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Do you need to change a checkbox on the FL1120EF INFO form in ATX or some other place to tell the program that the extension was previously filed and you are now ready to file the 1120 itself? Sorry I can't look into it further for you; the last year I used ATX was for 2011. I don't see why you can't file the FL 1120 if ATX has the EF INFO form in its program.

The covenant not to compete and the goodwill are both amortizable assets amortized over fifteen year life under section 197. See article below from The Tax Advisor for a more complete discussion. https://www.thetaxadviser.com/issues/2021/may/tax-issues-noncompete-agreements.html As for the price paid for fixtures snd equipment, you have the price that the purchaser paid, and it is to be allocated over the assets that were purchased and depreciated over their respective tax lives. If you have the seller's depreciation schedule, you can use that as a starting point for your allocations of the purchase price For the depreciable assets, and use each individual asset's basis compared to the total of its category as a starting point first or the allocations.

IRS AND DEL DIVISION OF REVENUE TO HOST 2024 FED/STATE TAX INSTITUTES The Delaware Division of Revenue and the Internal Revenue Service are sponsoring the 48th Annual Federal and State Tax Institutes. The goal of these institutes is to update, clarify, and explain federal and state tax law requirements and any new tax law developments. The Tax Institute will be held In-Person only on December 10th this year. The Registration fee for the tax institute is $60.00, which includes materials and a certificate of completion. Please register each attendee individually, even if multiple people are from the same organization. There is no lunch option this year, however a list of local restaurants will be provided. Seating is limited and will be on a first come, first serve basis. Registration Check-in begins at 7:30 a.m. The Institute begins promptly at 8:00 a.m. and will end at 4:30 p.m. Note: All Tax Institute materials will be available for download. A link will be sent to the registered e-mail address before the Tax Institute. Schedule: Tuesday, December 10, 2024 8:00am to 4:30pm Modern Maturity Center 1121 Forrest Avenue Dover, DE 19904 For additional information visit: http://revenue.delaware.gov/calendar.shtml Program brochure with CE info & more: https://revenuefiles.delaware.gov/2024/Tax_Inst_Brochure_2024.pdf Online Registration with payment must be received by December 8, 2024. To register online visit: https://www.velocitypayment.com/client/delaware/revenue/index.html For online registration issues please contact Jennifer Callahan at (302) 577-8167 or email us at [email protected]. Please Note: Printed Registration forms are no longer being accepted.

@BulldogTomThanks for your explanation and the correction!

Form 8379 is filed solely by the injured spouse that was one of the filers of a MFJ return, so in your client's case, YES, your client is able to file this form. Instructions state that the names should appear in the order that they appear on the MFJ return, but then there is a check box for which filer is the injured spouse, and then that person is the one filing the 8379, and it does have only one signature line. https://www.irs.gov/pub/irs-pdf/f8379.pdf https://www.irs.gov/instructions/i8379

I don't have a farmer return to test this one, but the only thing I can find is on the NOL screen that is found on the "Other Forms" tab, or type "NOL" in the search box. From there, the screen shown below will appear, and there's a checkbox where I have the red arrow. You'll have to test this to see if it gives you the correct election.

Is this a married couple or a single person? In other words, is there any reason to protect the portability of estate tax exemption of the deceased for a spouse, if there is one, since we don't know if the exemption will actually revert back to pre-TCJA levels after 2025?

It's from Thomson Reuters, originally called Creative Solutions DS II, now the Fixed Assets module that integrates with Ultra Tax.

@Ocean26 if you were able to resolve this problem, would you mind sharing the solution?

Thank you, Tom. That was my general plan, but wasn't sure if it was overkill. Like I said, it's easier to have too much detail rather than have to dig it out or extrapolate later on.

Dennis, none of that is what I asked, and this is where your answer is from the POV of a business owner and differs from that of a tax preparer. The question has nothing to do with proper accounting or tracking of income either. I will be doing the write up work and keeping all depreciable items on the FA schedule for this very large project outside of the tax preparation software. I can handle all of that easily, and the number of line items on the return is irrelevant to me. I will provide as much detail as is needed for a proper return. I only mentioned that Drake allows overrides so that the readers here realize that the tax software won't require a duplication of effort entering all detail again within the tax software to generate a complete return. The question has to do with the FA schedule maintained outside of the tax software, specifically for the fixed assets of an apartment building having many units, with an eye to the future for when items are removed and replaced and how best to set up that FA schedule now for expediency in future years. In my experience, it is always easier to start out with too much detail rather than schedules I've followed from other preparers over the years with not enough details that then causes struggles down the road, and my question was how to best to initially organize all of that on the FA schedule.

For those of you having clients with rentals having many units, a client will be building an apartment building with 24 or 25 units in a future year, and my question is how best to set up the subcategories for the fixed asset schedule to make it most useful for future. Should I separate into land, main building and structural-related items, and then unit-by-unit for appliances and fixtures, etc that are sure to be replaced sooner than later, meaning 25 more subcategories all for this one rental activity, or some other way entirely? I do have a separate fixed asset depreciation program outside of my tax software that allows for various methods of categorizing and sorting within the main unit such as by location/unit, asset categories, etc, and it will produce all of the tax forms too. Drake's tax software isn't as versatile but does allow for direct entry on the 4562, so I wouldn't need to duplicate all of the work again within the tax program itself. Maybe I'm overthinking this, which wouldn't be unusual.

I have a client that is developing a parcel and will be building an apartment building with somewhere around 24-25 units. Does anyone here have an approximate dollar value or rough idea of what the building's costs need to be where a cost segregation study becomes beneficial?

Sure, as long as he meets any one of the 7 tests for material participation. Probably one of the easier test to meet would be the 100 hour rule and where his participation is at least as much as others including nonowners.

If taxpayer materially participated, income from the self-rental is considered nonpassive. Did you check the box D for "nonpassive" on the K-1 input? I suspect that you checked box A for "active" instead. Is that correct?

Did you see this in the IT-203 instructions? This appears directly below the instructions for line 18 in a section with the caption "Other Adjustments to Income"

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That sounds like a programming error and you may have to open a ticket through ATX support. I try not to override unless there is no other option.

Please wait for the short certificate or court appointment. If like here, that should take a week or two for the executor to receive, if not in hand already by daughter since you know she met with the attorney yesterday. In the meantime, accept whatever additional medical deductions from the daughter and have it ready to go, but don't discuss the return in detail until you know that this is the daughter also acting as executor. Just say it is in your queue to work on. ETA - saw you are waiting for the document. You are on the proper course.

I've seen this exact issue and asked about where the the auditor doesn't care about the salaried hours directly EXCEPT to be trying to figure out if the taxpayer had enough hours to be considered either a real estate professional or if materially participating after working a F/T salaried position, especially with this many properties, and depending on how each is reported on the returns. And, no, you do not tell the auditor to pound sand.

I agree with Bulldog Tom in that your work may also be an inaccurate recreation using only the bank statements if what was retrieved from the prior accountant and client was incomplete data. By using only the bank statements, then it seems you are recreating using cash basis. Is that the basis used for the prior 990s and financials? If the NP used accrual basis, that would be a possible explanation why the revenue and expenses could be higher than your recreations. Are the 990s and financials presented on the same basis of accounting? I generally don't amend a predecessors work without knowing I have all of the data. To do so from incomplete data, there is no way to know that your work is any more accurate than what you are amending from.

Please don't take this discussion to contract "employee" that SHOULD be payroll instead of 1099 reporting. Plenty of small businesses and rental owners pay contractors and attorneys that require 1099s to be issued that have nothing to do with being on payroll at all!

Daughter needs to give you the short certificate that designates her as executor to act on behalf of estate, or the court appointment if she doesn't have the short certificate. You know POA died with the mom, so once daughter gives you whichever document grants her the authority to act on behalf of the estate, only then will you be able to work with her again on behalf of mom and mom's estate. At that point, you could choose to have her sign a release to provide copies of returns directly to attorney, if you are comfortable with that. Otherwise if not, you will provide daughter with extra copies that she will provide to attorney herself. I don't see how you could possibly provide either of them anything today since those returns are not yet completed. Sorry, can't answer about the paper vs e-filing. Depends on what document you get. Check instructions for form 1310. There was an extensive discussion a couple of months ago on here. I'm not in office right now or I'd look it up for you. Maybe later tonight I'll have time to revisit this discussion.

The joint extension covers both taxpayer and spouse no matter whether they file MFJ or MFS. It will be fine.

Please, folks, try to stay on the topic and remember that the original poster is a tax preparer awaiting an answer to solve his or her problem in order to finish a project or return, and it is not helpful to that person to receive answers that derail topics sideways into other areas with anecdotal stories. If you don't have the technical answer, that's OK, please scroll on by and hopefully someone else will chime in with the answer. If a topic or post jogs a memory or brings a related question to mind, that's OK too, but PLEASE START A SEPARATE TOPIC. If you take the time to read your typed response before clicking "submit" and the post swerves off course with something that sounds like "this reminds me of when my spouse's second cousin's brother's wife's stepchild once removed brushed her pet rabbit..." then please rethink your answer. Obviously, this doesn't apply to the occasional nontax-related topics that are posted in fun.