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Finished up a couple of loose ends in the morning then took one of those naps where you sleep so deep that when you wake up you have no idea where you are, what time it is, or how long you slept. Turned out to be almost two hours.

If the client used MACRS, there isn't depreciation recapture on the real estate portion. Instead, basis is reduced by the depreciation allowed or allowable, increasing the cap gain. Gain is calculated on 4797, not the Sch D worksheet, and transferred to Sch D. If they used ACRS, different story.

Expenses for repairs and renovations prior to being placed in service must be capitalized and depreciated. IRS Reg. § 1.263(a)-2(d)(1)). Repair expenses after being placed in service must follow the repair regs, and Abby Normal's second link takes you to the IRS page as a starting point. I agree with Margaret that you should segregate as much as possible because there may be some items may have shorter lives (such as kitchen appliances) vs improvements or items considered part of the building that are depreciated over longer lives.

And sidewalks, driveways, fences, etc. are land improvements depreciated over 15 years. Of course, valuing those would be difficult without a cost segregaton study and that may not be worth it for these properties.

I keep seeing headlines in the local papers about SRO issues in the county - referring to School Resource Officers but my brain immediately thinks standing room only, which makes some of the headlines incomprehensible.

I renew by May 31st each season although I note others have posted receiving the same discount in November I believe. I have used ATX and their prior Saber program for many years and although running into a rough patch in 2012 it works for me.

Yes. Peace of mind, if nothing else. With the cost of all supplies increasing, every dollar saved is critical.

What Catherine said. I am waiting for someone to post what the heck that is....just have not had the time or the inclination to look it up myself. Tom Longview, TX

You're way ahead of me, @jasdlm because I haven't a clue what a Section 897 Dividend is and would have to look it up if I ever saw one. Thirty years of doing tax returns and not something I have ever run into.

Also hate doing the books for people who think running it thru the bank account converts a personal expense to a business expense.

Adjusted Gross Income or Artificial Generated Intelligence Aren't acronyms wonderful?

I signed up for an id.me account yesterday and it was quick and easy, and kinda cool. Of course, I have a smartphone. I've had one for 20 years and would be lost without it. Id.me is a universal login for federal sites. I'll use it for eservices and ssa.gov mostly.

the new method is really a mess

I also replied to this topic on another thread. I've been trying to get into BSO for a month with no luck. I go through the whole verification process using log.gov and then instead of taking me to BSO, it takes me to my personal Social Security account. When I called customer support they told me to try id.me instead of log.gov. I tried to go through the id.me validation process but I don't have a smart phone. You need a smart phone to get validated by id.me. I only have to do W2s for two employees. I'm considering just using a site like pdffiller next year. It just amazes me that they could activate this new login procedure without having all the bugs worked out.

Congratulations, friends and colleagues - we all lived to tell the tales and file another day. Take it easy today. I set up some payroll taxes and will dig out a couple of bills that probably need to be paid in the next week or so, and then I'm gonna play hookey for the rest of the day. Here's a congratulations gif that I couldn't figure out how to embed. Hooray!

And look into segregation of items that could have different lives but have to be identified.

Are you talking about a sole proprietorship? If so, health insurance can be a line 17 adjustment if certain conditions are met. There is a worksheet in the 1040 instructions (and in ATX). Yes, Schedule A is an option. Partners with earnings subject to self-employment tax can also be eligible. Where people tend to get in trouble is with S-Corporations, very specific rules to follow.

At a minimum your questions deserve a 4 Hour CPE class

The repair regs did open up a lot of things to being expensed, but there isn't quite enough info to decide. Here's a related article: https://www.thetaxadviser.com/newsletters/2021/apr/expensing-hvac-costs.html Here's the pertinent IRS page: https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations

That sounds like improvements, depreciated over 27.5 years for residential rental property. The post implies that they did the work before they rented out the property, which makes me feel more strongly that is part of the acquisition cost and depreciated over the life of the building. Tom Longview, TX

Everybody should know by now that running it through the bank account isn’t right. The only proper way to convert a personal expense to a business expense is to charge it to a company credit card.

Although I don't gamble, I want to be that person. Both of my parents lived into their 90s as well as my maternal Grandparents.

I will probably do the same. I have been looking at other programs and have already turned down ATX. However, due to my age, as well, I will most likely bite the bullet. Just get it over with, move on to finish the extensions and enjoy a happy summer.

I ususally renew by May 31. With only a few years left, I don't want to change so I just get it out of the way.

Yes, May 18th. Her mind is good, which I think has something to do with her gambling habit. Always a card player like her father who lived to 91. I taught her dominoes many years ago because it involves more thinking and strategy. At her age I’m always amazed when I leave with less change in my pocket. But if I do win she hits me with “Aren’t you embarrassed taking money from your old mother?” During Covid she fell in the house, fractured her pelvis pulling out a card table when her friends came over. In Rehab she got in trouble for setting up card games in a corner of the Physical Therapy facility. I got a call from the administrator who said, Please tell Olympia there is no gambling allowed in here, especially during Covid. She’s a real character. I also think her 3 ounces of daily wine doesn’t hurt.

Wow, I can’t believe your mom is 99!

On Monday I visited with a 100 year old client for about 30 minutes as I dropped off his taxes. What a joy that was. He has a lot of health issues but what a terrific outlook on life. He was telling me stories (with names) from his college fraternity years before WW2 and after his service years. That was a fun part of the day.

You have a fine looking Mom, Bill. Bless your hearts.

Have a wonderful, wonderful visit with her!

So glad it’s over! This morning as every year I leave MA at midnight to spend a few days with Mom in NYC after being away for nearly 3 months. She’ll be 99 in a few weeks and all she wants to do is play dominoes, Bingo and drink my homemade wine with no sulfites. A tradition I hope goes on for as long as I am in this business. Photo is not long ago.