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From the article I linked to and that portion of the quoted material I had in bold, it seemed to be clear (at least to me) that in Randall's fact pattern, the costs that were paid in the 1st year would be recorded as inventory and not recognized as a cost of goods sold until the subsequent year when the sale was actually consummated and the product was delivered to the customer. What am I missing in this case that needs further research?

https://www.thetaxadviser.com/issues/2021/may/highlights-small-business-taxpayer-regulations.html Read the part about being exempt from sec 471, especially where it says that those costs treated as NIMS still retain the character of inventory, that being exempt from 471 doesn't mean an immediate write-off, and this paragraph from the article:

Christian, you didn't say how old these clients are or if either are collecting social security, so remember that if they are receiving benefits and choose MFS status, that the base starting point to determine the taxable SSA drops from $32K (for MFJ) to $-0- (for MFS) for couples that live together. I haven't used ATX in enough years that I don't remember now if that requires checking a box or if that is the assumed default for MFS with SSA benefits.

1) When the corp was "acquired" in 2011: Was this a stock purchase or addition of the new shareholders so that the original corp continued? Did it file as an S corp prior to acquisition by the new owners? Did bringing in new shareholders create an inadvertent termination of the S election? Prior to acquisition, did it file on a fiscal year basis with valid sec 444 election and timely payment of the deposit? 2) Or, was it acquired via asset purchase and a new corporation started? Was a 2553 filed? Was a valid sec 444 election made for the fiscal year, and were timely deposits made each year? 3) What type of activity? Did inadvertent termination occur because passive income exceeded passive income limitation? Sorry, more questions than any answers.

Yes, see the page from the NJ-1040NR instruction booklet here: pg 17 2021 NJ-1040NR instructions.pdf

Does it allow you to represent for all tax matters for the 1040 series pertaining to the tax year in question, specifically for 2022 for the estimates? Follow Tom's instructions above. Amending won't do it.

https://www.osc.state.ny.us/state-agencies/audits/2019/01/08/administration-and-collection-real-estate-transfer-taxes According to the above issued statement, the state knows about any transactions when deeds are recorded at county clerk offices. For IRS purposes, it is considered rental income and reported on Schedule E. You should review the definitions of "conveyance" (item #7) and "interest in the real property" (item #8) contained on page 3 of 8 of the instructions to Sch B of Form TP-584. To me it sounds as though this is an "interest in" because of the instruction's wording that says ... "or any other interest with the right to use or occupancy of real property." Sorry, can't provide a direct link to the instructions because it is a pdf, but here is a link to the NY RETT page that will lead you to the form and its instructions. Look in the second column from the left for TP-584-I-(instructions): https://www.tax.ny.gov/forms/real_prop_tran_cur_forms.htm This page has links to lots of info too, but I don't have a lot of time to continue digging to know if it would be helpful: https://www.tax.ny.gov/bus/transfer/rptidx.htm No personal experience with temporary easements or your particular state on this issue, just trying to provide some useful information I found.

A tight sales agreement and transaction would have the amounts for personal goodwill and the covenant paid directly to the doctor. I had a similar agreement a few years ago (for a retail operation though) that originally did not have any allocation to "personal" goodwill and that was modified to designate some of the goodwill as personal, and the payments allocated as personal goodwill and the covenant were paid directly to the individual shareholders. I did report the sale portion for personal goodwill and covenant on the shareholders' individual 1040s, and the portion for the corporate goodwill was reported on the 1120. I was the preparer of the form 8594 and provided that for the purchaser's accounting firm. I did not include the portion of the sales price that was allocated to personal goodwill or the covenant, only the portion of the sale proceeds actually received by/reported by the corporation since those are the amounts that will be reported on the corporate tax return.

Darlene, if this is the estate, as Danrvan said the estate's tax year "must end no later than the month end preceding D.O.D." and I am sure Dan meant to say 6/30/21. That means that with the D.O.D. of 7/11/20, the estate could choose as it's first year end date to be any one of the month end dates between 7/31/20 through 6/30/21 because the estate's first tax year can't exceed 12 months.

The posts with political undertones have been hidden. Please stick to the proposed law as it applies to taxes and affects your clients or practices. Thanks.

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: