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No deductible loss. It is a personal asset. But now as I sit here and think about it, how did he sell it at a loss? What was his investment in the boat? I would believe that he may have sold the boat for less than what the organization raffling (if that was the case) valued the boat. But unless he spent enough on tickets to exceed what he received for the boat, he did not even have an economic loss.

I would help but Virginia is just too far from Maine when the issues are that involved. I hope you are able to find someone helpful!

I called support and reported the following two issues: Ln 14 of the 502LC is not flowing to 502 line 32. The code boxes at the bottom of 502 page 2 do not have the new code 524 and you can't override that field. I doubt we will be able to efile 2014 MD returns that have the 502LC and the instructions for 502LC seem to indicate that the returns should be mailed in to a specific PO box, anyway.

Microsoft has been modifying windows 7 & 8 with their 'telemetry' that's part of 10, and also pushing 10 on users of 7 & 8. I keep seeing the 10 update in Windows Update, even though I've hidden it and uninstalled the Get Windows 10 tool (KB3035583). Telemetry is sending data back to Microsoft about how you use your computer. If, like me, you're uncomfortable sending unknown data back to Microsoft, you can do the following. Below are the best instructions I've found so far. If it looks like Geek to you, call your IT person, but most of it is quite simple, although windows does its best to hide Task Scheduler and Services. Remove the following updates (if installed already) KB3068708 Update for customer experience and diagnostic telemetry KB3022345 Update for customer experience and diagnostic telemetry KB2952664 Compatibility update for upgrading Windows 7 KB2990214 Update that enables you to upgrade from Windows 7 to a later version of Windows KB3035583 Update installs Get Windows 10 app in Windows 8.1 and Windows 7 SP1 KB971033 Description of the update for Windows Activation Technologies KB3021917 Update to Windows 7 SP1 for performance improvements KB3044374 Update that enables you to upgrade from Windows 8.1 to a later version of Windows Command Prompt: sc stop Diagtrack sc delete Diagtrack *Task Scheduler Library: Everything under "Application Experience" Everything under "Autochk" Everything under "Customer Experience Improvement Program" Under "Disk Diagnostic" only the "Microsoft-Windows-DiskDiagnosticDataCollector" Under "Maintenance" "WinSAT" "Media Center" and click the "status" column, then select all non-disabled entries and disable them. (None of my computers had Media Center) *services.msc: "Remote Registry" to "Disabled" instead of "Manual"

Easytax, yes, these are separate calculations, but since this is a S Corp, its calculations flow through to the owner and create large loss on his return. If the 1099 was during the same year that loss would have been offset by the COD income. But if there will never be COD income (due to bankruptcy), it turns out to a large tax advantage to the TP. I am worrying that I may be missing something and I actually do need to reduce the basis by the COD. The problem also is that at this point there is no COD yet. It may occur next year

Tell him to give the $16K to me, I will pay the tax on $20K and smile on the way to the bank with the rest. Even if the tax is $5k, I am still smiling as I deposit the rest. Some people just DON"T GET IT!!

There have been cases in the not so recent past wherein the taxpayer prevailed in reporting the value shown on the 1099-Misc, then on line 21 reducing that amount to what he was able to sell the property (in one case, a car) for, so that the FMV reflected the amount that a willing third party would pay for the property. Lynn

Try posting in https://www.facebook.com/groups/USTaxPros/

Sometimes it takes a village...?

Thanks all. Very, very helpful. So I guess it turns out I did the right thing ... even if my rationale for why was a bit vague!