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It is used as the "downpayment" and that is why the gift of equity many times is @ 20%. It's one way to allow the sale to occur earlier because the purchaser doesn't have to save up those funds in order to qualify for the mortgage, and it also allows the borrower/purchaser to avoid having to purchase mortgage insurance.

Right! After reading this thread, Venmo is a hard "no" for me. I take cash, checks, and already have Square and Paypal. That is enough for my clients, especially now that Square is also offering ACH debit directly from a bank account, and clients always have the ability to pay me via online banking too, or they can go to a MAC machine.

I have one that was filed in mid-March and still no refund, and the practitioner priority said return was rejected for unknown reason and can't do a thing about it. It is one that was completed in February and waited to file until the IRS and our programs were updated for the unemployment exclusion. It is the simplest of returns: single over 65, small W-2 and 1099-SSA each with withholding, $8K of unemployment totally excluded, std deduction, no RRC claimed. That is everything on the return, about $35K AGI, and agent said it could be up to another 2 months for the refund to be issued.

Read the post and discuss with any of your clients, but we aren't going to get into this any further here. I personally don't engage in this with clients until it becomes law.

Hi ATL EA, welcome to the group and thanks for that explanation. Clearly I was wrong in what I most recently posted and have hidden that post.

If it's a qualified joint venture, then they split each item and report on 2 Sch Cs as long as it isn't an LLC or rental real estate. Basically, by doing this they are electing to not file as a partnership. Here's more information: https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorporated-businesses#:~:text=A qualified joint venture is,be treated as a partnership.

I'd try entering the withholding as an estimate or other payment. That will take it off from the withholding line and still give credit for the amount paid toward the tax liability. It's won't be on the correct line, but I'd rather do that than enter nonexistent income to the return.

You might also try going back to that original site and then click on the option where you block popups from that particular site.

Today's email from Accounting Today had a link to its article about the best cities for accountants, separated into the categories of large, medium, and small. Parkersburg, WV was listed as the #1 small city and was the best overall city of all three categories too.

One more thought on this: Donor should provide detailed calculations of the basis gifted to sibling because the character of any future gain or loss on that gifted portion will be the same as if donor disposed of it. In other words, if that portion of ownership would be subject to ordinary tax rate in the hands of the donor, then the donee will not get cap gain rates on that portion either.

Agreed, a discount wouldn't automatically throw this into personal use, but it does have to be reasonable and justifiable.

There may be more to this. Owner was renting to a relative so depreciation allowed or allowable may come into basis calculations. Was this considered? One has to question whether the rental was at fair value, because every day of rental to relative at less than FMV is considered personal use. If less than FMV, how much depreciation was allowed or allowable? If at FMV, then depreciation will factor into the calculations. So, was this taken into consideration to arrive at the $120,000 of basis, and is there really a loss? Has depreciation recapture been considered? I doubt this will turn into a gain because the selling expenses weren't discussed, but if there is a gain, that gain will be taxed at ordinary rates because the sale is to a related party. Regarding a loss, Sara is correct. Sec 1015(a) is where the tax code places a limitation on the gifted basis so that a loss cannot be transferred by gift from donor to donee, and no one can ever deduct that portion of a loss. If and when the recipient disposes of the property and does incur a loss using the lower basis under the dual basis rule, the loss is limited to the the amount of loss beyond the reduced (dual) basis for computing the loss. In other words, the recipient would never get the benefit of the decline in value from the original donor's cost to its lower FMV at the time of the gift, but CAN take loss beyond that once in his or her ownership.

What I think is that your multitude of questions is well beyond what anyone here would be able to answer appropriately to your best advantage, and that you, as the CEO, should hire a tax attorney that practices in the states involved to formulate the plan(s) on how best to structure these businesses to achieve your objectives and who will be able to provide the pros and cons of the plan(s).

EIC - no, can't claim EIC with an ITIN CTC and ACTC - yes, a taxpayer with an ITIN may claim this providing all requirements are met. Child must have SSN, child can't have ITIN.

She's precious, Catherine. Congratulations!

No one here has the answer. The only way to find out is to apply and wait for the IRS to respond.

@Lion EA, not sure if you skimmed passed the part where Sara said she misses the in-person interaction of working in an office with others and meeting peers at live seminars compared to how she now works remotely from home since moving to VA. Finding quality CPE wasn't her issue.

I worked in very small firms for 13+ years before going solo starting in 1996. It's hard at times, but this group keeps me fresh with the current discussions and questions. I feel fortunate to have had some great experience and then had to be confident enough to make my own decisions and research. If I make mistakes, I own them. I haven't seen any of my peers in person more than 10 years, ever since my local CPA breakfast club disbanded and around the same time that webinars came about and were accepted as group CPE. Do you have anything like a small practitioners group in your area? We have that as a subgroup of my state's CPA society, but I've never attended. Maybe I should because I know that many of the breakfast club are a part of that.

I would decline to prepare if the client is unwilling to cooperate by providing the information needed for a complete and accurate return.

Not Richmond. That's exactly where I said to avoid. More west like Sara is mentioning. Blacksburg is beautiful. I'd consider it if not tied to this area. My sister lives in WV, also some very nice areas to consider.

Due date would be the extended date if the extension was approved, so the penalty should be $20 for each month or part of month that it was filed late. https://www.irs.gov/charities-non-profits/exempt-organizations-annual-reporting-requirements-filing-procedures-late-filing-of-annual-returns#:~:text=If an organization whose gross,day the return is late.

My vote would be for Virginia. Tom, you and wife should tour the state. It is beautiful and has something for everyone with its diverse georgraphy, climate, low cost of living in some of the areas, and very friendly people once away from the I-95 corridor. It is more blue-leaning than most of the others you've listed, but again, that is mostly in the metro area, and I don't think you'd be unhappy a little further west of that.

I should try that because I never win anything!

ATX1040 is ~ $839 Least expensive Drake version is the $345 PPR package that includes 15 returns AND IF preparing a total of 36 or less returns per season. It's $23/return after the first 15 free ones.

Christian, you might want to read the posts in the OLT subforum here, including those by Terry D. He stopped using that several years ago and now uses Drake.