Leaderboard

Thanks for the update. So,, HP is joining the Intuit, Microsoft bandwagon......

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!

@RitaBWow. I want an angel like that in my life. Can you introduce me to Ann and does she have any more lots? But to your question..... OK, you could say that Bob received 2 gifts from Ann ( 10K first, then 7K later). He used the 10K gift to purchase the property. Basis is 10K. Or, under the substance over form doctrine, Bob was gifted the property, in which case Bob gets the basis of the person making the gift. Basis is 5K. I don't get to 3K basis, how did you come to that conclusion? Not criticizing, just wondering what your thought process is to get to that number? Did I miss something? Tom Longview, TX

Ann paid $5,000 for a lot. Ann engaged Realtor and listed lot for sale for $10,000. Bob expressed interest in the lot. Since Bob is a dear friend of Ann's, Ann wanted to give Bob the lot. But Ann is, yes, in fact, an angel, and she also wanted the Realtor to make $3,000. So Ann gave Bob $10,000. (Ten thousand dollars.) Bob purchased the lot with the $10,000; and Realtor got $3,000 commission. Ann received $7,000. Ann then gave Bob the $7,000. (Seven thousand dollars.) So, of course, now Bob sells this lot, and if you thought that explanation was tedious, you should have heard Bob tell this (not her real name, and she's a hairdresser). Is Bob's basis $3,000? Because I think Bob's basis is $3,000.

Ann gave up her lot + $3,000 cash. Bob ended up with just the lot and assumes Ann's basis of $5,000 because he gave up nothing, so the lot was essentially a gift, despite the semi-elaborate transactions.

I usually buy whichever Brother printer is being discontinued for $99 and then use generic toners and drums. Rinse and repeat.

Don't update the firmware or drivers on your HP printers. If already updated, roll back to the previous firmware or driver. And whatever you do, uninstall or don't install the softwares that come with your printer. Those softwares are nothing but trouble. An article on HP firmware updates and how to avoid them: https://www.cartridgepeople.com/info/hp-firmware-update

My understanding is that the Ten Year Rule does not apply to spouses. The surviving spouse can make an election to be treated as the owner not the beneficiary in which case the RMD is determined as if he was the owner at the beginning of the year of the election. Here's an IRS explanatory chart : https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries

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.

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

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

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.

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.

This happened once before. I don't believe it would be taxable because it was paid for with after tax dollars. However, I don't know and I don't care. Give it to a worthy Charity and call it the "Great Tax Preparers' Donation Act".

I have a Brother HL-L2325DW, laser, which holds half a ream I think but love the double-sided copies it can make. It has a smallish footprint and is perfect for my small practice.

I use the Brother 6200DW and I like it. It also holds a full ream of paper which is a plus for me.

Sounds like time for a side by side, line by line comparison. Distributions with ample basis should not change anything but basis, but as has already been suggested, perhaps your AMT basis worksheet is wrong.

It would be a taxable refund. It wouldn't bother me if I didn't receive a penny. It wasn't that much anyway.

I am sure the IRS will appeal this. It will be in court system forever.