Margaret CPA in OH

Uh, that looks dangerously close to my present situation. Not quite, but close.

This just came out from AICPA, Tax Adviser: https://www.thetaxadviser.com/issues/2018/apr/reporting-publicly-traded-partnership-ordinary-income.html I don't know if it would be of any help but looked pretty thorough.

Well, I just finished listening to Ride of the Valkyries so this is definitely a change. Thanks!

I just checked - I'm one of the other 36 who joined April 11. Following the best crowd EVER! I was also part of the group that sent a picnic to the original ATX group (William Tasker, where are you?) in gratitude for their great support and, well, humanity helping us get through tax season year after year. I hope Eric shows up in June in TN. Love to give him and family a picnic, too! In the front yard, of course...

Use Form 709, Gift Tax Return. The exclusion is $5mil, tax credit $2mil+ The potential tax is applied against the lifetime credit. Since this is a generation skip, look at the election https://www.law.cornell.edu/uscode/text/26/2632 I think with a little reading and the correct form, you will figure it out. With such generosity, take into account any earlier filed 709's.

Ugh! Not sure how I would handle that. Then again, I actually know all of my clients and most of them from church. When they drink, I likely would be with them! But not in my home office - save the occasional red wine with my neighbor/former employee/friend/client.

This sounds really good - except for the minimum 3 user license. I'm only one person. Too bad they don't offer a single user license.

Doh! What was I thinking? It makes sense that a tax credit is an income tax credit and the tax in this OP case maybe is more like real estate tax. SaraEA, many thanks for setting me straight.

This client doesn't have a local CO return so it really isn't an issue then. Most of my clients are in Ohio but, again, none have ever paid a management fee. They are just renting out another property and managing everything themselves. I know it is late for filing but just got the information a few days ago. Not my fault. Another client is chronically late with data and always has to have 1099INT filed late. They have never told me or complained about late filing fees because I tell them every year when they are due. Horse - water - can't make it happen on my own.

Why wouldn't there be a foreign tax credit for the tax paid to Eritrea? My German clients with income here and in Germany have a tax credit for the tax paid on income taxed by both.

Thanks, Judy, the answer I was seeking. At least in local returns, rental property is considered a business hence my question. I've had several clients with rental properties but this is the first one paying a management company and hefty fee for same. Never too long in this field to have new things appear!

Thanks, cbslee, but I do know everything that you just wrote so must have phrased my question incorrectly. Yes, client received 1099 for gross rents received by management company and statement listing all expenses. My question is whether my client should issue a 1099MISC to the management company for the fee in excess of $2000 for managing the property. Thanks for the reply!

Client paid lots of money for property manager for unsold home when they had to move out of state. I can't find any where whether this is definitely or not requiring a 1099. In some respects, renting the home is a business. What do you folks do?

Hmm, I thought the DL was a state requirement. I do get a nasty note if I've overlooked re-adding the not rolled over info for Ohio. I thought it was an OH requirement not IRS. I got a blue or yellow reminder for my Australian clients who don't file a state return but if I forget for Ohio, it's red.

I saw this before and was so happy to see it again! How wonderful that some folks just get really into the music and the meaning. I've been in church choirs forever and have been told many times that I show more emotion than most which I take as a compliment. Thanks so much for sharing!

Well, I'm not convinced that taking it out of service to renovate for sale is the same as converting to personal use. This is an LLC filing a 1065. I'm going to go with the 50% depreciation and non-depreciable additions so that the sale next year will have all the data there. Who knows what other surprised might appear? But I do have the closing documents so can let them know the result for 2018. I just needed to get the basis ready. Thanks to all for the valuable input. Now back to the Germans... 2018 is going to be veeerrrrryyy interesting!

Whew! You all work so hard. I am not envious but am grateful that I never let my practice grow to that size. Seven years ago when I was 65, my other CPA employee retired so I just spun off all her business/bookkeeping/financials clients and kept individuals - well, a few rentals and small Sch C's, but nothing like it was. This has allowed me to continue while still enjoying the other aspects of my life. I thought I would retire end of 2019 but now, with the trusts gone this year and one PITA client that thankfully chose not to come back, I think I will go for another 3 year license. I've gotten several lovely (the Germans are really nice folks!) new clients by referral and am not ready to let go. Lion, I wish you all the very best medical care and healing so that you might come to TN for the pahty.

But we here ALWAYS knew you were cool! The star is a mere virtual, visual acknowledgement of what is in our hearts. Congrats!

Max and Judy, what a team! I think the two of you have combined for a solution. The options are Sale/abandonment; Installment sale; Casualty/theft; Like-kind exchange; Converted to personal use; or do not calculate gain/loss. None of these fit this situation but I can change the use to 50%, add the renovations as non-depreciable and sell the sucker in January! I'll check the depreciation calcs but honestly think this will work. Great minds on this forum! Again, what a team.

Thanks, Terry. It makes/made sense to me to stop depreciation as of end of June but do I mark it as abandoned (even though it wasn't)? It wasn't sold then or converted to personal use or destroyed. It never was a personal residence, always a rental. I can't show the disposal at that time as significant improvements were made prior to sale which obviously affects the basis. But how to keep it in the return while adding to the basis but not taking depreciation is my dilemma. Wish it had sold in December! Still scratching my noggin.

Thanks, I'll look it up. I probably bypassed it then as not applicable at the time but now's the time!

Client had rental until end of June then extensive renovations to sell. Am I correct that I have depreciation only until June? However it wasn't disposed/sold until January 2018 so not sure how to manipulate that in ATX for 2017. Ideas?

Abby Normal, you are just amazing! Well deserved Star for so many reasons.

Judy, we are all accessories but not to worry - our lips are sealed!

Thanks for lots to ponder and, yes, it will be very interesting to see how it all comes out!