received the letter and no check. Why would identity theft send the money to the correct person holding the SSN.

Subaru Outback or Crosstrek drive like cars. The Forester drives like a truck. Crosstrek is the smallest if you're driving narrow, winding roads. After a Subaru DL wagon in the 80s, we're on our fourth Outback now. All our former cars are still on the road with other owners.

cbslee, I would agree but the OP said the daughter received the payment just not the letter. Following to see how this comes out.

And also congratulate themselves for saving the taxpayer's money by cutting funding to the IRS for new staff and computers.

As others have said here in the past, there is zero point in spending time on a proposal until signed into law...

I don't roll them over until they come in. Chances are better of having updated forms.

Cheater! Tom Longview, TX

Heads up. NYS is giving eligible employees a bonus. Catch? it goes through payroll, but is not subject to NYS or NY local taxes. <Vent> I can see employers handling it incorrectly, and including the amount in taxable wages for NYS and NY locals, and maybe even withholding on the bonus, with employees and preparers having to fix. Employers have to apply for the money, then pay it out when received from NY. Hard to imagine something more complicated. To me, would have been more sensible to give a tax credit, but then again, their method relies on employers doing the verification, payments, paperwork, for free. Just like the Covid PTO was "no cost" to employers (ha)... </Vent>

Yuk! Thanx for the heads up.

Speech to text function on my phone.

You beat me to the post. You must type fast..... Tom Longview, TX

Just to start the conversation.... At time of inheritance in 1987 wife gets full stepped up basis to FMV from decedent. At some point, W gifted half to H (per the recording document), and the basis in his hands is the same as it was in hers. So you need to find the 1987 FMV for your starting point basis. In 2014, because NY is not a community property state, I assume he inherited her half. He gets 50% of 2014 FMV basis for her half. Assuming there were no improvements or other changes to basis in the intervening years, the calculation is 50% of the 1987 FMV and 50% of the 2014 FMV. Tom Longview, TX

In 87 when wife inherited the property, wife essentially gave husband a gift of half of the property's value at that time, so his basis is the value at the time of wife's inheritance. Then when wife dies in 2014, husband gets a step up of the other half of the property that was titled in the wife's name that passed to him. Summary: For husband's purpose of this sale, half of the property is at the 1987 inherited value, and the other half is at the 2014 value.

Found it - but my computer didn't like it and would not open it.

You are correct, and that is why many times I will not give a firm answer but am willing to share links or leads to the applicable law. It is up to the preparers to draw their own conclusions as to how the law applies to their specific clients' cases. In this case, I did want to point that out since the letter was from 20 yrs ago in case some reader looks at it and doesn't notice.

I've yet to see anywhere that this isn't still the case.

In my client's case, I know exactly why it is being held up (and I completely understand why). I can provide all the backup documentation for the position taken on the return so they can make a decision. I am ready to go to appeals if they deny, and tax court if the appeal is denied. When I got through to the PPL (32nd phone call over 2 days), the PPL rep told me they cannot pull the return from the department where it is held and they can't take any info from me until it is released by that department. You can't fix something if the IRS is unable/unwilling to work on the return with you. That is why I am asking my client to call their Representative. When I first got my EA license, it was not this way. The PPL was the ticket to quick resolution of disputes. There seemed to be a more professional relationship between representatives and IRS agents on the PPL that we were both working to clear up the issue and move the return to the next point in the process, either a proposed change to the return by the IRS or no change and accept the return as filed. The returns we worked on represented both our backlog and it made sense to work together to clear up the dispute. How I long for those days to return. Tom Longview, TX