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The program doesn't allow you to create two. We always just add the two together and let the stone land where it falls. IMO, the 8962 is one of the most difficult forms to understand. At least, they gave us more leeway this year.

I would say even if they were gifts, she takes the giftor's basis (is that a word?) in the gift, so basically, if she sold them for more than what the 'basis' was, gain, and if not, personal loss not deductible. My 2 cents, and I'm ready to stand corrected.

If truly gifts, the rules for basis of gifted property should be used: sold at a gain, the basis in the hands of the donee would be donor's basis sold at a loss, donee's basis is the lesser of FMV at the date of gift or donor's basis I am willing to bet that this basis information does not exist. Was this activity a multitude of generic mass-produced toys accumulated since childhood that were sold off, or more valuable pieces considered collectibles that either held their values or possibly increased (true antique pieces, or something like the original handmade cloth Cabbage Patch dolls, etc)? I'd say that the schedule or form where to report these depends on the client's intention. Did the client view these toys as an investment, or is client talking about this as a business where more toys may be obtained as inventory with the intention of flipping for profit?

eBay is sending out gazillions of 1099s - as long as the total went above $600, you got one. Heck, my husband got one for selling a couple of used tools that he upgraded. No gain; he sold them for no more than cost + shipping fee. Often less than his cost, as they were older (but not antique/collectible/worth a premium). He is decidedly un-amused that he now has to dig out all the details for me.

...or, if she sold personal property at a profit. We report ALL worldwide income from ALL sources unless specifically exempted by law.

That's why I am still working part time. I am still motivated to keep working with my business clients who I have known for 20 to 30 years. It keeps my mind sharp and I still enjoy doing it. However if I was mostly preparing personal tax returns my answer would be different.

I'm at the age where every get together with friends includes a discussion of how long until we retire..... Oddly the closer I get the more stressed I am about it because it feels like this huge irreversible life decision. I've been asking people what they do all day in retirement just to get an idea of what's to come.

April 22, 2021 I had the exact same problem and made a nearly identical post. The error message is exactly the same. Thanks for helping out Judy. Tom Longview, TX

Tom, I did an advanced search on this forum for "database" specifically posted by Joe. See if any of these helps: https://www.atxcommunity.com/search/?&q=database&quick=1&author=Abby Normal&search_and_or=or&sortby=relevancy The link is safe to click. It will take you only to the search results within this site.

I am starting to get millennials in the 16 to 18 year old range, mostly kids of my clients, who are filing their first tax returns. I have to make a conscious effort not to laugh when I watch them try to sign their names in cursive. They get a pained expression on their faces and it takes forever. Many just give up and print or make an illegible mark. I'm afraid that within a another generation cursive writing will be lost art.

The individual sold the toys to raise money for college and I would say did a bangup job. She has no clue what they cost so I would submit the basis is zero. Even so this is now merely a technical discussion as I have just about completed entering them on Form 8949 and Schedule D. Her income is well below the level at which the capital gain will be taxed. She is not in any form of business as these were simply items accumulated over a period of years and as noted the money went toward her first year tuition. I am really glad of this outcome as she is trying to advance her station in life. And Ebay did send her the 1099 with every item listed with selling price.

@Abby Normal Any chance you can give me a primer on how to stop and start the database? In my defense, it has been 3 years. Tom Longview, TX

The IRS also has a 1 Hour video that covers the same stuff: https://www.irs.gov/businesses/what-to-do-with-form-1099-k

Here's the page that has 2022, but not 2023, yet. https://support.cch.com/oss/ml/kb/solution/000245732 You have to click on the up arrow/chevron off to the right of where it says attachments, near the top.

Just got a response from ATX. Hopefully this will help.

Did she receive some type of 1099 from eBay reporting the sale of the toys?

That reminds me when I went to elementary school we had phonics. As a result I am a good speller. When my wife went thru elementary school they dumped phonics for "sight reading". As a result my wife struggles to spell, even though she was a good student.

that was able to use a passive loss carryforward - in full! I have been waiting for a very long time.

Have you considered a Qualified Joint Venture instead of a Partnership? Two Schedule C's instead of a 1065

Sounds like a good client - or like you have decided they are a good client. Back to the original post. FMV of the items on the date contributed to the partnership is the Basis of the Fixed Assets. Depreciate under the normal rules for used equipment. Most conservative approach is to get an appraisal. If they want to be a little less conservative, use Garage Sale or Craigslist pricing for used items of similar value. If they insist on using the amounts they say they paid for them (and if you believe them), get them to write a letter to you signed and dated that says this is the value of the property they contributed to the partnership. It does not have to be confrontational, just explain that you are there to protect them from audit risk. and the riskiest way to go is take their word for the basis of the property. Tom Longview, TX

It's a husband and wife partnership. They were referred to me by my largest business client. The wife works as a Human Resource Manager for a good sized company. The cash appears to be from the sale of their previous house. The husband used to work for his families painting business which I know nothing about. My current working agreement with them is that I will be doing their monthly recordkeeping plus their payroll. He plans to hire his nephew as an employee. In addition I will make sure they will handle any independent contractors correctly with respect to their liability insurance, workers compensation coverage and 1099 NEC reporting. I plan to very proactively stay on top of everything and if questionable stuff starts happening I will pull the plug. We see what happens?

Robert Heinlein, "Never underestimate the power of stupidity."

Absolutely correct!!!

I always take the word of the client, unless there is a suspicious reason not to. It is the job of the IRS to audit them, not mine. One concern is that these assets were purchased prior to the formation of the partnership, and were contributed as capital investment - i.e. "hot" assets. They will have to be tracked if that is the case for five years. Also, my experience is that the partnership will not last long, unless they are bound together like family members. I don't know how many of these partners love each other to start with, and after six months they are ready to go their separate ways. Running a business is not the same as painting.

I have a client who was seriously lacking intelligence when he put the cash in the bank; then ate out and bought groceries, etc. with his credit card. The Hammer fell and he is on a payment plan to the IRS well into his senior citizenship and retirement. Regarding your client, Lee, I would give him the benefit of the doubt for now. I know when I started my business many moons ago, I placed into service used equipment that I happened to already own before I operated as a business. (tax returns for family, friends, etc.) Only you can get the "feel" for the honesty of your client. If you believe in him; educate him on how to conduct a business going forward. I don't like the idea of a Partnership starting out; but then who knows? My husband started a small Partnership 50 years ago. Even though our son bought out the other partner several years ago; they are still going strong and I am the one who gets to crack the whip.

Just curious about the 2022 return. Any Sch C Painting work on that return? Seems that this guy was already a painter before he started this business. Was he calling it a hobby, side gig, hustle or some other term that on the street means "I get paid in cash and I don't have to tell anyone". The part about "paid cash" is I think what has all of us looking at it twice, because cash is so easy to put in your pocket instead of into your bank. Tom Longview, TX

I don't want to be the messenger if the new exemption amounts expire (in north Florida, not a lot of Schedule A's).

Taxation of the social security with MFS depends on whether or not they lived together. If they lived apart for all of 2023, they would get the same "base amount" of $25,000 that a Single filer would get. If they lived together at any time during 2023, the base amount is zero--in this scenario she would probably have a filing requirement. Ideally, you could plug in all of their income into the software and show them the total tax liability MFJ vs MFS. But it is their decision and it is not always about what would be saved that year--new couples sometimes find out about their spouse's unpaid liabilities when they file jointly.

That's why we need to move to Colorado. Our son DIL are there to help us. My step-daughter came over today and cleaned and dusted since I don't have a robot that can dust or clean bathrooms yet. This was a first in 34 years and I was super grateful. I highly recommend RoboRocks! I had a Roomba and a separate mop before, but they are not nearly as advanced as the RoboRock. Hubby came home yesterday with 24-7 oxygen so now I have 50 feet of tubing running through the house. I have to find a way to get it off of the floor. This is a new phase for us, but we will figure it out.

It's a quote I've used many times when discussing total market indexing with financial advisors.

Panels are next to the house, connected to the house, for the house. Lots of reasons - including structural and where the trees are - influence the location of the panels. I would not hesitate.

My panels are on my 'extra' building. Holds my hubby's game stuff, tv & stereos. I look at it like if the panels were on land next to the house. The panels are for my 'main home'.

I'm glad I'm winding down.

BUT... standard mileage includes a depreciation component, and you must track this depreciation component in order to calculate the gain or loss on disposition of that vehicle. Basically, every vehicle needs to be set up in fixed assets with its correct basis. If you do this, ATX will keep track of any mileage depreciation for you. It's actually quite a nice feature. And if actual turns out to be better than mileage one year, you are all set to take that option.

It is there. I just had it last night, but they wouldn't let me use it because I had new depreciation. Go to the C or whichever form you are using and click on the car and auto expense block and it will jump you to the Vehicle Expense form.

Be sure to advise about the IP PIN requirements. These are some small things compared to the i.d. theft, but clients should know before getting an IP PIN: The IP PIN is permanent and can't ever be cancelled, and it will be required to e-file each year forever. A new IP PIN IS issued each year at the beginning of filing season. If taxpayers move during the year, they must file form 8822 for IRS to send the subsequent years' PINs to the correct address, or filing will be delayed until the new PIN is retrieved. This is easier now with clients being able to set up IRS account access, but who knows what security measures and hurdles will be in place in future.

Thank you all. Appreciate you. My clients think I am a hero... We are paper filing with the 14039 attached. Proof of dependency is also being attached to paper return (Birth Certs, Passports, College enrollment docs). It required a phone call to AXT support to find out which SS# was compromised. Taxpayers are taking steps to freeze credit, call banks, etc. Tom Longview, TX

Start with Form 14039. I have had two; the same client two years in a row. I believe that it took about ten months before he got his refund.

https://www.identitytheft.gov/#/Steps https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft https://www.irs.gov/individuals/how-irs-id-theft-victim-assistance-works You can give them the checklist and answer questions but they are going to do a lot of the work.

I think the facts and circumstances are superfluous unless she got a 1099 or is in the business of reselling.

One of the dumbest moves ever. How can people pronounce or spell words when they're just learning the shapes of words and not the individual letters? I had an employee like this and whenever we had a name like Elisabeth, she would always type it as Elizabeth, and I would ask her why she didn't just type what was there. Her eyes were trained in sight reading and could not detect subtleties in spelling.

Long time client of mine, 2 daughters in college, I remember when they were first going to grammar school. I e-filed the return and got a reject for one of the SS# used on another return. I call the client thinking one of the kids filed for themselves for a part time job. Nope. Neither one filed a tax return this year. Crap. ID theft.... Can someone walk me through how to walk my client through the process? I seem to remember there is an ID theft checklist from the IRS and a couple forms to fill out and send in with the paper filed return. I have not had to do this before, only heard about it in update classes. This is a really good client and I need to help them get through this. Tom Longview, TX

Follow up, my clients informed me that there was a known data breach at the college. No proof that was how the child SS# was obtained by the perp, but it seems reasonable to suggest that is what may have happened. Tom Longview, TX