Max W

Cash isn't a problem. Gross was over $180K. As for the auditor accepting the deduction and opening a new audit, the IRS doesn't work that way. The auditor only has so much leeway. Everything has to pass by the supervisor. Audits are not initiated by the auditors. Besides, the 1099's ranged between $3 -$5K, hardly worth auditing. There were other issues that the client came out favorably on.

I am going to rehash this. I can see that this seems incredulous to some, as it was to me. It was the first time after having done many, many audits that it has occurred, which is why I posted it, so that everyone could be aware of this. The client paid Cash, not checks, to various subs. Properly filed 1099's were issued. In the initial audit 5 of 6 were rejected as an expense without additional proof. The reason the auditor gave was the the recipients had not filed returns showing that income. The auditor was not auditing the other returns, but that information can be requested through the supervisor. Later, the auditor called me and only one now remained unverified. To prove payment, either receipts, or a signed statement by the recipient would suffice. Unfortunately, there were no receipts and the sub had skipped town and could not be located. Thank you all for chipping in.

If your clients report payments on a 1099-MISC, this may not be sufficient proof to satisfy an audit, even though the 1099 was properly filed. If the recipient of the payments did not report that income on their tax return, other proof is needed. This happened in a recent audit to a client of mine who made cash payments to subs. The proof could receipts, or a written statement from the recipient that the money was received.

Ahh! I get it. Nice job Judy. Here is a condensed explanation. https://bradfordtaxinstitute.com/Content/Claiming-NOL-Carryback-Late-Filed-Return.aspx

2013 was due, with ext., Oct 15, 2014. A 1040X would have had to be filed by Oct, 15, 2017, to have any refund.

One of the things clients overlook is that filing late deprives them of various options. With a carry back from 2015 to 2013, there is no refund and the worse is that part, or all, of the NOL gets used up without getting any refund. The exception would be if there was tax still due on the 2013, or if the tax had been paid within the last two years.

They are ranked 37th in the preseason poll. The Golden Bears , my alma mater, sorry to say - 65th.

Edsel's reply was purely tongue in cheek and he even pokes fun at himself. I do not know what you are taking offense to. Yes, I say he can "take it" and rather gracefully.

I think we are being spoofed by Edsel.

C'mon Edsel, where did you find it?

Are you kidding? How could I dip my bread into the runny yolk? BTW, how did you come to expropriate the name of one our most notorious residents. We live barely 4 miles from where he resided in Q, before my time, or course.

Well, as you can see, everyone has their likes and dislikes. It's sort of like fried eggs. You can have 'em sunnyside up, over easy, runny or solid, or you can have 'em the Spanish way. Now, the Spanish way is the way my wife used to cook them, because - well because, she is Spanish. They get fried at a high heat so the underside gets a little burnt and the white gets bubbles in them that break open and turn into something like hardened plastic as they get filled with frying oil. Took a while, maybe 10 years or so, before she finally got the hang of it. That's when I went back to eating fried eggs. (Every once in a while she slips up, but I forgive her for it. (Old habits are hard to kick).

Wow! I thought the modem went the way of B&W TV. The last time I used one was in 1978. It was 300 bauds/s. It took so long to paint the screen I could shave and brush my teeth, while it was doing so.

I use efax a lot, because I have to send and receive documents to and from the IRS and they do not do email. Neither does the CA FTB. However, when I receive their docs, it comes through email, so security wise, apparently, it is no different. I understand that , starting sometime next month, the IRS is going to truncate SSN's, Names, and addresses, so that should greatly increase security, at least coming from their end.

This is why I no longer do EFT payments. It gets you stuck in the middle and spending time on something you are doing gratis. It is bad enough when an EFT is set up for an installment agreement and the client is constantly calling you to know when it is going to be set up and why haven't they gotten the IRS letter confirming the date of withdrawal.

He is really Kreskin disguised as a tax pro.

Umm! Jack, you do know that people learn by different means. You do know that, Jack, don't you.? There are four primary types of learning - visual, auditory, reading/writing, and kinesthetic. (the last one we can leave out). Some people do better with one than with another. Obviously, you do best with seminars. Others do better by other means. And a lot of people can not afford the time or expense of a seminar. I, for one, prefer self study to seminars. Seminars try to cover to much information so, that at the end, I doubt that anyone clearly remembers 20% of what was presented. With self-study you can go at your own pace. You can go over material until it is fully understood and you can save it for a reference. Now the initial question here, was about a course for TCJA. Jack do you really believe that if someone is interested in that subject, they are just doing it to "buy" credits? Are you serious? Did you even think about what you wrote, before you set yourself up as judge and jury? If someone wanted to buy credits they would take courses they had taken before and just retake them every year. The TCJA has to be studied and learned, so no "buying" here. The SequioaCPA isn't chosen for price. It was chosen because I think it is superior to several others I've tried. For example one company had a course on real estate and dedicated over 30 pages to history of RE tax legislation going back to the 1970's and other outdated material. They had other courses like that and I wrote them scathing reviews. Don't know if they ever changed. I'll leave it at that for now.

I have efiled about a half dozen 2015's in the last two months. They can be efiled up to mid-Nov when the IRS closes down efiling.

Pacun, if you time it right, you can use the one the $149 payment for two years. When I renew, it is always in December, so I can use it for the current year and the following year, as long as it is done before the subscription expires. No, no newsletters of live seminars.

I have been using Sequoia CPE for the last several years and recently downloaded their 300 page course on the TCJA. I like their methodology where questions are asked at the end of each of the 18 chapters, to which the answers are provided. A sample final exam is also included . You can check out the table of contents without having to log in. www.sequoiacpe.com/

As long as it is available for rental during the unoccupied periods, I would treat it as any other rental.

One way, I suppose, would be to offset the income after the rental house was distributed, as an expense?

Bear in mind that the management company issued a 1099 to the trust, so the income after March has to be offset. What other way could it be done without issuing 1099's to the beni's?

Yes, it wnet in up to April when the trust account was closed. So, 2018 will be the final return.

Judy, thank you very much for your detailed analysis and am very appreciative of the time put into it. I am certainly leaning in going in that direction as most of it coincides with what I was thinking.