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Taxman's original post said that the deed of trust was rewritten, so I think that would provide a security interest.

A handful of extensions have been filed and 3 returns waiting on signatures in order to efile, and those will be in today. It's been a harrowing couple of weeks trying to get caught back up after losing days of time because of husband being hospitalized for a few days mid-March and then working day and night on about 3-4 hrs of sleep a night since then. I'll be around here to help where I'm able over these next few days, and of course the rest of the year. I want to express my sincere appreciation to every member that selflessly contributes to help others on here. I learn a lot from reading all the posts and seeing the ways that you all approach some issues differently than I would. You all are amazing and are what makes this such a great site! For me, it is also a needed distraction at times too. Thank you all for another great season.

and unformatted so amounts within columns don't add up: some in whole dollars, some with one digit after (.5 for 50 cents), some with 2 digits following the decimal point.

I'd say it's a nonevent. Money was held in escrow and then given back to purchaser. From Pub 537:

Uh huh, and I've had clients use Excel as a word processing program, typing in the columns and typing the totals, making it appear as if they'd used the built-in functions. Only problem was that their math had errors throughout, and it was supposedly the company's disbursements summary that I was trying to post to my worksheet. It was a pretty printout though.

Well I googled, as usual :), and that is a legit IRS office in Scranton. The website does list a different ph# within that office, so perhaps this is a real notice and contact info for that agent. Was that social ever associated with your client's returns ever in any way? Perhaps a deceased or divorced spouse? Is/was she ever self-employed with an EIN associated with her business where those last 4 digits are related to that? I think I'd call the number listed on this page to see if this agent is real and the number is legit? https://www.irsofficesearch.org/irs-office-scranton/#Contact

Thank goodness no one was hurt in any of these three accidents. So scary! Family always comes first above all else. Take care of yourselves and loved ones, everyone.

Can't tell which is correct unless you tell us if books/general ledger reflects change in inventory during year or if "COGS" on books is really just purchases and other costs in that category If the $10K in COGS on books is truly only purchases/other costs and doesn't reflect the increase in inventory during the year, then the COGS should end up being $9K and GP is $6K.

In determining if filing is needed, gross income includes cap gains but not cap losses, so in both posts above, no federal filing would be necessary. Look to the state requirements also though.

Real hugs to you, jasdlm. I'm sorry this is so hard, and seems harder each year since 2020, plus having gone back to the original deadline isn't helping. Do what you can do, feel good about what you have accomplished each day, and don't worry about what will be unfinished. Much of that isn't our fault, and that's what extensions are for. Come and vent here if it helps where we all understand. I'm tired, and tired of feeling like I care more about the tax returns than the clients do, and I'm not going to do that any more.

The allowable interest is already deducted and has been factored in to any income or loss reported on the K-1. The amount in box 20 with code N is for adjusting the partner's basis. Here's the linked K-1 instructions where code N is shown below. You may also want to read the instructions in the section for the basis adjustment worksheet and the section pertaining to partner's limitation on losses and deductions. I think your entry from box 20, code N goes on line 10 of that worksheet. I think what Tom is referring to that causes need for Form 8990 is if there is an entry on line 13 having code K where the interest expense must be adjusted at the partner level. Sorry, I've not had to do this yet.

Thank you! Just what I needed and can send to my client.

Thanks for trying but none of that addresses the problem. I found a link on that site that was for installment agreements, but it came up as "404-page not found"

Sorry if these are basic/stupid questions. I've never filed a 9465 for a client with the return. Client owes ~ $10,400, just over the $10K limitation for the guaranteed agreement process. Client wants to make a partial payment now and then request an installment agreement. He is also savvy enough to file online for the installment agreement on his own and would like the direct debit so that he never misses a payment. What is the best way to accomplish this? Does he - e-file timely and makes a partial payment before the 15th. If so, how long should he wait to request this after paying the partial, or does he wait for the notice to come? Is it even possible for me to make a partial payment through software by direct debit when the return is e-filed? Maybe he should do that online at IRS.gov too? Or, would it be better to file an extension with the partial payment and then file the return with the net balance owed so it's under $10K? What other method would be better? TIA

Hopefully that will happen quickly with the IRS so that taxpayers with this situation won't have their EIC questioned or denied. That would be a mess to straighten out and with the possibility of it affecting their EIC for the following 2 years if the IRS has it flagged in its system.

I would treat that as an outright installment sale with the total purchase price of $120K broken down as sale of business $96K and noncompete of $24K. It's just that the yearly payments are based on what the purchaser is able to retain and collect.

I swear, people are getting more stupid by the day, dumb as rocks, and wouldn't be able to find their way out of a paper bag! I've had to email a few long time clients re-instructing them again that I need the signature forms back before I can e-file. These are always on the outside of the folder, signature lines highlighted, and with a colored slip clipped to them on all of the ways the form(s) can be returned to me. One is a recent college grad and daughter of existing client is apparently just like her dad and only reads parts of the email. The part about signing the 8879 was in larger text and in bold. What did I get back? "Thank you for providing the document files." So I waited a couple of days before following up and the next response was "oh, I didn't know I had to sign anything."

Agree with Lee. I've had the Web Library Plus for several years, and while it's convenient to click a link from within Drake's program, I don't use it much and mostly look online when needed.

Really, I just googled "IRC & early withdraw penalty" and looked down the list for the code reference. For something like that, not real research but to find the proper place to start, google is a lot faster than opening and logging into the research materials or pulling out a book.

Try code sec 72, specifically 72(t) that covers the 10% early withdrawal penalty. Is that what you are looking for? https://www.law.cornell.edu/uscode/text/26/72

For description, I'd use something like "primary residence-taxpayer" and "primary residence-spouse" or something equally descriptive so that the reader knows that these were separately owed properties that do both qualify for the exclusion if questioned.

You don't have to use the software's home sales input area if you have all the data and already know that the sale qualifies for the exclusion and the amount of the exclusion. If you know they received form 1099-S and need to report the transaction(s), you can report them directly on form 8949 by entering the proceeds, basis+closing costs, and in col F use code "H" and back off the nontaxable portion of the gain that should be shown in col G as a negative number. That should result in -0- taxable gain in the final column H. Do that for each sale.

I would put that on Sch C. I don't see any connection to cats and farming because cats are not livestock.

I've never done 20 in a day in my entire career. Different type of clientele, maybe? The returns that I have in now and the ones yet to arrive will each take hours of my time, and that's not including scanning, assembly, and possibly meeting with the clients.

Thank you, Abby Normal. I've never heard that about the UBTI before, so learned something new today.