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aka utilizing the technology at my disposal.

Speech to text function on my phone.

In 87 when wife inherited the property, wife essentially gave husband a gift of half of the property's value at that time, so his basis is the value at the time of wife's inheritance. Then when wife dies in 2014, husband gets a step up of the other half of the property that was titled in the wife's name that passed to him. Summary: For husband's purpose of this sale, half of the property is at the 1987 inherited value, and the other half is at the 2014 value.

You are correct, and that is why many times I will not give a firm answer but am willing to share links or leads to the applicable law. It is up to the preparers to draw their own conclusions as to how the law applies to their specific clients' cases. In this case, I did want to point that out since the letter was from 20 yrs ago in case some reader looks at it and doesn't notice.

Katherine, Your client can't be a statutory resident as he didn't spend the required # of days within MD, but you might want review MD's administrative statement from 2009 about "domicile" from its pdf: ar_it37.pdf

Thanks, I was actually answering Pacun who didn't read or remember the facts as you presented them.

Purchaser doesn't. His concern is only that he paid $10K and how to allocate that for the assets acquired. Does the bill of sale break down the sales price between the inventory and F&F? Was a form 8594 prepared? That allocation is what you need to know. Seller also needs to know that allocation for reporting his side of the transaction too.

I'm mostly in agreement with everything Gail said and more information is needed. It may be possible that TP A doesn't need to be a licensed contractor if the partnership could hire one in that capacity. Maybe that's what this arrangement is all about. I can see why Sara said that TP A could be a limited partner, but I am with cbslee and would want to see some sort of documentation on that especially because being a limited partner means that the partner's liability is limited to his investment. Without something in writing and in the event of a lawsuit, would partner B stand by that verbal agreement, and would partner A also be comfortable with that? People do stupid things all the time without thinking about the risks, but I'd still want to ask the question to see if this was discussed and documented.

A few years ago I made that same mistake, and yes, that is exactly what the IRS did with the return I sent in too. If you check further, you will probably find that the IRS thinks you haven't filed for the third quarter yet and should file that one asap. At least that is what I had to do.

Is client separated or divorced? Does client have a child with child-only insurance through the marketplace?

You figured out the proper handling of the prepaid MD tax due to sale of the former home. What I think you may thinking of incorrectly is that the care facility is considered temporary, that this home was still the client's permanent residence, or that he is a MD resident. Temporary absences of short duration for rehab or recovery of illness is one thing, but a close to six-year stay probably isn't temporary. If the physical or mental medical issues are such that these won't get better and client moved to the care facility with no intention of ever returning to his home, I don't see how you can file the way you described below. .

Sounds like a good question for Drake's support line because, while we have some Drake users here, we may not have anyone here that routinely prepares Oklahoma returns and with knowledge of your specific multi-state issue within the Drake program.

That is simply NOT true. I've had many business clients change processors over the years, and it is a service they are paying for. When the client changes services, clients certainly DO tell the old processor what filings should be done, including the current 941, unemployment returns, and year-end filings of 940 and W-2s. This is especially important if the client provides the new service with the YTD figures so that duplications do not occur like happened with the OP's client.

Well, thanks for pointing out my error. The W-2 reporting must be corrected. The quote below is from the IRS general instructions for W-2/W-3:

No, according to the OP's initial post that I just reread, the client changed payroll processors sometime during the 1st quarter, so the old processor's filing could not be correct and was instructed not to file it. OP also said she has already handled that part of the problem by calling the IRS, and the IRS finally agreed to ignore the first processor's 941 filing for the (partial) 1st quarter and accepted the 2nd processor's 941 for that quarter. My next post immediately below quotes the IRS instructions of how the W-2 issue should be corrected (not voided), as cbslee pointed out.

The former payroll company should take care of this by voiding the 1st quarter 941 that was filed and by voiding any w-2s it issued in error.

Yes, he must take the RMD for 2021 to correct the issue, and he must also make sure to take the RMD for this year too. I'd suggest you keep copies of all documentation now while he has so that if IRS asks for it, you don't have a mad scramble to find it later on. For what it's worth, I've never had one of these questioned either. I don't know why the broker should be confused. All they have to do is make the corrective distribution for 2021 now. They have nothing to do with the penalty at all.

Penalty is 50% of the shortfall of RMD not taken. Correct the shortfall ASAP before the return is filed. See the instructions for part IX of form 5329 "Exceptions to the Penalty and how to fill out lines 52-55 to request the waiver. I've never had the penalty assessed for anyone that made the correction as soon as this was discovered and before the return was filed. By filling in these lines per the instructions, the software will not assess or include the penalty with the return.

Yep, my first ones were during high school too. Not a big deal since it was only 2 sheets of paper per year for many of the early years - one for federal, one for state. I can't claim super-nerd status as I don't have any spreadsheets.

I'm confused. Did you already send more money or forms after the original filing, and you now believe that you've paid the penalty twice?

Did you prepare and efile this return through ATX? If so, why not look at the forms that were actually transmitted. As I recall, ATX does show that information. ETA: Now that I've merged the two topics, I see that you paper-filed this return so that ATX will not have an e-file record of the forms.

Nah, not really intentional, just an old file cabinet that got moved around and never emptied out. I have an old desk with stuff from my youth too. I found a very funny short story that I wrote at about age 8 entitled "The Story of My Life" and also some things and writings from my father too. Now those things are very precious and glad I still have them.

Good thing I still have all my own tax returns ever filed and supporting documents going back to the '70s and and also for husband and I starting with '92.

Have you determined that this is a real inquiry? Why would SSA wait 30 years to contact the person, and was there something extraordinary about that year's earnings compared to the others?