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Being the contrarian that I am, I made brownies yesterday. Actually I was too busy and it was the only lazy-way-not-from-scratch box mix in the pantry. They were really good.

Read the trust document.

Read the Ringers "Splitting Nails" thread stared March 1st. You will see differing opinions of whether to amend or not. Personally I lean toward just adjusting the carryforward numbers. However if it was much bigger adjustment I would lean toward amending.

I don’t think there is any authoritative answer to your question, but I believe you should pick up where you left off in the past; including cost and accumulated depreciation. That way you will have a record of accumulated depreciation if the property is sold in the future. By using the remaining depreciation life, your client will receive a larger deduction per year than if you start over with 27.5 years. As for as the improvements go, I would list them separately and begin depreciation on the date the house was put back in service as a rental.

The EIP payments 1 & 2 were advances of the recovery rebate credit that could be claimed on the 2020 return, and any advances received were treated as a reconciling item of that credit. The credit is still available to the taxpayer. The credit for 2021 is handled in a similar manner. This page should answer: https://www.irs.gov/newsroom/recovery-rebate-credit

Haven't prepared any of my CA clients yet. I enter on the federal return on the same entry area as 1040 Sch A; it then appears on the CA 540 on Schedule CA(540) Part II line 19 Unreimbursed employee expenses, that's "Side" 5 per the form's page numbering along the bottom -- from a client's 2021 return.

What does the trust document say? What has the trustee opted to do? There is an election and statement to be included. I'll look it up and get back to you.

I'm sticking with the desktop version and never moving to the subscription model. I'll go back to green ledger paper first.

I ended up making my favorite apple cake with walnuts. Didn't feel like making pastry for pie crust. It's yummy.

From what I recall, I would think the depreciable basis would be the lesser of the adjusted basis in the house (cost + improvements - previous depreciation) or the fair market value at the time placed in service. Not sure about the depreciable life. My guess would be that would also start over if FMV is less than adjusted basis.

Piggyback / federal / state: The state tax return is attached and transmitted with the federal return, and the federal return must be accepted before the state return can be processed. If the federal return is rejected, the state return will also be rejected. State-only return: The state return can be processed independently of the federal return. It's a common misconception that these returns aren't sent to the IRS—they are. However, the IRS sets aside these returns for processing by the states, in most cases, prior to acceptance of the federal return or the federal return being e-filed. Direct or standalone: The state return is entirely separate from the federal return, and acknowledgements are processed separately. The exception for a direct return state is Illinois, which utilizes IRS common processing through the KC service center. Piggyback only Piggyback/State only Standalone/Direct Arkansas Colorado California Alabama Connecticut Illinois Arizona Delaware Maine Kansas District of Columbia Minnesota Oklahoma Georgia Massachusetts Hawaii Texas Franchise Idaho Tennessee Iowa Indiana Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico New York Ohio Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Virginia Vermont Wisconsin West Virginia

I am on that group but I haven't been paying much attention to it. I should start to look at the postings more. Thanks.

Thanks for comments. I was unaware that the excess scholarship income would count as earned income for purposes of calculating the SD. As a matter of my normal routine, when there is a long wait between completing the return and client coming in to sign the 8879, when ATX forces me to recreate the efile, I always compare the return in the program with my pdf copy I had made previously. When I saw a difference, I starting looking. Yes, Terry, the program must have recalculated when I opened the return.

Yeah me too. Like others, I don't care as it is not enough money to worry about. However, I did not like the $149.00 or whatever it was to renew my EA. I want to know what the IRS does for EA's that whatever the service is costs that much. That fee was more than double the fee a year or two ago. My first year was $67.00.

Well see, there you go. I don't do too many returns like this and was not aware the SD differs based on earned income. Thanks!!!

Yes, someone on the Facebook group reported an issue with the calculation being incorrect, and they fixed it. Thanks for the heads up, and I recommend making friends with "ATX Tax Software Support Group" if y'all have a Facebook account.

Most financial institutions that have 529 accounts allow anyone to open a 529 account for any beneficiary. The person who opens and controls the account is usually referred to as the "account owner". This has caused some confusion, since the law itself makes no provision for an "account owner" who is not the designated beneficiary. If Box 6 on the 1099-Q is NOT checked, then the recipient is the beneficiary and you are correct that it should match the 1098-T. But if Box 6 is checked, the recipient is the account owner who is not the designated beneficiary. But the proceeds must still be used for qualified expenses of the designated beneficiary to be tax-free.

Not sure that's true. From the 1099-Q instructions: Box 6 should tell you if the recipient is the designated beneficiary.

I’m having Apple streusel. Thank you for the reminder, I may have forgotten…

I look forward to buying a gas station coffee with my refund... or a small box of mints.