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Well, Bob brought in the settlement statement prepared when Bob obtained ownership of the lot on 9/08/2020. Don't you know, the settlement statement looked nothing like the story. Sales price 7,000 and Realtor commission was 2,000. Other settlement fees were $500. Bob did put a note in her stuff saying, "Received lot from Ann 9/08/2020." That's the gist of this whole thing. I'm going with Bob's basis is Ann's basis. $5,000. That was my first thought, but Bob kept talking, and I kept thinking. How Ann reported this is not my concern. She may have reported 17,000 on Sch A donations for all I know. Thank you, all, for your input. Stay strong! It's about time for the three clients you hoped went elsewhere to show up with half their stuff. Hugs!

As long as the mother used the distribution to pay her daughters qualified education expenses, I don't believe there is a problem. 529 Plan beneficiaries are not required to be dependents, they can be grandchildren or they can be unrelated.

Avoid HP. They were the standard 25 years ago but are worthless shit now a days. HP will also try to shutdown your printer if you don't use their ridiculously overpriced oem toner & ink.

It would be taxable to me because I deducted the fee on my business tax return.

That's assuming the daughter is the designated beneficiary. If the mother is the beneficiary, you cannot use the distribution to pay someone else's expenses (the exception now is that up to $10,000 can be used to pay off a student loan of a sibling of the beneficiary). The mother could have changed the beneficiary to the daughter before withdrawing the money. I don't know if it is possible to fix it after the fact.

Thanks Rita, your story made me laugh several times and now I have a big smile on my face

Thanks, but the money will be direct debit as soon as e-filed so, assuming the 'overpayment' was applied but not there yet, there will be some money in IRS pockets. I guess we will have to see how it is sorted out with late payment, etc. when the love letters arrive.

@WITAXLADY Your answer might lie in basis. It could be that 7203 does not have correct basis from past years.

Unfortunately Margaret, even though you efile your clients amended tax return, the IRS still processes all amended tax returns manually. So it will be at least 5 months, probably longer before this return gets processed.

Slippery Pencil's warning is timely since HP announced recently that you will have to use their OEM toner and ink with their new printers.

I believe once the irs applies the overpayment, they won't change it. You have to pay the balance on the amended return.

The $750.00 Colorado refund is not taxable for the federal or state and no 1099G will be issued. This was a Tabor ( Taxpayer Bill of Rights) refund.

First time abatement penalty can be used again after four years. Alternative is reasonable cause for a penalty abatement. However I requested the FTA and includes a reasonable cause abatement request due to illness for a penalty on a 2019 return. Both were denied for no clearly stated reason and I have filed an appeal. Covid shut down has prevented any action other than denials of the request for abatement. So every 90 days or so we get a letter saying they need more time to process the appeal. It's ridiculous. The FTA is statutory and shouldn't be discretionary on the part of the agent, but they can't seem to get that fact through their thick heads.

It sounds like they are qualified non personal use vehicles. Any vehicle that is “not likely to use more than a de minimus amount for personal purposes.” Because of its design. They are exempt from substantiation requirements but can only use actual expenses for a deduction.