Margaret CPA in OH

If you do file, you could use OH IT-2023 for allocation of earnings in and out of OH. But my guess is that it may cost the client more for you to prepare this than the refund of tax withheld. As JimTaxes notes, it is below the filing requirement.

I do believe that has happened more than once. My quandary is that I purchased 1040 only for 2018 after having MAX since 1998. I calculated that the pay per return for the last trust returns and additional states would be less than the full price. So last month an email arrived with a bargain - purchase MAX for just $250 more! I called my rep who got the costs for the trust returns credited back so the net additional cost was $88. It just kind of yanked my chain as I still had to pay extra for 2 states over the 3 included plus some extra for the 1099's. So undecided about early renewal.

Yes!

DANRVAN, I agree. There was always the intent to rent the first floor apartment. And I have resolved all figures and am happy with the results. What is distressing now (always something!), in Fixed Assets, one can choose only one state for situs and these folks have a rental in KY and now in OH. KB was no help and I just posted a query to communities. There was something about adjusting on one of the state returns but I've no clue how to do that. Arrgh!

Oops! $17K, not $17. Original post, way at the top, shows $17840. Guess I got lazy, distracted or both.

No worries, jasdim. Most of us, me especially, have made similar mistakes. Our brains fart and, well, sh*& happens! But we are so lucky to have this great group to set us straight - with love, yet! And we can't be all knowing all the time - well, there are a couple on here that come mighty close, though.

Thanks, Joan! So for the moment I will assume that $17 is included in the 2018 W-2 wages and keep track as basis for such time as she sells the restricted stock?

Thanks, DANRVAN. There was always the intent to rent the first floor apartment and client has identified specific costs for walls, flooring, radiators, painting, etc. which I can isolate as improvements at 27.5 yrs but believe I still have to depreciate the allocated rest of the building for the common costs of new roof, gutters, plumbing, etc. The appraisal does have a note that says something to the effect of about $30K in recent improvements which would have been the first floor apartment costs. So I will look at the balance of the incurred costs to Jan. 2018. I will look at the section you referenced, too. They are coming in soon to review all this. And in 2019 are adding on a porch which is also accessible by private door from the apartment. I think that should be an allocated improvement for 2019. Thanks again to all for input.

I had a sale recently of rental property with the mix of 1250 and 1245, about 15 items. I made a spreadsheet with an allocation of expenses. Listed selling price and total expenses. Col 1 item; col 2 (SP*%Basis) col 3 Cost; Col 4 (%basis) Col 5 (S/Exp*%Basis); Col 6 Gain/Loss; Col 7 Recap dpn amount; Col 8 Adj G/L. With the formulas input, it was easy and the bottom lines (total selling price, total expenses, total recaptured dpn came out perfectly. PM me if you want the spreadsheet. I actually developed this several years ago for another sale to allow the input for selling price and expenses for each item as the bulk sale thing wasn't working for me. All the items went to the correct place on 4797.

Thanks, Rich, for this possibility. Would this amount have been included in the 1099DIV from Fidelity which handled the stock sale? That showed $1300 in divs, not $17K. Client has contacted HR but no response yet. I have also asked to see her final pay stub which may reveal more info.

Just, Wow! My issues pale in comparison.

Thanks, Catherine. I may or may not do that as the owners live on the second floor and there are 2 of them to the one tenant. The man of the house works constantly on the yard and improvements so I would guess generates more laundry. The tenant spends 3-4 months in Europe and around the world giving talks and attending conferences. I think it isn't worth it myself. They are all friends from Germany so smaller things like this I think are not crucial. If/when they sell to another owner who may rent out both spaces, they may have different decisions.

Terry, I guess it was just a typo in your number 2 paragraph. In the installment sale with a current client, the profit percentage goes to 6252 line 4 as Sec. 1231 gain then flows to Sch D Part II line 11, so both. My client sold a commercial building. I agree with cbslee first or DANRVAN at least. Unless you have only this client to manage, you may not get any sleep trying to finish in 2 weeks. Good luck!

Thanks, Joan. The client is getting more info for me. She forwarded one letter, vaguely worded with congratulations but no details. Sigh... She is brilliant in so many ways, but not so much this (then again, I don't seem to be either!). I will throw out all these terms which may then ring a bell. I could extend federal as she has a big refund but owes state tax. For now I'm thinking the Other info isn't pertinent to 2018 tax returns - right?

Thanks, Lion, this is my inclination and I am quite aware of the isolation of land and separate line for renovations subsequent to rental. I've already listed the appliances, too. I think I have to go with the appraisal for FMV, however, for the whole structure and allocate to the apartment as I don't see an easy way to account otherwise for common things like the new roof and gutters and plumbing which also benefit the apartment though not directly. There is a separate HVAC system and water heater so that's easy. Sharing the washer and dryer, not so much! Thanks again!

Clients bought 12 room run down house and rehabbed investing about $150,000 so far. The first floor was made into a separate apartment and lists for all costs have those particular to the apartment isolated. This apartment was mostly completed before the personal space. In trying to determine basis, I can be easily persuaded to include all costs to the date of rental and then allocate by square footage ( almost exactly half) but wondering if there is any reason/benefit to exclude those expenses for building depreciation and mortgage interest and re tax then depreciating the improvements as improvements - or not. Before going through this exercise, I believe the value is going to be the fmv at time of rental being way lower than the costs. An appraisal was done just prior to renting to obtain a mortgage to repay the family loan to that time. The appraisal took into account most of the renovations for the rental space as well as the whole house. Thoughts?

Thanks, Lion! I bet you are correct about the held back amount for taxes. That makes sense. I have asked for more correspondence and also to contact HR but no reply yet. She retired last February so her mind really isn't into this at the moment. I'm pretty confident (though perhaps misguided) that the increased basis to avoid double tax is the correct input, just curious about that Box 14 figure. I hate it when there are insufficient explanations!

Client exercised options, included on W-2, code V is exactly the gain ($85,000) reported on 1099B. So I increased the basis on 8949 as the gain was taxed and tax withheld on W-2. Box 14, however, shows Other Restricted Stock $17840. I am baffled as to what, if any meaning, this amount has and whether I do anything with it. The 1099B shows no basis for 5 transaction any where close to this figure. Each of those transactions are code (e) referencing cost basis that may not have been adjusted for compensation income. Client hasn't a clue. Ideas?

And why would not the client have copies of all or several years worth of returns? If he has 2017, ask for as many prior years as possible. Even one or two more might be of help. Does he have an amortization schedule for the installment sale? Did you mean Form 6252 instead of 4562? The percentage should be the same as established in year of sale and should show total of payments received in prior years. I agree with cbslee, the client has some responsibility here, too, for record keeping even if he doesn't quite know where to put the numbers. That's our job. I hope you receive some big bucks to clean this up!

Hey, I'm not dead yet! The message was that it wouldn't be transmitted like that so all good. I like your solution, Rita, so DD is out. The other items are needed, I think, especially the stock options, code v, but also the insurance, 401(k) amount and HSA contribution. So DD is it. In fact that is 12e so maybe karma was at work here. Next is Box 14 which includes $17840, restricted stock but I've already accounted for the $85k+ gain on the 1099-B which was included in Box 1. Always something... I'll have to ask the client about this as it doesn't match up with the exercise data.

Entry in ATX W-2 allows for 4. If I put the fifth one on a second W-2, anyone know what will explode?

Tom, that's what I do, as well. I never, ever prepare a return without an initial meeting and I always have signed engagement letters from everyone, well, except my son and husband.

I like that interpretation. The only folks I really never see are the Aussies and the CO folks but both have been multi year clients. Even the NC client comes to town to drop off documents then leaves.

I usually have renewed early but for 2018 tax year it may have been a mistake. I chose the 1040 package after MAX dating back to 1998 because I had so few remaining 'business' returns. Those were $54 each plus $30 for each extra state over 3 and I had 2 of those. This came out less than MAX. Well, about 3 weeks ago a 'special' deal was announced to upgrade to MAX for just $250. I called my rep who was able to get 3 business returns, $162, credited back so my net cost to upgrade was $88. I thought that acceptable then have had another state and 709 so think it was a good choice. Just annoyed that I did lose a bit that wasn't credited back. Suddenly I received two 2019 Master Tax Guides, a 2018 States Tax Guide for tax year 2017 and a 2017 Tax Book, the latter two useless. What a waste! And now I have to dispose of more stuff. I haven't received a renewal notice yet. I think it premature to send out when we are in the depths of hell but what do marketing people know?

How do you all answer this question when the taxpayer has been in your office ("taxpayer physically present") but you prepared the return later ("remotely"?) when they weren't there? The question isn't worded well in ATX. Just curious...