Jack from Ohio

Confusing and contradictory information here. Try again with more details about the Client's situation before the 1031. Also, if you are going to work on this, get a BIG retainer. You will earn your pay on this one.

As long as Partner A had sufficient inside basis, the answer would be yes. If there were any transactions that lowered partner A's basis in the partnership, then that number must be used. Same for Partner B. If there have been transactions to lower his basis in the partnership, his basis would be lower as well.

The remaining partner's basis would be his basis plus the forfeiting partners basis at the time of the transfer.

Is this a test to see if we have learned about basis?

The "Underground Unreported" income is almost a ubiquitous thing with people in business. "I only show a small profit on my business, but if I count all my 'side job' money, I make a whole lot more. There is no way I am reporting all the business I do for cash."

I throw junk solicitation mail in the shredder.

Verify his DOB from his birth certificate. IRS very seldom gets this one wrong. Even some parents don't know the exact birthdate of their children.

Leave it like it is. I hate "monolithic slab" entries in a forum. I personally learned to indent paragraphs, two spaces after a period and double space between paragraphs if not indented. This way, those that chose not to learn how to properly write and compose letters or information can post and we can read it.

I thought I would ratchet up the humor today. However, I left it open ended.

Nowhere does it say that the daughter and son-in-law bought the house. All those points are invalid. She simply said sold for a small gain. I agree with KC.

Start up costs to be amortized once she actually has business income. Till there is income, nothing to do with the expenses.

Agree. Personal loss, no deduction.

From my position outside looking in, the story your client is telling you does not pass the smell test. Before you get too involved, do some serious investigating. From here, all the parts of the puzzle are not being shown. Just be careful.

1. Is it possible to go to the Marketplace and obtain an exemption for tax year 2014? I have a client who is insisting that she is eligible for a hardship exemption. This must be obtained from the Marketplace. Her 2014 tax return was filed with an amount due and she sent payment LESS the amount of shared responsibility payment. This was April 10, 2015. She just received a notice for the amount due for her Shared Responsibility Payment. She did NOT get the exemption from the Marketplace. I will need to call her about this and cannot find any information about obtaining an exemption in arrears. I want to be sure of my information before I call her. On the same note with the same client: 2. When applying for insurance through the Marketplace, is affordability based solely on income, or do tangible assets come into play? This lady was divorced in June 2014. She received $638K from hubby's retirement accounts. She paid the taxes on the taxable portion took $250K and built a house AFTER the divorce. She still has about $400K left. I do not know where the monies are. She want to plead that COBRA is unaffordable, unable to pay medical expenses in the last 24 months as well as divorce in 2014 as her hardship. Information from anyone with experience in these matters would be greatly appreciated. As usual, she blames us for not documenting things correctly.

Did no one see the (s) after the title?

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No WIN 10 on any computers I take care of for at least 3 years. WIN 7 Pro is still available, viable and stable.

​You must obtain a copy of the college account statement. You may only use the payments actually made in 2013. If questioned by the IRS, the 1098-T is worthless for anything more than the amount of grants and scholarships. You cannot rely on the amounts in box 1 or 2. Get the account statement and use the information from it.

​Just a realist. I get a real kick out of the requirements the IRS puts on us to protect our clients' information...

​If they wait till their systems are secure, it will be 2020.

The transcript retrieval site is what IRS turned off. You will have to call.

Be certain that the client knows that ALL assets must be shown on the worksheet. The numbers must be what was in place on the day BEFORE the account was written off. I had one rejected for $982 in debt write off. $132 in tax. In addition, the client must be able to document all his debts shown on the day before the account was written off. I have heard of IRS asking for documentation. Including a letter will not help. Just send the accurately filled out insolvency worksheet and wait for the IRS to respond.

ATX will send the 3115 electronically with the return.

IRS agents only visit corporate clients for unfiled payroll forms, or unpaid payroll taxes. Everyone is to make monthly payments since 2013, and that is probably the reason for the visit. Tell her to under no circumstances, allow the agent inside her home. Tell her to give NO information of any kind to the agent. Stress this very heavy. Those agents are trained to try to extract information from the taxpayers.

​Where did she get a notice that a return was rejected for 2014? The other possibility is that someone filed a fraudulent return using the decedent's SS# for 2014.