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Are you familiar with the firm who generated the K-1? Or the preparer of that return? For a prospective client, I'd probably say we're not a good fit. Goodbye. For an existing client that I like and respect, I'd dig a little deeper.

That is correct, I think of 1245 and 1250 as subsets of 1231 property. Sec 1231(b)(1) includes property "of a character which is subject to the allowance for depreciation provided in section 167, held for more than 1 year". Section 1250 applies since 1250(c) states "the term “section 1250 property” means any real property (other than section 1245 property, as defined in section 1245(a)(3)) which is or has been property of a character subject to the allowance for depreciation provided in section 167." Therefore, the undepreciated portion of the building and land are taxed as capital gains. Because of the above definitions, the rental does not need to rise to the level of a trade or business to be classified as either 1231 or 1250 property.

The full release of Drake tax software for 2023 is now available. Let the fun begin!

Received! Weird when a company calls before 8am.

Thanks for the update. I buy from a reseller and they remotely install it on my laptop. Guessing I'll get it later this week but never really know when they will call.

I will get to it in about 4 weeks after all my 4th quarter and year end payroll reports are done

Follow Lee's instructions. It shouldn't be a problem as we can't file until around the 24th anyway. Take a deep breath; read the directions slowly and do as instructed.

Thanks for all of your feedback. Decided to go with Tech 4 to get this done correctly.

Be careful when saying "WISP" to an IT person. For them, it will generally mean a type of router that connects to a Wireless Internet Service Provider (WISP).