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Hey! Take that back! (Resident of Boonsborough here). I don't think there is a cure for 1/3-charging card table operators - they're everywhere (even here; one takes all comers-35 bucks). Jack's got a good point about (non) affordable electricians/plumbers' "take it or leave it" policy; but unfortunately there isn't a TurboTax alternative for wiring or commodes. I have to charge what I/they can/will stand for without running them off. AR income and my fee (probably AL Gene's too) will likely be substantially less that his OH price, but on the other hand I imagine Lion's CT practice serving the upper-end carriage trade out of NY would likely shade us all. However, allowing for locale, the question remains; are we charging enough? There are so many varied sorts of returns and a patchwork-quilt of customer types that it's hard to generalize unless you're willing to draw a line in the sand, say it's X$, and that's that-no matter what. Every three years I sort of do that (with exceptions, if I know what's good for me) and raise prices $20-$30 across the board. But each time I invariably lose almost 25-40 customers (some simply won't go along - surprised at pickup, they don't come back). Downside-customer base shrinks; upside-less work and price offsets the loss. Other preparers tell me large all-at-once hits aren't smart; that it's better going up 5% a year, but that's nickel and diming to me and I don't like it. I occasionally lure and lowball newbies, gradually bringing them up to snuff - most don't like to change once they're with you. Between raises I baby the clients around quite a bit with servile service to justify my mercantile streak (probably should've taken up social work instead of this biz). P.S. to FD/Gene: I also have a "widows and orphans" rate. _______________________________________ He is a self-made man, and worships his creator. - John Bright: Disraeli

I agree, that is how I do it. However, there is another layer to this. That is the depreciation from the first of the year to date of death using the original basis and asset lives. Then from DOD on you will have the split basis as Terry described. I don't keep permanent record of depreciation on ATX, I use the depreciation module on EasyACCT. That makes it a lot easier in situations like this.

Since the computer is fully encrypted plus the spreadsheet is encrypted and the folder it's held within is encrypted (with 3 different passwords), I'll risk it. The backup for it is on an encrypted thumb drive and on an encrypted computer at my home where again. It isn't like using the same password everywhere because my computer isn't the risk point.

Pacun I respectfully disagree. Below is a section from Pub 551 Basis of Property. Yardley CPA, I see you are in PA and I am assuming the rentals are not in a community property State. I would take some time to research a bit further but everything I have looked at leads to the same example as in the pub. There are also examples of how to begin the depreciation on the new basis as well. Based on your statement of two properties being 20 years old, I am assuming they are not depreciated out. However, the depreciation taken before the death of the spouse will be used to determine the new basis. I have not used ATX for a number of years now so I can't help you with the proper way to handle it. Maybe Jack or someone still using ATX will chime in and help. Property Held by Surviving Tenant The following example explains the rule for the basis of property held by a surviving tenant in joint tenancy or tenancy by the entirety. Example. John and Jim owned, as joint tenants with right of survivorship, business property they purchased for $30,000. John furnished two-thirds of the purchase price and Jim furnished one-third. Depreciation deductions allowed before John's death were $12,000. Under local law, each had a half interest in the income from the property. At the date of John's death, the property had an FMV of $60,000, two-thirds of which is includable in John's estate. Jim figures his basis in the property at the date of John's death as follows: Interest Jim bought with his own funds—1/3 of $30,000 cost $10,000 Interest Jim received on John's death—2/3 of $60,000 FMV 40,000 $50,000 Minus: ½ of $12,000 depreciation before John's death 6,000 Jim's basis at the date of John's death $44,000 If Jim had not contributed any part of the purchase price, his basis at the date of John's death would be $54,000. This is figured by subtracting from the $60,000 FMV, the $6,000 depreciation allocated to Jim's half interest before the date of death. If under local law Jim had no interest in the income from the property and he contributed no part of the purchase price, his basis at John's death would be $60,000, the FMV of the property.

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