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Assisted living may or may not be deductible based on the facts and circumstances.

when you have elderly clients, just be sure and ask them (or whoever is handling their paperwork) about nursing home costs. Often for assisted living (as opposed to just a retirement home) all the costs are deductible and you can wipe out all (or most) of their taxable income. Had a client who had passed away and the daughter asked me why we didn't itemize--I had no idea $6k a month out of pocket had been paid for a memory care facility. Was able to amend but it's a mail-in return with an unknown time horizon for when the IRS will pay.

You can not use the installment method if there is a loss. See Pub 537.

I doubt the pay-to-play services take on or get the ability to file the forms directly. At "best", and I use that term loosely, they provide a form or figures for the employer to use.

Marie, please see the instructions for form 8582 under "who must file," "rental activities", "special allowance for rental real estate activities," and the 5 "Exceptions" under "Rental activities" beginning on page 3 to determine if you should be checking the box on the sch E input for "active participation". As you read, keep in mind that there are differences in the definitions of "active" and "material" participation. If you check the box A as "active" participation, it will not allow any of the loss and should show -0- in col G and generate the 8582 worksheet with 8582 line 1d being -0- and 8582 line 3 being the -50K. Then the bottom of that is the lesser of 1d or 3, allowing -0- loss. Right now I think you have it allowing the default of Sch E, box D, and it is allowing the full $50K loss to show up in col i on pg 2 of Sch E as nonpassive.

I have questions rather than answers - Is this one partnership? If one, how is there SE income if it has a loss? Is income subject to SE on the K-1? Are the activities separately reported and then aggregated into one K-1? What boxes are checked for participation, active or passive? Did you include form 8582 in the return? Is there some other income or gain related to this partnership during the year that is allowing the higher loss? Was it disposed of during the year?

What happened to both of you is sick. More and more people are realizing that you just can't trust online reviews. They can be written by bots, family members, competitors, AI, or jerks like you two encountered. I used to chuckle over the HRBlock reviews when clients degraded them because their refunds weren't big enough. And whose fault is that? Unfortunately too many people turn to reviews without a critical eye and believe everything they read. Hopefully that will change as people sense that reviews are too often gamed and not reliable. Not soon enough.

Oregon standard deductions are very low, so unless the taxpayers are renters, most taxpayers itemize.

Don't have a problem with the 2106. Have a new client who hadn't filed in 2 years, did an OIC on her fed a few years ago and needs to do one for the state (no clue why they didn't do it back then). She's broke, does contract work and will owe $7k in federal taxes on her 2 returns because of all the SS and MEDA. She has no way to get caught up. I'm expecting a meltdown when she comes into the office.