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I am using "if your truck costs more than your house and you own neither, we can't be friends." I watch TV a lot.

This is what amazes me. There's a letter in there telling them what it's for. But here's the run down on remodeling their personal residence and their vet bills. Oh, good.

You really are the absolute best, and it is a shame you have only 52 posts. We need you. I'm only going to say it one time.

Explain taxes to the client, ask the client if it is investment property or inventory, (its not a tax preparer decision) the client will say investment as it probably must be sold before they can have money to do another. It is possible for joint ownership in real estate without it being treated as a partnership. The property is not being used in a business (not in condition for use and depr) so It is most likely not the intent of the parties to inventory the property. As this property is not in use it is code sec. 1221 property, capital asset (Sch-D), and not business 1231, 1245, or 1250 (form 4797).

My associate once told an appeals officer and his peer reviewer, "I have no independence with my clients, if I did, my client would fire me and find someone else to help them cheat", they both agreed with him.

You've never seen Young Frankenstein? Marty Feldman as Igor. Pronounced Eye-gor. Gene Wilder as Dr. Frankenstein. Pronounced Frunkensteen.

It is "investment property" not property subject to deprecation as it is not USED in a business operation. Therefore it is not form 4797 rather form Sch-D. There is no reason a person or business in the real estate business cannot have an "investment property" resulting in capital gain or loss. (ie; stocks, bonds, land, buildings, etc.)

One of the funniest movies ever! I used Young Frankenstein and Clerks as a test for potential mates after my divorce. If they were offended or didn't laugh their ass off at these two movies, I knew it would never last.

What err.

Thanks, Abby N -- That answers my question even if it doesn't cure my (his) problem. Two carrybacks and then forward -- what a mess. He's really a nice guy but he's so broke he can't pay attention; much less the fees for two pointless carrybacks and several c-forwards; to say nothing of the tax he'll owe. This is going to be a test of spiritual character (concern for my fellow man) since there'll be next to zero chance of any fee collections (oh well; my office needs painting). Seems like 1099 construction workers are always falling into the trap of nothing withheld, broke at year end, and SE piling up for 3-5 years until they're in for 20K with all the crushing penalties plus compound interest piling up 'til they can never get out; just trudging on an installment treadmill far into the future. But, such is life; the old man used to say. By the way, that is the confoundedest avatar I've ever seen. Where'd you get it? Is that you or a mad scientist (accountant) having a very good day? ____________________________ "Now, here you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that." -- LEWIS CARROLL -- ALICE THROUGH THE LOOKING GLASS.

I understand both sides of this one. The real question is where has he been all of my life...

If the client exercised the option and then sold the stock short term, the cost basis and the sale proceeds for reporting on Sch D will be either the same or will show a small loss due to commissions. The income is reported on the W2. The 1099B works out to be a wash.

Because most of them were not smart enough to write their password down in a safe place instead of on the back of an old envelope that they threw away. Just completed two more yesterday. One Gal didn't even know enough to give me the 1095A because she didn't know what it was for.

Jack, I've never had bank statements requested for a Sch A audit. Bank statements have been requested for Sch C audits, but only when under reported income is suspected. If generous guy was audited again on charitable and passed no change, if any more audits come up you can request that it be withdrawn.

It is true that on audit the agent is required to allow additional deductions presented when proven on audit. I have gotten audits to "no change" or refund presenting deductions during the audit.

Is it inventory of the partnership that was created to be in the business of buying and selling property?

He chose to go with his lower figure. His deductions are actually lower than previous years. Since he chose not to use some of his available deductions I don't see the Service assessing me a penalty on any audit. He made a personal choice even though I advised him he could use all his charitable deductions if he desired.

Don't sell yourself short. And let us know if any preparer gets hit with a penalty for any return where the tax was UNDERPAID on the original return. If preparer did something egregious like putting self-employment income on Line 21, we understand a preparer penalty for that one.

Assuming you're talking about an NOL, the pubs says that the election to forego the carryback must be file by the extended due date. https://www.irs.gov/publications/p536/ar02.html#en_US_2015_publink1000177379 But I'm pretty sure the refund limitation increases to 5 or 6 years when an NOL is involved, so all may not be lost. And you will have to file 1040X because 1045 must be file within 1 year of year of the loss. Here you go: 25.6.1.10.2.8.1 (04-01-2007) Net Operating Loss (NOL) Carryback or Capital Loss Carryback A claim for credit or refund based on the carryback of an NOL under IRC Section 172 or a Capital Loss under IRC Section 1212 may be filed within the three year period from the due date of the return ( for the taxable year of the NOL or Capital Loss which results in such carryback) plus the period granted for any extension of time to file for the year in which the NOL or Capital Loss is incurred. See IRC Section 6511(d)(2). Note: The three year period runs from the extended return due date regardless of when the return is actually filed. The three year period may be extended through a consent to extend the period of limitations on assessment. See IRC Section 6511(c).

It sounds like you're also going for GSG !!

Ok, let's talk about the odds that Christian would be penalized for helping Generous Single Guy pay more tax, at the request of GSG. I'm going with exactly zero.

Resist the urge to hug her!!

You shouldn't fear an audit if the rest of your return is fine and you have all the documents for the donations.

Yes, and I think the client in my original post probably had an insurance agent that signed her up. She didn't even know how they signed up and was going to ask hubby. I told her that the insurance agent is getting a monthly commission, and I would not hesitate to enlist his help in getting another 1095A. I do not blame the insurance agent, but he's making money on this, and I'm not. I'm still waiting, because frankly, these people are irresponsible in the extreme. They've had nine months to take care of taxes. They could have made a baby by now. This is my first, and probably last, year with this client. If I don't fire them, they'll no doubt fire me when they see what they owe.

My late clients are even worse for me because I'm I'm the process of moving and I can't dismantle my home office and get a final moving date until I'm done with this tax season. I'd like to be out of my current house by Oct. 30. The sooner I get this done, the sooner I can start packing for real. I'm almost done with the ones where I have all the info, but then there's a stack of 'missing one or two pieces' that I've requested over & over. And it's already stRted snowing in the Sierra. Don't want to move in the %}€^ cold through the snow!