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I got home from work today and there is a message in my inbox from one of my clients. They are selling the rental and want to know what the tax consequences are. I tell all my clients to talk to me before they do stuff like this, and it warms my heart when they actually do. Now I can save them from the 3.33% CA withholding on the sale. Tom Newark, CA

Make sure you point out to them "how smart they were to ask."

Helps explain why I often don't know whether I'm coming or going.

5/10/15 5/11/15 5/12/15 5/13/15 5/14/15 5/15/15 5/16/15 Every day this week will be the same forwards or back.

It's been several years or more since I tried calling the IRS. I have had good success dealing with them by mail. It's slow, but so far so good.

Nothing you can do about dumb/stubborn clients except use the Planner to print out the results from each option, then let them fight it out among themselves. Putting it on paper sometimes works. If not, at least you did your job, by giving them the facts.

Call your sales rep. Their online renewal system is ultra lame on its best day.

There's a chunk of Latin filler text that's very commonly used in graphic design, called Lorem Ipsum.  It visually flows like real copy would, better than a bunch of unnatural looking random character gibberish, but doesn't distract the viewer with unimportant (at that point in the design process) details/meaning. This is a variation on that called Bacon Ipsum--apparently it only satisfies the first requirement for good filler text but fails miserably for being a distraction. And now I'm hungry too.

Arrgghh! I figured out what the problem was. On Part IX I indicated the grant was to domestic individuals instead of domestic organizations. I sure wish this stupid computer would enter what I intended to do instead of what I actually put in. Stupid computer What I don't know is why the Check Return routine was linking back to Part IV instead of Part IX where the error was.

It does sometimes seem like brokerages and PTP's have a spy at the IRS that tells them as soon as the return has been filed and accepted so they can then send either this unexpected K1 or a corrected 1099. Must be some kind of joke that I don't understand. I ain't laughing.

It's a debatable topic. I have several H/W LLCs that I disregard and put on Sch E. First off, it will not likely be raised on an audit. Second, the IRS has no tax to gain by moving it to a 1065. Third, we have automatic removal of late filed 1065s if all income is timely reported by partners. I'm not worried.

The corporation, not the shareholders, will be the exchanger in the 1031 transaction. Do the bylaws require 100% shareholder approval? After the exchange, then what? You still have a C corporation owning low basis real estate. With LLPs as shareholders does the corporation even qualify for an S election? Since there is no corporate level capital gains rate, the option to sell stock at $2.5 might seem more attractive.

Have the existing partners buy out the Stubborn partner beforehand, and then do your property sale and then 1031. Rich

I'm heading to the kitchen right now, the bacon is calling me.

​NOW THAT WOULD BE A REALLY VALUABLE COMPUTER. We would all pay a lot extra for one of those, I bet.

​Just be glad they bring them to you, Rita, because the time they don't will almost always be one of the few times they really should have!

I do know of lorem ipsum - but the bacon was a *serious* distraction.

Eric, how COULD you?!?! Now I want bacon. And steak. And a grilled burger. And lots of other yummies that I should not eat - at least, not all at once! Next time you feel the need to do something like this, use chores like dusting and laundry as your list. Or (if you think people will then feel guilty), something innocuous like plant names.

Who snapped my pic this morning before I dragged a comb through my hair? Ya gotta admit, my hair ain't too purty, but my eyes sure is!

I have many clients tell me how they are making money from them, because of the monthly/quarterly distributions. Then I show them that it isn't coming from INCOME, but from PRINCIPAL. Usually 50-60% from Principal. And I ask them who are they selling these assets to when they want to get out? That always makes for a great Client "face". And did we notice how many clients have these K-1's THIS year? Because the sharp guys on Wall Street were dumping them. Oil market/prices are going down, so sell these assets that were going up, that are starting to go DOWN, to *our* clients. Thanks big brokerage firms.... You just stuffed the investment dreams of your clients. Rich

KKR sends its K-1 about April 30. I sold it in the margin account and bought it in the IRA account to avoid this in the future.

I second what everybody is saying, plus I will add that the recipient ID number on all the ones I see are not my clients' SSNs. That always makes them feel better when I'm telling them, "No, I don't need to amend your return since you got this two days after filing..." (Every. Time. Grrrr.)

Actually, I have a client that had one that was a registered tax shelter with low income housing credit . They saved a bundle in taxes over the years, and I think now they are actually getting a small amount of income from it. That is the only one I have ever seen that I thought was worth the trouble, and I think that the same situation now would not lead to the same results due to the changes in the tax laws. But it has given me a lot of respect for the investment adviser that client uses.

I don't use ATX, so I can't be sure. You said you completed Sch. I. Did you complete Part I and Part IV? Would it be at all helpful on Part III to show "none" as the type of grant or assistance to individuals and 0 as the number of recipients and amount? I don't really know what you need to do that you have not done. ¯\_(ツ)_/¯

Has anyone ever seen one of these PTPs that really made money? Because I sure haven't. I think they're so complicated that most people can't tell if they're making money or not. Plus our fees are much higher when clients have these investments.