Margaret CPA in OH

Client's mother passed away, principal residence in trust. Residence was sold to outside party. Half was rented beginning in 1952 and I have all depreciation schedules to date. They are wrong (5 years for the property depreciation) but I can recalculate the allowable. In 1041 Schedule D it does have sale of principal residence data entry but the maximum exclusion does not fill in and has no link. I did check the box at the top tha the decedent would qualify. If not, then it would be the reduced exclusion, correct? Would not this property (adding back depreciation taken) still qualify for some exclusion? The selling price was $123,500.

Indeed, to both! Good chuckle this morning, thanks!

cheering, go to the atx website download center. The second one listed is Payroll Products. There are also updates to that after you download. I have MAX but assume that you would also have access to that with your product. Let us know if you got it.

Please don't ignore the 'sistren' along with the brethren

It's in the Payroll module. I have already prepared 3 and efiled one. Have you even looked there?

That was fun! And yes, I did all those things including the sharing. Thanks for sharing with us, KC!

I laughed out loud at this one...hilarious. Guess they calls 'em as they sees 'em.

I've had the Fujitsu ScanSnap S1500 for a few years now and cannot imagine being without it. It is so fast and scans both sides. It has a sleeve into which you can put small or multiple pieces to scan. I also have 2 mfc for flat scanning. One has a document feeder and is laser (Brother 7820N), the second also doc feeder but color inkjet (Brother 5460CN). Both Brothers came with ScanSoft software and the Fujitsu with something that, for me, works great. I am virtually paperless with my fax coming to a dedicated basic refurbished computer. I 'print' from there to Adobe and save in my client files. Love it and my dual monitors.

The only other thing I can think of is on Sch. D Part III, make sure to put the cg in column 2, trust's share, 100%. It then should flow to the beneficiary as allocated from cg when divs and interest are exhausted. In ATX is did flow there but I could also input as it is a blue field. Also, on the K-1 input, I did not enter anything to do with tiers as not applicable, just Beneficiaries percentage, in this case, 100%. Since paper filing is required, I think you are correct to prepare it correctly whether or not you use software.

I have the capital gains go to the trust. Only if distributions exceed the dividend and interest income should there be cap gains that flow through to the bene. One of my CRUTs fairly often must distribute cap gains but the K-1 shows on lines 3 and 4 the amount which then, as you note, is treated as appropriate on the bene 1040. I don't know the terms of the CRUT you are working with, but I think that typically cg and cl are kept within the trust as much as possible. Check page 3 of 5227 and you would see Line 58b even keeps track of undistributed cg. I think the issue is that the Sch. D is for Form 1041 and you are preparing Form 5227. I hope this helps!

Hear, hear! And thanks for the reprise, jasdim. Needed smiles this evening.

Bob, you and I just got lucky, I guess. For that I am grateful, too. I had a few issues more than before but not much and only one thing that hasn't been solved - still hoping by the time I file in October.

I hope someone reveals it because it is a royal pain. I have one client that had 22 different contributions that required separate entries. At least I had many of the recipient's info from 2011 and on the other monitor to type in but it would have been great to have that donee manager like the payer manager.

Client has now provided the paperwork. It states that the consideration, $1, "for said deed was and is for the full cancellation of all debts, obligations, costs, and charges accrued by a certain mortgage heretofore existing on said real estate." At the end is Limited Warranty Deed stating that the bank then 'do bargain, sell and convey to Federal Home Loan Mortgage Corp'...for $1 the property. What does all this mean? Pacun, the only amount shown is $1, no mortgage balance or FMV of property Should there be another document? If so, does it have a title? Thanks again!

Thrift store value and various, which I seem invariably to spell variouis and have to do it again.

I just scrolled through a trust return I have. The number flowed through from the deductions from page 1 as a tax-exempt item, Ord. Divs, Private Activity Bonds. You may have something different.

Thanks so much, Pacun. I figured there must be something in the works and more to do but not sure what. I will contact the client and have her provide the documents. I sort of knew about the iffiness of COD and that it was a waiting game. Thanks again!

Yes, that is what happened. They did take back the property and did not go through foreclosure so her credit is still good. My question is whether she may expect a COD if the property value is less than the mortgage. From what I can gather that is still a possiblity and is up to the bank. Just wondering if others have handled this as I know several on the board have had full blown foreclosures and accompanying baggage.

Client couldn't sell condo for about 3 years after divorce, moved out. She settled in 2012 with Deed in Lieu of Foreclosure but has not received any 1099-C or other forms. I haven't found where she is either free and clear or may yet have COD hanging over her. At least she didn't go into bankruptcy or had a foreclosure but what next? Thanks - first, only so far and I hope last client with this issue.

Sooooo funny! That's going to 'stick' with me for days! Thanks again, KC, for sharing so many smile makers with us including the tearjerkers and this is one.

I submitted a return last night at 6:05 and it is still transmitted to agency status. I submitted anther this morning at 9ish and it is already accepted. What to do next? I told the client I would send vouchers to pay the balance due, federal and state, and paper file extensions. Other ideas? I don't think I can recreate an efile when it is in this status, can I? I will check out the KB on the remote chance that it may be addressed but maybe someone here has experience. Thanks.

I saw that, too...cracked me up! I have also cut it from the paper to add to my funnies file.

Yes! And overdue bills, and letters and tax department notices - I could go on. I just don't understand why people don't open their own mail.

You go, Catherine - inspirational to me. I have to stiffen my back bone and willingness to be firm. It is annoying when you just know that choices they have made for their convenience are so stressful for us. In a way it is warming to think each of these has decided for some reason that they are the 'most special' and deserve this attention. I guess we may have given the impression (I know I have) to at least some that they are, indeed, special clients but then they really can take advantage of that. Must modify behavior, must modify behavior - mine and theirs!

I've been using since yesterday and, like Marilyn, notice the longer time to open. It seems that printing is faster at putting together the forms and less delay in moving between cells. But I have had very few issues all along, nothing that I couldn't live with.